Gaming and Leisure Properties (GLPI) 28 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Joe Jaffoni	Investor Relations
Peter Carlino	Chairman and CEO
Brandon Moore	EVP, General Counsel, and Secretary
Desiree Burke	SVP, Chief Accounting Officer, and Treasurer
Steve Ladany	SVP and Chief Development Officer
Matthew Demchyk	SVP and Chief Investment Officer
Neil Malkin	Capital One Securities
Barry Jonas	Truist Securities
Greg McGinniss	Scotiabank
Haendel St. Juste	Mizuho
Jay Kornreich	CMBC
Brad Heffern	RBC Capital Markets
David Katz	Jefferies
Bennett Rose	Citigroup
Ronald Kamdem	Morgan Stanley
John Massocca	Ladenburg Thalmann
Robin Farley	UBS
Todd Thomas	KeyBanc Capital Markets

Call transcript

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Operator

Greetings. Welcome to Gaming and Leisure Properties Third 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 Relations. Jaffoni, now will conference Joe over Investor I you. Thank

You may begin.

Joe Jaffoni

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

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

Peter Carlino

good morning, and Joe, you, everyone. thank Well,

Here property -- in approval questions working day. as Island, finally, never excited quarter. Tiverton actually call usual, happy hopefully, to kind Bally's, we've that XX hopeful bed. me, But It's we we final our all with a soon. lease. likely I've your have National notably, in close another as a eventful to I of hate as this had Las release. our Tropicana day Rhode And And opened that we most and forgive I it which what with think know But of of this in done in answer what have you PENN the a We very is We're ground finally are of press with that our Entertainment, Pretty make to subject Penn happen I'll to report begun many we to word years fairly will detailed had notably, thoroughly. always, one entire be National. pipeline. closed call pipeline. on Bally's, And Penn a team, by to XX-year put have that case, also with to and Vegas and we're course, will Biloxi well combination place a

looking saying, now So now, it's Penn street right through Entertainment. guess, window the I across our

So pretty exciting. -- which is

a them a that to lease, locations them We couple to Columbus out lease not with overdue Aurora much impossible, in them master our worked of advantageous properties pretty with would we long hotel previously had. existing Joliet, allow for more difficult, and arrangement have exciting which to take a was transaction. moved will Also, you more the much of recognize fund and we if in

in Vegas, these to that which make market. M about talking another great are the this was things So transaction possible. Las tower success at we done all some in of of is Also, having

and master some wanted So lease major new all something these long that of tenants independently under more with put new terms opportunities pretty then out to time. period that and a of a are is fixed, properties there we one use of couple consolidate us achieve which these our for exciting to are a money with for stragglers to had we've

ask there's to So ought year all to some in to this this year financial highlight next of a let items. quarter, happened balance all, into looking as a With good lot that, we're be what of the strong forward Desiree stuff me Burke and well. year

Desiree Burke

Thanks, Peter. Good morning.

revenue real million. outperformed estate third $XX 'XX over from from total income Our by our quarter of

cash Live! the transactions all quarter's increased know, by closed you approximately which this income year, we rental As on million. $XX

up the closed this quarter our achieved escalators Hawk the Quad increased and year, for cash PENN our which added on in for noncash by Boyd, We rent of Cities investment and of adjustments rent and leases of Pinnacle, also We over income cash our the quarter, our million. $X rental $X Belterra $XX million properties and grows Black we on had leases, which also in our Bally's April million. another straight-line prior revenue quarter

and to decreased building Trop Our the $XX.X of $XX.X which million, the of $XX on gain sale due Vegas by million, that's Las offset is on operating year million. really last our gain Perryville expenses by of

to $X we of XXXX. related charges a did about sale G&A had Offsetting expenses, also our of land noncash gross-ups rights those in million. also to declines in TRS decline the incur amortization and our land related the lease in We operations expense

of in in XXXX $X.XX share $X.XX, pending not between of We does guidance have diluted lease year our per that transactions. any is, which included $X.XX and OP units full include impact

continue equity our and completed we balance transaction quarter, raise, a the during sheet. strengthen to forward equity ATM an Lastly,

right time. is leverage on position Our

at very going in we to this that, point it to With confident I'm in Peter. time. balance So feel our sheet turn back

Peter Carlino

Desiree. thanks, Well,

away, your We a location. you though. have please? Matthew Demchyk far on Matt, the line would remote add Not comments, too from

Matthew Demchyk

morning, times. for us joining thanks Peter. these Thanks, Good Sure. everyone, in and interesting

that been. gaming relevance triple-net spans ever X is core model relevant And it's Our fronts. now lease business as

