Gaming and Leisure Properties (GLPI) 29 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Joe Jaffoni	Investor Relations
Peter Carlino	Chairman and Chief Executive Officer
Desiree Burke	Senior Vice President, Chief Accounting Officer, and Treasurer
Brandon Moore	Executive Vice President, General Counsel, and Secretary
Steve Ladany	Senior Vice President, Chief Development Officer
Matthew Demchyk	Senior Vice President, Chief Investment Officer
Neil Malkin	Capital One Securities
Barry Jonas	Truist Securities
Haendel St. Juste	Mizuho
Jay Kornreich	SMBC
Ronald Kamdem	Morgan Stanley
John Massocca	Ladenburg Thalmann
Smedes Rose	Citi
David Balaguer	Green Street
John DeCree	CBRE
Robin Farley	UBS

Call transcript

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Operator

Greetings. Welcome to the Gaming and Leisure Properties' Second 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 this conference is being recorded. the to turn Jaffoni. host, now will conference your over Joe I

may begin. You now

Joe Jaffoni

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

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

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

Peter Carlino

Thank right with impactful pretty in Joe, that has than in have to a have the one and dialed perfect of four in as excellent page the significant you, through we if this everyone aggregates out. accomplished as with Notably, and which all $X I the of detail have depending with we and transactions I stuff in do, rather the in to quarter highlight, transaction over that months, billion upon transactions Cordish potentially Happy billion the last page Bally's who about you'll and all today. we billion, another that us or everything that's quarter. eight I'll me good outlined idea is you our morning thoroughly Bally's release. through combined shakes there, much the available report $X.X have business, how announced bottom the this in read look range think activities quarter or of new $X.X at go And always as

to that. value. your Des? will lots Desiree for it's some to a that think we be lots going turn then now, and of ask, points quarter So, pretty provided, detail us, questions. I that Burke, Again, do successful I want highlight of to and we'll financial and I'm to been highlight

Desiree Burke

Sure, thanks, morning. Good Peter.

the completed Cordish the rental properties of XXXX resets $XX lease, which Island of transactions increased rental income leases, million. in had income Our which of their then year, last And to $XX as percentage fact real and Live! our million. We the million. higher the Boyd, Perryville, operations and non-cash second investment Black escalators $XX adjustments, positive on adjustments the achieved of straight gross added the income of approximately Baton Rouge increased lease million estate 'XX, Hawk and April, by total in and leases and which outperformed resulted income and in for Pinnacle, resulting the million rent. Bally's in effective revenue by 'XX, that the $X Boyd, cash had Pinnacle, by XXXX. of May that's rent net We We Penn June which we and cash partially offset sale, ups a transactions, effective Rock rental that from $X closed increased added leased quarter result which increase. million, $X.X line We Belterra by also were rent the over estate Belterra, a real of closed

for million $X.X due the Our million the operating TRS non-cash expense, $XX associated million. intend NG&A provision increase decline of to for Offsetting with related leases, new incurred shortly in primarily $X.X as the we sell decline, to charges gross expense land decreased and from ups expenses the that of lease amortization $X.X was ground credit related losses this an and and the well and to operations. of by on an impairment gaming the acquisition, million, Cordish charge that the to of as of rent million about $XX we sale

XXXX per Peter. our $X.XX, turn from in diluted does With that, it include not pending which release and transactions, OP AFFO to included full-year guidance back $X.XX impact the other have Tropicana. I'll for the ranging share than to We of Units

Peter Carlino

introduce like note second. you, make Demchyk Thank just I'd One a -- Matthew to we'll and in Des.

that on of been we've rates Matt company the compete that. capability cap what able say paying assets, as a at to we we're to proud cost look that than accomplish have been we these of and likes capital, you rather As for

complex them transactions, think it our for great is strengths shareholders. I of making some our one work tacking in and very

to with do ahead? want Matt, you go So, that,

Matthew Demchyk

forced key, are to the others everyone have for position Peter, And as serves staying opportunity. backdrop those learned reminder volatility tuning it, zag. that means that who to few breeds through thoughts, in. and to of really a for of zig if have and thanks take you have that is the The those us thanks a to want Yes, cycles you to current advantage power, lived that while financial enables

