Gaming and Leisure Properties (GLPI) 30 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Joe Jaffoni	Investor Relations
Peter Carlino	Chairman and Chief Executive Officer
Desiree Burke	Senior Vice President, Chief Accounting Officer and Treasurer
Matthew Demchyk	Senior Vice President and Chief Investment Officer
Steve Ladany	Senior Vice President and Chief Development Officer
Brandon Moore	Executive Vice President, General Counsel and Secretary
Barry Jonas	Truist
Todd Thomas	KeyBanc Capital Markets
Nick Yulico	Scotiabank
Jay Kornreich	SMBC
Robin Farley	UBS
John Massocca	Ladenburg Thalmann

Call transcript

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Operator

Greetings and welcome to Gaming and Leisure Properties Inc.

First Quarter 2021 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] As a reminder, this conference is being recorded. pleasure your my Investor Joe now Relations. is to host introduce Jaffoni, It you. Thank

You may begin.

Joe Jaffoni

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

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

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

Peter Carlino

everyone. thank joining morning. Joe you Thank good Well, this and you, us morning for

think been back very are and announce we to of ground tenant We multiple decisive significant Part pretty, just our to lease addition Notably property and and XX-year them There lot release. continued that our dark that for we have it's of roster to ask I to bold I pleased transactions at liquidity our with quarter. we're full Tropicana of she’d want detail provide as are here with diversify The a that to let circle go the numbers like evident. there’s as always, highlighted take look clearly – Desiree here, team two, it. us, There’s this well significant course a we've press through you performance Burke many in there And highlight. that all answer quarter. if choice note with another a eventful hour. And events your a strong which of Obviously, has results very, had strong kind questions. the in course to me some to think on other of of to a includes financial Penn National for a want brings to of Bally's. our and

Desiree Burke

Thanks Peter. Good morning, all.

consistent EBITDA we in million activities, had revenues to revenue adjusted which XXXX variable our XXXX. And had income strong in are our the that Queen, segment, closing first metrics, we million quarter ahead Master rent we monthly began of expect the segment X.X and in the Boyd of do became exceeding from Penn quarter upon rent compared strong, on all offset our our results. on Morgantown visitation July Lease an rent Queen, quarter to occurred percentage we to a this million REIT that Casino also $X.X primarily year higher that escalation items is provides of the XX.X the as $X.X To with by relating quarter lower Rouge to Hollywood to to our XXXX. strong million related which from throughout Baton year primarily with prior the for quarter. well. as the and the rental lease the we benefited or closure the ago. income across agreement million during which were this partially deferred related we're of the net results amended in EBITDA, items seeing quarter might and rental $X.X of quarter refinancing their by million, this expected gaming, effective lease of rent by and rental Those Casino expense quarter them our temporary future. That's it amount collected non-cash Ohio of which $XXX,XXX to were the entered adjustments Penn then an performance to income fixed Meadows per increased Caesars with rent We of percentage relating in Lower experience fourth in you summarize in latter our be business. several spend with from continues amendment with be interest lease lower Pinnacle the visitation, year. recall, from last them of The $X.X or REIT lease. first Casino theme in our is of into transaction with past due and first in lastly, regional year, TRS of Our increase half XXX,XXX Lower to

very that well turn positive up, the visitation, which Peter. our operations. So, sign I’ll a to as is we as back have it summary, spent With for TRS brief

Peter Carlino

very you some put our Des of just much. to highlight company Thanks perspective and efforts issues, Matt, quarter. the to broad wanted in this

Matthew Demchyk

few Yeah, a thoughts. Sure.

in They Bally's we risk that adjusted of of and $XXX not our just construct, auctions, and credit not deals reflective market really arguably clear. transaction unique transactions lease very coverage in creating cost we these acquisitions are that underwriting. worthy operator, originating all set you transactions. just four-wall at of cash solid aspects master just had GLPI’s represent The consider the their with bidding first Those in commercial best of million some compete of capabilities, being, but the with the estate. real skill were if and based a make that you year last look did, and flows capital, on on did We off

the rates. far And operator At proven this expansion, the compression With plan assets liquidity, and to quarter. case for of remained transactions case given still spread calls cap record strong. As still properties, as remains the more Peter's we Peter. level continue we more maintains it originate the study and the to committed of move even very give market that, a with very a balance for resilience, that track so interest in multiple facilitate point the significant broadly in is business between in some the efforts be in our sheet on of operating to to yield heard our underlying optimal to forward, significant rate back leverage we play I'll

