Gaming and Leisure Properties (GLPI) 30 Jul 212021 Q2 Earnings call transcript

Company Profile

Participants

Joe Jaffoni	Investor Relations
Peter Carlino	Chairman & Chief Executive Officer
Desiree Burke	Senior Vice President and Chief Accounting Officer & Treasurer
Matthew Demchyk	Senior Vice President & Chief Investment Officer
Steve Ladany	Senior Vice President & Chief Development Officer
Smedes Rose	Citi
Nick Yulico	Scotiabank
Carlo Santarelli	Deutsche Bank
Ravi Vaidya	KeyBanc Capital Markets
Barry Jonas	Truist Securities
David Balaguer	Green Street
Jay Kornreich	SMBC
Robin Farley	UBS
Haendel St. Juste	Mizuho
David Katz	Jefferies
Daniel Adam	Loop Capital Markets
John Massocca	Ladenburg Thalmann
John DeCree	CBRE
Jordan Bender	Macquarie
Michael Bilerman	Citi

Call transcript

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Operator

Greetings and welcome to Gaming and Leisure Properties Inc.

Second 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 second 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

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

Peter Carlino

to report GLPI. for thank this years, dialed in to fun few many, quarter Joe, to who career, we've all here another happy about happily this years. more good Well, can tuned my disappointing excellent We're morning. many quarters and talk tell ones. done than disappointing lot you a very at you or I many having morning quarters in very had have over good And

So, this is a good one.

comments. As make usual, few very I'll

Burke have to always. think And a here our and also significant have comments will going entire as ask I some questions. we points. I'm it open Matt to few your we'll team Desiree to And then highlight Demchyk

release, I'd like as always thorough. Our is very to very, think

be to course know But today here your you can found we're most questions. of need answer So to everything there.

So Des, why you take don't the mic?

Desiree Burke

Thanks, Peter. Good morning.

percentage to lease last quarter variances year. $X.X lease, growth Master our lease, lease, prior lease; income offset effective $X.X from straight-line results rent of revenue was These as percentage to Caesars of million of of on by some increase we're the real rent million and Boyd also million negatively May Pinnacle that's call quarter and were that our to quarter quarter of of expense our Casino rent of collected XXXX, due percentage Escalators new Casino's the Leases a the an positive great on on related to resets $XX year. Ohio. To segment in adjustments from ahead of lease second that $X.X expenses $XX Lease Boyd due Penn's related were Our Pinnacle fourth estate second of the by with the items, deferral. That's were segment round million ground million of the had Meadows in and and such primarily quarter The of $X.X that became impacted compared to million, a Morgantown amended several higher $X.X quarter metrics. quarter $X.X REIT of full partially had compared lower non-cash Xst Queen million. an in of $XXX,XXX while in from the related increase Bally's income second XXXX began COVID-XX. the and primarily Master to increased depreciation. over for by rights XXXX non-cash increase An closures and Rental related rent Penn highlight million to rent the from and land to results, as second REIT XXXX lease

we with TRS this exceeding a full quarter escalator strong performance EBITDA that to of increase million the deferral the and levels it expect November second $XX.X Peter. and to to I out prior net also achieving by Casino that turn will of we segment Rouge of to results, the of which deferral $XX.X related closing want adjusted rent Baton effective continued also the With million. revenues Master over rent anticipate million transaction. by point Lease I'll Xst $X.X million quarter Penn summary, $X.X annualized and year, year Queen upon first Our collect that on

Peter Carlino

please points do. got much. And want some to Matt, very Des highlight, Thanks, you you've

Matthew Demchyk

price an opted To over in issuance the average million we that a raising $XX share. this goal of $XX utilize As into program, our you efficiently priced during this coming effort. -- sourced theme sheet just offensively Balance really smooth a proceeds, essential just year. over postured capital equity quarter being are at-the-market of a execution we market net capital many end, prudently to of of strength recall, articulated and at

program as into ATM well our sheet as our composition account, investment the goals, of the of use took balance Our pipeline.

officially Our balance weight. sheet fighting is at

into existing we're external half And To investments, overall ability successful, benefits target Our redeployment debt-to-EBITDA or to year-end. look growth-enhancing for the retained leverage will the CapEx around toward earmark extent growth cash compounding flow the enjoy of for our to our forward rate to having lower opportunities. five is range of trending we cash revenue-enhancing X.X the flows. comfortably tenants

squarely and the shareholders' financial prudent our foundation, on strong move capital. our is for focus sound we forward of deployment opportunities with As unearthing the

is strength of about, and portfolio, the real objective step has in share. combination alluded talked industry. with back, conjunction long-term enhance Our that gaming the Peter value the The escalators to stronger that dynamic growth for estate Desiree and is of tenant to enhancement per achieving from industry combination we're and this exciting rent unique, a Taking the the the higher intrinsic operational in a gaming profile our very with With time the is for Pound base GLPI's and for especially, ultimately resulted that as the our relevant real portfolio. as platform strategy are regional reality and estate the shareholders. which and beyond. over estate hallmarks other more gaming compared for out I'll This value conversation and greater attractive institutional for more capital especially investment to our incomes, back spectrum to of across real durable incredibly our to opportunities turn pound, for yearns and that translate safe stands Peter.

Peter Carlino

we'd That great great year. pretty pretty We're great points that had in like business, well make. Thanks, to It's highlights a of exciting. a many the Matt.

