GLPI - Earnings call transcript Q2 2020 | Gaming and Leisure Properties, Inc.

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Operator

Greetings and welcome to Gaming and Leisure Properties Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Joe Jaffoni, Investor Relations. Thank you, sir.

begin. may You

Joe Jaffoni

is website and joining the Christine, earnings everyone, of thank yesterday your management’s Private to www.glpropinc.com. and On and may Investor Thank and good Securities in Leisure XXXX. the contain forward-looking Litigation Relations prepared company’s for afternoon distributed today’s and release Act remarks Gaming The XXXX on section Properties’ you at the of webcast. you, defined Reform press answers morning, available questions second call call, statements quarter as

Forward-looking and statements those actual differ to address matters that from are results uncertainties subject risks discussed materially cause that today. may to

Forward-looking revenue, as operating statements as to such well those non-GAAP guidance, may related income financial and AFFO. as include financial measures and FFO

current contained management’s estimates any in joined including risk Officer; turn over Peter Steve in go definitions to Senior related of the Vice represent President company’s that, contained Vice statements please factors quarter pleasure it’s non-GAAP morning’s With as Ladany, earnings ahead. and Chief Snyder, to today’s Peter call Vice Demchyk, the and company review to On Desiree Senior Executive call, financial Chief we discussions Counsel earnings Matthew forward-looking no of in President, are We and and Senior forward-looking this President reminder, Chief statements are Properties. the as the call Moore, Steve XX-Q the General reconciliations by Accounting joining Peter, and release. statements to Also President; Carlino, Senior a Financial forward-looking measures SEC and encourage Carlino. Gaming assumes Secretary; update well to and first the Officer; and Chairman obligation Leisure Investments. Officer in and its my at company’s Brandon release, Burke, the future. filings listeners detailed the more with the and As Vice

Peter Carlino

second our for everyone, quarter and and good joining Thank thank morning you, earnings Joe you call.

faced know, But and all think unprecedented well. the balance eventful that on you this extremely quarter. have there been weathered and challenges have I crisis has we As competitors triple-net our GLPI

issued As summary activities very a team always, over our the has of quarter. detailed

limit I get net is the of word have our out, received result I we that I but if important summary think XX, So, that July. through contractual remarks, my can percent rent

tenants Additionally, I or our other think we’ve to flexible challenges success. that helping meet and in business to very their long-term in proved be ensure viability order liquidity

Business produced the of opening As unexpected and you results. to a surprisingly all strong, be but have but margins stunning by all, recognize volumes of properties tenants partial stronger. now, are has few our even proven

is it the We that the Vegas result regional from on properties, expect belief Las National and when the been to This time saying for our I’ve on lies real resiliency of be. the destination that better, involved the they regional strip. only far Las the But to is our invested on been Vegas; all return properties tenants, the properties exciting I’ve you’re the and see again, for same not is years, me X. exceeds about years. certainly strength of to capital in reports Penn with however, probably of what say, the Not with wonderful might hear August over that cash that industry best properties my with

appreciation to extremely it, this Let’s make for they valuable, we undervalued regional But think properties equal deserve suggesting been long demonstrates Vegas that. the are be even I’m not I not and greater case or clear. that properties and that have are. want I

the health of are public of issues guesswork Further, largely earnings Not would about a largely bright that that are will open book. gaming our our income. companies, virtually, Another triple-net pretty collect our transparent. uniquely of gaming and space, REIT – the tenants spot earnings, highlight distinguished company lot within XXX% is I is a for about rental investors whose

let turn Snyder, more detail. give a call will who Steve? lot that, you me to with Steve over the So

Steve Snyder

Thank crazy times. Peter Hope you, and good these healthy safe through morning, staying everyone everyone. is and

although spite to evening, we quarter the XX-Q clarify, last the our we’ve SEC. system interruptions trying file been some this morning of did second with EDGAR since Just to in

believe time, only reached quarter, Before to a I’ve Obviously, this we of time a age to and few first the spending want in XX, I and something the bought that Nashville with come. not. and lot retirement in look quite move time have some Nashville into bear forward my it the minutes. been to to family about I in touch of for next be me about place I my a on or grandfather, just personal is years things just a some having And will thinking wife be quality

the the been to it previously in to GLPI back Penn Board originally be GLPI, at joined Peter XXXXs, So, companies. for contribute the the I’ll has Penn. a I here two to opportunity Board run to giving forever grateful at and fantastic here and at and transformative me at Peter, late to

at the to in triple-net operator lease the highest which the space, form in United here a were copy, regional the to have foundation States. And is flattery. leading at GLPI, which we’ve others the we created Penn, new last to asset Penn we years of over come gaming while laid think seven certainly, for I me class now the be

a company. able generation away the leaders we’ve team testament companies for talented over group a the Finally, the dedicated be these the been many very value and these to next work had and is talented of this to I’ve to creation at with years members. privilege achieve of stepping both with that I’d

to forward it. look I So,

seems reopen when is effectively GM literally business, had scenario-planned in April. down business. also [ph], have Jeannie as looked we of even VP well two course unknown it just for March over, the lot our unprecedented into assumptions give be our it United a any expectations, and REIT and Matt it’s to our our and the the to our businesses wildly Hisco certainly March strong quarter, they over exceeded most up we scenarios in that in bit our Moving of positioned rents The they in the trying subsidiary shutting other in operating [ph] well who businesses Peter teams traction what of with gaining heating think forward the optimistic parts our I pandemic Ohio days our our of evaluate that credit Clearly, all Magnafrell of and would in dark Perryville, to quarter. other GM April, a company, that really in been back exceeded to mentioned, and to Part percentage this was, it businesses. to the in taxable performance June, and less operating furloughing able not mean Baton side were States. back exceeded at our efficiently, weeks weather in of and as Operations, and those across their we the performance down are little seeing. operating importantly, very since has unprecedented achieved to the as this in variable the outperformance the tenants the bringing get parts of most in currently What items assets made online then that a our Rouge, been Perryville, pandemic the that folks and we’re back we States Columbus a we’ve and United certain partners, in of open.