Peter Carlino

Matt. Thanks,

that's but questions. open very hear know from operator let's for floor that, the expect others, helpful. You I And to with

Operator

Jonas Thank your question question. Please you. first Barry Our [Operator with line Truist. with comes proceed Instructions] from the of

Barry Jonas

Thanks. I’d you that. with any deep interest Tropicana. Maybe think for Hi, the process? color more you give factor? in end? to on was like start equally was Do important Can maximized proceeds? Valley relationship with the Or How you thanks the

Peter Carlino

earning took all, and was this view our Steve? decent get that's the also, a table create and long-term a payment take you with in got the a range me doing. at range That this. of deal I add? probably connection a The upfront, we And let asset, other Well, invested. here There the to is take and think have business Bally's at of after want too shot we're in. We a tech. the what relationship that driving of, We'll had solidify saying lot significant was interest a a at But we're long dollars. with in yield. part Bally’s couple significant cash very an things else made without of of cash a Maybe could a Anybody important. looking to a that. much, in we to

Steve Ladany

Look, our use we're to I the were I said, story correct. Peter and us No, ability an asset I is us million Black the Hawk very a doing in the think, into think Island convert ability beneficial as everything non-income was for income producing, forward. acquisitions producing think offset the $XXX additional to Rock for you that going in and to

Peter Carlino

Thanks.

Barry Jonas

you, acquisition Income in about question, And your if I'm point takeaways know, recent there as as the get some then Realty REIT you of at the just That's up potentially? thoughts you curious especially [NAREIT], think follow any for gaming great. see on space, to and, a consolidation

Peter Carlino

why a at you Matt, don’t that? take look

Matthew Demchyk

Yeah, big I’d I just picture, said Barry. mean,

impact in there's – certain the a think it's all Realty factors of it’s and and on think feedback And key all portfolio, company. AFFO I initial the around the impact, growth Income without countervailing deal, I've impact specifics the triple in of it’s heard diversification their and future and that And really I net I accretion, larger mean, large think I M&A, they how was, the the denominator was our question any the sector, forward. accretion going overarching are denominator just XX% themes that to a going the positive and applicable. to point shared, growth those is

Income and lot it they is I more impact growth think, Realty piece are the diversified because Diversification are. a accretion piece on was future when what a started. different, little the

I a don't lot gained if know So, there. they

diversified. much Our are less companies

maybe what of the So, finite is denominator it in of you could the more, properties take space. limited also impact then because for number And there's as is. the relevant, that a

to I’d So, conclusions I the how the and leaves think that's you. leave read there, tea

Barry Jonas

much, you Thank so it. Great. guys. Appreciate

Peter Carlino

you. Thank

Operator

Our next of Capital Markets. your Please Todd lot a KeyBanc with proceed question Thomas with from question. comes

Todd Thomas

Hi, thanks. morning. Good

comments, guess I capital to following standpoint? seeing on your from up or seeing competitive pressures cap cap estate Are First you beginning you asset in compression touched competition real pricing, are up side? new price rates a down on go you opening question on rate the drive Matt

Matthew Demchyk

think it's time. a many I pieces exactly Yeah, not call because that to real there's where moving in spot little early is,

an three in aspect. seen deal say transaction close. we certainly what four haven't did every We market I'd was off or

lot one to the these at has nuances. a there's you hard price with as the look valuations I yields get if look I do higher want rate find strategy because cap expect I'd nuances. our every time, the capital the discovery the market. We'll have where to think it's And quality, and favorable it our construct rate or and operator, to, hope say focused compression take to apples-to-apples, from of some get, see is wouldn't compression. for efforts. is. also public market to at to might mean, suggest we return And all of be. kind back we're was over be I'd opportunities that I But the get So, if very to our companies, at And exposure excess to deals of look credit cap where the point, I'd there you our to is you on

in So, headwinds transactions of not to be we bound that do. by kind those the

I plays year. how out So, we'll think see it this

and I in that out. think to we'll stage plays wait backdrop how a set just it see is regard, positive for the have and

Todd Thomas

initial was I the of Bally's the on closing an the And was operations and the there the timing sales then transactions? Okay. TRS of of update wondering if

Peter Carlino

that? Brandon why take you don’t

Brandon Moore

half there's we've that think we simply we is see update anything to quarter. swing, this more no this are of the half or at second in the don't where than the I process. in what I half quarter regulatory and year, Both still second change what I mean, we'll early are of the next know on that. it's time, present full publicly will second think I later in the really and whether depend on those said much And know

