Gaming and Leisure Properties (GLPI) 19 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Joe Jaffoni	Investor Relations
Peter Carlino	Chairman & Chief Executive Officer
Desiree Burke	Senior Vice President, Chief Accounting Officer & Treasurer
Matthew Demchyk	Senior Vice President & Chief Investment Officer
Brandon Moore	Executive Vice President, General Counsel & Secretary
Steve Ladany	Senior Vice President and Chief Development Officer
Barry Jonas	Truist Securities
Greg McGinniss	Scotiabank
Jay Kornreich	SMBC
Daniel Adam	Loop Capital
Thomas Allen	Morgan Stanley
David Katz	Jefferies
RJ Milligan	Raymond James
Shaun Kelley	Bank of America
John Massocca	Ladenburg Thalmann
John DeCree	Union Gaming
Robin Farley	UBS

Call transcript

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Operator

Greetings and welcome to Gaming and Leisure Properties' Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Joe Jaffoni, Investor Relations. you. Thank

begin. may You

Joe Jaffoni

is statements and call, and everyone XXXX Leisure The at yesterday and Sherri section Investor for our prepared of earnings are thank Reform forward-looking in the joining webcast. defined to website afternoon distributed and release to Gaming Properties' On Act XXXX. press on good uncertainties you, cause remarks the of as that and answers that Relations those your differ today's morning actual www.glpropinc.com. you call statements available questions management's today. address Thank The and fourth quarter risks results forward-looking Securities subject materially may Litigation matters discussed contain may Private from to

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

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

Peter Carlino

thank this all to have who in Joe Well, you, dialed morning. and welcome

think, that new that Let be some year. of me saying out most many brand had start we, had year and the us by in we most respects on I not of one the just for to of if XXXX a in I'm year company, this a successful, of successful spin side But GLPI. there's bizarre for things our good all -- came year, last was the have into glad since

we is -- spectacular that that if is we've GLPI I frankly, at is along regional we that portfolio. think it. saying get properties in in Vegas. illustrative we're investment, Look, the We've I'd it, Las always the the Penn, gaming what build not been but part of that good on the in discount. kind the property. kind all at area news proved The regions, I strength a of properties sold of have of rather the real interested to own Wynn return in are have, Love the in

what which this to collect we relationships did by is was has move terrific at within. with And times, undisclosed, by as each provided our solvency to a a Notably, the That along question. great tenant case. happened obviously, the of But moreover, proven downs. range successful, ability the have in -- way, of and XXX% and -- because what's Penn know, stronger Navy a time you for we us be is spectacularly to of the to some will when can all leaps tenants. well our credit you did see help as be worst year, of which strengthen number rents We would things said along our a is we with

Waterloo, remove agreement, say it a thrilled Standard Casino Greenville property We Baton foregone Bettendorf. at We got General. at a at highlight Hotel things. got to but the here and/or forgot that just which a but the that’s summary Complex and Baton were a of conclusion Rouge because things of of There We have as lease in Bally's, boy, I'll the proved Holdings. Tropicana we couple in particularly replacement questions with just well Ceasars in back, cool Hollywood XXXX formerly with rent quickly as And by occurred. a Evansville feel difficult Master provide right the into I up a the run. And Belle remind of escalation that components, fixed front Evansville transfer a a of which do so for look through Belle back the to far we things, we acted Casino swiftly, early. interest about was let we're them. very was me, purchase it did acted go was permitted exchanged repurchase permit enter Caesars, of With which to in Tropicana, Rouge. we entered agreement we pick long Casino Lease Hotel gone, be owned into removal time, Queen, variable Perryville. for of in Casino is We you to to lot to then Penn in me amended that It of we the we is as great Twin and the things to thing great, thought a the couple Evansville Isle good. the have Isle the that but accomplished a these membership way, for with time, the in Along So almost and Tropicana River of a again. result. not

of master the a new to the our and by which St. Rouge We that unsecured Louis, satisfaction Moving a stuff, objective in We Dover Downs than would Queen. between property membership loan, we that's you broaden Hollywood excited an accomplishment previously We're Delaware, terms which Miscellaneous new entered about. almost the agreement the base Casino, from we're entered loan. unsecured to company into we with an Hollywood tenant in Cincinnati might Queen. agreement and lease loan, an million way of Dover written-off converted recovery we always the at master terrific. a Baton for that, finally, Downs Casino Casino further, we purchase Tropicana into Bally's, us. agreed excited forgot, With $X we provided Evansville, from more back, but Boyd acquired we Casino Baton on a Lumière in acquire I that's to agreement Gaming agreed sell about an terms in quickly, guess massive operations Belterra of of quite help to and the to is And in that Rouge. into Place lease acquired include a enter

We Rouge. in to received to year. what We're to I But land with the real also following notably us on sign GLPI appear approval a REIT Baton the that now. right will estate Hollywood acquisition Casino that go announce side and working property our say last COVID only is announcement

use, to aware year regional one and Desiree, I'm the few that, her she should as this, the looking to I us. about So as good it or as I can now interested and back REIT has you With business I ever, I'm We're well. hard-working and look – commercial. business get hungry so was at to for thought And a regional I'd gaming pretty that highlight more like be points upfront. I've ask feel make as say and to as going already on said pretty a than strong of.