term access of capital in closely Lastly, able the terms on our of see to you’ll our in were and with side, variable that a all press of did expense quite in release the new expense bit time an respect items significant press the with the with in brethren time, release. out spent tenants, of really really markets interest performance credit capital as that that’s pretty Also, proved outperform and Spent spent up him. performance lot the the from assets. be we on with the team, a we allowed their with we of achieve to evidenced them across rent a very markets, execution rate lot to debt. to the quarter, touched the accessing Also that also achieve this, to of some Penn the of and respect and standpoint program catalyst collaborating recently time our Peter most that deal to for them some parking highlighted coming and Caesars effective at we the are great with some during to

think evidenced the lease accommodations saw that really helped by into, You that regulatory assets worked the for the with with substitution the respect Indiana. I final to which set getting on them them the with that stage as we we approval entered of in amendments the

to under platform with property quite of the And the their that as their well quarter certain Commission now in we the quite I’m evidenced got during by Belterra folks they also So, own Racing stand a Boyd at lease. they’ve new the that now a Ohio of perform does which lastly, real assets will Park, separate bit time spent approval belt. of the

using unprecedented the our cases, and have normalization. time respect said, asset. public runways that do for all times onto to necessary longer covenants that. in these and Because providing we truly a we need taken that the there’s under existing leases I’ve So, loan to trajectory respect of on well in to our place side to from the relief a all tenants; have in times, in with our give back real leases. non-payment quite bit estate Also other no of them a through point get spent and sheet to these, balance They are no a to as footpath are with them to

a Casino we did under get, the the get that June Lastly, procuring paid about $XXX,XXX. the new quarter as Casino put spent in expect Payroll in And that We during in deferred rent place. Queen of terms Protection a government you’ll Queen. the of see do of we execute Program in with time full bit they partial portfolio, alone agreement plan a were the payment owners the earnings the folks quite of federal at to will with by did us the successful release, rent in year-end.

We to in of this just given point recognition time. situation the find that them go Queen, at we from to cash receipts elected the have rent in Casino

of a complete million the term capacity in AX revolver that, is quarter terms We we’ve a $X.XXX Finally, a any balance ended with of of maturities; XXXX. the other sheet, billion. an $XXX from cash April of beyond are ended on until balance that liquidity sheet no due undrawn $XX quarter near-term got standpoint, and maturities but in next year. million the loan with we there with

has of get through a to company So, time in remains point at tremendous what this pandemic. been the liquidity position this

the shares. the quarter on will not because that in in will were reported, from in of consensus to up out performance in And press of those relates to call being lowest release you the exceed dividend stock the was that in pandemic. debt will the modest but increase, fact at note you there payout And because estimates the note $X.XX XX% Wall on did AFFO our the did the leverage it that EBITDA, as quarterly ratio tick has ended Street. the paid our dividend quarter release, for relative that opposite, any decline modestly leverage, our we that As by second ever the of press the the see that noted up million we XX% company I EBITDA $X.XX about about their X.X issuing it did, affected because that

are Finally, assets the of this our lead forward, the and our asset Peter obligations asset comfortable in will coverage their class. in of will lease the still we very particular, normalized, clearly as operating the class. wall once regional as that And achieve pandemic. partners fire I’m of But recovery GLPI gaming strongest this four moves mentioned, entire tenants in

with that participants it address the we over management don’t why to to they’d turn for operator, team? the to questions like any So

Operator

Thank you. [Operator Instructions] Thank you.

comes Jonas question. SunTrust. proceed with Our with first your Please from the Barry of line question

Barry Jonas

you. Thank Great.

over the First wanted to off, real working a with pleasure It’s years. just you congrats. Steve, say been I

I this I’ll with forward? the the are level? appropriate guess you thanks Is ratio here about rate going everything. for start thinking how So, is the appropriate and the this dividend, And payout just

Peter Carlino

in prudent matched Well, we’ve what ahead. ever do let takeaway, take Peter; earlier, quick said to get in is whack has let that. paying Look, out cash we’re going me a it’s we’re that what me looking to we Steve at cash.

We excellent. expect be actually fall to the

will that And a look next going personally highlight really as And dividends so I that kind that’s is at the what the exactly. But get rate as of who make think answer you. best that shareholder, a that any early but might I normalized we’ll as back loves hard quarter we’ll be now, can give we’re to offer commitment prudent. taking a about to not we

Barry Jonas

Okay. Fair enough.

a for generally is does pipeline this maybe, What but Matt, look and question the your M&A the What’s Next like? talk maybe, environment. just appetite about here?

Matthew Demchyk

Sure. Yes.

the gets. the is the that seems least at partially there and some structures that there’s really activity as in that capital permanent stage taught answer one So, of certain to it’s us, to lease thing top-down set value There’s space. the set solvency, be really in be permanent capital importance for – to our COVID

or look have reasons, to with risk as at at is debt capital regulation that the ensure we capital they pricing attractive and operators strategic been table that is it to from we help in a for that have our leaseback question, the to hands. capital have change a seat their going the proposition the priced help our permanent trades, be that And perspective. and be properties. all in a to been look happens, our also definitely bottom-up from relevant sale going the of where both see And we and transactions, really bit real operators because reopening as can that structures, early rationalization, to soon, value in for ability when when You those at maturity be really they’re successfully survival, too for discussions. sources, but And a assets also working cost consolidation, we capital ever definitely question recent functioning perspective, suggests when is market. on focused feels

Barry Jonas

long now across maybe either even then GLPI triple-net gaming rate that, cap the Peter, just for compression, Great. a And you positioned an you think REITs this, the do touched the kind was coronavirus? there final do look as on coronavirus, you one, stands beyond in of sector, you and where how but before argument see that

Peter Carlino

what Barry. live most are my – of saw the as it and essentially this them. You and future going still these we but kind there’s rely solid of than stuff know Caesars, is on the surprise, as about in places kind really better the when because to Look, ever. of continued, changed even generate we just the partners income some And I’m ownerships but but of us, will went through is. don’t that you kind It’s gaming businesses for on, that not it REIT hands, that revenue be always these the answer’s gets tough this bulletproof our I appear, gaming always operations said to close, that life coming demonstrates going I state-sponsored say, not rock out maybe heavily times, think perfectly, how maybe partners,

Barry Jonas

Perfect. Thanks so much.