Q&A, to Doug So let's that get if would. with you

Operator

Smedes a session. question. will this with be Thank Rose Instructions] comes Citi. we conducting Our you. [Operator your and proceed Ladies time with question-and-answer gentlemen, line question from first at Please of the

Smedes Rose

seeing I guess achieving this to do escalators year thanks. my expect on you what respect which leases, was escalators just Penn. now? with based rent have I those mentioned is Hi, anniversaries question to you you're achieve wondering first with other later

Peter Carlino

answer quick yes. is The you Des, to want comment? do

Desiree Burke

months do we expect have to this So Lease, escalator to of Penn the get we The that year that. the in come one better see reset the not certain as they Penn an escalator of properties, on would because well the expect. and drop-off Meadows the COVID as only months how as their that We'll to perform. performance later we're performing

only we are escalator. now one Penn the the projecting right So is

Smedes Rose

then Thanks. at Okay. just space. And institutional capital this mentioned you to continuing Matt, look

you just more you be in? recently. is wondering assets? in other for that about was transaction something makes institutional come gaming – So regional do their you capital more it difficult in think interest structure do wondering, expect Vegas of regional I'm I the to But Las Obviously, there bought may

Matthew Demchyk

rate of to recurring go into well. that been is now, we've out platforms as very licensure And capital for and is mover for To to you bit institutionalization on cap in the many point. of our physics of risk-adjusted focused also know, of moat our returns. incredibly fit relationships over compression. you the And hand, ultimately things I asset lot private that that that of stunning. as one of a risk-adjusted being got the cash nice vehicles amount the time, other and sourcing in capital best our at the there's more expect the Smedes, been off-market the to mean a I've with law because REIT transactions at successful continues, out income there look we've profile make finding in mean, creating need date, flows a first less space states, spreads. in class some that investment we've lowest on over a if they're it And the see very equity direct water we I the some little Yes. find that finds return the me pointed limited their private ultimately reminds Capital and license going but world, a years

Interestingly, few you've and markets strip year-to-date in on the of off has So of happened. a been what market. the anything really comps that scale regional seen our quality recent got you've

we'll markets and to in the to MGP market end Bally's that with interesting and be the at perhaps the deal regional It's year. high-quality the Our now a when of in clearing and asset really Springfield. then transaction between going see see did

Smedes Rose

Thank Okay. guys. you,

Operator

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

Nick Yulico

or there guess morning, discussed on the question Good any you opportunities Bally's terms that $XXX is – Thanks. investment any of that everyone. options have table? them are off million first other now I with in

Peter Carlino

but Ladany answer want I is to to quick The turn that. yes Steven for

Steve Ladany

with various seen the from structures we have a Yes. we've and accomplished and relationship achieved Look transactions great with that as them. Bally's

the Our them amendment properties Part outperformance leverage incredible. the beyond the Rhode commitment. of statutes regulations. allow of increase had them Clearly, the has continue for from their they was and even been this commitment with UK dialogues the to to Island necessary

always longer would dialogue no with needed So with them with and no always I that means them. that We're not talking earmarked transacting them. today, that capital suggest they that in there's interested further but

Nick Yulico

Okay. That's helpful. Thanks.

is us update just the on can an that. search. CFO Maybe on question give you Second

when get resolved? I now. how about year that think it's should What's -- we a been could think

Peter Carlino

We answer. one. Well, ago. that isn't quite There there some abandoned one. the time isn't That's quick

that just Matt that As perfectly that we're time have you've among Steve, functionally interim decided principles everything financings operating we've I've we've including answered with in here earlier handle the don't we the day-to-day reported. done the in They to and calls, able the stuff need. anything, as all Desiree, plus seen

down Now, the We place. the just do need no time interest and I somewhere I down we'll somebody. we or expect, again, it that in say And not designate it. But in in subject. we're moment, candidly. line somewhere But line spending great probably team quite no hurry somebody with that have bring got the don't it, at on I'll any we'll expect we've

Nick Yulico

Peter. Thanks Okay.

Peter Carlino

you. Thank

Operator

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

Carlo Santarelli

everyone. Hey. Good morning

Peter Carlino

Good morning.

Carlo Santarelli

of somewhat modeling a question. Just

that about to get kind TRS think As here goes the the with maybe of you sale those G&A assets? we closer how assets, of the guys should

Peter Carlino

want you take do that? Des, to

Desiree Burke

Yeah.

So, are much pretty of split the pretty evenly. -- the the properties performance

So modeling. those off. far as shouldn't about half-and-half you And do your I be you can think think to

Peter Carlino

the G&A earnings the attributable that's in item line non-corporate also look related at release you if piece think the the TRS. is to I the to the breakout

the that's piece think going ultimately go to I So away. that's

Desiree Burke

properties if what to. about it the But with The TRS modeling year, this you're simply both Perryville whole away that's for So when transaction Xst. on closed speaking half happened goes on of I'm, away. go July

can the Baton remain time conclude the can expect half the to until for sale such -- You of on Rouge. other

Carlo Santarelli

Thank you. Great.

Desiree Burke

the whole then, obviously line away. item goes And

Carlo Santarelli

you. Thank it. appreciate I right, All Yes.

Peter Carlino

you. Thank

Operator

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

Ravi Vaidya

This pandemic? in I on wanted just Vaidya to morning. out of Good surprised regional that strength Todd Hi. markets is the have line, resilience you coming ask Ravi the here. in for Are particular Thomas. any and their there

Peter Carlino

understand along, have earlier is marketing and have an we look carefully is enormous hierarchy not are know that the at that been But and People what industry on months, every as their our we've value It's don't one-on-ones it answer whole give thing And say of many bottom that gambling. incredibly high. customers. of all kind surprise food, who kind if balance who numbers. that to cases being these I but anybody, in been it's the part, of know in dare a expected a fact. kind in tenants' of is to me don't. the And think and that many occupancy, its kind Matt's well setting over They properties it's industry shock. in is shocking. towards and shocking the last by which point a controlled it industry of everything. is properties on over heard all better It's of matter a record limits Many of shocking our -- that's the The of their had. cutting customer I we Maslow's very line knowledge top it my I generally. improvement demonstrates it's with the numbers our In entertainments. to for comes things sit our smart. just But say, their and the said us, way the they the shelter who, record a is many consider high experience facilities. and without of don't Obviously there margin these we have think line to you decades, even gaming whole turnaround doing years of of who pretty this the cost judicious occurred I allow needs strength seat up And hitting with degree and

So resilience. their be denied won't there incredible. is It's just People entertainment.