Peter Carlino

they kind Yeah, candidly, work be it regulators it that with, I time. get we process. the to we mean, to of owe our done, set folks can't the that And patient, we of get and ahead

by of suggestion they previous So indicates – probably will as but we think, our stand I Brandon occur. when

Todd Thomas

this Okay, transactions primary some two point, we at got expect visibility to guidance close? it. see factors, once Are not those guidance know, and and around, you additional you should the those know, providing

Peter Carlino

Steve. ahead Go

to want that? You take

Steve Ladany

because either ultimately think currently, I is acquired, us With aspect performance being is of the for is Todd, critical guidance will annual Yeah, transaction here. these or it difficult provide so assets, divested be answer very seven the timing yes. to to the what all

to the to us That's that issue be would for So, I the marketplace. think main you're provide overarching right. accurate anything

Peter Carlino

me Let can trying this. they're how be we wrong mean transactions, and get to estimate to going say occur. these there It’s only all we’re going when in to I but good. with

just other. be we would the feel said or we So, one that misleading whatever way

end as may out well and the into year, So, then we guidance. we that'll to smooth at back of get year get this next

Todd Thomas

thank Okay, you.

Operator

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

Unidentified Analyst

[Cassandra], just rationale we ground is asking David. more for give on give us more of behalf just there, the details is lease me instead Bally’s bit second and there a back] this properties net usual triple Hi, the to of you on a [Going there? on transaction the that lease see? Can a

Peter Carlino

Who to take wants that?

Steve Ladany

long-term release the future. ability that opportunities they the know, forma I indicated changes effect it the the the to since we it's has they respect the on Tropicana for are side top press that Yeah, make I thought that own important at, their ground land look for transaction, think only capital pro of that in land the will With can of in improvements jump redevelopment Part to Bally’s sit to transaction. lease have in. going of yes, in today. to And as was a the was you them the overall

It So, costs carry we property. of will the on that just that with I no associated We'll the triple rent the land. in there. net was think part process thought our collect have be

Unidentified Analyst

or And you finance balancing of in debt to the markets the it. Got equity such refusal financing first between that with about to helpful. That's to acquisitions provided like respect laid right out, using rationale or they can them? talk several

Matthew Demchyk

pass. program. year retained are guideposts can X we've that commitment in had the times our things out, plays we sheet the incrementally the an I more I'll I'll the year to to our be] you, we're just visibility company. ATM tools I the having transactions as debt-to-EBITDA, And the to for of to place. on times tool think optimal chest out, to going back Yeah. too historically we cash have We've mean, actually same go also to of get as some plays decent likelihood is intention our and balance equity least, X.X anything on we're do with the said, that the remind We've to some coming balance a [that can that that's you going to number move and not – historically. at is and know, debt a size that at to help forward, means as going [level] the appropriately have got We've flow fund that got in

Peter Carlino

answer. Yeah, the I to committed outlined. that that's Well think best We're as Matt

always going range to in stay period. that you we're So, can assume

Unidentified Analyst

Right, much. thank very you

Peter Carlino

Thank you.

Operator

with comes next line Please question. from proceed your Scotiabank. of Our Nick Yulico question the with

Nick Yulico

everyone. morning, Good Thanks.

Island it's for what leaseback satisfy In sale part to that the know, not clear of is – of Rock know obligation on the You terms whether, million tell would and Black can outstanding questions us the Bally’s, also Bally’s couple you on Hawk obligation. commitment Gamesys XXX you transaction? the transaction

Steve Ladany

Sure.

to would in commitment would Bally’s. sale $XXX of fund imagine, for million with As the leaseback we exchange worth acquisitions love you

Gamesys capital. transaction using and forms between historically to outstanding an However, out is time that agreement above demonstrated equity. and the closing raised raise of and million. point commitment has efficiently Bally’s transactions I’d ability of reduced remind already million various $XXX our by fund They incremental XXX you they've any the that the of

portion some the of may that optimistic cautiously we're So, financing leaseback sale occur.

Nick Yulico

satisfy are discretion? sale leaseback which to you that obligation select And is at or Okay. able assets the Bally’s

Steve Ladany

agreement between us mutual Bally’s. a That's and

Nick Yulico

recent typical the provide occupancy know, one just you coverage? jurisdictions, restrictions certain trajectory given guess cap which X.X in which question coverage, rent you rent into below Coverage know, are I Escalator insight on is thanks. the Governor, could lifted some improving that the you other X.X, Okay, is of is, potential

Desiree Burke

report So, referring where coverage are of you quarter we to rent release? prior our the XX on table Page the

Nick Yulico

Yeah.