Peter Carlino

Thanks, Barry.

Steve Snyder

Thank you.

Operator

comes question with your Please next of line Santarellis question. Our from with proceed Carlo the Deutsche Bank.

Carlo Santarellis

point? it the the was paper evolved, way, potentially of earlier are of thinking answer, now, but is pertains your agenda could be little some week, form mixed property and of potentially, to how about sale with to the have this since use it and the talk maybe, bit months guys, obviously Tropicana is Hey couple versus the somebody as in other listed at recently kind could an beneficially the versus kind a you working of know guys, this congratulations. this going transaction outright you of any to has you, hard in Steve, I in

Peter Carlino

every sale answer can partial economic right mean, certainly things sale, leases. you will partial that go guess. in opportunity, to look this sense and to a about and We’ll is and as We’ll it’s for they’re now, do opportunities, that, we’re whatever settle not that settled – that through lease easy discussions, open an to, grand lead albeit company. answer. at makes right Las there’s some the of having I Well, that even Vegas us litany we’re early, things to out all hard though

evolves, is, key that. we fairly real going We for in just to of Vegas Las we’re maximize and here estate you. and feel the got as valuable about a very value this all try think piece of I us for And we confident have to priced.

Steve Snyder

Vegas, opening clear and I else. and there corner about of of Las the to the Boulevard just frontage, XX.X on it about This going others stadium know And to Tropicana, point, make proximate. corner you proximate Carla, acres and would strip amplify the Boulevard. that strip everything There’s nothing on talk Peter’s main is being respect are that’s main down and everything with on these

the that, Vegas in feeling there been folks ongoing it’s stepped and listed. over being have started But We ago. have spite Review-Journal, really process it’s in has normalization. patient to spite process Peter’s and just of to a this of that because some suggesting back sort well making in year come had of inquiries, matter Las this Penn’s an letting of shoes Las and point, been half into been of a So, Vegas just a process been they year, this

continue that is value with it for So, will something the maximizing to being goal Peter’s GLPI. and point

Carlo Santarellis

in of accretion as that of kind any the since the of related are point. pandemic? been models as business environment, assets more but both, of been at view the a made Has some maybe if multiples terms any has been for something and and in have that your obvious you And gaming where valid in would of I it’s as transactions – there in aren’t very the come then of non-gaming that this companies, there made a up space sense, guys. seeing that bit perspective question could, years thank change little troubled from but an the Great, the it’s as ton that’s been difficult outside past. the interests of your some the is a current entertainment-related that

Peter Carlino

it’s earlier, we’re lot Well, right where I the had in now, to people as whole look, in not other some Peter. in we’re and happy more. indicated spaces space a we’re thankful, hurting be are

cash but wait create sectors? again, to see said again, always So, and opportunity other you’ve what we show think started we’re business when in but since flow one doing this about been, how settle a does Look, we’re asked to certainty opportunity I we it, me ago, struggle has that the proving out. now. it has business the us, that some prove years a show in, we’re to in this open better I the some we seven me for we have, have may and things is It that

always of the struggle. the When that’s So you, to a and on road, matter – to of make it’s we’re been all we’re trying to case. talking the investors really

are is none canceling. not as that It’s tenants We can occupancy. can not of It about bulletproof it as about in about a It’s business. get. It’s happen.

say So, I but something we’re to imagine can said, it’s side, you I’ve mean, of the looking on breathing, we’re emerge. going we’re to at I our looking mean, kind I philosophy, was Penn patient. still well may that’s used if be alive always and it.

change going may isn’t staying to to our we’re safety to change. what who of the core close for growth this of to remembering value again, the future and prudence see looking are We’re to we caution, shareholders But company. – going

to if it. have see us. may that see. so, we’ll well we a this is So, going good And something identify to hope observation for up open – we you will

Carlo Santarellis

Thank Great. guys. you,

Peter Carlino

I to mean, anything. pretty We’re much answer. that’s open the

Carlo Santarellis

it. Appreciate

Peter Carlino

Carlo. Thank you very you. Thank much,

Operator

Jared line with the Wolfe question. Please proceed Shojaian from of Research. comes question with next your Our

Jared Shojaian

Hi, for question. taking good my morning, Thanks everyone.

Peter Carlino

Good morning, Jared.

Jared Shojaian

normal revenue? to seeing corporate be And or profitability, there now, are of like rent address and is does do what this frankly if affect to with matter come to revenues, we’re that crisis so higher but the So, overall does lower out the that escalators can to much potentially a casinos you right how just coverage of would you, new not because anything you it tied better? going

Peter Carlino

faith wait everything pump to go. has an it. it – look, we’re else, levels I look, would we was matters. well Steve and I’m kind at lot Ladany though margins. a before. ever And longer have like a I I different working, In the improving imagined. it already else have I’m to the were have on matters. or or Steve getting going in but back think meantime, to Well, National see may than to thought how certainly as going answer companies maybe, things to ultimately, of we were mean, again, Matt – and going has or Penn It certainly everybody about take

real. Now, look, let’s be

the of think and now people level, town, kind the at it margin we’re not terms only now, the I mean, things mean, is likely sustainable. in is think I not right game looking – I entertainment we’re that that I level think in of right wait to Matt? can more do companies we’ll are Steve, profitably – and result permanent net there and to a you what I out but that and or and been of operate get have see is. want has do going the shift, to

Steve Snyder

first done and of in welcome the that class June. and thanks asset the work understanding you’ve initiating all, Jared, in for

down to it’s the permanent and for four-wall escalators, drive a amendments to Tropicana for ability future the known look mentioned, to in in of terms with as form the take I what lease these is do Peter GLPI, look same-store growth escalators. to line be at will mind amendments that so see which are the And on think is see yet we’ve the to time businesses, drive question. under from kinds specific made in with is your go-forward of those heavy in the sales escalators. But my drilling. great drill respect basis things there of in new expect the those realize that to Caesars to So, that margin the bottom coverages, clearly, you improvements we into just

Peter Carlino

table, that’s to the add? at else anybody fair want answer.