First, partners. with potential transaction

higher the last permanent sale debt interest unpredictability, as better who fact with This markets changed value in tenants. debt from have financial the costs, folks As nature, proposition sticker operators The robust. is with the more leaseback GLPI now and broader rapidly price our a dialogue saw its with economy same our is year, well as proposition results much costs. for debt that in appreciate prevailing the strong competitive with as expensive our

area relevance institutionalization. is of second The related to

estate and so. across as property we've real stand estate holdings. the And As gaming the significantly were risk-adjusted our and considered incredibly to pound, topic, risk structural last out the brightly. attractive continues regional compared Pound on world economic discussed blue chip focuses model that investments business shines rightfully watched other real returns, long with impact headwinds Since spectrum. number of types we've a for

model business as our ever. solid as While has remained

cash in record track and to continue middle the build benefit We a comes flow stand resilience to from far innings greater institutionalization, to it uncertainty When on amidst time. we're institutionalization of over lot heightened analogy. a say the I'd The best, be volatility also uncertainty fundamental to backdrop I if of with at truth. game didn't given the and remiss of go. underscores baseball go Philly's

the delayed philosophy our debt at can that derisk At just To predict decisions. for million, $XXX X-year future. with successfully that. to we done It's be revolver. term our loan you economic our closing. when transaction's the to for team will be a and which our and Bally's for all structured persists, draw terms in term drawn the a execution time worked incremental the it, balance do-it-right, we've certain revolver, prepare cannot You with sheet transaction, a sleep-at-night around is believe guide can to uncertainty help put consistent you place prudent the But

During the quarter, we capability. offensive also bolstered our

target optionality overnight million our and acquisition $XXX of the newly Shares normal mentioned. equity also the as the between issuance range where to Bally's to of price leverage capacity we're the the the pipeline Bally's an acquisition X.XX% through a a program, of we evolves. it got asset; implemented to for our Desiree Lincoln $XXX ATM million well depending of $XX.XX. transaction, opportunity the other million developments, way periods. contractual smartly drove have opportunity how fund; over potential coming of related to forward option $XX at activity, addition and the within development offense, to the on In firepower issued where and PENN gives $XXX the additional we that opportunity million set to and another play of our bolsters sold With This were capacity average pipeline that landside net we've forward our equity Baton looking deploying Rouge, us the return;

doors our We to remain open disciplined stay will our business. for and decision-making continue in

back to and our are With focused share, to protect on our cash opportunities perfect Our benefit. those of intrinsic unearthing value creating to efforts hand quality per to cash that, I'll increase it long-term shareholders grow for and per the flow flows share Peter. and

Peter Carlino

very that's appreciated. and Matt, helpful

would floor with our So team questions. to got I here. the think that, Sherry, open you've you

Operator

Please Neil [Operator Instructions] is question proceed. first Securities. Malkin Our Capital from with One

Neil Malkin

quarter. Nice

me, then from the guess, I one and obviously, tying in recently promotions. First announced is, maybe Peter Desiree

titles commentary be. kind ambiguity point know, continues C-suite couple place, really things it First of about terms was you the But off, going. that gave don't And home a were were which of roles. in happy with sort quarters really a you I ago, the the how maybe you and of, congrats. to Peter, sheet in of some Balance of great hammered

ago? roles officially the name short And what the I'm wondering that just caused so change to time from just

Peter Carlino

of as one what just emphasize here. gone by, frankly, has reality occurs But this I to point. underscores the Well, want time

and -- in still don't a can't not way. enough. we'll now, internally future. While chart I that of ultimately I'm and some the around. co-equal emphasize hopefully, Not We here, players, guess Not an talking we're function work with I while as that about publish partnership org we then, sort

So every I we I is you've be part the right, have this as achieve. don't folks do is get of what internally, we and partnership a on right it think have thing. a this and of call, make. to all there but we each way, that one got How decision that as a group is My mantra to I do the

to the did. -- and positions highlight time the all matter long-term was with and of nothing's changed the today. of that we works still So skills, we I to here. We out way grade partly, kind But how just of what those internally. -- But this reality a it felt have it it's always function and folks time close

as business it team. So It's usual. into all. We've I at wouldn't too great a got read much

best the think all I that's team, I underscore. could and

Neil Malkin

I grown that the would cost development? what potential the guess again, playing pretty Peter, mean Casino And how favorite you helpful. your on you recently, economics maybe Great. feeds Rouge. the the and are your is just you be and category. know on the Desiree, other the if, going Queen Could pipeline. of costs Peter, that this now would understand, Baton mean, into word, that don't think And kind it's have in for could the existing economics us be question help development. But I I I I in Okay. amounts see of side, the land extremely kind relocations I -- And Illinois. and out, --