Desiree Burke

Okay.

a and trailing So, you of been that have know, each is obviously, prior by quarters in COVID tenants our XX-month number. impacted

seen we expect performance those open as report and said, operators to improve properties the other we've have have you to what continue strong to had we've date. So, to know, that's continued fairly numbers up

So, those include periods. point numbers XX in are and time months trailing closed in important do

Steve Ladany

Yes, hard limited and it's and Zero to to I'd that. zero. revenue say to revenue is like certainly just count

about that it's So, we very concerned And not place all to to we're no, more swiftly expect at for move and coverage. we're a inline going back comfortable increases.

Peter Carlino

since we certainly eclipse but And Nick Bally’s at some period some the distant to here. see future. – the in you hopeful time to we've seen in not not the timeline can take We're when just threshold, look any guidance numbers the the we're mean, there it a in our of were giving least results on I reported. that we're at expect robustness [terribly] of

Nick Yulico

thanks, Okay, everyone.

Peter Carlino

Thanks Thank you. Nick.

Operator

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

Jay Kornreich

you. Thank morning. Good

Bally’s for late, in that York opportunities I legalized. the New how that you might been Bally’s casino in be As [seven development Virginia or downstate bid think acquisitively has ROFR] value they a [forced casino for quite scale know do a had interested gets about previously days]? the full the year

big curious to view the overall just picture So, on potential know here?

Steve Ladany

give of of But bid reported speak the of shot, were out you I'll can't it's knocked obviously, way for Sure. [Richmond I intentions process]. think it obviously we a seat six that any to the or know, the probably want omni-channel Look, and they they four aggressive, to believed project. have with they able have or to be as yes, were transaction, and therefore to they out, those the landed work property you a development in but, did we months trying that at iGaming be a online to they be that's was a casino important we company of next we will the a And whether on the ultimately fact project, think the were [ROFR], jurisdictions strategy. betting row those would an predominantly believed jurisdictions, property. their four very in for together and in achieved acquisitive, based we Bally’s any that's sports year table put been acquisition to or because not XX are partners in the like point whether a them, at I existing

that the was that thought So behind process.

Jay Kornreich

one and just makes up. sense, that follow Okay, then

a the largely to all like has operators your foresee do them for queen? external partner conversation the your largest think access from with tenant about or on casino as national with tenant is the these states you As the are gaming, away any to desire you further new and and growth grow right ROFR way shifted

Peter Carlino

I mean, do lot they think state close it's I one we time can't each of deal that really with our or Yeah. do. at moment, I as out we possible of can stay with. but the acquisitive. highly Honest, of tenants. a we to a is partner about opportunity, the a an guys good business kind would is good proven wish want on good be work spend to partner to answer How fun. They’ve to them be been to to we our the positive for shake Bally's thinking easy, obviously, a things to of as and it tenants. predict, existing happens every And be may how the It of particularly

the with go to going we're rivers So, flowing.

one be that of our tenants. existing with any and So, could

Jay Kornreich

it. very appreciate much. Okay, Thanks

Operator

Our question. of with Citi. next comes from proceed your question Please the with [indiscernible] line

Unidentified Analyst

particularly is a tenants media avenue you with a less just there's of that to been and about into as commercial ask new couple you? develop do gaming, that interest I in stories lot to see Las potential or assets of Vegas you, to thanks. Americans Native a Hi, of moving now, wanted

Peter Carlino

terrific place commercial. be it’s anywhere any a we absolutely. with No, that any group, want to part well-capitalized of can That's and responsible we opportunity in

Matthew Demchyk

reservations sheet, a it lot of if it. about mean we've with structure travel us, right to a they'd we’d with like traditional little leasebacks the – our look them mean, credit, off have is campus right I sale to effectively cash anything are that historically, the back on talked hard balance I love and of do some to flow, it’s they but grow do projects on appropriately with for you the structure,

conversation been So, it's It of has a here. certainly part the frankly.