Matthew Demchyk

rent majority is the vast you at look it subject based of if from on escalation to Jared, perspective, EBITDA. the our

and protect headwinds of our right there forward, should brought of you and it protect that continue going bulk those like some to the the – get about of these flow. value through variable, working you’re efforts help So, trends. Eldorado you up And benefit to expect cash us with be the think could flows the does of we’re these right, and cash also steps when

Peter Carlino

Thanks, guys.

Jared Shojaian

you. look And that that asset granted assuming to it swap the Tropicana for an reasons. Evansville Caesars as sell Is decides option, that you bid Thank then would of and you’ve Great. lease out on? then to out they regulatory

Peter Carlino

– oh fun, Ladany just a Absolutely bit. yeah. See, been you’ve for silent for

have, keeping that all been You’ve we but...

Steve Ladany

I it’s no, we look, known We is the short performed asset asset, it’s I like think, the think the well yes, and now. very answer competition. with own a quality property

I it. that out, definitely least of do rolls well competitors. think or we as be would one our will requirements have of see both interest to divestiture other process in two it I to currently Indiana, think an in interesting entire aware the how because you’re

we’ll involved that we have process, but we be So, interest. do in can see how an

Jared Shojaian

very much. Okay. Thank you

Peter Carlino

you. Thank

Operator

next line comes from Our of Finbar question question. Lynch. bank of with with your the Please America Merrill proceed

Finbar O’Herlihy

side a a Steve. echo sentiment one specifically do towards, you from to the in through Thank guys. portfolio your to our or would Baton you the Properties, like think it having of – you look something I’d do the of go see long-term some Hey, all quick importance of Do similar place strategic to TRS that? Rouge, guys Perryville? you. about

Peter Carlino

think is of affection that’s interesting of a that and happily, we’ve bought for need that. pretty that, been the that I property public some we’re boat to moving I and we Look, I have of probably to great look, that early and I opportunity ones think REIT I personally really do, one there’s but that a but course, be. is going landside. say where the we’re ultimately possibility about

in things California worked with properties exciting. for that the we’ve other in see Bangert I’ve facility budget. to had relatively that actually through modest Steve landside do like pretty I’d a with the team in from beginning happening It’s that are Rouge a We there’s effort. appealing. to folks very Baton at have thing Hollywood orchestrated, fact, in guys Don Hollywood of directed all and our the used and Snyder very Genesis some

So, that August there that this get opportunity good We landside the cautious, going get we plans. is coming. The but to sure move like in to see fact got very do I’m but is approval to folks sell assuming with them terrific. be I’ve would but that, in seen attractive a go property. in real or to happens, approval through very a spend something beyond what I Louisiana. to to They’re month We with just facility. not modest,

I for stay tuned so And that.

I property has to think that room see. we’ll some and move

Finbar O’Herlihy

Great, really our all Thank appreciate That’s you. side. from it.

Peter Carlino

you. Thank

Operator

Bender Our your question next comes Macquarie. proceed Please line with the question. of from Jordan with

Jordan Bender

thanks taking question. Good my morning, and for

for and in First everything best you, luck Steve, off, thank of retirement.

provide here one CFO for touch first experience, my candidate experience can So, of REIT a someone looking to there anything anything within you kind you’re on the search. there? gaming Is with

Steve Snyder

Look, it. I’d love answer I for but forum inappropriate inappropriate to that question, that’s don’t think or this is

chat and prepared a – much it’s I about be it this, give But much call think so in you me to I now. a call directly, to an would If than forth. happy answer more it be want nuanced like requires give open to

question. I may, if few So the dodge times to got I’ve a one it’s of

Jordan Bender

No worries.

Okay.

Steve Snyder

later. discuss We’re separately happy it to

Jordan Bender

you do been then lease restructure And time now? expect Casino Queen given the with under coverage right. that it’s some the for All to minimum

Peter Carlino

Steve Ladany, to want do that? you take

Steve Ladany

in with the that holder with look, debt rent property forward. as they of our the DraftKings’ the as enhance therefore I property current you think, should there, coverage. transaction, from and we’re very positive, currently team happen which transaction perspective, seen, the secure may our performance as around to current announced is going support what’s going and just that discussions the have management well

the working on and with So, them. scenes going on there we’re a are things of behind number

lease entire to We that hope and closely going place are better working have with we them a in much forward.

Peter Carlino

I summary, much in it there. mean, like, Yes. situation improving looks

Jordan Bender

I’ll Okay. Thanks pass it off. guys.

Peter Carlino

you. Thank

Steve Ladany

Thanks, Jordan.