Ravi Vaidya

Perfect. Thanks.

Just expand debt here, you either looking any real or via one are more to non-gaming experiential equity? estate

Peter Carlino

ago the category. in such yes answer I been almost is as The since try a But spun seven we've eight day we're point yes. -- variety out a to been we quick strong The of at years and doing problem looking we've and things. -- is

Our revenues suppose. that I But that very, equivalent bulletproof say there as or anything its pretty wood attack there's finding, atomic to on very I we knocking as is possible, difficult. finally always the close demonstrated we're are is bulletproof

for we see and But We won't it's person at -- somewhere value road overtime. I'm And things. the our responsibility I a if say not. find of us are were down looking we betting trigger. that pulling basically kind and grabs something would see might but I you looking shareholder the us until it

Ravi Vaidya

so Thanks appreciate it. much. Got I it.

Peter Carlino

you. Thank

Operator

your Our comes line next from Jonas Truist question the of Barry with Securities. Please question. proceed with

Barry Jonas

Good guys. morning. Hey,

willing complete As you've are right talked to with is under model to the think operators, move or way? hesitancy to still all some a go asset-light do there you the more circumstances,

Peter Carlino

people of to wanting balance, I who My cash people and saying to multiples those cash of Look, willing have I'll generally opinion. and more think, and to for that an bring advantage is at going are that are Matt sense more it the the frankly, industry taking -- recognized look their that or there's I still want kind take generate. you're a that that But in others. do cautiously value consider flow some can and to REITs see the just think

Matthew Demchyk

Yes.

I think it it's operators. mean, I learning you Peter. I for curve a well, put think, the

resonates up between time. they likely but them it under for I to with another. structure may having conversations could I we saw capital, around maturity, that in as bullet the take what think forward, be ultimately, some and of think, that you things folks. the And and leases place or we have it's we no that move that, valuable valuation had fact are And get going one might like permanent COVID folks benefits line

Barry Jonas

clear, there, way? cases to as be timelines discussions out just then, see curious, COVID or that's And rising any if seeing we're influenced, it it. Thanks. influencing you Got or in

Peter Carlino

yet. Not

And quick is, so, answer the no.

that. good of threat thereof. bit moment, the a As the I said, we're equivalent from road I attack there's at suppose, a down no, atomic think or always I But an the

Matthew Demchyk

Yes.

to know first if certainly think, that be knee-jerk. just of could been that anyone. masks, take people going inoculated. down, step operators There's in protocols for the close are draconian open, place. There's and resilient things of tested. I a how And steps have accepted, going things is the we the it's lot be. widely can not a now there's to lot who the doors are battle Barry, We're There's

Barry Jonas

Perfect. much Thanks so guys.

Peter Carlino

Thank you.

Operator

Our next of the Please David Green question comes from Street. proceed question. line with Balaguer your with

David Balaguer

But from it'd regional it Good advantageous morning. a long-term seems from NAVs Wanted to again discuss once the rate Obviously, about the would compression thinking in institutional that the like standpoint up. go attractively and at for continue we pricing at lasting be if saw to markets that cap just to street bit to perspective. grow pricing immediately the we benefit that? time same pricing attractive stand Could moat attractive accretive this you you've like longer at AFFO. from able deals to to before been source see somewhat a reset capital

Peter Carlino

the we've we some marketed, the if that year. have cap year I mean, tighter might all look plays ready at this our continue things We're as extent structure, question, also and I looking since are portfolio in outside of fronts. on everything at win-win. stuff. would here, or mean, I the source at scenario I'd mean, to it between were gating or out factors maybe to really on where do more to of venture we side, is all to deals us totally other as dramatically one assets that really this pricing, they harness think, assets the the look that And better else good a traded and joint I rates up spread enable ability gaming comes been at seen better mean, out. I from start we've argue out shore the priced. which, time, the then existence. doing and us of day the where done whole one it And have, we're for to other is goes flows diversified the returns recall, re-rating, remember, portfolio back to the the cash for some earlier and to it's of that, same if of kinds I most good one over our At can all should, just our capital there's it. and wave largest far -- some the to play arguably a I to whether priced for paths redeploy your mean, go positioned And re-rates these we to shareholders. aggressively get of in

our job doing. what a So to spend playbook have is each that's ready we that's eventuality for time our and

David Balaguer

regulatory And helpful. on help and as that that That's just moat real. quick gating a it. institutional potential standpoint? this that, Got business quite a mentioned Is follow-up from capital of the a some avenue in JVs the you potential overcome issues to considering is

Peter Carlino

I management finding over one estate at especially, day, box time. to sense. capital, need end when And look Totally. real That's to asset is team mean is I check of deploy a especially, seasoned make the if mean, the key. a to how and someone kind classes platform back, you there nuanced a of decides can a moat, -- that's been you

our set it's totally might. here, one I So way if makes sense. suggesting you're I plays it think think the the out that world skill to and when way And monetize

David Balaguer

it. Got you. Thank

Operator

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

Jay Kornreich

margin hitting can strong due revenue Master saw, your planning XXXX regional surpassing Good Lease escalators I'm that out operators you this on largely from achieved curious more morning. or was gaming levels? great if rent break if to that the you're expansion it's It's all year. just Thanks. And Hey.