As strength capital and we've flows, opportunity. our end, demonstrated transaction funding to markets for set structure and to companies costs we discipline with past diverge, a shareholders. have portfolio, liquidity for combined balance source commitments safe, uniquely again for team's and our And thoughtfully our that endurable this ability the of that stage constructed watched to cash quarter, sheet benefit our

our just has to we bespoke use partner solution transactions for that discipline achieve Peter's transactions, few locking position the Our created on announced team conjunction capital. We've structuring cost adequate when announced, funding illustrates demonstrated transaction have recently leverage were again capability, our five-and-a-half of large-scale levers and to a sheet a for Bally's we It been well At point to to with a able announcement really other equity, to transaction. with rates. time our a X.X% balance noteworthy times. compete five key, range in in not a tenant cap our target within our again with

Our new structuring recent raise shareholders. a also was times loan five very We've transaction. delayed over reflecting of process equity draw from funding begun subscribed, term for existing our bank backstop the to and and tax Bally's the strong support support

commitment and our long-term the sheet to in it reemphasize our strength for actions success. respect plays our Our balance role

the our in demonstrated its and match despite our team with unearth are returns. for core is and emphatically Our at efforts continues discipline, that With recent create benefiting attractive a counterparties funding our open leverage potential continually backdrop unrelenting level volatility, macro business. message to risk-adjusted to and opportunities comfortable we from the

to share objective the and increasing turn intrinsic overarching of Thanks per I'll long-term for Peter. same, Our today, our back call the remains value for shareholders. all joining

Peter Carlino

company I And it to that, Kyle, Matt. of about this pretty it think creating what Thanks, outlines sort think the well, questions? says as would open our value And for is of we the you shareholders. ethos it floor with

Operator

we'll question At [Operator is Please your question-and-answer a Instructions] Neil question. conducting with be this from with first time, Capital session. proceed One you. Thank Malkin Securities. Our

Neil Malkin

thank sure I'm morning, everyone for that. good everyone, you so Hey, nice reinstating guidance, you appreciates quarter.

lines, a potential feel Matt, grow a a yet? you with but you question, endeavors. market lower-cost have leaseback sheet talked their is in opportunities capital think discretionary occur, long-term say, attractive at times, something them providing those any along see see being or do to will to to start that have capital you growth the or the new perform with tenants thus balance Is thoughtful look opportunistic. First you in was than, when well opportunity, high-yield position be that and be uncertain access existing and also less the debt they And markets, of you making but to that as like a be time execute will sure more to able position to in or about

Matthew Demchyk

And the we're to, more the to ripe for connection business having also Yes, replicate sheet that us suggest could and would well, first the reemphasize, where the counterparties. that, potential that at of the first do relative unsecured you mean a or we buying in open our their And that that versus process. to same key But in balance backdrop metric point for beyond mean, cost opportunity. by we I'll just having risk comment, folks I'll to there's all-in just liquidity position when makes potential our that our that next capital made, step is debt trades, the returns I piece. be talk you and to debt at existing because is certainly with more market of of if it the and to certainly all points I not a look portfolio it. trying cost then you look tenants could

on factors recently, deal mandate But into terms in that to returns. credit might needle arguably, with put got I your kind the enhancement, other at we're think when to the nature mean, illustrative counterparties, that we there's getting the their superstructure point, a profile. a the certainly they that facilitate. to helped eyes, because, the share us shareholders it's for different something really backdrop it's where that they for did risk to structures looking there and a capital far win-win that and And I coverage, relevance create And out example all to watch you collectively important of we're using. achieve repurchase had, returns you Our think our our great them, than perpetual result and you continually if a that estate. real a sure risk-adjusted about is in our there, able just on, get better I'm our lease of look the we're of attractive to Bally's, thread we

stars watch always balance, continue the the to when quickly big to to and your the relationships, we're make the arise. opportunities meaningfully to us understand to to and that positioned discipline have picture, point, move aggressively when that. continue to use align to when sure move And on So, do, again they support

Peter Carlino

And this Peter. is

the was answer think I yes.

Matthew Demchyk

Okay.

Peter Carlino

in earlier there project out And we're it or Matt our hard neck We very that time, we I more together we to very first able it probably could be with year for tenants. I highlighted increased that to is think one we that. we'll mean take is very of more, window that two see well. working seriously. is likelihood say, this open; this an to say my And a stuck the Matt I that The and or get opportunity window. attuned at won't. year, but

Neil Malkin

with Okay, and later? Tiverton, an where and that Other do or update Biloxi, is Bally's or too more approvals, just, Tiverton it updates both transaction then, to of be looking going something have that won't great. Lincoln going is be can in I you the appreciate Lincoln that, actually terms do would be is potentially, like push and Any one much. the you regulators to

Peter Carlino

But hoping Brandon that, why stay don't you was he I Moore, with sitting us on of now; please? take Brandon, with that, call. course, to this silent here right think is