Desiree Burke

our join Thanks, time Peter. Good morning, thank you and everyone, to call. taking for the

performance collected of for was the quarter we quarter Our due fourth as Casino combined the good, quarter compared of we're the XXXX, fact to our metrics million. the Queen fourth rent fully $X.X and deferral with our ahead of rent the all agreement key that to in of

items non-cash though In that addition, our should included in P&L I we I that are had highlight. several

as Peter to we in Tropicana return, $XX.X had and Bettendorf First, Waterloo. transaction our we non-cash the gain had income In the we a million received recognize Caesars statement. Evansville exchanged where exchange mentioned, of

quarter, the those than in straight-line adjustments rent are, some accounting just in rent the we of result past. we're Second, rules we a less deferring the had what had as and

percentage full and ramp on reset a details $XXX,XXX X, for and a October that rent about disclosed, percentage percentage over for Ohio Columbus our the million several recognize we reset the years. information occurred Obviously, Toledo next quarter or million. a in rent year. note full more will XX deferral in The $X.X last Casino by This our as lot the for excluding down is on rent how For $XX.X Meadows of the a XX-K until has we've which Toledo, rent for was XXXX. that, reset for is rent

compared and results. Their strong up Additionally, properties ago. adjusted a to our were year million revenue TRS with million booked $X.X EBITDA continued two net and $X.X

continue strong than spend the reduced We see to levels. offsetting more visit, is per attendance which

Our adjusted detailed quarter net turn income, And over it to the all which EBITDA our FFO, AFFO for that, the is Matt. and ahead throughout with of I'll year, prior were release. fourth

Peter Carlino

thoughts well, please. Matt, Yes. add a as And you to want few

Matthew Demchyk

Yes. Sure.

First, turning to our balance sheet.

balance on the to promise we prudent Just liquidity quarter sheet a sheet leverage. call, management. as third is value our by balance thoughtful raise transaction, of characterized our And robust result, after our a and prefund delivering a completed equity successful

that the a transactions. our at clear inside theme those valuable This GLPI, the yields of to benefit can the that being for validation trade strength peers. long-dated In markets materially utilize we of the Based for our debt by a and position, the cost model, on safety inherent average offensively business in our capital, addition, of XXXX postured. debt weighted unsecured is continue to of is our

focus margin prudently As remains remain disciplined our we a we opportunities, of voracious. on achieving safety appetite and our in navigate

relationships being deep structuring sector creative stand across and Our of and advantages. both solutions team's gaming record counterparties, unique for to decade’s be competitive track win-win the our

committed of is most the Our opportunity to team XXXX. making in set the

crisis take were back More wrap we economy that quickly tested. before became and existed, a I the flow across Real perspective. resilience for our up, asset ago, battle the classes the cash than class financial to decade or newer asset real estate I'd step global a world. As tested estate like

has New durability In winners losers contrary demonstrated trends evident, amidst expectations. the the and reflect challenges. interest pricing since, traditionally became institutional at to come held to and years times, many and

been of triple estate of assets, that’s institutional found of our new have currently forges in subject entire of by another saying the a has the broader old goes, COVID-XX different test to presented the wrath shatters quality. and spectrum like portfolio, steel. challenging far, the majority yet estate real and collectively the vast resilient across thus for backdrop ones, late, but the and hammer, has assets. more and be world the especially economy significant to proven far regional in And unique Of glass As real considered net resulted hammer gaming

case gaming to the is And on important with and While it signpost for estate. I'd that, gaming real like as an undoubtedly real hand written, the being serve expansion study compression towards still estate. path institutionalization to will back Peter. multiple call the for Multiple

Peter Carlino

Matt. Thanks,

can't XXXX as it, So leaving about in impactful think great summary, very we move was but GLPI, was year say, it I a I'm sad for year. XXXX, and a I into

with of and rest the So present an perhaps to that, from create questions floor opportunity will open today. we our the team to hear

operator, go So you would please ahead.

Operator

[Operator question Please Instructions] Barry Securities. proceed. Jonas with Our you. Thank Truist from is first

Barry Jonas

Hey guys, good morning.

Peter Carlino

Hi, Barry.

Barry Jonas

Hey.

start just and pipeline past what to love the XX the I days? get environment. would there, with the changes notable any updates over M&A any Let's like looks current

Peter Carlino

life leave you there's I Look, don't I'll to tell I'm but feels to across, there, he he it's -- Why can. out Ladany. it what looking Steve Steve

Steve Ladany

Barry. morning, Good Yeah. Sure.

a I in far from front M&A the as landscape technical us. as think perspective of

side, the a continue we across to opportunities our coming of On see desk. myriad non-gaming

during have COVID As you'd imagine, has non-gaming space, areas leisure etcetera wonderfully other of but up the experience, the gaming held not.

So continue across number of to a that opportunities our desk. come there's

presents as best said before, risk-reward has the opportunity a returns for gaming However, we times outsized believe Peter to continue basis. with that many us

and we potential are gaming So a in the have parties, number as are continue looking operators. of discussions space with active. opportunities, And to landscape we new as of M&A both a very there to number continues at much other existing the be

Barry Jonas

if really was That's give can Belle as and our you And it Great. the sold Baton Rouge. status to us follow-up, know it Caesar the it helpful. what to road? master Casino of I And I'm there's still if your guys status with no rent there? the -- lease for incremental what down opportunity just adjustment any the own rent. is or the Thanks. then from removed Great. a just on Queen, curious you

Peter Carlino

Brandon, the of you that piece? regulatory want part to please take

Brandon Moore

That yet Yeah. is Yeah. transaction not closed.

approval regulatory Queen still. that subject general think Casino to I has sell team, So the operations to the Standard Baton to announced they've Control the Caesars Board by agreed that's but Gaming Belle Rouge Louisiana

is intention to that Our own to property. continue

the property from lease growing that lease. and Louisiana, is to at the remove in moment in the standard that it with property. put So a If general still we'll is transaction it Ceasars intentions in our But are separate new that approved currently, the lease team. continue

Peter Carlino

that And there's out. comes master lease, no transaction that adjustment to does property occur if the Caesars and

Barry Jonas

Got it.