Desiree Burke

Sure.

a So be work in Baton we to significant relocation on shouldn't spend. Rouge. continue It our

$XX We when 'XX million project have throughout in open. expect to sometime spend about we on remaining is it to that

to the committed far we question know And and those have $XXX answer for of rate there $XXX other other... is also earlier. Aurora. future Riverboat cap in of determined The we've as once be we that mentioned or that those then any timing the Illinois, million Peter the other to your to the is in million Does projects projects. for rates current projects on As the committed relocation

Neil Malkin

I total be the said cost, is $XX million to total it the you guess think, is for spend. -- left to going then? -- like Rouge Baton to What so what, is you going sure. Yes, be,

Desiree Burke

$XX $XX million we a total, little $XX left already funded to million in we've have spend. over million, and

Peter Carlino

Yes.

should with. are Now are beyond there we costs involved that, not I which add, soft

total So project. That's the piece. to be clear, our that's not

Brandon Moore

Correct.

Neil Malkin

still guys you And properties? going X then, clear But to those on that Illinois, just you I'm coverage the in If in guess, confident the projects sure I up. you get if are don't on have you to gave. Helpful. be you'll the are commentary Sure. it underwriting, returns get based they're the great

Desiree Burke

mean for do get an have to implied we I accounts Aurora And mean Yes. project definitely a all return. show cap expect rate that I there has very It that that also the within it. sure. we the the should project therefore, into for master well going be GLPI. lease great are PENN and for is a properties performing coverage other successful for

Operator

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

Barry Jonas

seller think valuation current at there's And congrats a in environment, been the given yet? and you to wanted Desiree. to reset expectations Great. Brandon I start, deal capital the Do markets just all? pipeline or has shifted not

Peter Carlino

to minute. going that I'm a give to Steve for

but that That's there. activity -- see plenty why I of today. take think you out we just fluid, take don't Steve, everything still is one.

Steve Ladany

active Sure. quarters. in connected though, reside. sellers From caution the your a which stayed remain than active, markets I that, the we it's been necessarily -- very do that, would believe second more have I pipeline is potentially where perspective, to capital to question, prior currently the yes, not

a So buyers may seller's between borrowing expectation instances, certain moved disconnect I and there what on do certain the where think is costs to. transactions be have with

is So I active, new development only would though a see of pipeline new kind could from resets expectations perspective. other think before even area do of and that we levels. very everyone little falls lull, kind say a the I it's under the

for our to because too expensive. unachievable market starting greenfield across and development finance where, is desks, just obviously, those see more more mainly New projects of financing you come project either the or would guess, as

So of bunch those things. to starting see a we're

we However, would and our again, We caution a to risk for be need our that return I need get compensated risk. disciplined. to for

capital So remain our need of with would individual layer substantial. get those the the And would come cost beyond economic another risk of borrowing would obviously each as projects costs attribute. above associated to on spread we and our then up,

So and seeing we're of a right active. seller the the I'm now. way sure on side buyer But of high. lot very stuff long-winded There's going not on marketplace that saying on are

Barry Jonas

Strip, years given talked just for the Got about follow-up, markets. inherent it. the markets destination then over a of regional Got over And around Peter, it. sort preference your as the risks you've

more with obviously water You've is But of Strip assets? bigger, as into Tropicana. in sort an bigger and more of toes dipped GLPI to argument the your your gets there increase diversification

Peter Carlino

mean the Look, ever ill a following that than we've -- a have say chasing cost, feeling we Strip through would in assets, I Frankly, regional will you any after bit this, it. regional to and that downturn have their in could the did of result. crawl guessed, properties more I with cautious went people Ever COVID, been minute great more never towards little enthusiasm. knew I and -- was the value a resilient quite would be they But found proved over really. to what so markets markets. I matter first the it's And Strip recognizing candidly, guessed. a this of latest out more our happen I've we about little Vegas, had door, the was and head bit lot I wrong. see just

do. So That's We're directions. we we that look, was to of it's solid. said and cash beach money. nothing the that what I'd go own I've properties. only in if about windows to won't a many flow no of own. shack love rock flow I'll We'd Strip the often with in cash There's the both business. doors you have kind

capital sheet and effectively at cost spread big, So same simply -- it's proper get our small, manage time. proper of the we our a return can to a balance

at We frankly, time. all Vegas no, no the assets, prejudice. So look

Operator

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

Greg McGinniss

on decisions make and ability reporting again, to new Matt. Steve to Desiree I've to I Once been is off to or there direction like of structure my impact the or about your entire the titles. and some roles and of to these titles this back getting the also pile change company? to their Brandon new calls the goes as any partnership, incoming it relates Maybe influence congratulations on