Brandon Moore

it Well, transaction Rhode regulatory these are you in process only probably relates I as think two a as to this for the assets whole, know, as Island.

think has not I figure some so their being Lincoln. REIT ventured That and how foray that work and our be yet, structure governance to into to world Regulatory the I all there, structure, differentiates out don't our we're there and Tiverton first between it plays Island think licensed And that into how and said, going that. into Rhode licensure. to is done lead So, we're needs be

a approving we're think Rhode I be and Island structure what process the will in regulatory in Island Rhode offering. REIT

of don't to neither approved be so, And will the those time, at I likely or of think it I be same both them. --

versa. And it's a gets and or situation Lincoln Tiverton vice where so, think don't I approved doesn't

Steve Ladany

if And is -- and Steve. this

lender question with was group. around the they to your respect their more amendment. were reach a consensus you Bally's, unable as If be the pulled with They may to amendment agreement aware,

to to try again. reengage to continues up be that Bally's discussions and on the try However, were topic to decide fact, parties to pick that open in were to to circumstances back to if, change

perspective, the if, the pivot we that way So, from as we that's then Peter doesn't until larger I is, aware, two-year what happen first, works chance alluded fact November. close there's, And well think Lincoln, Tiverton to our and the aggregate I on of guess, came to in have, even in deal an then you're a and would his fact, have end we Biloxi could, and happens, opening in in that and Lincoln. closed remarks we an up if Biloxi with fact, transaction back outside option

Neil Malkin

Tiverton based to approved? you will said I make guess, be not Yes, to you Lincoln get then or belabor, if approval, not not on -- sense all nothing get but and wouldn't going are that also just that doesn't

Peter Carlino

concepts. regulatory they that that mixing commentary required, are Tiverton was the to Lincoln the regulatory consent you and outcome asset. in both were if to can because lender think up And that's his are concept are is is Rhode the you then could consent you lender around required regulatory Tiverton consent get one, consent. expectation And I lender of for likely Bally's Island, the A why now a bringing respect asset. and disconnected regulatory The Lincoln need not we to that delta was with The think approval Lincoln be concept. you get don't both. I Brandon Tiverton for that of able state the there same for a therefore, discussed and Yes, get

You just approval. a regulatory need

Neil Malkin

it Okay, you. Thank makes sense.

Peter Carlino

to but license is question there do of outcome as example Tiverton what no This lender, management Island that expect am the of will at minimum that in get states Yes, Biloxi speculate all? we structure, in unknown, that it and is may approval they look, or they that's license we going ultimately from I is the possible many irrespective Rhode consent for their the need all required parts there.

Neil Malkin

Thank you, guys.

Operator

I Jonas question. your Truist would proceed with now with Barry like introduce to Please Securities.

Barry Jonas

Thank you for that introduction.

Peter Carlino

drum the roll? is Where

Barry Jonas

Is guys I wanted then, opportunities the waiting the driving are close? to update Bally discussions? within we redevelopment What really start there? with it on any sense when those could Tropicana, kind on? you second-half or any And deal of

Peter Carlino

tackle us a I'll from as we're the a no a part, little be so understand regulatory we part the in your a process that process licensed property. would is I that easier first conclusion, is we others bit opaque of to next Nevada the let the But the I'll what probably reinvestment to coming question. because The in in to that think few hope months that address in will close. REIT. transaction position

Brandon Moore

today. opportunity do an it has sensibly there necessarily. might to under us nothing circumstances. some be with Well, is defined It But

of don't think But for the I we are at generally site. is you aware that kind process. things all of at run Bally's that looking that development

can't that stands really at understand but pace, We strong We you proceeding tell today. have interest. -- interest obviously an it's where

Barry Jonas

give Baton or update got just construction on any it. timing that's Or, be then would Rouge whether as there you And the at update can an it, follow-up, a Got great. budget?

Peter Carlino

want to Steve, that? take you

Steve Ladany

timing I expectation still quarter 'XX. is Yes, first think of the

said different everyone dealing think and number complications, we of there of actual working that And some labor forward been situation actively to happen. moving is with imagine I moving I we that aware make projects and macroeconomic as our -- nationwide, you looking landside like just have fits are would a to I along have the been think there. but tenants

Barry Jonas

so much. you Great, thank

Operator

St. Our Haendel is next question from

with with Please proceed Mizuho. Juste question. your

Haendel St. Juste

morning. Good guys. Hey,

structuring hoping I in I GLPI. and for guess was us understand implication I the Bally's on the the help is transaction follow-up Bally. Thanks. first to question So, guess tax a

Desiree Burke

Sure.