Okay.

Just you right. wait guys. Thank and see. much so All

Peter Carlino

Thanks, Barry.

Operator

Our proceed. Greg next with question from Scotiabank. is Please McGinniss

Greg McGinniss

Peter, CIO as regarding from need they the responsibilities between roles? through morning. been split how of those please CDO Can you are questions investors Good two? we've us Hey, bit roles, a getting And seem both the and a complicitous. walk for creating lot the

Peter Carlino

quite portfolio, within opportunity questions well, he's of the all gaming evidence in our our elements along is to what place it couple actually Do that an -- straightforward. And minds, have balance had We've already, in in I'm you've Steve's like our like? pre-finance? influence. look we that fit seen max this with, way. Greg, at in if to world of some that's a look does is pretty do it's job that, sheet? valuation, familiar. we it which property, a So simplifying financing source we it's interest primarily the Matt, relate look, the the it's But and it's How

you this they're phone, appreciate phone roles. two works is really confusion, The I Matt. but in is who the out you the So, road, will, The on the person if guy can Steve. on or by if guy will, different

together, works together. team working work fine. functionally, two the our And look, it's but -- frankly, So,

Greg McGinniss

those if this of questions you. And right kind follow-up, the the Are on any there Thank calls sale tradition a what marketed morning. often I Okay. focused And assets pipeline. these for don't really are And on generate? then, like EBITDA, and assets are being so casino currently acquisition now? feel do that for so, breaking

Steve Ladany

was, clarify, are To being marketed? casinos the currently question there

Greg McGinniss

Yeah.

Steve Ladany

can buyer trying Right. we're of as public some sale individual, been those with on lease, with give NDA, in we are well. sense. under obviously, large-scale rate. Yeah. fact mean, these that run I but also I the as occur of the portfolio And a private, think so the mean, operator, believe one that that's side part strip. Vegas in where Las settle figure wholesale complication I smaller, contemplate in out that opportunities, mean, there are property have in. for that not are are the assets as there well are land of also I many is going needs things to are seeing properties. And multi think there's to two, properties, a I if exist the where very the margins margin is you that transaction that the they a new they're, are between to will sellers single assets trades that But on I could it's improvement fact, far as

Greg McGinniss

right. Thank All you.

Peter Carlino

Yeah.

to another. one activity You Its another there's matter. Actual clearly. or -- of know, sort that we answer always don’t activity is have

So mean, breathing, alive I've we for as said years job, times you've this many is me If look -- say I at to many our before. it's heard everything. and many,

offensively for you say, sale? can find know, can we're I And you're if selling, the to But sure a to appears. is it. plays, prepared at positive imagine Matt don't strip said aligned, -- that seller's is I and Well, they mean, get he you And as of ready role out What's we're just big course, could to what's You you think job, be ready, do. go opportunity probably looking now evolve be matter. to as earlier, make property the always doable financially. things were buy. these That's I I another our as frankly, when that that interest

are. we So, that I mean,

Greg McGinniss

All right, I appreciate Thank Peter. you.

Operator

question next from Please is proceed. SMBC. Jay with Our Kornreich

Jay Kornreich

Bally's sale current your I update with the potential further Can expansion good on guess, portfolio any the you around status their morning. dialogue casino Hey, pipeline. with with provide or within sticking you? just acquisition either

Steve Ladany

them we think, at and mean, expansion. their talk have opportunities and opportunities, or potential frequently, our The to are portfolio looking -- different whether they they tenants about current mean, other recognize that to the has world to than sure, Bally's that growing I existing I very come I been within pretty no is expand. different rapidly

we So, to are may constantly about opportunities talking what markets loose. be we them and them shake exists, interested they in what help things can what

dialogue. constant in we're yes, So,

Peter Carlino

Yes. They're look -- buyers. they're hungry

And hungry. Steve want as think, very of to they're be says, choice. their I we partner

we So hard. very work that at

Jay Kornreich

a the And them. further you million operator Can towards expand for have your and Okay. performance you'd agreement. with back the was this have I you update lease with? moving which and guess, of an rent their trouble They on you master tenant, this provide Casino like $X and Queen, loan, now an then, is maybe deferred just rule pay that to

Peter Carlino

You want -- take Steve that side.

Steve Ladany

Sure.

think, one TRS acquisition that I So, is their of post would clarification would exist, master lease the property. our make I

in still So, lease. asset single currently a that's

with management they're very think I very in like Vegas experienced. the we're the marketplaces They are worked locals markets. -- comfortable -- They've competitive team.

the And required that what think, manage these so, the continue growing, to and interested most it's with necessary and in of get you've think Bally', heard very as side properties far sports reach think enhance their address interested continue renaming I they're Casino things. to the I asset iGaming in and the especially of expanding to Queen which betting acquiring with mean, on footprint. And the they're to you've And and I performance. we're seen the they'll respect well similar as look to the I have they out think talent to comfortable assets, I to as

Jay Kornreich

That's me. much. for very Thanks it Okay.

Peter Carlino

Thank you.

