Gaming and Leisure Properties (GLPI) 29 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Peter Carlino	Chairman, Chief Executive Officer
Desiree Burke	Senior Vice President, Chief Accounting Officer, Treasurer
Brandon Moore	Executive Vice President, General Counsel, Secretary
Steve Ladany	Senior Vice President, Chief Development Officer
Matthew Demchyk	Senior Vice President, Chief Investment Officer
Joe Jaffoni	Investor Relations
Neil Malkin	Capital One Securities
Jay Kornreich	SMBC
David Katz	Jefferies
Smedes Rose	Citi
Daniel Adam	Loop Capital Markets
John Massocca	Ladenburg Thalmann
Robin Farley	UBS
Barry Jonas	Truist Securities
Spenser Allaway	Green Street

Call transcript

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Operator

Greetings! Welcome to the Gaming and Leisure Properties, Inc., First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note that this conference is being recorded. the to turn Jaffoni, host, now Relations. Investor will conference your over Joe I

begin. now may You

Joe Jaffoni

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

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

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

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

Peter Carlino

good morning and Joe you to thank Well, everyone.

for on In another We quarter in Companies. the & the completed day in of Casino to we pleased the of the Live! the company. lovely this spring know here Pennsylvania Cordish in with and quarter Pittsburgh this Philadelphia acquisition you assets real-estate report are eventful and strong Hotel as

You quarter, opportunity closed Live! are by developed of And future. of release. for with extremely on attractive parenthetically published we Cordish the Quad we country's on Black will and and in them, recall in know two any the that December. City properties Bally’s transaction with Maryland our to quality Also you look we property this developers, this the see foremost The details Rock high well Hawk. closed outlined considerable that as these we property are Island of assets one in and

today other properties years. and that will have things and to grown some adding the intend I quickly you, properties just keep to number over consistently has did with that we me to interest not when was that’s our spin if XX I we which noted that added portfolio, XXXX, commenced A we so our we to as highlight. So to couple to XX, in

as had I in and that sense property team, that a are vision with controlled that we you Baton queen Queen accepted. Casino which building and Rouge, well We facility landslide – recall, investing for the might the

in a get I project moving say. of to it’s a with quarter second I if opening, significant I with the If pretty going all need up. things towards along decent I finally It’s going target It’s market. think we that really weather. steel will must and can cool It that the to think the is XXXX. impact we have be think

next so with hope are initiate for a that vein, our we I the were that to of somewhat well we’ll recommend With resume perhaps the Board's us of year from we few in in asked guidance a know say approval, to prepared can are in question a of board, our the I guidance within XXXX uncertain be have expect a increase that dividend, the to that grouping in that also Board will think resuming the would strong and In into few and next quarter. – through past, going and it’s weeks. that you expect but an this I year to that guidance. are shortly and range this we our timing we do extremely I going similar view, XXXX. things some next and weeks point prepared we are that closings, Now recommend publicly recommend to which always in would to mind, am

So over to Desiree that and our not adjustment With is recommend I'm certain, prepared an management focus. financial a it going absolutely but such board. I'm is goal. to certainly you to that, to turn some give

Desiree Burke

Good morning! Thanks Peter.

of to Peter The That by of million. related $XX increased which escalators some and properties The cash cash the following XXXX income investment and Boyd, lease Rouge and primarily June from on our had by the operations the by straight million. by achieved Cordish million. income rent, described, total of increased our we $XX outperformed Pinnacle $X Perryville quarter $X.X revenue and sale first Baton of $X.X approximately higher Penn XXXX, up million; million. transactions million. of lease non-cash the transactions We growth Bally's increased in which the the of in line lastly, Our which Belterra adjustments over year was which real-estate rental rental income completion closing which income $XX just the last our rental of of leases cash and added

by Cordish primarily expense. gross amortization offset partially operating $X of decline non-cash by those approximately $XX.X for a these the are related new $XX the Non-cash It's expenses the with million losses land lease. of charge land $XX.X gaming which provision from increased and related. and increased Our lease million, up that's million right associated million, to are by credit in

REIT should zero expense and gaming both favorable, and although X and note of that of only now increased to charges revenue as slightly XXXX. XXXX operations XXXX is a compared sale July quarter stock Our expense, which our non-cash the reversed for well in primarily a last result are of G&A reversal I the compensation expense of got first the XX G&A first as of bonus the of to on year, due December gaming as as quarter the was

turn is in it number artificially that summary, So to the back brief I'll With Peter. low. XXXX

Peter Carlino

comment Thanks we open questions. to Des. One before

tenants, as are that actively here can Baton more strong our big with invest to our internally unknown, focus results our year but that pursuing of Queen, we One grouping. it's – we put construction goals dollars so is are we addition see dialogue tenant what Rouge monies to possible the with work existing Casino this to to in a where

With other So announce balance to year. you might keep through of we hopefully in this some activity operator, can that the floor open can mind the we that and questions.