them level, So, very at But a structure. operating they will buying key can at tax -- high again, so into guaranteeing deferral to is by that's they that that of of together. pulling help we that their will delay transaction the of a debt a And very how the our tax tax the And of taxation. level some be any are will work be using the the how payment high it's structuring partnership. structuring we to

Haendel St. Juste

that's how are quick you of Okay, follow-up. just much the am curious I helpful. a debt just guaranteeing,

Desiree Burke

Yes.

that just We yet. determined haven't

We other do items at have for order tax and to be their and have that to wait look in that. assets bases some their we to complete to diligence able

Haendel St. Juste

to you objectives? cost Okay, fair thoughts enough. Matt, today and feel in capital of position the on more execute this the guess maybe one and on with for slightly And you, are higher I your if equity, balance transactions guess environment. sheet given of I use ATM, leveraging you

Peter Carlino

take to that? want you Matt,

Matthew Demchyk

Sure, yes.

chest. the the And now. use us. confident, set really us in had tool in the range. goal the We tool we with want staying shareholders certainly that delevering within within X.X range as frontier for feel to a we those extent stated leverage our yes, made in as the that sake I context And our the that will that is for But So, opportunity with said, mentality key mean intro, a of we delevering certainly use our an it's tool being we that its could efficient level don't I be of our to the X that within of ATM comments. somewhat benefit happy us are leverage to injunction is other we thoughtful to about you have beyond a certain see have. from. This

Haendel St. Juste

you, Thank guys. Wonderful.

Operator

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

Jay Kornreich

Good morning. thanks. Hey,

you or could full-scale provide growth that states or the near expect full-scale of cities external casinos other the for any such transaction additional our licenses in Chicago into you there. on new the City, maybe which Bally recent New have update opportunities recently process legalized or you? add has to with York an led Some cities in future casinos us Can give improve a legalizing development

Steve Ladany

sure. are I Sure, Steve. expansion of think is we gaming the something always focused is This the Look, on. TAM

to watching We and that helpful So, we the try York and to seem participate. agree New are and closely most near be eager Chicago term.

as going some to such continue Georgia and other in monitor states We what's on Alabama.

that term not states prove. probably the think I the and the importantly around that that goes, and for public would and I But Texas can benefits I REITS far taxpaying we the as the look gaming gaming as near operators opportunity put think realize more country constantly the in the not but and only bucket.

most actively term. are could two I we the don't never that I medium is So, that in are no the I that -- others But would looking you near named think have -- suggest pop there term. up

Jay Kornreich

Okay, And tenants you are your just which for then, there could this any follow-up. current thank to you. are as at expansion a that Within a development into looking finance? opportunities opportunity your portfolio, time be

Brandon Moore

let me take that. Yes,

As talk want the trigger. this without number beginnings. active year. of stars are suggested decide better be aligning some pull may locations, the mean we with than just But today been before, our It's discussion tenants I tenants I possibilities a and they the if we when to about naming interesting who they it's And that. the from almost opportunities I about have think hotel in

are months. that So, That's will But the will tenants we're think I case. XX air. of in we I pull I word you'll can the significant hopeful that be that with one or see best investment of next more some feeling out just the that optimistic. use our

Jay Kornreich

for much thanks the very Okay, time.

Operator

Ronald is proceed Morgan from your with Stanley. with Kamdem Our next question. question Please

Ronald Kamdem

sort today, of whether question of of go look guys lot some of recession sort and obviously sort whether producing factors it we you those diversification are is intangible different there spending, on Thanks. and [indiscernible] a it's of the talks what the in that really is quick recession-resistant when having at really as something very facilities is you add gaming a sort whatever be, of of it's the downturn? confidence into facility gives of revenues, marketing, could the Just

Steve Ladany

I Steve. is question. this Ronald, Look, Yes. the appreciate

from be have this slide coverage going diversification been fact in strip it same last in the back the I look a what on But rent it act people a and on comment at is a at paying It's is gaming not that enjoy historically. post the the I for the therefore, are you me The nice happened there think years of as perspective look slide. if the better up would on the revenues. we if desk. the not we Matt that suggest asset showed on wane. same run And that that I properties strip. did now. the able a the seen will back regional is the remains Their it's in gaming revenues regional versus we and still deck recession held if the and it saying have true. strip. history you do for belief And for focus COVID might way that the business. our And to attribute guess, the level think majorly of that $XXX stake focus the recession. up And to focused activity Obviously,

it that sure know think that's there not will I you we And there out we'll if so, anymore, that in deck? get if do And slide Matt, it's out again. make

Matthew Demchyk

I simply And it's through better the just than the through. is to drive answer, of sure slide part out am flesh deck.