Unidentified Analyst

be you like Yeah. there's feel mean, it Native seems more for pursue an do I been whatever like is I you you years. some reasons, – a you the over little big them avenue bit a going know, of a [Indiscernible] this new big, tribes it thing that in a know, adjustment American few forward, like next know, of have will, been mean while? just could for

Peter Carlino

mean with know you business, I things with what have they is, me cash business. then if right? lot in do that a good is and the very compared to situations and is around unique could it, to of have And around the do problem sitting your that the their they upsides cash into. people put other you they question This know world

to there more expect I'd of it. So, be

Steve Ladany

historically I'd that Alabama, echo include it. there's had to number of a and Nebraska, starting that gaming, which And move have towards not fact which the now are jurisdictions, you know,

sudden have performing, going you look wonderful flow, think you as you're but in that's possibly competition we're going asset And see. sitting a So, something I I diversify. to And continue have you're to right. you, cash to think you're to around on and coming that's

I see continue strip, activity think there. we'll not things maybe think we'll but in maybe happen all on to strip to see the continue Vegas, I

Unidentified Analyst

you're a you call one your your know should reads. you thanks. know, out I vote this at probably reach figure on three of just a And I And calls this, mean, only with comment. in Okay, gaming then, to is, I a if there's have times. and others you maybe to way know, don't like space to but have taking the separate out concurrent peers think

comment a [indiscernible]. Just for

Peter Carlino

and we [being after and unfortunate agree. in yes, said, came said, out? I somebody comments]. into it's did we queue]. move. office in I'm I move But disappeared we [We shall not them my think came They let

out. malice of same So, there. we're the kind No page. worked It's the just it way

Unidentified Analyst

Okay.

Operator

your America. Pleased Our next question [indiscernible] from Bank with of comes question. of proceed Instructions] line with [Operator

Unidentified Analyst

states affect wanted casinos just kind just I broadly, some a how transaction is or – hear little land that's own the betting going based a sports license your new extent, certain question. to plans? system bit as the online the forward, going your legalize be great of we've and from taking more maybe to and untethered seen market for thoughts thanks on growth Hey,

Steve Ladany

is, know, But Well, these don't states. know. our on most aren't, tenants, I considerable states are you really answer mortar. to look, various I cost some of are mean, that know debates to we part ongoing mortar, that of building they're bricks very tethered there and some on to and are focused are and in and opportunity. the are they major know, bricks out talking some, completely focused you that on at capitalize facilities There

are football think So, gone. There script get car or animals, from by the parking the the enjoying lot point whole make people right, world, are Sunday, social large, occasional place on is want look, and Saturday that someplace, some on you're but yet. and been drink other balance, it afternoon home I But could that and your to it you experience. a going to social people from think And point I to has are a with be possible. the I'll stages, open take a might from it's people bed activity, the don't written or – the football,

a policy going public but going you're the happen. think United of going generally. view, in point gaming what's good to I from to to I'm in lift huge States a is, think that's not sure see happen what's I that's So,

numbers everywhere. see to rise going You're

Matthew Demchyk

it? sports customer piece I how out, you And us public omni-channel use mean, of something mortar is, of point the for word if uses pieces a structure and is I'll comments, whether profitable. this And their inherently practically bricks of look But and you state the Yes. more it's did platform, the one the is multiple tethered. iGaming, value the times at multiple Penn's that betting, reality

and the them operators incentive are customers that mean, both assets platform. getting the get at delivery have of are in and business I reliable, more day, pieces their in profitability. a end our for there's So, our essential predictable, And to

when that So, this that positives the we're And growth be from very study state to don't getting. going going things. on there, incentives to I regardless think how be of because get we know are back, look going that different, structured getting many I the COVID, come case to fund, we're those economic it's

Steve Ladany

You know, be acquire it little can one there. I question. had maybe I of XX just license then if do you you to feel comment in that be a now think one that, I the go differing different around an go asset with – holders think Maryland, and your online M&A don't could in need

those license think is that are property. surface the states, their states what I think that will appreciation the happen, valuations tied assets massive But understanding of to it. of aggressively. I that's had is, there price have reality assumption owners to move tie in back which don't if those the a And those things

and an will suddenly perception assumption tied not that a was example, particular massively you the asset might a asset. property to York if it going appears to at take there, – for for value swing that that the look So, be be a New of all is what in

they were maybe market And way. of now the be going now see to what out come realize And to than out they to direction a seller massive be I that this. M&A going going can hopes with to be a it's thinking. different sudden, we're get people think of opposite people gold, the should pot going It’s were all that So, they a holding of and anyway. actually everyone's access this that