Operator

At this time, we’ll conducting… be

Peter Carlino

let a let make. me wrong Matt slow the table down Wait, in I’m direction to prepared we’d here. the on, looking me. like Demchyk around second. comments some him Hang that had

apologize. Matt, So I do sorry

Matthew Demchyk

for you, Thank to everyone Thanks joining this morning. Peter.

call and persists today want an this I markets the in uncertainty the remind macro evident, on environments with everyone to As built model volatility mind. like was that is GLPIs business capital

resiliency, also This with fact, number a a our the it robust at of In coverage has continued margin highs. buffer operating reflects wall of reported lease again all-time leases coverage while or our safety four payments. increased portfolio for provides now across

transaction exercised It’s key of then and years a sheet liquidity space the support developed same discipline The and with Cordish a focus. equity refined mantra Our strength and overnight emblematic sleep be prudent. strategy capital fully overall balance should simple accretion. to our success in also Do was strengthen going entirety funding that transaction leverage transaction our see business, and continued ATM and the and REIT mix GLPI right that are in sheet at continues of of Units, funding levels the offerings night. markets and it of expect many to locking a that that approach observing and you creative our balance at over in funding - we We OP and business of forward results discipline model issuance our match was the debt

As of that we foundation, opportunities long capital, our financial intrinsic value term for and per shareholders deployment our our all to remains discussion with on focus our unearthing the Peter. clearly for prudent now share sound is strong turn of move and I’ll increasing forward our objective shareholders. back

Peter Carlino

Matt of protect think our dangerous Matt. I I back are kind who way and and and philosophically to what think do about we're it. don’t the prepared has Look, know, – it we to what balance highlighted it’s if sheet we comes to enhance be we

can Okay. that, over? with I So it turn

Matthew Demchyk

to go. Ready

Peter Carlino

floor the open we ready to please Operator, go. So, questions. are to

Operator

you. Thank Instructions]. [Operator

question. Our proceed Capital first One Neil is from Securities. your with Please question Malkin with

Neil Malkin

everyone. I and the forth banter on appreciate a back morning, morning Good Peter. Friday

to sure just make I I it First question, understand want right.

terms G&A, In higher than unwinding a was we the going last be, with of operating to particularly your it the of thought business. lot

want made to second going another be sure, like just I think you like be level stated the starting sort I burn get are alluded rate way, a to quarter the to to helpful. to G&A in really that lower be that. would effect planning That quarter. off Thanks. Desiree is – in second of run or in

Peter Carlino

enough. Fair Des, go ahead.

Desiree Burke

these year run when the a But so a with in rate come mean be definitely I lower the will for normally that items running higher get is grants second higher, due in answer Stock requires G&A are that non-cash be awarded, us in-line are the expensed a it our expense more stock quarter and rest than where would the because those we immediately expect. all yes. and bit comp to the eligibility in bit. accounting at you is little of first little quarter our first is to and down expense retirement will those run-rate the of comp Yep, quarter. the although be is lower hitting will

Neil Malkin

mentioned, existing I know can thanks, are opportunities have closer Okay, about great. wondering that tenant, maybe internal on the you I you was another if investment others, that you the opportunities. talk some know Tropicana. potentially investment guys one than guess you is

I year. the might updates closer have middle think you said to the some you of

You know any there? comment

Peter Carlino

on portfolio of we'll conversations term, nothing every we and Tropicana. had look but at aside we're kind Right those we'll Obviously We is so. to let’s do. are becoming some wish permanent control about when really But but predictability come of its appealing, and tenants will that hotel think a every no except or and Well, now increased. tenants you we're for level say thing upon of see. it's them, focused put There I Steve, conversations cost had going day, conversations it's if our so put be that tell say while. capital of in think that is moment, may our on, that safe to can't long to bet you conversations pull I have the those you there. we’ve depended could now should attractive a something our can back the that. one to they than with it can perspective that it’s we a really identify, initiating if might Trop you, that. here more more we've I has There Again, trigger, of increasingly whatsoever,