X.X in this And operating few tax And check you'll times. environment. rates us the for are have the about coverage The that than to in it's a important coverage And last thoughtful asset deal with costs Maryland we with lower state about two blended tax whether better before the to deal right see it done times. always If Cordish, very regional has it's too last single boxes. Steve's than higher line. cost. a be this fixed then and Pennsylvania asset how also transactions lower you rates state operating better point, have bottom you high think recession, are And fixed impacts when

now at to a in ensure build to safety sleep and our night future. in margin have we be the underwriting can collected our would knowing well We that of looked certainly into rent

Steve Ladany

slightly recall indicated market to always coverage that in point think below at coverage I dropped will that you the Yes, below the whole the have in or X:X X.X. the seen, never in Matt, nadir, to many that even regional Vegas low collapse slide which X.X

to even it regional And clear we've disaster worst I are something I revenues bulletproof. that pretty in many many times, it range which been the in never got the presentations have essentially of is been So, think that firm. about

Ronald Kamdem

is then slip my close quick And follow-up expected could the is year? end still Bally's, year? Helpful. that to this into next that Or, of

Peter Carlino

Steve?

Steve Ladany

or The Tropicana the interested Las in Yes. Rhode you Tropicana or are Island? the Vegas

Ronald Kamdem

The Rhode Island.

Steve Ladany

I The visibility think don't know. Rhode have to we enough Island,

We are still targeting yearend.

I think in the idea. coming weeks and have months, we much a are going better to

As you different. This probably usually no pole can the is process our long for is the imagine, the regulatory in tent one transactions.

possible. So, as we visibility whether will we Rhode certainly I we business continue to and better not is with the Island, targeting from it to are side. work or yearend think have But

Brandon Moore

may bit they experience. any or REIT unpredictable slower don't simply a Well, because little be it have

think understand get it around. I add their But to they arms got of does it. they it get have and complexity a layer that

Steve Ladany

we how that regulators. moment that's to And in visibility goal. predict have uncertainty and will of end already the have States usually at might REITS, But just fact, we have accurately prudently I cooperatively of this take, long year. But, whether visibility the that. a happen together really the think we already with in the into expect one to work by the timing. we certainly the have process layer better that enough Yes, started that don't and

Ronald Kamdem

you. Thank

Operator

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

John Massocca

Good morning.

Peter Carlino

Good morning.

John Massocca

a range there you diluted basis kind that kind share? for XQ share into of I some kind factors to around XXX be got of AFFO giving and I the that. XXX just to annualized the seasonality will that understand that Maybe range pulls I the just impacted it. that per just is year in deployed, -- of just [indiscernible] guidance per potentially maybe you the But next guidance kind year. wondering guidance, that's the are and created so turning the issuance share you later to pushes can't do of July are obviously not what But going on above way am had this new or understand even rent

Desiree Burke

Sure.

the remaining on the very driving are properties property, we make the and left this on year. percentage escalators, debt the and occurs, to happen have rent rate Tropicana well there's as lower repent, transaction, so when you year the a that coming a the on perform, Ohio later a assumptions far Meadows and So, for as timing interest the on this range reset assumptions what's that different of assumptions assumption how few

you there and in transactions as January properties, and said, the Hawk when Cordish well of So, those Ohio are the the it's closed, fact is And double just Black can't within the and seasonality in as and quarter, key timing numbers year-to-date March. and Rock some them agree, that until the Island get you almost drivers. like take that the and when of, to as range. that you really take wasn't April, to closed close and I But can but assumptions hard do because

the assumptions your assumptions so rate, and are the four what with of on those escalators. what the the are big our interest timing really what's, of drivers, closing So, what's Tropicana, your happening are what's -- rent, happening things; on percentage your

John Massocca

-- maybe correct? assumptions offering, guess I other there's the market besides of the capital And no equity just closing July

Desiree Burke

correct. That's

John Massocca

back-half deals? it kind of of And you get because can at sense nature to maybe what assets the environment, that you that going the kind seems of rate you Okay. Is It that the volume, something deploying just broadly can then future in of lease, of we you're can net when may a kind if interest and and timing expand be about year, you on prudent are kind idea nature in that limited like, speaking, this bespoke out something rates makes of how seeing? rising of been of cap is you that do because sense look makes capital of strategically deal think still kind of there's get mean assuming that. buy, take I and you it? are or the