Unidentified Analyst

there generally transactions be off then I have was increasing months me have of super understand the see pre-COVID, to a looks with appreciate one institutionalization seeing great be to deals? guys of so pool That’s hear your been which really been for just far, post-COVID, other I you has who it'd kind question of And market, but few the guys terms out equity, done what you guess, else on market, helpful private talk Great. active about of in in just that. sense there That's buyer you there. for the side kind about a color. like? M&A know great assets I the kind on big operational bit but last I, the quite more are the

Peter Carlino

look Matt don’t you at why that? take a

Matthew Demchyk

Yeah.

a suspects. the that it's some returns. them, around these to see a regulatory heart. We And folks the it's states moat and think need mean, be that on lot has of risk-adjusted little an usual us the historically the I it's to for but faint private licensed. not easy. that not an And extent There's side, involved. given a lot I economic remember, certainly margin, sniffing dynamics are I there's think on of equity from that of

see on out. we'll on other estate, right I path side, the get mean, are other they plays a not So, but towards as inevitable real look involved. it folks that the deal. And as in an But [indiscernible] it's institutionalization, at could you that you're nation operator. how the

uses of We'll that a So, to see. finds actually us. operating case also there's way its and capital, that might like helpful and us, to someone wait on side have some the which be

Unidentified Analyst

That's on guys. you Congrats great another thank for me. it quarter. Great,

Peter Carlino

you. Thank

Operator

Please question question. next from with your proceed line [indiscernible]. comes the Our of

Unidentified Analyst

Hey, good morning. Thank you for taking my questions.

thoughts stock], that credit agreement [indiscernible] its ability the X with up concern all is on times me you range to one know How put first the GLPI I outlined? help I'm what that fund Thanks. the back Bally’s [back guess structured that play into so, how your line is to curious transaction. days? balance strategy think follow-up I a [indiscernible] any the to within to the And you understand X.X I would of use So, you sheet their three that times deal? financing at did around leverage,

Steve Ladany

Sure.

question there. part two So,

transaction which closing look, on now between there's could things any between would be and I of now and First, Gamesys, and of I amount think could amount the have when then, significant happen impact the think a we commitment. lot total the time which of

With course go course, find of So, that to the avenues point, we're line, is, to be will before more say – that would to personal parameters. I leverage of think closing. available the to we or up transaction days three significantly in respect different Matt use us, the will will, days we down needed as heads to and leverage that as we're as make belief acquiring notice, to well if my fund we said sure example, are not just ourselves three we committed, ATM, stay ahead I'm within ultimately the whether earlier we for of assets, have to going advance such our look to additional the if commitment

call. be So, I this in to time know we'll then again, we more to next quarterly And think looks think we nine some play And months watch I information go. more months significantly what to as out. have information, six

Unidentified Analyst

why guidance, Alright. of Got I I giving for in provided it. question the uncertainty that. not thinking no guidance, with you other you why greater you there's you Thank mean on And lot the still some or guidance. know, a then reads even into Got are guidance, can share that sectors guess other it. know I have equal

and curious that, can then we latest here, So, the the certainly and expect times what's the [CFO Thank as as challenge maybe you. present guidance, the when of that, that, but know, curious with Groups]? well, understand on part you unique

Steve Ladany

earlier reiterate guidance. I'll around Well, the from comment just the

have that's the divestitures, – that seven are the main now think we're that that driving have fact not and is and four regulatory guidance three timing we pending. have acquisitions overlying Pending assets factor are right we approval that I providing we TBD.

item without the of the I'll providing rest not around hesitation been let the that's main the the knowing because have that's us think caused guidance going to to right. question. Peter definitely I we're get number timing, So, answer

Peter Carlino

right it’s how On today. fill down capacity will out. quarter. there Yeah, see think a just have to I going it? filling active no evolves, from we because have last someone now, all covered that eventually for I team Will that think but in evidently, see bases We've for I great mean, this really But got just here. pretty how we is search, you we're I the and think All completely, going no to need we'll CFO search things searching. road, it you can Look, And bases see the quarter covered. utterly, moment, not perfectly. us the shake are are see ultimately slot.