Operator

Please Daniel is proceed. Adam with question from Loop Capital. next Our

Daniel Adam

morning. question. for taking Good my Thanks Hi.

Peter Carlino

morning. Good

Daniel Adam

larger XX% just market roughly call you GLPI’s, earnings if the So, Peter, of this make is first is, larger. do cap dynamic I than anything? curious, what Penn's where believe, I'm that

Peter Carlino

have think time sort well do this. been me and well-capitalized great. it is grow seeing And it's mean, and yet, I and Penn this the to opportunity right asked Look, remarkable. Terrific. know. I to it’s able clearly that way, it’s been tenant it always has nice and jump is founded transformative, been is but what to so that to it's question I Penn an Look, for do you hasn't as a quite By is. it the of

with the enhancement I doing about Barstool-themed an at very Penn that build think they're brand properties out own. committed facilities Feel confident we that. the what bricks-and-mortar Barstool to enormous is its is properties. to

I think has People animals. begun rollout now. social are that

think bet I a find, the Saturday you're money on a going that's else to on is game Internet, his whatever on a driveway. football placing guy done a in

facilities You're I'm it's well. lift. going that in and as a comes in these so we change own who properties to the forth. plays going tremendous help demographic to and find And of the satisfied utterly

So more excited at I on couldn't what's be Penn. about going

– a think going GLPI. huge for at to is plus us say. I it's And Brandon it's

Brandon Moore

transaction it's did, their time need, us therefore, ensuring what's largest I'd Las greatly happened benefited assist to Vegas, XXXX, we Penn we tenant in what COVID since of why success. in the with in just has benefited our well, for long-term out when them did hit exactly early greatly. we to was I them did that say, Tropicana, think that help and And

Peter Carlino

that before are ability to think profitable any to well capitalize they're huge a and in And they player I field. to the prove, going expect on. advantage that's And the other be

to Penn. all benefit well look, having company happening our the couldn't strong, with better ambitious about in it capitalized a what's I have run, It's is So inures feel tenant. – they well Again, goals.

Daniel Adam

update of And in That interest to I Thanks. related and sense. the level Trump Great. that, the then of any Okay. timing sale on the Vegas? guess, possible a in of makes lot

Peter Carlino

that are there mind, although lot of take shocking am, out it. I been to my a it contact at has signing coming Steve Matt a to look others. Look, has the also closer is word, number had people people. Yeah. I'll to NDAs There mean, wood work, I than use with a

to dollar wouldn't because of they Now dollar interest a say, We're any a us It's buyer. capital to something, week intending cash take at call with all, put down, lot what risk enough. not Never. never crowd, underscore risk. whatsoever. participate the transactions for our in at can't. we I or that will I them, I We're looking a can't that but possible could

activity pretty to to there. want knows out – who So got But get the Steve, there's been would It's impressive. you that caveat with, do to what knows, some pretty that, who say again, good comment? I signing we'll line. it's

Steve Ladany

I'll just Yeah. add.

a interest. few have we very there's have that – very parties shown have We strong a –

positive process. we also to would that we on exercise Blue, work a But Coke continue our And ability Fountain at transaction add to that, so as very view the occurred our I that. for just the sales signal

Peter Carlino

you thoughts? would – to Anything add anything, want Any Matt?

Matthew Demchyk

is Yes. help another other plan we're assets. little is which in buyer developments, encouraging that, relevant every And potential the the of is the remind redevelopment a that's The there market. looking meaningful of to everyone one signs markets seeing that thought debt potential at just maximize just loosening for I'll development in

So that's I'll anyone have to for going an in And be everyone, anything. element it. remind balance we sheet we're but do don't buys position, important a who to

and on to we'll a deal So move when we until we're forward. have going hand, wait good if

Peter Carlino

well. it says That

it's has certain. want never honesty, perked the buyers. we gotten we level kind I But some would that all. Until we're in know, of it's stuff certain you up at activity in mislead and frankly tell heartened XXXX you, have -- promote look, with So by to as will way we any into not of serious

that's we today. report what can So,

Daniel Adam

Very Thanks, Great. encouraging. guys.

Peter Carlino

you. Thank

Operator

Morgan Our question proceed. Stanley. Allen with Thomas next Please from is

Thomas Allen

long-term? back go kind medium it, Can just, release cash to being you Hey. thinking you're But in going dividend update Good You us just payer. of, Thank how your on the you. full announced you're a to that dividend? to morning. about

Peter Carlino

for unfortunately, us. about going give you half-an-answer, it but timing I'm a lot, because, has worked just we're out thinking Well, well to not

to We meeting have board a the discuss dividend. week next

We should an should get be General Brandon, think not? out I'm I next In announcement prepared looking Counsel. at we our week, to fact,

Brandon Moore

I next will week. be expect Yes, it

Peter Carlino

Yes.

said count we're The we've Look, that will. we dividend, and that. XXXX, we backwards. amount expect you We have going on precise not cash can also said,

the goal, by is, week, you is am, course, I move the of I ahead Board. answer. of forward. the So we Look, of should end recall, have all can can't And say But you company. foremost, the good a what's in shareholder and aligned to with time, at this earliest And thoughts this possible dividend best completely I my first are with shareholders. prudence highest possible next move to get in sense. an want the for consistent

going And We've to that it build look goal we're dividend build is the So at over to carefully. value, remember, all to the income done years. along.

expect We’re cash how know back that, let just forward. shortly. push to how we'll can we it; But going far, can you dividend you fast the