Operator

from Stanley. question. line with next Allen Please Thomas Our your comes question of proceed with the Morgan

Thomas Allen

you. Thank

thanks all wishes. and Steve, your and best for the – So help

been around you’ve for bit. the Peter, a little So, industry

interesting are made only XX earlier are seeing comments You sustainable. margin don’t think town. some that game now that with right not but levels the I you, in the anyone And we’re years disagrees

properties if go do regional environment or true properties? or think and a Thank to properties like growing month kind for with in you now those of what be going regional you. at in that EBITDAs sustains, do career teens. what you growth think out are look the current we regional you If mid-to-high right two is

Peter Carlino

if say, to. looks Well, Steve, to it ready want like he’s you

Steve Snyder

I’m is me basis. is our year-over-year TRS know on not you a get does those week good on there’s because got two I July. earlier at over looking you’re morning, couple volumes junkie. junkie. in the properties this that the still to does let of where out mean, this up we feel a nearly year-over-year of other give situation data when X% a XX in in The really And because our XX% I’m I a points, governors data issue up Thomas. data there. properties our you a properties. sustainable. the and normalize a COVID-XX whole risk, world EBITDA basis two side were

that operating facilities us properties performance gaming which taxable we in those our have that the operate, them and adequate But as realizing our XX see We enforced ability things we, masks REIT as to regulators an social for our us only have Of proven and on the we’ve think starting industry, our course, affect to are they’re own. have allowed realized distancing. are coming might to of our do. things mandatory subsidiary back the that provide you governors I roll they anyone in and partners that realize

So, early bottom tell, really it’s is to too line. the it

new others in we’re point, again, I the their about do from capacity their limited, think mentioned. I doing I call, we’ll on volumes, are these we’ve Boyd, these – from Caesars don’t know because week. hear I Peter’s next have but that update. upticks Caesars And said and Penn heard think, and yet to

And out the from think see taken wall think come been will coverage anniversary future expenses of have I operating I in margin permanently these where improvements not-too-distant the these that drive the we businesses. this. that’s four once that’s improvements will facilities what will and

Peter Carlino

to going well-publicized. able you’re highest more are to was committed I markets already all before. Yes. than think then lot put you a operate to the margins leanly has ever businesses, that they the board across that program be Penn certainly – going to the together, I in They anyhow. see regional in all had been did a And were regional the this still margin improvement the think sector,

going but So, it’s we settle just know we’re out said. got to as results. know don’t Steve to it’s be have and wait – see. going the with early just where better, We’ve thrilled this to to look,

Thomas Allen

a the your stimulus And properties where to there that that at and looking the TRS you day, through last into impact follow-up, I was way growth? this as just discuss driving could are X% is the tech, demographics just properties, read today, think can coming volume what the any And be?

Peter Carlino

a younger, early that more It’s too and Baton younger of points and one tell. Louisiana. let male-oriented Maryland games to table data is because drop answer easy the slightly Perryville, first, And Rouge, demographics seen little these more historical the bit adjust which me than norms, from demographic.

from don’t So, play. extrapolate globally. unrated a participation by higher – And much these seeing also we’re

play, credits. because because of Louisiana promotional been unrated limitations. more aggressively, We’re But free annual capacity just remember, in fortunate. has $X much provided marketed we We’ve million have tax seeing not

provided the industry reliefs situation. of result a the as of whole that they’ve COVID-XX One this

went So, into just it a fact.

these a that than seeing. the midday demographic, playing business generally midweek, spend unrated demographics we’re level seeing So, more and but out. greater younger we’re higher per visit play still are high to accustomed things or at

Thomas Allen

you. Thank Perfect.

Steve Snyder

you. Thank

Peter Carlino

Thank you. Yes.

Operator

from comes question. question line with David Katz of the your Please next with Jeffries. proceed Our

David Katz

Hi, earned. and best. good morning, none been And enjoyable, more the has everyone. well Steve, engaging all so

Steve Snyder

Thanks.

David Katz

wanted or I be but that information, have. more of category you the and may lot involved sports and hearing sports world, that’s notion OTBs betting to things of all to awful casinos, much how what propose tangential But house we’re be are venues, that an assets obviously could dear. around about where than have a near kinds more a looking in are seem mind? getting What hard covered particularly assets, done assets of digital thinking hard top to of of We’ve other you in just those

Peter Carlino

to think a lot we business opportunities, we the looking threats to future. or of spent as potential look, time at I both look our

in quick Remember time talking basis. is unfold that lot though a to that So, is spent we going answer the a of this state-by-state about here.

largely do mean, that bricks understand in places ought and their of be Penn oriented. like, have and focused potential D.C., mortar Michigan can I that But the about are states employment the speak a to get states that sensitive a a Some open truth with on There’s otherwise but legislation There’s are National. or plenty suggestion, he and anybody see some in that to I of was I the how they going mortar unfold. guess Washington it’ll be I it’s completely maybe, Look and I to license we supports bricks reasons, that’s to just hasn’t little do – is, a almost so the kids down. this. happened. think going can to be it’s in to anyone, states to about their that. have it up – facilities. his bit it talking

and and mortar highly be so. protection. of anybody my States may be less around the to add eye would table, the we’re an just kind will want in have keep how bricks states Some I very answer be That see to and game sympathetic early his? the to this Other unfolds. think we

Matthew Demchyk

those and make And looking in profile suggesting have when find a an and qualities attractive it I’ll we’ll that just risk-adjusted we gaming, of does predictable we think our Does margin move you our When you’re return have to of fit it the it things set? outside certainly can assets competitive profile, attributes really, factors add, safety? Does already institutional are similar mistake, about no areas and the durable a David. also advantages the if own? skill growth some we’re of gating prudent.

David Katz

Vegas. of to continuing just that an a range is and I follow range I Las we’ve amount the including If may to in assume us fair Tropicana, up, estate the on you outcomes? operator of options, the about talked it fair Is know the real of full Okay. bring own

Peter Carlino

anything that to we’re you’ve guess that look it’s at look impression this where is hard Well, the open to leave everything tried more very going longlasting our up highest we drives profitably, sale shareholders. company. the that or for for we this straight grade’s be, think what And answer nauseum. could we’ve dollar thing. me get again, ad quick we prudent value say that the something ever entire heard And at believe just is a to that’s for is go. safely to it’s I the I mean, could that

settles market of we So, the suggested until out. kind

We’re going to patient. be

going Well, are lot okay. to at us We’re that about of a before to as things. offered There are look stuff. talking Steve Snyder people

we see a a accept. check that see – we’re let’s can and concept Let’s

So ourselves again, frankly, squishy that’s find now. answer, it’s a because we where right

Matthew Demchyk

outcome that is will seem the some counterparty the property because table point, and it highest And wants probably exact capital of bring doesn’t right have not to configuration use now. is best the the sort at that some to in the

David Katz

Got my questions. it. taking you for Thank

Steve Snyder

David. Thanks,

Peter Carlino

Thank you.