Steve Ladany

are money just look there, already working Rouge. mean the are Boyd’s mentioned spending Treasure I Casino on call on Peter. Yes Queen Chest if in we We've other and our some release with properties. they even at move today Baton you landslide right that in

at So are is amazing. the property looking for are where own because with properties their to profitability revenues, look starting ways pass are, they they margins to and the where through are they the owners and increase

are we So conversations. having

of will quarter what think no in it's with are dialogue. every said, or outcome happen, I last about like had different a we've conversation to that at, the but that won't have things looking one a and positive they our Peter ongoing tenants us for telling

Peter Carlino

number over you count us the year portal the will we look, That surely build we have properties year. help year to So can on in, our out transactions grow that and XX that consistently found effort next today.

a to tied others. big that our the They've a in timing because is Obviously we big Steve are that looking publicized both part widely this do Matt that. site. with at It's going. go conversations Let’s Bally's. can The talk anything plays then, is A’s this been and and Trop back looked to at keeping them to Each question. of

to sound have I to goes. think announced, say property there’s going hate transaction a – advantage. better have Bally's go all of that lot happens, site I safe something they me I If is then that – that's strong can we greedy, for as to on interest to I There's hurdles we for be us. can in them That it’s fine. intend be the you very, to they a ever us, that. to it’s but think can committed enough. way that work long in for happy very it covered. if do their for If facilitate it something previously to our the that's then terms we'd we're bigger, bet and We

exciting, facilitate and absolutely about in So meeting that’s right see. no I about that bet and Las I go. process time, certainty fast tell we we part that it something will. may can ago, can an all active There's talking in that you where and lose week we'll with of I so Steve track you parties, If – ongoing now. week. goes Vegas a were last Matt,

So know. let tuned, there I must you we'll say stay

Neil Malkin

If What one sneak more your the in, the Matthew. think making. would deals you're rate or do be be Cap – you're I great. paying the in could you difference may just Okay, that

If escalators of uncapped mill your of almost to or structure in tied versus do rent run leases. your your escalator contract for terms, the you Thanks. had you all you minimums actually know kind CPI

Peter Carlino

of that's Yeah, talking Cordish and it's I a of you based like just that little saw I terms backdrop lease at on and All CPI that on the myself you just past to rate wall changed I that ago, of a four as point keep couple was to years. negotiate and conditions, ultimately one mean I give counterparties about, fixed aspect income operator, We've went some we leases structure mimicking that certainly teasing actual compatible. seen out with in these one the it deals are said, newer not a long X.X. minimum sort and a a that We ceiling is data the the over every have say philosophical that you're that a after have of realty support time just of done ceiling that a too question. something market I very much bit with did I'll CPI so our that tough, though. lease that obviously the the want escalator, wasn’t can mean real new fall something at. to conversations think has look we I'll where has in part credit higher, mind, might the the negotiation with That’s its we because cap in have at on and to one but don’t But we call, the specific market mean asset, nothing's terms is the against deals. this coverage, did them.

Neil Malkin

Thank you.

Operator

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

Jay Kornreich

and past rising in see REIT several wonder sector are I You Hey! rate interest know, see of Gaming how over Good or been cap you're the starting reverse as about playing to talking that picture, rates compression essentially guys! of going morning quickly years kind narrative forward. you that just the out kind big we've if

Peter Carlino

ahead. Go

Matthew Demchyk

one great mean, talk as we to net a our peers. we a I it’s triple question. ask It’s ourselves lot

look On actually There debt don't countervailing you've got a make many for margins. might two up which the were role company clearing XX, you've this will these one more that certainly But capital durability are data play to this very seeing might in week, magnitude, the been our closing resiliency got side re-trades they as for for many at transaction appreciates a It for on in cost cash relative next interesting certainly have right, that use. shifting time, we're the it of and to months deals price to ago. that actionable last of of on cap said, things little that going few be. We Order leave we've place. public us, going tenants real cost or see also may and where at of points transactions the dialogue I'd week. basis that and you're that into and really side in interest depth All or We points price as as haven’t XX debt other that a flows, a the of got in market rate a discovery. the forces.

employing and time, capital We are because balance players with. start than were the leverage we've to better they month or the business markets for to strength positioned compared shifted private sheet their got capital were meaningfully levels in of to real of depth we through leverage models ago, a has and now of high the and access two cost

I more use and play let out think I’ll term, that Peter’s ‘stay we So a need to little tuned.’ bit

Jay Kornreich

guys a regional Okay, transaction. interested I been Harbor sense. know that incremental capital makes gaming Boston come institutional the Encore competitor seeing had last any I new have hear you And then you, the we with quarter have in space.

poking So new seen market? around the regional just if you've players curious any

Peter Carlino

Related to poking around, sure.

a to returns, of hurdles positioned of. side challenges advantage I think them that based poking, people appreciate be into kind But the yeah, lot of getting think other relative license take of to interest. regulatory have and on challenges have I I space that of there's but ourselves the to when comes limited some it on right think in certainly of risk take adjusted a this we've uniquely and the space, look, their especially

Jay Kornreich

Okay, time. Thanks I the appreciate guys.