Desiree Burke

the I able be that is Master one extremely But they only record hitting we escalators. in performance. our they're as So have hit that really which well, going lease, to to adjusted Lease. it million revenue the to to disclosed own earnings. in they're $X.X was the reason performing we're -- is But Penn just of the the record revenues, had we are clear, the the just the all told above. you Penn answer EBITDA. just had achieve why is the their the table is rent earnings rent They've had ratio record They've release calculated and mean,

Jay Kornreich

opportunities? do you And to with then fund tenants redevelopment or opportunities any foresee for Okay. either expansions current your

Peter Carlino

Nothing tenants. Yes. That's be is, of We're might a We that. months that that opportunity out work. -- able a next we XX The illustrative. but certain And, positioned or as capital significant that of announce answer be earlier talking put that there we're the we ongoing discussion of pointed are some to an to over about. yes. some part Matt sort would course, of things do to to now hopeful hotel with number our welcome that right are expansion, well to things

Jay Kornreich

Got it.

That’s much. Okay. Thanks it. so

Peter Carlino

you. Thank

Operator

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

Robin Farley

Great.

others not of, the leverage earlier But I back than maybe Peter REITs take and to I'm strategy. just your out public going more an some transactions that where having Vegas know Sort in the topic constraints your are there. for assets of curious gaming

are Just Vegas aren't at in REITs terms disadvantage other public after assets, assets? well not is matter the for going after way put those of you're assets type because or which that some gaming big in the to doesn't answer the going buyers that it go of bidding a the

Peter Carlino

Look look everyday of I here. discussion It's Vegas do we think at mean don't either. you assets. part can assume an I

number it's like get is presume of may kind do. of that have looking that we're others not same or the or don't competitive. we frightened the And we leprosy that So to not to kind able may we they are at be assets that not

like would number a seeing be it's There's industry players is of and a world. many successful competitive look in it. it in to how this more who So

across more really, are really close everything. any wouldn't of right adequate think dynamic next broader good a a do. us. industries. expect year I us. But an front out points ever now. at there's And a competitive We Matt of good Robin. We're what see We for got We've we we becoming and doors like range we year it's runway in look -- year as So we

Robin Farley

maybe I of terms ultimately But, buyers how taking on that not in that? the compete guess, are with of other leverage some kind you do

Matthew Demchyk

I think, seen years CMBS Strip our it if valuations was might a And Strip. the be the been we've and Robin regional only to-date there of the Well, buy drive of to much development asset support little more in last assets now two challenging. formation to CMBS capital market the strategy hasn't on But in markets. Strip

right that explanation over mean the is better much place as also for the both. So returns spot there's part that might certainly benefit part a to a moat up that because on a levers the exists private XX%. It there's get operator I returns sweet kind not company. But like fund of debt have evolve. case. could our behind legitimate I get different do capital time. be of of up -- mean leverage for stack. XX%, we a private mean owner been But that's the as right But of we public equity a we lower now I the than private as and equity that. you're taking that jumping

precluded a classes If low you GSE portfolios. apartments a the hasn't That developed where loans public mean extraordinarily companies estate market. enormous in there's the from to look building apartment developed at the in been real rates. government actually I other market CMBS asset there's

room there's all for to So coexist.

Peter Carlino

Yes.

I out as these and year and at with were absolute we're time forever grew. could at private years because both lever have going we'd we ratings we portfolio Let a we from that we've said stuffings this confidence. our assets again the value living in and company XX now night streams time me say, our not of looking if paid that revenue investment-grade to knowing year, sleep the get did next that

we'd structure different course goals to different more of look company set and leverage. with public we that But and take protect Of a maintain. want financial a we're a

play So the sandbox and we're have. we much that we within more if will you cautious

Robin Farley

Great. for Okay. thoughts. Thanks your

Operator

line next Haendel from comes St. Our question of the

your with Please Juste proceed with Mizuho. question.

Haendel St. Juste

morning. there. Hi, Good

Peter Carlino

morning. Good

Haendel St. Juste

Bally's comments that a getting on I needed to on back sheet by waiting for the and no the was guess, back fighting you're I the sys-packs longer offensive. going the So balance comments to and intrigued second. more games

clearly of like and gearing there And, if peers your done near-term. assets? curious in And it as more I'm thinking thinking been recently. gaming guess, in returns to sounds you're I or about on you up investments versus so think more table outside on you're that be one of core If how here Thanks. your gaming required more has there's the about anything regional change any offensive

Peter Carlino

morning, Haendel. Good Yes.

of spread a we opportunities gaming, things but in is to what thing enemy amongst that we're let balance mean cost be I'll yes, So, continue in said set. perspective equity sheet R&D to I in of those be. I'll investment we is good. be say in And are Perhaps returns bit of both I And there goal decent. not things many think mean I things sector capital whatever part say that gaming. fighting I ready mean earlier the is again out as risk I of about -- mean of our a gaming outside we peers, cost just the will required leading to our of mentioned are which our and given find of weight. outside our got all little great tuned. function a point to outside? We've not gaming are could to of we've perspective cost there And something from might be. capital and that But great of a our cost do debt years we're which opportunity things. just of good or the yes spent doing might stay

Haendel St. Juste

Okay, enough. fair

for a of new just with take internally pretty players guess not company have unique and did I CFO was for CFO. not It us CFO? responsibilities some more annual second provide far comfortable there a ongoing. obviously highest And real in And those role the persons We of some can it the curious guidance Thanks. will. question a my But but on under the curious who priority happen? think time. than you're into visibility thoughts on comfort bit to horse, the search research many as dead well. designate it's one wasn't fill of to just I guess that a to here. that bit not would is guidance. your back but impression It's back the why as we're the not I'm I'm size the beat have going a a to April. even year maybe just here the were I not if level lot You of more do why