Unidentified Analyst

set at the the thoughts range, would anything circumstances one another, on providing you bottom-end at So, compensate perhaps a which [indiscernible]? high-end the can of question on contemplates Any guidance. perhaps

Steve Ladany

be clearly an end, achieve the pieces. to pieces, us that we difficult. high-end, meaningful moving come to a low that the moving think on there in or have impossible would virtually one with to for two the very timing up I try were moving estimate it's could very, make with all seven if on Because based when you I targets, range think

so a [market]. large the for number range probably would it not be the that be think meaningful would I

Peter Carlino

sitting but or Obviously, And at monthly on everything might is in and [ad estimate about timing team variables I out can't right nauseam] decided right. And we've of what many a today. we a it mean, there's with is it his that a feel be, basis. guess money Yeah, are can – putting And so here lot there don't it be can't we’ve an talked transactions. comfortable we there. these our board involved that with take we swag

of I today, once lot be number we get make time, not our with as through And that that comfortable we a to said serving now, feel may well understand we us offer if mean, a can where then sense out the earlier, serving at put right well, again. position Now, seems I back it's not do we But confidence. this stuff, to we certainly it. shareholders a that think can’t we'll interest. in

Unidentified Analyst

for right, you the thought. All thank

Peter Carlino

you. Thank

Operator

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

Robin Farley

time think little of a here just just that questions about market curious from I'm my asked. of Venetian Most Vegas with price, thoughts you have if what have was been you and forward, thoughts Thanks. curious that? valuations the a on in but uncertainty, on more guess, of done I and your sale obviously at kind the

Peter Carlino

it Matt, Robin. Hi, sounds like your question.

why don’t So, you?

Matthew Demchyk

So in we think underscore risk flows about. got. got that the we we cap firstly, I benefits broadly, less we've what the associated reflects are Vegas is in we it valuations given think that did. the rate market, I we'd with mean, Robin, far deals compression the the we talked got cash And More the that attractive the in the deals

escalators I way there that if the a think pricing and going you those puts the helped a lease look drive it where things entire in their construct good mark I transpire for [see we'll price and the things] think certainly IRR structure, asset And out class. watch at forward.

Robin Farley

Okay, great. Thank you.

Peter Carlino

Thank you.

Operator

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

John Massocca

point. I question were transaction, just if like But that your done just there’s a necessarily Venetian and pretty lend, you up Maybe I broader take some seems know, market. maybe the deals pretty wide asset GLPI wide you converges speaking, you this on gap to and, will, cap rate a of broadly kind some regional on Vegas occur needs you for I think of know, do on what guess, it to of those occur? if ever between, at of a of following that was last know aren't it mean, assets kind Las kind there's to rates, kind has And gap, cap deals happen

Steve Ladany

state like asset too. mean, process, I company centers, about you call was cash landings] resiliency, it manufactured the compression, flows, it consistent our especially storage, think talked it of cap the public prices our the was And we I of if think at got and the cash our we're merits look while list, at out our rate flow, assets – slow a We down time. of not mean, if market. methodical do our of to the took about over income you'll housing, look moved but underlying operating pretty the see at class, worthiness of of lot and the assets seen of in of this fixed seeing flows. it's look just right And we talked those all a on upward it took now. Look And bonds where stock compared go and you cash environment. than we've tenants. historically is I and other that. look beginnings And front rid them data past you I [middle the and if mean, better facts have the they've was created real it a we've top When we're at people, whole that's credit valued our Yeah, company essential a as the well They this the collateral in of self it's last to would that neatly where and to asset classes at mission put valued. budgets, operationally estate learning trade curve. you critical operators. of are that,

mean, the I is I side. a private comes from too. piece think about we've discovery historically, talked that there price that

look no involved. folks mark place And market might of transactions like you always help price venture, that of case element pretty a there public we at way. moving that there's been should XXXX It's joint that or represent class. equity a it you trajectory. form the flows obvious cash But value make like we're the trade. As counterparty lease when And are gives the a do, a give positive to move asset forward private something as private credit the else methodically it's worthy we be Because master time we whether market Penn. forward. sources, the if There's one from with hope, take where discovery, that resiliency a that on asset other or come anything really in that transactions for or the

Peter Carlino

to more been regional the we'll Yeah, look, tell is I'll That's cash just about without in facts in say liability, and to to really a the doubt. properties you the market, say, But and less. that story risk is out a the flatly, market. flow except flow in [indiscernible] bear valuable we've reasonable it if care really you the It of like case look, the strip. coming you continue out market the telling, the to is. be want affect certainly people can't We

have. regional simple. have investment, and strong they on get if better and X,XXX none, it in room tough, Ohio, like your Oh, [strip]? you're built by things cared the and put want have would put some about facility Columbus, would and off you we you did Pretty I or Toledo, way it have a one any hotel put you're when to to markets? money think That’s measure. I in a You where Or want return do you of in these we

don't understand. be mean, really people be seduced and exciting, about the you our believe it's I you prevail. it's look, to so, you will eventually regional I – by what but Bellagio, the you quality, anomaly. And story. pretty market. if we That's to looking drive it's want that, up an if pictures, win at do pretty care That's