Peter Carlino

Thank you.

Operator

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

David Katz

how to able sort about Hi! questions. the they partnership, taking Are respect the in its for that the do be Good to to years? they whatever morning, Cordish you it call about of With should access we have two may of partnership of near qualitatively obviously you prospects think any order active you to may term, for Thanks about or my future. magnitude on, everyone. in anything five and talk

Peter Carlino

They know know them around incredibly quick David, wouldn't at they’ve along Live! of demonstrated as I mean anything forefront the you, they their existing because can't themselves that and am buyer, and Again, have how what not you mean where answer evolves. perhaps that say, presume with hungry some Not country can properties. I sure a work I between this they are leading and thinking aggressively to existing them some that. are not very in by interest. are facilities what. of I in aggressive. are a to really regard really. Yeah going people, and of I very properties as freestanding all as see some we casino is say could look, anything that Again, just properties, and I get attractive. looking they've even new these but the Facilities say, they are I with the or that variety could much at ways is, about, been I you’re in guys In their we well. not front out But be –

bought bought the I were my site build to might that and I with that property David to likely NASCAR Kansas competing better figured had more win, Company was the – a a and we I he with Cordish in himself. on probably partnership. believe he side, and came You significant way working City, property and would remember that the Kansas from back. David first that

very come out I kind my all of positive of gibberish but produce and optimistic that's that will until are guys it, these actually it. So you are is know say something can usual we everywhere, we

David Katz

hypothetical, take that which know mix thing right, is up for the we Caesars of the broader Is at a serious follow can And to perspective, Pompano, bigger, if role you that a with understand. much I would is for Cordish that of you look to just a involved use kind see you if there's kind thing. again play. with just and

Peter Carlino

I’m looking Steve, table for… – what sorry, we the around

Steve Ladany

project residential I respect ongoing partnership definitely know to type think I time is would and our with I interest to dialogue with apartment they come of I the defer we David, gaming arrangement respect should and in to point about. in development talk the getting on Yeah projects. At have, comment of and guess contractually you use us in them some or would say. with Matt to that type involved with this But the our more it's our mixed

Matt Demchyk

know, me I let don't see.

thenon-gaming turn Absolutely! good at. answer the economic Good noses looking makes our There's if We know we'll and question would I'm me for are for it all our up all Let that sure at capital, at, use that, get quickly. time call us? nothing of sense. also as them we do Look, the a where up and you about we not thing. gaming comes perhaps

sector nothing's on the believe goes But in equivalent we time, move non-gaming between that or it on think don't there’s by not or just are expect as when in wired, today you time some hard and we also continue certainly the when in partnership relates core could they that, to understand the consider today even unique to we'll to with The that will and betting, with a some with sports when the you projects listen, see manifest balance anyone, problem this to itself of certainly thematic is who exactly are incredible it’s don't boxes do our check estate in have answer and and their but yeah, if and is someplace will and week broader I to and a think future I I they real about finding All I it that the important no. going a that strong is give and broader think likely I anywhere. that Yeah, This pressed you near that could ways know, a Cordish aspects But started making on a tough, and to between say real that – to something we us, very it and The we You we're capabilities that was sheet, really be is sports I David, – have that said horizon? something. such compliment get else? place its market, certainly topic to wait Cordish. equivalent what are. what it terrific real have convergence, us. will. say can is us got near we compete competencies over see to operating we’ll again, all put there partner someday gaming based together,

David Katz

the I answers. Understood. appreciate

Peter Carlino

Thank you and David. thanks

Operator

Our Rose your Citi. next Smedes question is Please proceed with with question. from

Smedes Rose

– mentioned would wondering, Hi! doing program tenants that existing and tenants like investing have Thanks. I just just you be like incremental to year? of a investment with pursuing I’m would sort goal each your almost or time more, you of activity formalized you're existing over a

Peter Carlino

Oh! we – trying or not We but there I’m not Penn cute, matter. get just anybody, pick any. or have to goals. I pick we if be mean is another or to Whether talk can again, Boyd

set job own is of lay You in in front the there's is in guys, of ‘We're able that to pull back out in sense. sense little hands little We front that bit of so been, but one set that and than and can but them. help.’ nothing kind we priorities, hate this as I to faces and has there's that that's more meaningful are our non-answer, to pocket you their they end sometimes we off So where a wallet all, there it. Again, with predictable their know in we’d some to here to be enthusiastic of give and them our them. or I ought But other year as to activity at very area the timing, to they believe we’ll the like with say, we come smiling opportunities investment of own keep our close