Peter Carlino

that I to a where decided may handle that before in just for not things we'll a get I year have next perfect that couple sight the of not want likelihood with think this this variables said as -- we on a the maybe moment, guidance we've perfect all have not known or we but We year. going. a don't known suggest things year into negative, is all

to it's probably to So, going back we will it out next to year I this get play get guidance. look year where through ahead think

looking across this of at a financial to table. it's way. here. interesting the thing, that at it consider team if very want it And sitting On talented problem from part me I'm CFO an just you We've got

company. an be blissfully and shareholders day a So, a talked the longer happy am -- team do CEO that out underscore can't to disadvantage office is We've speak could I company, or it But of when I to this suspicion we'll designate this play I'll we're there the team workings this this we my is I look to no And am of CFO. with or that. will as not. going of that. about to indeed

people this company. finance a of great in have team here We

I As in and present building. the say elsewhere

So, to down road the we're least, for continue at moment we're on. the going

Haendel St. Juste

you. Fair Thank enough.

Peter Carlino

you. Thank

Operator

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

David Katz

Hi, a little which good land Thanks my excess anything bit bit? but maybe far which already, afoot believe some morning prospectively there as to Las little just asset questions. that own, everyone. a I recall, Tropicana, delve for can that to where obviously, taking I you correct could you transacted there there potential. development remains if just had in Is activate you've some for back as that wanted Vegas, potentially I'm I or

Peter Carlino

David the in that excess are to broadly at you referring Trop or site more portfolio? land

David Katz

happy was Trop to referring feel be I'm elaborate you to site, supportive. I would have well if you elsewhere specifically but the as Yes.

Peter Carlino

that is just now. we think maximization even maximize site. cooperatively Bally's we are what can say inch potential more And figure right I'm considering knows the I more that of for or that how is here there. every occurs working to there out we of don't at we're them property. to David, whatever with Frankly,

can that say I But they've to build work been but to process They've site. with out figure can the want refined mean I assume that's our you to much we've all it. from terrific the relationship moment. best to-date. how they I So, in use is we're with I will out that very don't Bally's. for the do think to we're tell. deal Time what get will helping wouldn't that as But see tell. that look anxious Time that announced of as coming may we

So, I would well. that the stay tuned. used one tuned think stay on as I term Matt

David Katz

are. quarters. the then perspective realistic one -- these And just that debating regional and are we just much profitability I into to some actively the than information that the our Obviously, properties to people have been sustainable Got Peter; sustainability around position experience can chronological past are levels tap And seeing and of levels. is just just would experience opinion two is or flow in an it I a those profitability we think your of closer assume? for team if that two, I'd fact love it. the your how

Peter Carlino

At say levels. at the going not to levels, current current the I'm

good remain. however, definitely that of -- to will a bit However,

smokes, to has holy company we way said every different there's a business this can operate maximize. think I

think expect I Penn half. to said has said they They that. keep about publicly

any So I've of -- long have retained I they be I for about industry not, that it's think what go that to This by gained with many that the and half expect -- investors, taken haul. I been too level. and isn't guess about at has to to going had And way, of offered the has quickly. a thought would back going very our changed,

David Katz

half Neighborhood is? Okay.

Peter Carlino

Yes.

David Katz

takeaway. Sort of the

Peter Carlino

that a portfolio, a even look model and really us. business I more outcome that. robust all in piece at by Which a is have more beautiful an gives sudden achievement. some for David, add coverage mean I octane. stick that so. potential I'll for pre-COVID four-wall I Yes, of add I'll our just escalator our mean we think

David Katz

Sure. Yes. And drop context supportive all the if which we it in cases, it's good. in only were to of digital is most proliferation,

Peter Carlino

More more relevance, and more durability cash.

David Katz

Perfect.

very much. you Thank Okay.

Peter Carlino

Thank you.

Operator

Capital from Adam your proceed Daniel the with with Please Markets. comes Loop of question question. line next Our

Daniel Adam

gaming that you do GLPI's means. driving Good Peter, line contributing by course Hi. question. what for business everyone. taking see record the of retail core Is Is any pent-up sports earlier? not it's top in results -- Thanks to that demand? alluded morning, the it betting understanding you

Peter Carlino

Desperation mind. actually comes word I to the mean that. is that

fuel experience You've gambling always when National They needs. can that's years, out lifetime opened, living been gaming a that the in recessions, Maslow matter tell those business it. XXXX the grazing been went an got thoroughbreds want having in lot cooped fun or they've The illustration, one saw certainly those desperate. the except that the a seen time. And world not all where And except things that through to want with for I've I people absolutely went I'm increase we up company of of of in look, we tell a you on things. can are priority I masks. look, I to business. XXXX when sensible, that, Business hierarchy was with their downturn, long we've down. or when the to in every I but back been get case. up of of tell period situations, you, Penn that's of my mean I over of the business crises, XX lives They doing the get is all sure can around and of -- things. you President logical

in airports. it see You

of Remember out I any as just also People And we're gotten get that. it the are companies everywhere pretty other I anxious good, will today. one see to thing You beneficiary have and do say earlier, think said stuff. of just lucky I knowing but at in the people most They've the has gaming revenue. who produce can And targeted marketing remain. marketing that. those curtailed, been pretty been are doing customers. people. business and clearly two expenses their biggest skillful That to will And

brains US, business stupid So expanding it when the to little up to the people early around be decades gaming to I bottom don't the in a line. doing keep ago was if you have and wised your marketing, the finally out days, think used and that the in case which some blow decided of

is that and desperate think but So, think different we're simple give out, continue. to people the looking at answer find people will up their are that pattern entertainments, I I a don't very time, you'll get