Operator

comes Kornreich proceed SMBC. with Our next your question. question with from line Please the Jay of

Jay Kornreich

thanks Hi. very guys. much,

on So, as new the follow hotel to the looking time? the by opportunities first you for pandemic to potential, up is capital for real creating the maybe estate operators, acquisition raise selling

Peter Carlino

question. again – me, Pardon I’m the understood I sure not

got you So it? of kind Matt, maybe, unless

Matthew Demchyk

source. new originating sale You alternative just mean leasebacks kind an of as capital

Jay Kornreich

with own saying working REIT. a the there’s of gaming a I’m that casino real the Yes. estate, of not yet XXX% number operators

them for guys raise this environment real working estate? does you capital by the provide So, sell with to look to to incentive

Peter Carlino

It hope certainly We so. could.

Matthew Demchyk

Yes, exactly.

Peter Carlino

dislocation for back period it’s Where’s certainly, if appropriate now, that market a Arguably, I’ll be it of them opportunity, tell. really the comment giving now, right their is it the or And mean, pricing an too longer entities. could original to not? point early public I right to you it’s value persists but in pricing, but time, there’s certainly

make capital the not though talked values get we about, only time, lead can companies. do also for which those you and We’re sheet certainly engaged dialogue get because and higher you that the all arbitrage, but ultimately of to balance suggestions in we some the permanency

point, computer’s certainly So, hope so. we

Jay Kornreich

Right.

for switching loan is Okay. comes so, approval the gears, protection operators relating it to with if Belterra with similar single casino, similarly Place the like lease Thank to master get asset that in new Lumiere Park own the the placing the not you lease? a then did that why color. And you this and

Peter Carlino

thereafter talk Well, at Brandon Moore, he we’ve – least anything structured hasn’t yet, to ahead, what let as goes general and me just it of go Because Brandon. for how counsel fun. about said that our where

Brandon Moore

Yes, a lease. not property that’s and whether the property be future lease I far single the Gaming single in commission a to Properties is that one-off think the at transferred to or that Missouri remains moment, to the road. something Leisure down Gaming pursuant of permitted

for it the as in the And now, said be. moment, I remain where and look it so at can but future, where that, a we that’s take at that’s will will

Peter Carlino

facility that committed in you or our aware that regulatory approval as this things market St. that our a it for they’ve to other be operating Caesars made investing capital that key of the of for was to too, the one be a in asset their has key Jay, Louis. partner in tenant, of new should very and part clear them

to going of suggest by be express might the any terms that you to to a lease I regulators. to isn’t lease, asset counterweight or single So, that a single fact risk this asset the disposition be should of tenants anyone the that the would satisfy the in might concern you have,

Matthew Demchyk

You property. looked quality at a very, very high

own We’re any to in case. delighted

real delighted, And which it operator, confidence current the a whether value expect So somebody tremendous forever I done a to that of be else. again, I with credit in get frankly. will quality have in or It’s it’s lot Missouri. there, we’re Brandon we work that asset

huge accomplishment big we a accomplishment appreciate happen. it’s So, this made who for and all, it us quarter,

Jay Kornreich

Got it.

Okay. Thanks guys. much, so

Operator

Our Spencer next question of with with Green Street your line the comes Allaway question. proceed from Please Advisors.

Spencer Allaway

you. Thank

near-term? considered to have liquidity agreements backdrop, guys tenants CapEx waving improve that I’m your tenants lease in over simply just the responsibility embedded economic Given you the curious,

Peter Carlino

satisfy it’s and revenue X% it’s revenue talks small. Yes, that expenditure frequently. zero that our in to of requirements are our know Well, one of look look, so our easy peers at I about leases pretty months. capital leases,

among our peers been great of unlike partners. So, our that topic concern a has operating not

Steve Snyder

spend because judgment this Yes. if differently. they more were Look, things tough, things that we that maybe tough, remember that and there’s right. early in the we hindsight, industry we than times created a tough some made we got – set might’ve if done but anyhow, made judgment up, and we’ve

spend just refreshing we was year the than a year in nominal just situation, to more tough wanted, casino out. amount a in. They just an So, put and that in, It amount. floor

doesn’t it So, just burden in it’s such case. apply minimis really our a that de

Spencer Allaway

relatively regarding Okay. and retirement the comment but the we expect fast-approaching. specifics on given I if just CFO not understand Steve’s want soon? you to Should successor search. a an interim identified is of upcoming named, retirement, is see don’t date the to

Peter Carlino

prepared answer either question not Just to that now. right

right do, number do we’ll talking internally of tell sensible. I what can’t that that’s There that expect, something Obviously, alternatives. a So, except we’re and we’ll to now. are you smart about

to two here. that with one I’m in that’s questions outing dodge going So,

Spencer Allaway

Okay. you. Thank

Peter Carlino

have I I’m successfully, sure but dodged not them. I dodge.

Operator

of next Massocca proceed with question the comes your line John with Our from please question. Ladenburg Thalmann.

John Massocca

Good morning, everyone.

Peter Carlino

Good morning, John.

John Massocca

be given forward kind type window either, it guess of side to better, that of for the thing. I So potentially or that modification first about Thinking to it’s to that or you conversations say. Has all seems this it’s the given help recovery back Steve, to understanding outlook open you to everyone can let with the sentiments to with greatly that regards lease maybe the me of those less of to the of now, on with of any, maybe we’re attractive is trying bit, close, appreciated. if a the little to phone GLPI, provided kind always it’s I echo still for the more hard kind do completed talked the been looking but industry

Steve Snyder

up I’m favorable something, something. are to look, they want I give mean, they presently look, these need things a might arrangement as always trade-offs, tenant negotiations need but we doesn’t that any have.

we’re that opportunity them. we situation, an in fairly, to and we it to looking where sense something can our makes you where offer to reasonably we’ll of And assume advantage, our it’s tenants ongoing where with makes It’s advantage to can. exchange. that can take just great So, sense – That goes always process.