Steve Ladany

their Yeah, Talk] tenant size, of year. we have we responded received [Cross I certain fund a a this lease notify undergoing with us, We a have improvement improvements they'll and to if a capital process… can confirm is notices within the willing We and have terms. were our capital those process where

don't we would a but tenants work of our money So for we aware put name love have our program, to and are that. to

Smedes Rose

budget just be changed too, of – what Casino at I all what Rouge, to is that Okay. delivering? Hollywood ask or on the terms that has for wanted if update there you you’d an in the Baton

Peter Carlino

not before. don't – I'm know well, me up. yeah that what we’ve about project let said sure Well, back I that

budget that has think gone have, way but had I the measurably. laid back up out cost not expanded because we've just have and we a significantly, way, way, they improved scope

Going landside as you it. new the must I the whole betting – going know, appealing, very sports is, so, side if on the say particularly scope be attractive, just and facility of terrifically to its

to You'll of in couple drive be playing. able a be walk up door almost and within and of inches the front

it's convenient it quality So in clearly, going to the of in most the town, anything will be place match else and town.

or for the past because out is by first construction steel some The more significantly work prepared days job. so So parts called lay long to than erected; so we're capital XX pilings on and not the the done. talked of is handle to the is better been another thereabouts in us, and have But of have for excited Probably we all We're now. put scale a quickly. river we we rate a to that be and pretty buyout that to the about before. risky them right of about are should moving building course long different, but number it's property, what going get a

quarter It second is we be our for of finished facility. should cool. target So ‘XX what

Smedes Rose

you. Thank great. Okay,

Peter Carlino

you. Thank

Operator

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

Daniel Adam

Hi! the Thanks for taking Good questions. morning!

Peter Carlino

Good morning.

Daniel Adam

The for Pennsylvania coverage credit the that come did Master I rent Lease. nearly quarter, provision million Properties? Live! two provision about How Pennsylvania the and believe $XX in what is related the to is Live!

Desiree Burke

Pennsylvania it $XX and in so as Maryland a properties in rent the and that numbers. there actual our – greater in portion properties, much is to Maryland do, the have much of property the loss, Talk] decrease million, we net the the I So, but both credit economic factors well as don't a doing number, property, and $XX that Pennsylvania rent an [Cross exact coverage consider really the increase the it to is has is have the greater was due clearly million, portion, actually calculating than the coverage

Peter Carlino

We don’t expect losses.

Desiree Burke

definitely Yeah, It’s in… losses. expect don't we

Peter Carlino

to you know. do that just have We as

Desiree Burke

a It's as that's non-cash rule. CECL required loss back credit standard the AFFO. charge. It’s It's for added a accounting under known

Daniel Adam

Okay, do variable And Loan debt that's the interest for rates, any you then or given Term got sense. plans refinance Thanks. and in that A makes it second, exposure your the me. it, rise to hedge have rate

Peter Carlino

Steve. ahead Go you. Thank

Steve Ladany

Yeah, sure. question for Thanks Daniel. the

with discussions place. in new now facility a of in putting right a in, are We group credit potentially around lenders

we're not at refinance looking that be look those we for So won't quarter. to time, that long and by next this because to will hedge dollars there

Daniel Adam

great. Okay, much. so Thanks

Peter Carlino

Thank you.

Operator

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

John Massocca

morning! Good

Peter Carlino

morning, Good John.

John Massocca

Maybe giving that coming question market debt in have due you into as look where is you as unsecured of debt you out little price you building debt the today, think, some maturity bit, near (a) term the just could unsecured a last on loan the well.

Peter Carlino

unsecured I three mean agencies. their indicator a unsecured VG But our deals ratings to I I X/X. year at exact triangulate looked considering around year notes I think Yeah, XX and so, from or as the and good recent the both, a probably I would X.XX think same the look offering think in and a would haven't notes bond at you [ph] but could XX pretty last that day have and it triangulate all to X offering that

John Massocca

the this I call. Okay. And missed in then earlier apologies if

maybe know primary Vegas, underwrite some terms does seeing not I you of – particular. that all? of across kind a I of how strip at transactions your seen of you the we've in in which that but kind historically, some seeing how vested into movement Las we’re desk new come you're supply You market impact in area it’s mean know

Peter Carlino

Well, strip you’re lot to have the of there, on meaning deal have strip. deal, that not – mean I we a focused doesn’t but beyond prescribed well us we're the even itself identified. a drop the

Maybe Steve, I'm that sure if some color question? So can on not you give exactly.