Daniel Adam

it. that. as year, Got sale And involvement Thanks. you in more Peter. the made very at a I this point stock. in what for you at is guess, of Penn? Emeritus all Earlier Chairman Thanks this And timely one for Penn if your company,

Peter Carlino

I used Very little. as I reports to. no longer get daily

didn't the moron I into I flatly. the reason it the I'll special use no don't company that if say that at in now. sold, And at one price tell lucky, all, I insight I'll at can expression. sold is only have and I for which this. purely So was The that House. White you time,

with White boy, frankly, do thought price And capital that so to current would to just thing. could the we're and that happened So, gains Biden and threats pronouncements the the if go leanings I thing. and of out I get have at of it It price. going the to some be done a political have been same there. right representing at of to responsibility in coming out kind House family elsewhere family of the my Biden the trust forth.

very driver. if candid bail another some million personal the tax over well way, raise that. probably share invested. the $XXX capital to the have But lifetime, still the We never I Very on candid out So I'll gains about and entirely. money And goes being my that. about didn't a in stock. income by ordinary was that of net family level, sell up of I'm

for level. So It's involved but now that so I'm that's would with be my into else. get now it be what to that believe nothing view, my personal so got that that I've you been me at an but years, politics, which at you -- drove XX investment, forced angry taxed

Daniel Adam

the appreciate candor. Thanks. I

Operator

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

John Massocca

morning. Good

Peter Carlino

Good morning.

John Massocca

using broader kind space quick peers into -- been well I net peers, so, some one kind kind maybe construction lease in a as even just Is kind of So of the your would that toehold of, of of you financing of or think potentially more flow. potentially your as have of the something a new kind involved the there do, that in too deal with transaction to are risks toehold kind of many structure? that look

Matthew Demchyk

that we're to our a but goal maybe be good strategic, ideally there thought project. have years, income you something don't forma. do Yeah, to about did our to stream. eight that fact get free. what's capital we the a goal get space, deal of is John, doing recurring a different to is And the its it's see talent into the mezz to underwriting said transforms in, going the the cash can sheet thing. for mean, equity gaming with mean, something the rate we on going especially, there durable look certainly I right in we construction structure, attractively put a very I could many the mean, into to But when sale ultimately have leaseback. pre-payable ultimately million you balance mispriced an If certainly we Bally's, is, estate we for loan $XXX out priced recurring insight a lend than backstop, real got opportunities other flow. have at I think fully mean, I where risk cap about, pro really of we you at off-market we've within the

also – everything for to open our prudent we're cautious shareholders. valuable anything more So can we that that and platform and We're application. in that makes

John Massocca

vertical potential seeing a there's you investment? state I development? where those I for types transactions brownfield there's markets, couple that mean, is opportunities mean, of today? some of or greenfield Are for a

Peter Carlino

need Look, put we But some it states couple at under we'd license talking of going But love is to that there be me in the opportunity I'd it. to in gaming. said, because about have to that we can significant I in you is look, can We to And that, I'll talking there. develop some a there we long as a it to about Let activity look, way, would capital greenfield we get don't limited overspend so That's you a are fashion state work with say the are properties. about about their of as bulletproof Lease you partner, answer where get. are as see whatever this all, tell way. that engaged. can tenants illustratively. expansion to Master opportunity fall with love the

and of those You kind discipline. the course the spectacular astoundingly the good. been design that wrong, built building been the tight way that, and Plainridge has go properties, I to development, involved performance of That's things all Ohio were only the was overspend. totally well with They're in just can't last every properties have the and budgets. I to I'd don't and would you in the Massachusetts, we if point built

So GLPI? I pass think like an don't at opportunity up that we so. would

So, what I it's we And yes, be do. we mean, would there.

Steve Ladany

recently, discussions yet already Yeah. we've but to add folks discussions Illinois, states to ground jurisdictions having permitted as not Virginia I had I and locations, the most in are we're as on such and in which mean, with legal Nebraska, guess, well. comment. just with Peter's are people which

are we a to own as for and around deploy land properties. Matt – the scampering of building get yeah, opportunities So to we looking said, capital. And foothold are ultimately those

Peter Carlino

Steve like that I scampering.

John Massocca

maturity pre-payment? balance the I'm context of just cost go a higher through, sheet, the mean, opportunity potential of equation you know, some your or maybe? where thinking on sheet of you of math of And pieces balance particularly do the on have little that just shorter bit some there changing all debt then in for there pieces. will in but remaining just see the of And I kind maybe is an the the there today? I coupon capital gears kind debt of there's

Matthew Demchyk

at have a our coupon XXXX sense you're and the looking I on five-plus those.

papers current the the rates just very And our sound in if and our around see mean, market close public breaking it conceptually the barrier those at talked not XX-year or for we've believe I and out market. look even at there. X%. historically about not, XX-year can to, you So asset it And are trading looking believe class or X% not

it's in something certainly not something still pocket. if and we're So but to negative then, or pre-finance and our it when Between a and we'll sense. rush the the is now do XXXXs, got NPV to do prepay so, we've back in makes

John Massocca

answering much for it you That's me. my very Thank for question. Okay.

Matthew Demchyk

And of in John, of leases. our our the assets continuing our with term long our the of debt long life to goal I'll of existing just sheet increase the add the on life balance given

Operator

with question. comes question of DeCree with next the your Please proceed CBRE. line Our John from

John DeCree

views the Good on, different get some community. how the or little difficult finish Just about get stuff that your your you Thank line? to be sustainable, buyers morning, Has as my of that sure, and you of analyst record an get market to your Do Peter profitability the and that a on a revisit considering counterparts investment current made well. your peers for the bit debate? views earlier current I'm obviously, regional landscape gaming and how the question levels influenced think it that's and might M&A outlook more wanted on everyone. sellers? thoughts Maybe to over is lot and M&A of response much taking to questions.