Thomas Allen

Perfect. a Thanks. and on Queen. just -- clarification And Casino then

closes $X.X to There in then that Is to catch-up deal and that what Baton $XX.X second, million wasn't payment quarter the back paid was rate. right? gone a quarter of Rouge million it and fourth the goes you’ve So, the rent. for once third receiving a run in and

Peter Carlino

Des, want to? do you

Desiree Burk

Yes.

yes, you're deferred of So, the fourth million $X.X correct. quarter. in rent We collected

collected. were in So our XXXX of is closed rent fully as XXXX. They

the -- property is the small to finalized. the once deal rent in yes, correct, closes. XXXX a to of Baton have that goes the expect it we your So that deferral will increased number is sale when And, collect Rouge we

Peter Carlino

But It's so even we if that they'll they we'll still other to going Yes. transaction get forward. remain get the paid. paid. as with don't, tied certainty, open Hopefully,

Thomas Allen

be million of couple for the short-term? of rent? maybe should it But they what in next close I'm that the then, $X.X period deal until closes, a Is hearing? quarters the for of time, lower given slightly But

Desiree Burk

cash was about close then rent And February, for and that they $X go when to transaction. but $X their Yes, property. reopened collect expect back the XXXX they'll that million, to of million on we yes. January It's deferred since during we

Peter Carlino

any in case, will collect. But we

Desiree Burk

Yes.

Peter Carlino

of certain that. We're

Thomas Allen

it. Yes, Okay. got

want we’re you. Just correctly. Thank modeling sure make to

Operator

with David Jefferies. Please proceed. Our question next is from Katz

David Katz

morning Good everyone. Hi.

Peter Carlino

David, good morning.

David Katz

Good morning.

walls to I'm look, through about are there other regional of a the So as specific the outside hotel of interesting kinds way? out opportunities clear four trying retail are in margin a growth where within just a strip casino and the preference be those element right of think of gaming. comments might avenues of elements your regional such properties Las just on elsewhere whether owning quite sort and or some Vegas and there

Peter Carlino

certainly they out they are interesting and David, are there.

with We Penn. talk continue to

about Columbus and think in, brought I that say, up occur. development some could that we've before other hotel a

Some time. of and say, had will tell. of property we say, we and some to goal not at recently money. has to undeveloped offers over And things, to for We're real the uses. But in we up as time wouldn't are to open build We some suck take our like sell I'd revenue sell the it of generous business. some. certainly price, might And is in yes, have our the not -- looking of actually variety different a say, interest really property, income had I business. sale for our we're to kinds But

David Katz

to or owning we new of participating. that hotel, just qualify between if up, follow sort right, of And to a sort were

of at development think putting capital of you've I sort right? in said any no That's risk. participating kind,

estate be or normalized rather sort assets on So fair? that sort than Is of new owning real the issuances. of mature you'd

Peter Carlino

I do risk a we're We with credit, the mean, a elsewhere. new is risk. property not taking The going go tenant. to

somebody So love side, it Penn to be again. said step who's remember, will on going I've the is it. Again, you able to up, it to saying going long support I

We are the business. not in gambling

avoid. don't might We that Our take change. is can that we and we to risk going but are customers never not, be,

David Katz

much. understand. I very Thanks

Peter Carlino

Thank you.

Operator

with is question RJ Raymond Milligan proceed. next James. from Please Our

RJ Milligan

given about we Hey, escalators if guys. in such components wondering XXXX, was year good through you morning a the in XXXX and and both should the EBITDA I could coming how off variable think XXXX? just us walk low rent we're

Peter Carlino

Des, direction to we're looking your that. in

Desiree Burke

Right.

the the the did we So speak table ratio for a tenants, how release of adjusted our about of in rent performance most occur to in occur. look release, if it and if fact, you the revenue it, have would at describes that escalation

not but we're at happen weeks escalators So I of and for related that you the least is our tenants five part, expecting expect I most projections on XXXX, I'm what perform surprised. in like. those how either such view data resets resets XXXX are to XXXX, and at rent percentage And could no with rent ones be that resets; next -- for information lot they have it say variable mean, all XXXX we looking there is know for as in the XXXX is rent we're them in But to unknown what look at as a to will those XXXX. time. we are of this would far done before together resets, in for

Peter Carlino

I should it that our just amount can a prided that for to in we've much to of and Yeah. as an in started have possibly And take enormous you have want I read. we've time here -- as ourselves our that comment. detail. in put always provided on brief it's with team releases financial legal the commercial get

there a lot is hopefully detail, of So can it. that answer and

RJ Milligan

Thank was that Okay. Yes, you. helpful.

Peter Carlino

you. Thank

Operator

Our with America. Kelley next question is from proceed. Shaun Bank Please of

Shaun Kelley

everyone. to the Hi. wanted Good thoughts some depth. I get on maybe morning, just

the the thoughts want on operators as kind some buyer selling see at market if pool broader of market, broadly, about environment operating transactions there? the and the people some had OpCo of new looking to and what side for mean transaction anybody of the arrive that and might to Native the depths we're any M&A And American or I of, I take buying As think well. your, specifically thinking we're get front the starting on

Peter Carlino

conversations want a at such have folks And good entertained time, to moment over the that? actionable. it's to Steve, with nothing you thing. do add thoughts any Well, we

Steve Ladany

Sure.

the So I going trend. see we're to continue think to

their American is Native industries I think this which gaming. for a at to number with, capital and in gaming well-capitalized they're reinvest the that areas tribal definitely enterprises comfortable looking are of point