Steve Ladany

the have strip. there a been on bunch look, Yeah of transactions

some one that's I think out now. there's of that aware may be there people

you're think large The for see be to REITS. nuance with that the and to kind is as I this, M&A going think I marketplace XXXX in I in bulky. won't transactions respect the think gaming is, of thing

very traded assets regional market with we cap It’s large two very the not out closed at various of sizes large seen monopolies of and the regional strip assets, amazing wonderful tight is of. assets. what comprised again but dollars. performing Then comprised small very You've typical rates, shapes. year That's

And of the be as gaming different. in space think will but on, and the continued I size so activity a I the you'll and gaming space, very XXXX rolls REIT those scope in M&A think transactions see

you you that see know as I going think $XXX strip the large but small not corporate of billion, see see you outside could sure I'm $X as maybe and those we're of M&A. million things to outside

Peter Carlino

In this measure. Boston not any regional the my make if encore me sense, I may. is comment Let by transaction a

It's not built Las a personal my asset, a XX% of Las any on normal the in got with really so basically reflective States, gaming in that's Vegas major doesn't what cities You the bias. necessarily “transaction.” of goes market United dollars. That relate Vegas of kind in to

John Massocca

color. guidance rent resets on for last very color are kind or May? or me. Then detailed in that Any kind more that's of percentage some of questions Okay, of leases the helpful for outlook one resetting

Desiree Burke

the that rent reported or basis. us you reported prepared certifications to we coverage been aren't us release you we've clearly a see So on to at they’ve so provided if haven't look XX on the page to yet, can trailing But comment. month actual XX, the

May to the in escalations, and the to they For Boyd be the one, X.X X.XX. its only ones achieve Those Pinnacle its one reset need X.XX, are for that so. at

Peter Carlino

but points direction. you you thank of in is, We’re Des, not a that kind what you telling it

John Massocca

it that's you much. for me. Okay, very Thank

Peter Carlino

Thanks.

Operator

proceed Our Please is your with question. UBS. Farley Robin with next question from

Robin Farley

Thanks. Great!

created earlier up what question. just an in assumptions in Can you following change provisions? on increase kind Pennsylvania clarify credit the Just in

Desiree Burke

time, Well, it the so – for it’s Pennsylvania lease lease the why is it so is brand the for the new created large. reserve setting is a the which of a quarter, first number

Robin Farley

mentioned So economic to in something so I was there assumptions there, it's something about that specific clarify that about different be you centered to comments will those? your what just want those properties earlier

Desiree Burke

loss us reserve see that cost increase and Pennsylvania, just rule impacters in know reserve the on based the Peter reserve we to you'll accounting know reserve for see really a interest and as earlier is or to up as model. movements determined. requiring of leases don't the look help here to continues we upon dependent you our to signed factors. environment you third actually you XX on economic setting it's you'll the use expect of goes on the how that’s years economic an we're because said, therefore X, do the estimate the out be. as rate It's first But through set the From of reserve. party that Well, calculations our a living March over a so We impact what But cash time. reserves will

Peter Carlino

pretty most be – you me of I’m know straightforward. Let

that take problem. to time, be we of as a suggest and you And see that's feel know anything out formula usually we reserves have don't wait than got that expect kind I Des to says, do before banks moment This all the you is honest. I the party losses. I'll you banks about bring but It but something to find have and a there's problem, that, and way lenders crap a and do to we and have that take think doesn't a a those its third do that, in it. reserves, for frankly actually it. I more suffer process there's we a prescriptive

Robin Farley

you remind interest terms us seeing non-gaming and And of comments you terms, then your can potentially match in remind REITS you buyers as in this they with new or the you as just about could are some any in non-traditional market Okay, protected are earlier could you existing thank contractually the if in you also, us, protected. not your clarifying. better, sort you're buyers from maybe of space, of long tenants this for transaction

If help there. just of Thanks. about the competitive sort mode you think us

Peter Carlino

talk lease provides. You what about want the to

Steve Ladany

with current our Yeah, sure have tenants. where headed I'm what I to comprehended but we with protective fully respect measures the I question, address not can you're

contained in partnership do radius harming rent facility and a leases and intent our or and our door, opening ways some street. facility new us So be that facilities protected their restrictions in our and open a tenants with with so our The next move on are new our is that in tenants of new down we competition markets the with a buy thereby business shouldn't door business and tenant building. brand a next

leases So we identify as our protection of Outside tenants. it protected current under the are the I specific any relates wouldn't to leases.