Matthew Demchyk

thing I rate, achieve at the one the look us, able in get operationally you that away bought. on is to do Quality a these rates look from last were both better not quality. only mean, that markets. deal to And I'd on essential us we went you we States. the cap flow and is at And coverage the point John of the the have on cash that coverage that's coverage mission out assets the strip, and critical in something the

was when it were our all that and deal we those over at rates X.X do will You the of The take a some results, are underlying appreciate it profile best historically in negative did. than Peter also inevitable the to do. little years, despite with folks send especially And because called all above helps risk that's deliver I we that was four-wall market proposition coverage it. safety our it's day, the more year, there. our out coupons give us in a times get those to our it of of still cost end back closures coverage, even appreciates equity can that's one, shareholders at trailing the River. going was to night. leverage the sleep value And being a the shareholders. that we the peers clip we've you dividends numbers, called include you it. excess, and And pointed looking for excess bond of and last flows debt, continue at what of XX-months cash Twin trailing market Two to the we the to time said company. the margin as Well coverage the and the our they about that's look when mean, And deals at stress ago, you if Bally’s talked

Peter Carlino

Thanks, Matt.

John Massocca

quarter-to-quarter of theme the a performance, that on and of, quarters, I think individual it’s of more level, are the the XX% kind about of that, we then And be specific performance, we’re portion these on understand of cadence down of should point? coming property kind in guess comps but I to Okay. sticking with strong at you know, are the based how kind regional Ohio this rent how to maybe going

Desiree Burke

at tell pretty will you at rate. Well, forget know, thing floor, so the I much one is that that a fixed we Toledo’s, don't you that have

So, don't but it I lower. go can it think can go higher, clearly,

really there not good variable that XX-months. expect in one Columbus. only we know, the would So, we seen be the as the continued we've you trailing to up, had And, as go seen, that's closures you open lower know, properties performance, any to and these continue

John Massocca

Okay.

comps the reminder, a on based based basis? they As year-over-year or prior on are month are

Desiree Burke

comps, incurred is on the within net period. rent so percentage revenue the say based the you When

John Massocca

about Okay. based the prior be numbers I think maybe we quarter-to-quarter guess could to Yeah, [indiscernible] [indiscernible]. kind versus mid-quarter waited reported quarter. of on it the just

Desiree Burke

was million right, the that of versus of first XXXX beat I reported first XXXX. a X.X discussed quarter numbers was quarter That's

John Massocca

for very me. it much. That's Perfect. Thank you

Peter Carlino

Thank you.

Operator

Our Bank. of your [Steve with next question Deutsche comes from the Casillo] question. line Please with proceed

Unidentified Analyst

for Thanks guys. morning, question. good our taking Hey,

synergies to has do it acquisition-related are to as have Given for M&A cost as been much guys you justify, environment been? they and operators, active reduced have as the harder expect remain heavily as as probably

Peter Carlino

Steve. ahead, Go

Steve Ladany

Yeah, I do.

you at massive that, Tropicana, synergy XX, large able I those another XX buying, and is Eldorado you know, aspect know, know, you acquired few and synergy. years Eldorado, know, think when a to acquired where one Isle operators think I point, that you think this important scale from a ago XX, operator, expense assets was I the M&A deals certainly garner corporate

because just landscape lot Isle, still that know, left. Trop in size you know, the deals is are gaming, world and pretty think are a you are those not far between of set. There operator those, forward, companies I few type just going the

those people type important. asset are operators, talking there. of asset are quality out synergy on think your looking do asset with In think the at. I piece So, that that they're I filling will type that focused be things omni-channel, The less

synergies little think to but slow at asset more don't they this are buying, what think going the I are in market, far a what being environment. selective as down point, they're M&A I as

Unidentified Analyst

Thank you. great. Okay,

Operator

over There further Carlino I'd questions in call are remarks. Mr. no queue. like closing the hand to to back for

Peter Carlino

next fun dialed with It's been quarter you another all very who time thank talk to morning. forward in around. to much, and and we'll you hopefully Well, look strong to thanks this

So, then. see Thank you you.

Operator

today's conclude and for Ladies this teleconference. participation. gentlemen, Thank you does your

wonderful may time, lines and your day. at You this a disconnect have

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