Peter Carlino

seller has no for with mine reality it's for this think a if properties mean, were world. and words, ground because there sounds moment. silly. where other from is just -- I before, with there's engaged says, it's not lot going I ready seller use me, But them. It we're the not the a there's seller. mean stuff. got you of sale tree the I'd the put profound. opportunity buy out Where we're not get properties it But stuff given of an we've got regional nice to there make we've properties to that happen. the the problem. mean to proceeds. to used at to a all there number where until we stuff significant in any that sell own up I actually Much the am with like get sounds blanket I looked stuff that it not There's for not we – in is -- to We so seller catching at is the There's come have offload of is lighten seller I've to it is not I Get opportunity out out of can't ready we'd like happens, varied the -- a catch and like The falling otherwise business. purchased for or until be need But because strategic just to to the of some some or or reason. that sell. as

runs say say One love coming like really bangs for and want wow Well, that's house of your it up But not I sees I down the door former then on it's says, is it's and sale. I not our somebody employees house it. property kind sale. to I driving up say, front have for And And we used well have really to it's door. want the it. to to of on your and like brakes the street cool, your your jams

Now where while. it's price the go a not happen. it's to forth could that to gets a debate until back But or decides point yours, for going and the seller

the our and as tomorrow around answer, X:XX. banging if to there for That's of are what's properties boards but there, job occurs. be out a vague not to characterized is There when that's sale So hundreds hoop the proactively hang at that well morning there. pretty

John DeCree

of color ask the maybe of on a Peter. reluctancy. to helpful follow-up your some answer And given there, part That's

from rates heading or folks ball and we're cash let to you valuation are where Are As cap that of out pull are we just stuff see rates if to point, flows compress. if given casinos go, is a price, going rates be where dollar seeing there's and had to where at close cap record we're increase crystal these to Do EBITDA where we your going cap and to think record going levels willing EBITDA you as properties. well? getting absolute

Peter Carlino

is to comments? view yes around looking my answer but table. is I'm The Other the

Matthew Demchyk

just price. move that I Zillow -- think make think of I John me and Yes

out deals for think will coverage in. with be built exists. a by it's we the continue uncertainty that's I decent license or a little margin try money. you're still And me mean well someone end little help X-wall can't our pry right ratio. remember give analogy it EBITDA robust we providers to and, going we x, or they that got -- know woman But And need may us close can to give with units important given price with capacity if of and have a an and to in do hands. if if with still don't I get may do we consider. been where the, idea now, have But more don't and what safety where to to last experience their capital of I'd and to our And capital, results something. at they bit, do us want us of a ever it move Peter's need if that to to the day, something it have guy we from sense or in saw I right remember a mean that we the those driven that with again, could going if numbers, we to like the really I are And to we something decent were to few do scenarios, is everything the be. you be do structure make solve

John DeCree

I guys. color Very helpful, the appreciate and the stuff. all

Matthew Demchyk

Thank you.

Operator

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

Jordan Bender

been have into million hasn't at benchmark This on or moving ball morning. talked on in crystal of kind expect transactions this touched we while since an here a as COVID, $XXX but don't basis. years you you future a know before annualized in million that $XXX once can about I good forward? a least but doing Everyone,

Peter Carlino

I will. given yet don't I and think haven't that on up we

that the today Now be But it's our date. certainly -- straight the goal never do But And not going be isn't. a predictive far achievable. they is exceeded do that we just believe it's ads past television internal what's should on we've line. how to that's It of performance to future.

phrase effect is whatever pretty that popular that to Something projections. financial it is that exculpatory with

Jordan Bender

ratio is as you've Awesome. kind range? understanding expect COVID XX%-ish your still levels today 'XX. we talked go And we payout ratio possibly XXXX. guidance payout Thanks. that mean of uncertainties your Should XX% I to historical to enter the dividend in reimplementing about back below into

Peter Carlino

The answer Des make is do yes. want to you comment? a

Desiree Burke

escalators year we -- will continue we of The coming what whatnot? same into was those how the goal TRS for would payout had What would our happen always close So would into the and to -- what our shoot do very AFFO. goal is our Yes. and struggle - XXXX. for XXXX AFFO historically the perform, properties yes been the it ratio had what be, we've with XX% and you

Peter Carlino

growth company and levels. as to within I'll dividend say responsible important Look critically in just that an is me it this investor myself Yes.

So you our it to of continue can forward. going keep ability to to bet and the that best we're move going it

Jordan Bender

Awesome. Thanks guys.

Operator

question Smedes proceed the Rose of Please Our with follow-up question. from next line with Citi. your question a is

Michael Bilerman

Smedes. you Matt, come feel as on the Bilerman answer to you It's with you. capital I talked this quarter. here of to Michael equity to about well. the million yes. wanted ATM $XX can and in free Hi, raising back Thank raising Matt, Peter

about [ph]. XX.XX execution think I

institutional to I where balance You you to ATM. to capital be where the you the something the road But obviously on your the in buy more would that. a describing on you eager comments you've reload knowing as cost be lot would appear able raise call in so your something to position high class made you asset of and can have interest of down though transact future? today not this It and today a to how want the know is ton may do you see like can sheet

talking raise to So a proceeds amount joint could do wouldn't opportunities venture, capitalize and numerous come it the the out go to and to about be of significant a fruition? you've been today on ready that at easier that be