Matthew Demchyk

that the years new Yeah, piece that developments companies, we've the come pass a talked or up seven that's with with at not. first things going we a to to don't got as earlier, thing other if they're that one we Cordish know gaming hardwired have any in structures might few the tied partner about and aren't into look the or we’re Robin other next – things tenants to come only is as

Robin Farley

Okay, thank.

Peter Carlino

any earlier, as them we are markets. that Penn find said opportunity a things and away give We to offer I Not mystery these unpredictable. arise. participate of couple think secrets, I But if that in the attractive love talked no about has hotel would it's our they with should

others and Our to folks opportunity should able be these job to arise. willing and the is ready, support

trying and or willing just to to center will So of is were every whether is point able we're ready, a senses guys, and the – people front I there we're and year we wrong. some tell that momentum make more these lot day, Only toward in right we these you front guess proceed, the activity.

Robin Farley

Okay, great. Thank you.

Peter Carlino

Thanks Robin.

Operator

Jonas Please is question Barry Our your Truist proceed next with Securities. with question. from

Barry Jonas

thanks. Great,

M&A what's other gaming? require Any assets, general parameters with outside of just portfolios you on would with Thanks. maybe there? your look for REITs Beyond view or

Peter Carlino

a know. don't that one. I whack you Matt, at to take want

Matthew Demchyk

Specifically about?

Peter Carlino

Well, about outside. anything

Matthew Demchyk

business historically. mean that One that give underlying like a and conviction capital. business attested have the spread models and got have, durability how to then in and we've down our hurdles its us to and gaming, capital underwriting scale. large I cost it fits our the to gaming both the of we got anything, resiliency, with Anything is and same small of our Well risk assets, and comes competitive sourcing outside we talked about it advantages

you that very moving pretty slimmed think The the wide down criteria So when be number there's pieces. but gets could things a the out there and at we is about of it's then have, funnel top, to capital even each question it for see a it's that’s us to we wait sense can opportunity, have cost if attracted financially, if see plays out. us make how and and an to in area incremental

Peter Carlino

come longevity spread is where one. have to the to cost an apart capital, have appropriate to our we number issue. sometimes Yeah, things But these

at a Cordish are have hard the REIT you what we did with great than like, If such who Companies in look very accept leases rally to very, at that. very, horizon, long and something its just a look less time typical you transaction we look space,

Barry Jonas

that. we, add And to just Talk] to [Cross

Steve Ladany

uniquely ways is gaming, you partner got ongoing lot Sorry, think an about in creatively know We you adding don't thinking where time of, that names important but a know across a things. this conjunction of can point, to might of people tool chest, All that and about Peter’s. some something. But nothing's or names We’ve the these yet to the how to could gaming. that's of we in or spend source else solution just lot across the market for the like discussions larger we of be might historically extra Peter’s our that what at price someone we've something and in think said, outside sort tool gaming, that applicable an could be access unique get look spokes you done off that threshold. of if point we

Peter Carlino

it Yeah, suggested I or other with you think you REITs that. saw

Barry Jonas

Yeah.

Peter Carlino

we remotely the look Yeah corporate that things, anything on transactions actionable sufficed we other horizon. to at including But say found haven't potentially. type

Barry Jonas

know you general was maybe you creeping what and old Or thoughts this yeah Peter, their operator just inflation as Okay, tenants customers? your how Any days. I'd your follow on I at. environments a love getting know great, pulling that's impacting from up

Peter Carlino

surprise Through before survived and to hard, really I program nothing distributed I gaming Penn, down to in good a that are the – they absolutely all to hurt and an fair always know, They on attack has are many that history happened, and atomic well go California. doing a everybody are can I surprise. through before can hurt the we so since operating the began from XXXX I doing company the facilities got when proof. company who tell like every National an well-capitalized our and I've into company. is even except we amazing gaming of have taking used business business say Never facility to have It better I an atomic from literally were you we made Maine heard to would most revenues say of that shocking, than President of itself. went news in at recession, a as ours or and couple say points You me revenue and but shut that called that on went ’XX, actually recession the world It have over Penn gaming question. certainly there’s we American a like we’ll fir say properties a is We every around in is, racing the really, been migrate attack pandemic. pick up. it, that happy gaming revenue entire our is that bulletproof time. our country. that’s bullet and a you

pandemic. reason it, I the at have even could numbers, a now never no the drop below looking try hang and throughout then as to coverage we our idea, say of you let's your on Now, worst X.Xx

and it believe hierarchy Maslow's it's shelter is I me gambling. if is and of at say look that this, it heard of So food, you many you again needs,