I to that with I some going different expansion instances we're where jurisdictions play. also it's continue something So think casino of a that to there's number could also and Alabama been proposed into see, of in come think like of Nebraska the that's some

continue an try is focused on, looking area we're out think because there, I So to it for we're it's relationships an opportunity going growth we and at, to forward. build

Shaun Kelley

to of the of mentioned do casinos it's just a referred you this sort thoughts you right think to And thing. is number long-term it higher on structural play I hopefully, people in how get are margin valuations from flux a And coverage ratios, viewing my overall what thinking higher margin? earlier But other bit or result a could start or just of now thinking, will challenge might are that as underwriting some to good profile -- wanted rent what potentially result the similar Great. metrics, in, you many find in is implication it in Steve, out? themselves of this this -- a on something valuation the of this actually in largely your and the change just about question,

Steve Ladany

But if transactions, guess, for would that's assuming it had don't asking my to Well, I'm I which new crystal I what you're I ball. have about. -- probably suggest me

that the necessarily on the changes would don't don't the landlord underwritten new on transaction; So And or a a basis. that's it a I I coverage it tenant rent valuation a pay landlord think potential multiple think by changes the necessarily and tenant.

think when multiply get what -- higher the EBITDA changes going you now just valuation. those is times, therefore, more you're flow. cash there's And, total all to a factors, larger I that to you're

separate the the acquires is driver. there's lot on and that, asset and betting I operator think mean, and no whether that forefront market or is driven going that So jurisdiction value main that's the or going be skin there's to the cut sports to property or access. think did the I now it be open by of deals iGaming determined has in opportunity, right already now the I opco, a from by that's wide

I of valuation the some to that the drive those are variables anomalies. of So, continue some will think

Peter Carlino

margins thought in days, about going very to are it's And be tell. one. sustainable? squeeze see all Well, we going that. These one and it's completely positive is me occupancies, a early bizarre these still think sustainable. much incredible an Is margins; -- I reduced it's to Let higher have anomaly, to a it time

were. I probably efficiently. because an this is of going But think, still much involves That's do today my you these to numbers level I can And they is. companies or they where a And want that's is to going early get I operating judgment, off that buying think not where more But that some might They risk however back they're remain it perspective, it. or operate unknown. buyer's to a look question it found sustainable? view. lot, at from So, is

Shaun Kelley

much. Thank very you

Operator

Green question is Our next [ph] Please from with proceed. Gallagher Street. David

Unidentified Analyst

Thanks everyone. morning, Good for taking my question.

with Just forward say, a that you been ago. are leases than, much year a market And that rent Penn, they're you now change Does growth follow-up view that rent does cap how at tremendous. level And how obviously position obviously, on if are all? these over long-term a last coverage? property and change important. moving in the healthier has view Understanding year liquidity coverage relationship, certainly, dynamics

Peter Carlino

on Anybody opine to that? want

Desiree Burke

and specific mean lease the I lease. the that's to the in property is coverage the rent

So, that impact on would we rent the coverage expect for have what no not lease. would on an

Unidentified Analyst

think to clarify meant. just I I Yes, what

to would coverage? -- be I you would Just, say, Yes. willing

are corporate stronger? a the little bit Given

Peter Carlino

can that's best the but in figure going, think say, you we're do I I what range comfortable most, we where not mean it's I much. you're Maybe, think? but yes. are. I maybe, Matt,

Matthew Demchyk

less. not at looked reasons for intention we level take the right on mean, focused to coverage. coverage historically. It's four-wall corporate haven't all been our I We've the the

think we focus see You discipline serve on going duplicative I get the continue of you'll end that well. at four-wall coverage. greater corporate asset benefit, a the it's And coverage. I us So, or us right? the the the think to move forward, will coverage forward, day, as of Because

Peter Carlino

at coverage. lease, master though a they're always even four-wall Well, I we've think in looked

have have good we four-wall of feel competitors prefer but our we little been about. that Some coverage less to that a in vigorous area,

Matthew Demchyk

the got very everyone why we the multiple comes of at, it up to stack, they it's corporate to out the depend on this end going focused is should coverage four-wall day, and business the And the how our like trade Because coverage renewal, that profitable in are. really senior the speaks unit lean it to those for that cash but And have we highest else of Yes. that's right? a on would. their capital assets Ultimately, when at as flow peer view set.

Unidentified Analyst

makes it. That Got sense.

you quick some right arise give can maybe relationship that Casino first us with Queen opportunities the a refusal with first potential Queen, a follow-up, of for of Casino could and Just that refusal? that right

Steve Ladany

to It's totally be hard to say point, honest. at this

focused think they've one with -- Caesars. on I two announced that are transactions think that closing they've out us they it's I the signed, with and one

so give be try that you And continue around quantative. what think any look but to a they to find areas on good means to a I able have grow, don't to guidance to I sense to

Peter Carlino

think clear get talking principles us. more doing reasons. do I sense intent. the the that in a that's I committed for with with their of That And to it's pretty is they're business variety

So and we're and up if anxious with they're can. to we staying help when what tuned to

Unidentified Analyst

you Thank everyone.

Peter Carlino

Happily, they're partner. hungry Good great. very It's have a to aggressive.

Operator

Please question John next Our from is with proceed. Massocca Ladenburg Thalmann.

John Massocca

Good morning.