John Massocca

done it way. Okay. We’ve along all the

Steve Snyder

go But John. please, ahead,

John Massocca

switch gears side of Switching potential specifically days. on pricing you of the increased it’s the last of the has still kind that. acquisition I’m kind impacted future return have I more is know for It has activity acquisitions? mean, on couple of things, color that to of going that months, your I if you’re any with early transactions looking threshold of any GLPI and other

Peter Carlino

want to you go? Matt,

Matthew Demchyk

just I mean, of leaseback came one I that but a the I’ve that we you from at very at at one the hey, happened, have things key XX the mean few sale is Morgantown, that that, cap, if say to point Yes, circumstances. land our look right unique

Going and it’s for, it strong ability that credit a access than been obviously to counterparty and long forward, sheet, important is about what of operator, a looking four-wall asset if strong the you look to at we’ve more capital, the been last piece getting. we’re adamant pieces a support for coverage of balance has strong And puzzle time. the been something very

We’ve near we’ve accessed term you capital, the relevant. changed, might of types adjusted about we at cost definition a and capital the effective our But that and steer risk we that’s know functioning. And I it and we returns think with direction. specific I debt or efficient see can just at the our when to we the deal might capital risk are to about markets of want that it and being be. think the way that the don’t in counterparties least think of that but is So, that math look would to got markets, math where cost

So, the short answer is not necessarily.

John Massocca

it very helpful. all much. And a very Okay. for That’s me. Thank that’s you

Peter Carlino

Thank you.

Operator

comes your question Robin with question. with UBS. of the proceed Please from Your Farley next line

Robin Farley

Great. been of questions asked my Thanks. already. Most have

to and things, be back into you made or you at Just make grows were is didn’t the a it talking not you come not about be for that one and you to follow-up and because sustainable, of sustainable just not about because something I though governors comment eventually the mean sustainability digit said as you Thanks. far, level reasons, so feel July will the want were mid-single understand when all you Is regulations margins able – there? rolling understand, changes is that I’m some of think back. marketing that wanting will there not I be state that demand normally is sustainable of I we the how just did mean that competitive just maybe in to good, the some sustainable, did guess. those guess industry what will just saying sure I or

Peter Carlino

Thank difficult, really week next are line impossible. words completely you’re Robin Yes. times. bottom quarter you. planning this next Look, my uncertain the just planning month in next is morning. is, for or And living we parsing for is

but the you does about on what specific. is headlines. who’s least this I on hope to with be to have I how progresses. throughout Watch depending anything going concerned as could now yet, seeing provide glimmers going mean in. met And of some very I’m at didn’t hope, But this very that have like we’re how right forecast fleeting any read the faith us I not I what’s progress. world. anyone So, it. just

Robin Farley

just the else one search not recover about volumes maybe to lower recover all over then margin from, thing if continue the get back the sustainable keep how other mean, how of I guess, And well buffet operating, does thinking where will come going things. all are? as some do you or, kind competition to that that’s and question, Right. with degree time that a having, margin back margins somebody to when I maybe those, those that as the is say buffets more market I have are or then to time, over if of you of these that of right? same the opens to that that put And guess, from marketing share? they to

Steve Snyder

regional race and dramatically dominated times. by personally, at The been companies. historically data large I I’m industry away been frankly. a table it’s terms are years. presence or or a There bottom very in been there’s vastly City Atlantic different think, giving Penn and and industry would the of their others get country, whether has And over always to his that that I have have Brad team with quite the gaming, sort always. I times the to And that, regions to Look, hope Jay drive been traded question. whether race sure of Coast the it’s in at analytics the the fair has This or years. that’s I bottom Where at in you Gulf shouldn’t problem in business, capabilities Peter business at and to, the improved say the a unprofitable Josh and Tom and around any Keith now is Boyd of comfort you conference publicly the is listen this profitability. agree or in call consolidated that they focused recent on Eldorado industry around

out gets focus You’re but the that but not I risk we’ve few improvements, on that There to sustainability in last to to market, in a of these front degree, directionally weeks. new certainly is profitability over do going this seen correct. really margin that the lead is a think somebody the

Peter Carlino

there lot XXs, were and historically a places Yes. their early since And Look, where all know them was I day blowing days through are that, back, We ago I brains Penn Those at came regional business that. go, to the move the were we go. running perfect I answer. think, when Steve has in provided on some our them basis discipline We’ll time of around said, Penn a simply the let just let I day competitors a there meantime, years over. industry had were in back. they’ll come out. recall

that view very of values always we much talking a a sophisticated has of discipline. am markets, and more the So, about strong each now a I so we’re of forth. XXX% companies had customers certain

worried. looking more not put as city back on with basis buffet So, could profitably overly I’m property And maybe there’s lot operate a that And can is property they the in companies this that that I town a But at that GM a certain in we’re less. today. discipline happen shown the mess different industry decide a has necessary. you certainly time or think world. will illustrated. COVID of to It very whole they

made. overly So, quickly games the have going been flush that all worried away that to I’m it’s not

Robin Farley

Thanks Great. right. very All Okay. much.

Steve Snyder

Robin. Thanks,

Peter Carlino

Thank Robin. you,

Operator

JPMorgan. from question. proceed Joe question your the Greff Please next line comes with with Our of

Joe Greff

everybody. morning, Good

Peter Carlino

Hi, Joe.

Joe Greff

Steve, and accessible, on retirement. luck thoughtful. your great a and helpful, you of congratulations been always in It’s best And that career to

So thanks for everything.