Peter Carlino

the that used other that of I'm my me want And been that nature stick of let to achieve. one transaction word, tenants Matt you new the answer drive. no, by have that's a have essentially, or right going Many done. Yes, been thing to might driven question, some prospect we've -- the bespoke but our the

why Matt, you So, don't that? take

Matthew Demchyk

lot us, those, with that, better effectively, too I about all-in. to cap fees in return the include we well, that estate the broadly, and John, the was if clearly it's bid-ask saw, all the that to ask, there's our Yes, enabled talked which structuring world, throughout call you gap this you things a economic real mean a of rate and even Bally's get beyond X.X% slightly a

now cost we've return getting So, of sides if to on wouldn't in. didn't the our piece, And world lock get you that of over transaction because that the capital, our and we done actual capital multiple get cost in, in lot a along on next at based to by and And which calculate that numbers a threshold. I've is the watched plug have it times, delivered the key we time, the folks not locking off changing. and

to do open as absolutely us we're going to say long follow business. There's for discipline, for deals. we're we that As just again, not no reason

up, in, the long we the come to spread few another As billion of at it as billion we then last point, long the doing they later do. better Peter's we're beginning to call, in positioned and we've deal and position year, that a to your to the and it, keep that's ourselves in and $X can if close weeks. as year, one in the get did, Remember, end lock towards do of we to what as the last comments the $X

might transaction mean us of you have mean there. the lower, volume I we XX is macro. I errors the also could just -- visibility opportunity think you of omission you pass not expect been But quantum much too; If an of the on because ago, asked months there's I can't

If it's work in do can math you the that. to you our can job the make return, lock and

time the looks -- -- we're stars when we our buttons push the and when it right we're the So, to what like, align at happy for shareholders' benefit. things know

John Massocca

Lincoln if timing the what's Rock the differential switch for guess Bally's by kind of if smaller how switch close versus one, makes I the can Biloxi Tiverton the if a That roughly you impacted last be And then to mean, transaction? detail sense. the having timing and -- Hard one somehow to quick transaction, you the together? do I deal of that get

Matthew Demchyk

I don't is think different perspective. from timing materially regulatory a that

Mississippi, streamlined know, process. we have a in facilities you a several be As that fairly confident we're leaseback in fairly would Mississippi sale

has I issue whether and will approves state for leaseback, lease sale so won't the a lender issue. consent been regulatory their and or question the obtained, think into not entering properties a the in be Rhode if be it our only is Lincoln Island

buying will Lincoln So, dictator, be and and be real a either approves Tiverton into Biloxi because the Rhode I of consent. Lincoln, that because properties there, is lender we'll think entering Tiverton impossible is when we'll lease buying for Island our be the or

I think real the that's decision tree.

John Massocca

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

Matthew Demchyk

you. Thank

Operator

next is with Smedes Our proceed Citi. from Instructions] Rose your question. [Operator question Please with

Smedes Rose

And capital thinking mean, be we might the a about Bally's? year-end, about leaning little match things through those to I are sort cash I you as of is of more just or the going Hi, generate where you sort think how understand an just move Just towards a you are debt up how more it related mentioned opportunistic wanted might to more regulatory process of that issuance your around cost you closure. OP the is? timing towards but lot is -- issuance, really trying to the through to about of balance financing you'll transaction? Bally's to thanks.

Steve Ladany

I'll it's that a -- shot. one give Yes, Steve, I'll

related from timing, the think regulatory. to hearing I is us, as you're

million, $XXX And I issued funding we have the remind from the do those. the sale, in the proceeds to Then the you. is Tropicana debt equity to the respect sale remaining expect equity transaction, we financing bank the the -- have to that form that obviously We And we then the form need be debt. of of predominantly debt. from already. will expect of come of portion issued coming we think to with

as next we're should for we are, in certain. quarter, Matt now, update mentioned, everyone with So, that have, by obviously, market for an and

Unidentified Analyst

with It's [indiscernible] Smedes.

rents, quick obviously appreciate gross between a on raise, the think of of so of in, $XXX you've range can those in the I takes back you just what you about understand interest had $XXX equity the are that million items out items dilutive be and gap bridge you question numbers, to expense, the the XXX, putting you puts they called proceeds Desiree, sort each and well guidance, of as the given the second-half the can up percentage expectations. as sort AFFO of had gross help per-share first-half, million put second-half really AFFO And embedded those and Tropicana goalpost the the work. that of going of Just until implies million we the And, both of and sales, are just known. focusing And into some based AFFO maybe the Street already that sort $XXX in on escalators, of to that to because about midpoint guidance, those may and year. XXX that effectively,

bit that So, more out a can for little break you us, please?