Peter Carlino

morning. Good

John Massocca

guidance what on some deals you more view forward? your might feel operator of that would close, contingent So providing Is comfortable that again how something environment, or normalized is a on after going given these escalators? outstanding somewhat that impacts be

Peter Carlino

put of have looking in shortly obviously something of think we some it to hot investors' question. big forth, Desiree, in we're so and positive have wrong. and TRSs It's consider. they're when kicking will here, When have not Board can impacts. and sure it's Look, I'm I have around limbo, be at pure there something be fair we the out that we're wildly closed down think I very the we're think to kind interest just as us and closings well when and way. don't heavy precisely close, transactions, there shaking could REIT a out timing going that would a a her discussion That's those that's head best while well. We depending upon operations, free

you what do think? So

Desiree Burke

agree. I No.

we quarter sale right? to So right operations, a So million transaction, in the knowing $XX knowing not Bally's not which more better before we transaction clarity be the of of thought things timing its those the timing would of the TRS rents, guidance. of get also, just Bally's reconsidering the have the now, closing around

Peter Carlino

Yeah. a at But these transactions. post serious it take we'll look

John Massocca

don't you at Greg's at But that in the one -- have positions. call, CIO kind Makes you I in to as think earlier this a Great. hire company. traditional CEO sense. of still the guess the of question you will then is building Do you you you plenty kind need the of on expertise point? think about that CIO, CFO And C-level have if position, there

Peter Carlino

Well, pudding. the proof answer is quick the the of

person. a We We haven't because we don't. really need don't such

I forever. of point, in we in talent it. not but pudding. or got at the the to think anything. and kind fill run Desiree, we name will, issue a there's put rest We with pressure going I Matt But everything some to of to the We of done, a be do under the it Steve, that lack at no And office on now, as you there see, like point hole can of our role the company of we this mean, is any doing, fully looks we're the and hold. CFO capability and team and that in have to function like the internally pop right that needs way. program, look, some Now we're proofs along to capable

this years in at the ourselves pretty precision been present all with over it business. today, what a together team been pride looking long You're has that our on for I we I've we mean, time. And

the When moment, So team capable have to got that's that got as some answer much have here, here.' you very going really -- and we're we capability you has 'Wow, or kind got be to of the compelling as somebody the And exceeds that got for Harry. it be so across we've then, we it best you the talent CFO. But, provide. looks play almost And office so of I people. says, with this has George, can interviewed the table that but to you've

know. way, that publicly it you announced haven't to We it might but help

at moment, thinking we're about how For least, it. the that's

John Massocca

manageable mean, you asset pretty a I Okay. asset think it's easily class, about class. the

so talented have this group of people And you around.

not add it extra of in cost, CFO order or mean, G&A, all just is kind but it extra not there the maybe extra but an if thoughts it's You title a just mean, changing a is either you is at will? extra to cost any cost. I not huge filling

Peter Carlino

yes, Got answer maybe. The and is it.

John Massocca

Okay.

Peter Carlino

can see, -- in capability actively But, you know about this the I company we We're need that that, thinking right we now. have that think all you and

John Massocca

Sure.

Peter Carlino

do to -- we what do.

John Massocca

Casino question, back, they regards an cash put modeling with XQ you on to basis as on accrual just a and Queen, in XQ. XXXX? I today, And know, then, of quick Are that accounting

Desiree Burke

on still cash They're a No. that. with Once accounting have stay you you elect, to basis.

on they're accounting. cash So

John Massocca

is So again to get that sorry, going XXXX? million, XQ repayment, backed that -- that in mean, I out $X.X in

Desiree Burke

in million $X.X of XQ, will time. another expect at that's not there would XXXX, that rents $X.X You not million deferred be right. Because

As we earlier said --

John Massocca

Okay.

Desiree Burke

But first million that that of out collect the sometime, expect $X.X quarter about deferred, to during XXXX. not $X million. there's it's be we will --

John Massocca

the XQ? about relative impact, of the in XQ though, think XXXX, or they And to of not that to given XXXX -- I if And going so $X mean, fact, they're what So all in I from what rent, paid XQ? cash? million XQ given is it's pay

Desiree Burke

correct. That's Yes.

would… You

John Massocca

Okay.

Desiree Burke

quarter. was that collected in fourth quarter normal fourth you plus, that million $X.X the lose rent -- their in

it, $X.X to You would the not million other expect all quarter, in see than another March. for first

John Massocca

all Thank it That's for much. Okay. very you me.

Peter Carlino

you. Thank

Operator

Union Gaming. proceed. Please next is John from Our [Operator Instructions] question with DeCree

John DeCree

Thanks question. taking Good morning, my for everyone.

Peter Carlino

morning. Good

John DeCree

I'm in I kind that, just that, at? an of and hoping lot of folks perusing. by or have seeing are just peak a comment, on out, looking taken you've a putting come a sell-side think people kind at lofty Tropicana, are curious, motivated a if serious of Are well, did or sellers, as not but really mentioned and catch motivated? Peter, you're aren’t that price stuff sign for you earlier really buyers particularly the there they

Peter Carlino

cash. that Yes. folks have just have way, the the that they That's the It's point looking Look, serious serious They are one at, difference. don't correct not buyers. to on Trop. by just

the running serious to about we're willing I quite think that asset, on just not terms they're accept.