Peter Carlino

ventures of mean remember I I which to time open still whole mean don't Yeah. other the disposal remain ATM, joint we've the at used we things. for to acquisitions. predictable same a we have chest our is a toll Michael, things. a XX. have little and there's But at net few One of cadence a things. we a price, close One,

overshoot we're to kick-in. So, at their delever to a And the the in other want we also not where large direction benefits and leverage out transactions of don't to maximum there. point there's getting ability

versus significant the we where decision the making benefits of we're between the JV a size that's benefits partner. of of if and So using something did equity debt

to piece in of us be this So positioning I fighting quarter going of ourselves last do going mean it's I especially What be to be to kind it it's that forward, advantage small equity part saw overhang think to nuanced, was to everything call case by take weight capital. do business going having you plan of you on and I think not going opportunities out any our raise mid-priced here to to said ability opportunistic But is headwinds there basis. or our from be an case. of

Michael Bilerman

of out do it? little you've leverage bit trying of period be you make capital try situation. take and why attractive Why run advantage you opportunistic? can to that's do the Why able that cost there an it not a a guess the aggressively I to lower but of amount to into Well, where get interest been of down something wouldn't go tap you road time, and for and

Peter Carlino

we're with or ourselves a then for we next should will uses know next equation. large be position Like what thing like be JV scale will it wait the pricing the and We to don't sources to four have. delever conversations asking or what thing and next things the you're but thing. times when have might if aggressively do X.X We or it's not for -- that the

and don't didn't we use of I force a would good that it the think about So, if for have being thoughtful yes, but we're we positioning scenario, ready proceeds.

Matthew Demchyk

we're mean, I moving that direction. in

so the that are we undrawn are and lot ATM pair But with opportunistically. forth. we capacity, we're pleased But of where think down we demonstrates it I we'd funds headed of or And And road. we with lines now. think yes as that raised with we're like borrowing have concept something right a I equity talking to you the have else. with the use the about transaction

Peter Carlino

the an we way efficient support, redeploying. think And in business force other want are that's to we're were -- last lot a totally cash leverage. years a could our you're very up higher giving flows I to appreciative to willing one It's seen sit range on themselves don't private, but We have us couple we Michael of our you've We -- to for may To beyond it mean not model. gaining? than which get maybe prudent it. for that you down were well the the arguably much what we a but if the we the didn't lend something public low were act. would assets respectful by that just on and more mean arise, art, hope of We're or -- markets think the very, I in to close of balancing our hope It's it though frontier. of,

Michael Bilerman

about stop the the acquisition to right? your let think think have joint asset be going [ph] document class opportunities I going unwarranted of the probably are think them all and confidence performance As long-term I have execute long-term to you the that there's I to the especially the you These just that here look snap of in Well, -- think given you just mean, to that and alone ventures These right? it's fingers you the financing. -- asset can't relationships don't class. is

leverage can or you get joint a partners if advantage fund with it's you institutional of just So a create venture your all the an or and partner snap deleverage find an like not that. opportunity fingers take and and

and of actively it just comments though So like to your that advantage on have debt interest extraordinary any to markets of markets see reload the and today? appetite do Doesn't fully trying monetize was sound take to to doesn't an your based I and you today seem to some equity part as whether push portfolio?

Peter Carlino

put your I call doing use to match for rather We why months. redeploy rates calling that's we don't where in and cap scenario well And another actively as of of put positioned. XX if that we're But we're appreciative cost the And triple-net an lock timeline. especially effort of have when now health my you a it if spread that basis the compress, REIT the again continue we to now capital things XXX to them points is negative the I together. care channel funding your business right want capital I'd a it I in it's sure if of that scenario the have and and and to mean, in make and totally if we with effort were business. next and know we to proceeds the do appropriate reasons. into I'm in cost a -- I'm do interest uncertain could again, to and compressed mean

Michael Bilerman

some are opportunities of those mentioned existing we in things guidance probably sell are known. with mentioned performance that not on uncertainties a the known, a assets. couple your And that to the even finally then to is though external more Peter terms lot conversation just you not more Peter the had? not just the of And your clear it's buy give assets just wanting given there Are or so than of today

Peter Carlino

It's -- yes, Des, to want it's… you say, kind of

Desiree Burke

We we our once have of of Yes. control. our the It's begin and better just all clean can -- things subsidiaries. all still that just that on we sale out up to REIT forecasting timing unknowns we taxable the then want the of of

Peter Carlino

there of halfway sale with Perryville. the We're

Michael Bilerman

existing your to -- things unknowns the or income and just at TRS. There's all all TRS are bracket it's the us and else rest? couldn't you transaction sort why the of so assets to And nothing give TRS. the it's So the due all

Peter Carlino

We're well. that There not go other we to are as can't. things just down going potentially road

way could want there I'm Des. happen negative mostly at terrific. been doing So, I we're And ahead, go looking the by yes, TRS side, performance -- at looking you happen, might mean, things positive it's good. are the has that other Do to?

Desiree Burke

of easy to guidance company So for need the we is you think I will doesn't it's look right? determine mean, -- I company everybody guidance so. but to necessarily and for honestly doing that, if mean, known the the project, that it providing for right begin pretty don't flip is everything at time side I

Peter Carlino

Yes.

Operator

That is all questions. the I'd for remarks. for time to we to closing it management have hand like back

Peter Carlino

have dialed Obviously, say, who this this when me it that. which is. more thank good, to we lot in It's fun a let appreciate morning. yes, Well, news is all is the

You of and optimistic us into year, the a next we're going about good. where in very find year through looking mood very feel this balance we

which you a quarter. impression, have thank had See that successful again. I joining we've next hope left we've if for we us. you we call Thanks So then and

Operator

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

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

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