I goes. Now it sticky. - that last that the gaming sounds entertainment. highly, it's highly, People It’s all world up but their underscoring give of highly preposterous, a way never thing in are the revenues

easily. about So, worried again those up I really gas prices, not recession, can't mean enough; just people very give the worried that's things not about won't - underscore I point the

staggering. to know I like… Vegas last We Amazing going these room were there, convention of circumstances not I the completely don't mean and I that Las amazing! in you you horizon. companies facilities there's there's could under maybe is is normal week on a hotel think mean the that some performance all of out I get business retired. think set can't So that it's be exposure but involve, massive any conditions

in. amazing! we are you at it. course as find answered, we looking our that we're best sort of I’ve entertainment it’s So portfolio and as I ourselves travel, see – of and but properties So know, the what killing just know don’t environment the in the It’s so

Barry Jonas

No, you helpful. Thank much. so that’s really

Peter Carlino

Thank you.

Operator

Instructions]. [Operator

Peter Carlino

as way his the highlight Matt kind are of said, By sleeping well I there. we like night. at

We well, we not are sleeping are worried.

Operator

Please Our next with proceed Green question. question Allaway Spenser with from your Street. is

Spenser Allaway

the Thank sports extent recently at passed casinos and bill a To you. revenue Massachusetts state, to wagering legalize the that new the including to could wagering, in mobile the the perhaps do able see linked leases we think you operator upside, the capture so you're that between in addition of sports to more renegotiated yourself percentage users rents? the betting. betting increases and gaming of with

Peter Carlino

go Let’s see wants answer, to provide that ahead. who

Matthew Demchyk

Brandon. I’ll it hand start and to I’ll

geo around our small in the you’ll definition cut there's facilitated And might to that with real-estate sound bar which back leases. them manner, leases and the and activity set ours a if white create sitting effectively else activity with and I've highlighted certainly that might them with a get worked circumstances don't tenant our the that a might major we know someone Brandon in. So really efforts our our what long time and to the phone, the we most where on at casinos day that of it's well, of happens a in I of are ago, black couple you, these these we didn't Penn someone and locates with but want have at that environment counts add. balances most else the thing, of at of people very all go of to exist and by end amount we the we decent points happens kiosk, leases up I'm don't a features and to a the think over activity their originally applicable some conversations, since and that within that arrived and with conclusion were our recall we’ve like

Brandon Moore

to drive for and of leases in mean facilities there, lease us our bars in was be those our of that. I and more it and Penn’s that traffic omni-channel important too the I facilities wouldn't I building with taking revenue revenue their much sports buildings add because and of think approach to bars the structure that was the announced that's in us to focus place and captured. that out

less to us the impact leases I on parking variable That lot the the with respect conducted parking that or the of not impact to takes the think have the said, the the leases, inside will is that that lot, will the the have some of operations other facility. rental it whether more and construct that we being of will it. our where present, the place outside bet an recent inside rent consequences on and facility add facility economic of from within health less derived coverage being

standpoint So the economic important Penn rent because the important an lease newer of variable pretty structure, leases. and is less our from

Spenser Allaway

and kind attribute like Alright, that’s sounds prominent it that with moving helpful. extent I forward then would to couldn't remember other if considered. the be location deal the is more becomes already like tenants of it contemplate the that

Peter Carlino

yes. goodness Oh,

yet doubt you're those There's days this, my going what's the in the game this. that it these that's asking But say no implied still for to we growing be a are guess I and on I bricks be and to the occurs. me companies? in what places sector, is, early impact going Let where - mortar get question even

going I reality expect to I sad a expect going is think we've way. going policy hit that's reality there point bricks talked to gambling, don't lot gambling more I to view, operators worse think any don't in more that's to and the The meaningful be sad, that's as a of may is, performance most be or sense. reality. lot a better be so for public is, mortar and a my it’s for just on,

Spenser Allaway

with you. Thank No, would agree you. we

Peter Carlino

Thank Spenser. you,

Operator

question-and-answer over of the closing reached have now the We to Carlino end for remarks. turn I'll Mr. the session. And call

Peter Carlino

that, you where forward good our and with Well much. Thanks thank we're we to this chatting headed feeling all have are very join us we operator. happy We Thanks we're for you I'll good, with quarter. to next where We're conversation. taking good been, again to look about and out close feeling time morning. about

Operator

This concludes today's your disconnect at you conference, and this your may participation. you lines Thank time. for

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