Desiree Burke

the Yes, we into break I just four detail to to it's how those any again, items, get that so you. can't assumptions the out we have that But release, other on don't for guide. put

Unidentified Analyst

are really that Yes, What are night, I for assuming need we are the those the but the are understand negative we there? -- drags? items it's rents, to those detail you they the to that's really assuming items, within percentage how it's much how the but the you are those Tropicana numbers are When those going are knew are assuming actually [indiscernible] positive sale? last need So, or numbers, we are -- shakeout? you right? recognize

Desiree Burke

we it of it say, impact would closed the be so could months that six at December Tropicana, all, closed the year. be where one. close no or closes this it there's Then could this it it range to for not we second-half, either be could on there XX, always year, obviously, -- well, Yes, If said right.

an to one, you're not they you rent, looking how whether see the provisions. look escalation it's in they're -- the tables XX, that's hit, as pretty hit that their going swings, nothing right, much or can and So, when hit see can percentage of all page or at the percentage adjusted revenue-to-rent you ratios. And going their their that on they're like leases the to well, rent XX most

Unidentified Analyst

[multiple speakers] -- so Right,

Desiree Burke

a that, The forward yield FFO FFO curve, last changed Other the than changed over I you and rate it's month the significantly. rate, significantly has pull -- even.

So, it's year. anybody's guess look as to when the get to end will what we like the of that

Unidentified Analyst

I but guidance. you've know, provided

So, get trying And assumptions just $XXX full-year, of what it's volatility, to what to I'm I I'm am the sense better actually just and can understand end? make at I have be for of you to know what's end why just at you shouldn't a the high I XXX range to used. the uncertainty; like numbers the of the science. rocket million -- put the It's you into guidance. Tropicana, -- XXX understand provided midpoint. know we those trying lot -- trying low so this not you've what's don't so

Desiree Burke

or it's rent, nothing Obviously, or the like it's all all of it's nothing.

you're it's science. rocket not right, So,

Unidentified Analyst

what's put I'm trying understand embedded embedded -- out. that's get numbers to at in I'm to trying Well, right, just that's we the think you what --

most there's each rent really the a variables -- be guidance. line items number. it your when is impact are provide is So, you assumptions to that the understanding simple than important, of company going Actually, of especially that's swing, the easy can that the impacts makes because this line if a XXX more important have understanding earned, bottom-line your and the right, to But you for numbers you the to obviously what drive that can put should goalpost understand. very those bottom if

Peter Carlino

to if but, just add I'm we're now. you not to sure frankly, further Matt, that question prepared anything go not this, you to have want any with

Unidentified Analyst

it so like All sounds right, --

Peter Carlino

place, in -- the Frankly, we didn't want to deal because first with guidance

Unidentified Analyst

give don't -- you like mean I then guidance, can't Well,

Peter Carlino

-- Speakers] [Multiple

Unidentified Analyst

it, it, and know do understanding is rent than fact don't that's assuming I bottom low close, it's impacts the just closing at what's is I in don't number. Tropicana understand line didn't we're the done said, end, okay, know. embedded zero, know you've end the those want variables if so the that's to to I numbers, these much like you in but it, and -- -- embedded trying high Like, to that the important probably and that's full that's the you

it it -- is that's where So, is.

Peter Carlino

that have I that Okay, think message. we

Unidentified Analyst

Okay, thank you.

Operator

Balaguer Our from question with next question. David with Street. proceed Please Green your is

David Balaguer

morning. Good

on clarified, clarifying Sorry to this if deal. this has question I ask but Bally's a wanted just been

Biloxi there So, able closed, later? if still are that property those is two would from properties Rhode anything Island the being pursue preclude to

Brandon Moore

down do of preclude Bally's not doesn't close. that. a if be the will from on us the It the sale property to road, Biloxi The should participating Biloxi leaseback elect two in transaction part those

Peter Carlino

desire Brandon Yes, two But need a it's I not that if precisely transaction at is really real do were other question time. goal. it clearly, that right, the a that answered we part think have get first to [technical it they or they our do difficulty] the of feel which -- the properties,

David Balaguer

it. Got

you know, is a interested property that, the in. And on later that hey, would decided take that you Bally's could signal be sale as So, a makes we if potentially this sense? that leaseback

Peter Carlino

so of properties, Absolutely; the in leasing you bet. business we're

David Balaguer

strong this lease, been pretty those that the escalator remind and at where But year, could just I that coverage trailing, October, levels, end qualifies business you with could And last sort to know levels, look looking date casino at just has that and that it. date that the recognize we are on the this coverage coming decide where don't Meadows wanted go. Got touch you to for I know that coverage it of when reset if us occur, reset? would these

Desiree Burke

but at each date the that's you is commencement Yes, look noted page of date is, and lease the them the lease, on it -- which year. the in it's for XX you

at, page looking you're one out which on on XX. depending there it's So,

I think recall correctly. Meadows September I is if

David Balaguer

it, you. Got thank

Peter Carlino

you. at look will We Thank it.