it's the not out some the would a looking are the There easy year but surprising. be So, a say last -- a right is you off great a case. in world scratch, stuff whole I look – look, There got trees gaming in pickings. of that Look, we're I of now, you've we -- in dig to that at, year, a things wouldn't at. there's we lot not have know, peaked like not some things lot had are we imagined to there's year the mean, we falling it's

in because You Harrisburg, form days, of lot regional racetrack Penn right sure the and in Gaming was this were and little out ones those early in There it Pennsylvania. business know, for it started over the XXXX in you left as the and Penn companies -- swept the place of a in business was in portfolio there a I when the if all not in world. them and and companies good in National of Those galore the know – the in aren't up fact we we or most between many own numbers. of them out riverboat

that all lot or assets really that or need until a you we'd to single do So can kind reasons, of state really but close. of portfolio, have have have but they're timing. opportunities, are love in hang one-off for all -- assets it's you're is people ready our There a seeing

him I line to quote over runs that this, window guy have pulls looking the and goes is wow, house. bangs is and to the rides used car And by jumps, a liked He on Clifford beautiful Bill your that CFO, to says, looks he door. down I him the it and so, former Our and the He of a at a And credit he a up riding lot. road door, kind front I house. his curb. – -- the is

price for iteration that I with it together. if door, GLPI house by say, this maybe want sale. Well it. to is a for to guys moment you we for went run he can company grab say, beautiful I because but and have don't get complex also know or And forth it. well And close I say, of and again. to to which have the and is and their you etcetera. got And you frankly sale. really opportunity They matter the room a agent those all it's when would appear. cost not you for not but may keys with stay a our it's etcetera, back says, reach your to it Penn work It's he multi come and little says, really of want But really, want You the transactions, large, and act goes tough a there And it. you've to he with while, that into is. job who here timing. And do back

like look the it's at besides signed at did. Not we got how not way useful, is of what deals But look deal year, much. we kind that's these many take a last So it.

well you day. to not So, with fight overdramatic, make you got for charged I'm it, got we to pretty it what scratch are to be characterizes to but every you -- that's doing. got for trying

John Massocca

of Understood was redevelopment that can Peter. helpful, considering earlier think, If mentioned you've ask are I lot one I that a plan. it the Tropicana, that’s Matt, more? folks – a are at looking

just traditional I developers you So -- then is casino And where curious are it seen third-party real comment. is, you're most of kind involved the of end sponsors -- seeing my that companies, to just companies seems be to we've the perhaps like interested, the before northern financial confirm of that strip wanted at seeing most get folks estate casino from question the interest interest? your

Matthew Demchyk

above. right of next strategic the decade, of Coke And we'll acres redevelopment. of from of first an strip the over that. you've some I'd got the is key set I'll see strip the got the the And what and is that this are take that happen so answer are folks we've of really different second what thing, point on the are specialties. Yes, now for acres diverse folks out a all And interests and piece part most the primed from lot important doing XX.X on is a the

at to mean much so there's underutilized is so much upside acreage the yes, operations there And share. and redevelopment. market everybody so more from I looking there's taking

of interesting And and of that far relevant the look everyone see how and life, as strip all field you're like really going of we've to the -- to think interesting and the privy make about I I think, some something the And upcoming not is to might the plans to happen away been they're the the coming benefits see end you compelling. decade or for thinking there. two. latest of it most what

Peter Carlino

likely it's imagine et cetera, enhanced residential as cetera. would multiuse casino, et Look, from Yeah. the a development, whole you retail,

would So it's about that of kind most who do serious that the are this opportunity. folks

John DeCree

all And Got it. color. for Thanks that again. thanks much so

Peter Carlino

doing we’re for time We How you. Thank more one wise? have time or two questions.

Operator

proceed. more one have is Farley We which left, UBS. with Robin Please

Robin Farley

have questions Great. of back to Most about fitting But going been in. Thanks transactions. earlier answered. potential for your me just comment my

strip. like you referring operation, working to. done? interest it you've to something it type there the more the And of strip mentioned opportunity, do a you of existing seemed than out and Is was an from with were but more just not with redevelopment there the You trough just buyers transactions typical

Peter Carlino

want Steve, you that? do to take

Steve Ladany

Certainly.

the market operators, interested evolve. different there've look, to at been and obviously, continued So points time, has different in

had and transactions. and willing and I -- any integrated marketed. think have highly there's things different through destination think that to at there And them. always folks being discussions we've pursue interested And the some come we're resorts times, in those we point that with operators, different strip look are potential are with sit one forward, on at that have as time we

look potential at we and transactions. constantly to about operators possible anything, and we'll new current talk So

Peter Carlino

properties to Yeah. mean, wonderful underwritten I anti-strip. some it's can there we're differently. not has Look, maybe make I be just clear,

And Toledo, don't those forth. where cost you've structure empty. drag say, so money and cost ability simpler. enormous are is a not, And is for example, more You've structure. entirely a let's you different when got whole make hotel, just hotels, different It's cost the so are got a in Ohio, to much empty, have It's complex. even property they and so

anything, would have why up it for different of you together. do how we So we're a anything. view you but put just And

Robin Farley

Thank great. you Okay, very much.

Peter Carlino

Thank you, Robin.

Operator

turn I closing back our conclude question-and-answer to call does that remarks. would the over to like session. for management And

Peter Carlino

thank and dialing today. much, very you in you for thank all Operator,

successful charging get ahead we year through said, surprisingly the for We're us. I in side. XXXX, out As was get last year other COVID and a hoping

look to with quarter. this Thanks, So we're next about and forward year, talking optimistic again. you

Operator

Thank you. today's This conference. does conclude

for disconnect this your at participation. your you thank time. may You lines And

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