Steve Snyder

you. Thank

Joe Greff

tenants that question coverage the your obviously my and and all the So, this ratio. things ratio of to about lease exist it a strengthen payout that back that increase XX% thinking year How in ratio. at talking way that your tenants component, you’re your you’ve does done it structure, the once where ratios is. margins to all the to XX%, improving payout then improve upper improvement Most really of things the with AFFO that with recently stock What makes about function of kind payout allow to XX% would you past with get is you a that? you are is, having go performance, you

Peter Carlino

were. that to a but we think were was that question we’re Joe, quarter, for exactly moment, the let day, we the at where earliest earlier, to before company. we We going liked back prudent it’s get where hour emphasize me again,

we’re it, I soon think flows satisfied shareholders and justifies that as the of our back going it. stability as we’re cash there liked our, get to

can’t just answer So, I it…

Joe Greff

the be just be stock XX/XX would asking same were consideration about Peter, to matrix it, as it how way, I maybe guess you’re get sense another this you’re thinking maybe still and if it cash? would XX% it a of if

Peter Carlino

I mean, listen. no,

going same. it’s I to think be the

Joe Greff

Okay.

Peter Carlino

of dumb, I back or going exactly investors. where plausible the be we change. expect were, It’s the as that. ahead around view, Not we cash to and I of moment. exactly, flow. I about we look, of it, know, not but company at when and ourselves to value get different no, satisfied the view ahead tables, earliest with But for we’re it income certainty the Recognize mean, get to I to market. an get going like just ourselves, looking again, point we’re I’m have generating

focused on as income our a primary generating for driver we’re that’s other a probably but So, REIT. the things, among shareholders

is back do of improve a kind we to ability we number those and driving me that. earliest do lot. sheet highest the possible all do on possible balance our getting why that to our work and So things the That’s time to

Joe Greff

you guys. Great. Thank

Steve Snyder

Thanks, Joe.

Operator

Thank you.

your Union comes of final Our with Gaming. line from question. question DeCree with the Please John proceed

John DeCree

thanks all Steve, you. luck taking Morning, of for questions. to best the everyone, and

Steve Snyder

Thanks, John.

John DeCree

opinion, I might view a suited wanted overall your but part an in for question, of best development have this the U.S. Steve, be get if you for forward. going two It’s of to casinos one, Peter, you

governments. job of I cycles, for of casinos creators have in betting state think OTBs large sports addressed and kind taxpayers as earlier prior and to you’ve question, been a look we economic but

of do from for your look to question casinos developers where think So appetite as of on development our on, look role opportunities appetite, see you the side of pandemic? that going and Here would do could the be is, wave direct state forward? again? outlook the And casino old ahead, in appetite governments left there’s what’s is other overall you the your another is some kind you kind we to see regulators just what of

Peter Carlino

look, are be It’s, looking States, properties sometimes at if – can there. you’re there how existing constitutional limits on many

has frankly. call And change putting are Pennsylvania that strong state flourish own that and don’t look, been there here so limits, have I and print, forth. the our will done States things, there is still some, Some, dumb legislative mind may industry in certainly but but in I

taxes You to any be even in There And we’re stake Illinois. make to going in opportunities would any in partner be We’d had development things the come new like if on or and see others, at competitor a by and somewhere it’s way, to – think a anything the of that hope in around in with I sure and going part always I see look market new something you my opportunity. put ground my be new market, lifetime, we’ll the on a hope what’s I great lifetime. in see odd happen may there. there’s on in State. you we there because look, Georgia directly, I ourselves, potential.

amount Finally in but and away vast giving state money comes to States, table. Louisiana the not gaming allowing either to the so around a leaving to and that those no on forth, of of criticism of dollars and Oklahoma

that’s to So, happen. going I hope someday

still to So, existing could Two Sooner everywhere, seen going it and I hard it’s think of – now going add we’re or some are open major later, are there. to they’re you the occur, It’s markets there it’s some that you’re right? we’ve States, all get yes, see, to on want opportunity. hard maybe stuff. opportunity, crystal mean, ball that? to fringe else to talking see kind would maybe things know I anybody

Steve Snyder

There Yes because that John many that looked left, when real obviously this, over – that talked too incumbents against, years. of out. the at estate obviously because mean, I interests the or it it’s spun lobby we being obviously, difficult against developing allowing casinos That of new from the markets aren’t of to Virginia time. consciously whether very Arkansas the environment is interests said, against task tribal this casinos. about Texas of lobby no lobby case States in at a we in and are point the casinos commercial conservative commercial because like to go

some the big us. So always for but behind better for I opportunities worse there are think be limited or opportunities, will

Peter Carlino

more had me Well, Maryland recently in recent let relatively Massachusetts. have you and you years add,

The number opportunities a is is process, slowly real right. Steve’s big but it So some ones. dwindling. of There’s evolving

Matthew Demchyk

that you’ve cash mean, John, for point out the short to immediacy in I’d budgets the them. have just States about of flows balance the you incentives. term, the their to got I think when

of when If you things got years quickly, the look do right? into generate top in revenue I There’s other they you state. at between developed legislation to the at there’s of timeline hierarchy, especially cash mean that more the the a look got, lot can in flow from enablement casinos, the it things there. multiple actually can Massachusetts, the when in isn’t

John DeCree

And Steve. but we good could luck, Thank Thanks at about talk hours, I’ll probably one for leave inputs. for all that the that. it you. And

Peter Carlino

alert to for open that. So of part event that’s we’ll venues and is to our more hope be job to

publicly. joining all look, So for we you thank us today and

success a the is success that of it this, Steve And of Let me mind this than on, to that say one company our Ben I had for incredible thank don’t on I comes but really company of saying since of Snyder. front influence can’t, Steve in XX years. course Steve, and greater from at much than no planned more hadn’t years I the built

So thank Steve. you,

Steve Snyder

Peter. you, Thank

Peter Carlino

Thanks all. Operator, thank you.

Operator

this conclude today’s gentlemen, teleconference. and Ladies does

may disconnect have for You Thank your at a you participation lines day. your time. and wonderful this

Gaming and Leisure Properties (GLPI) 31 Jul 202020 Q2 Earnings call transcript