Operator

Our is from question John with DeCree your next question. Please CBRE. with proceed

John DeCree

amendment? prefer you'd lender that just and just One or has a exercise we and the taking when two. my covered in is of question, addressed be option that now think Hey, would towards that is to actively that consent this forward-looking kind a event one of just the a Bally's expires, curious time the the if is you time at the of would just works questions, require kind transaction mechanism I included, between to time everyone. so Bally's alternative with there Biloxi work but that ahead for Thank is Bally's to option, ground, of lot clarifying that get

Peter Carlino

the hasn't fully -- to has process act by so been which out. we're definitive The of the document. fleshed Yes, in negotiating Bally's the standard

why pursue with can business a I it. expect as to to actively should you that The to think work not option necessarily relationships. at or to a I on think you judgment to and years business believe two them their think gives that out is their that require doesn't all is doing will them quite stretching the be they and best of with I that And all bit times. deal to their actively that's they banks their best we fashion whatever assume length in how see; get that consent has times it for whether them how consent pursuing be runway part their banks

John DeCree

on can a change yet any now if cost you just imagine their maybe partners seen of seen deal inbound you've just long in little I what think of that picture to capital appreciate adjust figured, offer? on in little doing of it. to, kind the relative at you higher of the that's something that to rates than -- it maybe the normal, we've have used what ring flow are a gone heard volume, I of to perhaps, than to from folks start I what we've and So, some reassessing haven't big what the earlier conversations, if curious that's a maybe kind you've bit I it's And cost flow? interest curious Yes, where phones your touched new been clarity. about in more time kind steady call pretty started think that then has? or bit of always given perspective But one have to but capital of starting market a more

Peter Carlino

ahead, go Yes, Steve? Steve.

Steve Ladany

Yes, sure.

I consistent So, has now deal totally few a for years flow think honest. been to be

I have conversations think that changed.

sale the called alluding why that a dynamic years leaseback?" ago, maturing, and consider a "Hey, borrowing if and have don't than has Chances So, their you was; of two shifted. rate blue leaseback higher someone is, sale are rate you're I we was what whatever bond to out said, my

them conversation, So, for slightly it's find environment. that might it's the is to even now -- themselves cost my open capital advantageous fact high-yield same current we're than calls The still or the because and having. same better market changing that be phone in just discussion transact I'm they be the may still the to where

a So, leased, different know angle. changed, would do calls with and think in picked taken but the already of though, with the dialogues in make the properties has current point change. up. I tenants discussions don't I necessarily those the particular around properties the has that discussions own volume is have And I second reinvestment they

to months, tenant. that, So, an us next I today part earlier a expect doing with know, made was would of suggesting, question, in know the investment some you Peter commentary your XX and I see

trend to continue be will active more dialogue that think going and I forward.

John DeCree

Thanks, I the Thanks, everyone. additional appreciate color.

Peter Carlino

Thank you.

Operator

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

Robin Farley

that well. Actually, what question going as last great. Hi, was to I was ask

gets I'd can at just maybe us GLPI i.e., thing [top] ultimately you other about So, for about developed any give [Ph]? know upside is, -- don't think ask the I from the the if color,

Peter Carlino

is paid, do we yes, until in something answer actually in looked the it I you lease Do going we've they that -- mean at mean, with of you it. down, participating, I can't of -- what We're at But improves, actually actually our concepts that Again, stages. mean, site Robin, can now, we bet value dealing some unknown. with quite get they nail to I the early it. land payments. still depending they're the upon but is what in right think we the still an I get happen

is are capital? company's no, could something with You this we ask about our question, crazy do answer to and not. The we're

us, maybe we what's we for to ourselves, see Maybe we an there's not. do and business as Look, in Bally's -- we're want responsibly much as we'll can. wait there's proposed. as So, opportunity

Robin Farley

you. thank right, Okay, all

Peter Carlino

Thank you.

Operator

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

Peter Carlino

quarter, great, who is today. Thank all and excited have it. Thank looking as feel as dialed at Balance you we've outset, impactful year the of the said well. We in a had I we're good about you, Kyle.

this So, like. we're always pleased share information. you We're calls, your to available to if

day, So, thanks a again. great everyone. Have

Operator

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

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