Peter Carlino

pointed spear what of stuff. many, new earlier. change Matt doesn't change reading position, over the done much Steve's of Steve much years. this. is many Matt's. some -- too transpired we've doesn't our solidify and significant much into made commentary kind You're has All is This

around the operate it. diminution people everything this I it it. the No for the it's So passes is. financing, person. again, at here, way emphasize way what a about going the you've I've we single Each is partnership. every just and responsibilities mentioned We a it choose cannot as just I sit I'm off sign table. that of operate. doesn't mean every involves it's to really every that company all team a it anybody. of to Nothing great group That's on. is. affects transaction, got we say

Greg McGinniss

with And team's raising and on couple just immediate funding it balance out it. impacts your historical questions. what's rate the Got then of a no how on your side, and equity One, sheet the maybe of usage interest And acquisition. two, raise environment views capital business? bit the ATM the a norm was

in are what thoughts well. and as Just balance cash your sheet execution ATM the on of holding the

Peter Carlino

take do want Des, you to that?

Desiree Burke

Sure.

of line year. deploy with well raise our in point were some like the as at Depending our capital decision that's fund PENN we'll were with bond that the future that. So at accretion. as in happy of in the at lock a look $XXX those due We to some how to raises make rates as on what to funding million time, our price and in equity transaction transactions the $XX next order

Greg McGinniss

interest thinking Okay. are the And how about business you [indiscernible]. environment or impact rate in

Desiree Burke

affecting financing a Capital it bit. understand be changes. prudent and of cautious In transactions, us rate are need disciplined. and to interest our quite Every we that environment The is about it. day, all at look we markets our something and

definitely and we a So cap can deals all we at a look through manner. to get pick rate finance trying But active continuing working is to a that in we transaction done are we are to this at think challenge. time it

Peter Carlino

we of none involved answer not days. as look, we're I meetings to in on don't we're over ball subject. the around you. for. about And we have aforementioned this stability Look, of a possibilities we we of the have two time that spend Short-term that Yes. long-term team the mean, borrowing very of formal crystal do are, everyone couple talking last protect a an Because, kind business. is how the ourselves. what looking lot We

answer get until time. hour-by-hour, we actually of an our look to kind is confronted find with the the next that like This positive today that that at is the however, is what's trending sure in not a So and in. situation way. up market I'm and stock we that day market day-by-day we anything can Gratified see, transaction, ourselves

there. could So we I give It's we'll a we Des think I clear it answered get correctly, see -- wish that answer. as you

Operator

next Our Haendel is St. question from

Please Mizuho. proceed. with Juste

Haendel St. Juste

an So I second, Biloxi. close Lincoln tell of still to what interest I it you? why in can would us expect impact notice sheet How And your guess you become to about stepping because acquiring available. you back were give don't much that for a now least how you perhaps Biloxi assume be does balance required thinking on And the retain at strategy? to

Peter Carlino

-- Brandon? to you me that Steve, handle Let or do want

Steve Ladany

take shot I'll Yes, at it. a

we're So I we just -- Tiverton to think Biloxi on buying by the short question why why and consent we're that has not been answer decided is the lender achieved your Bally's.

not So X And in. XX, with to we'll originally that acquisition. What in mean option have this XXXX, estate the sell little I -- questions? more that know have than so price we'll we'll lender all fixed the acquire real at does December with don't locked cannot that years, that the that option was is time. a respect consent through they have to they Lincoln with a same were terms an us negotiated in therefore, do at hand, at the Lincoln have,

Haendel St. Juste

much impacts strategy would give requiring did the point of of get be how period? that was and notice also levered they kind next here well you thinking as to at over curious balancing your some if how I they as

Peter Carlino

remember. don't I

have at don't off the back have You it go head. to of look agreement, top I and my the

reality that understand to this with but it relationship as I was navigate think seeing a in and with Bally's is way option we lenders consent XX or those constant XX-month We lender days, team. reason the business the think XX they you're we're the the their of their the didn't want complexity And I in Bally's in there is think communication I of decisions waters. get process.

time And acquisition is Lincoln we perspective, get be our other team and property are feel in though felt acquisition. to And the but Biloxi our Bally's was will we a the Those issues. do through from lot as a Tiverton their good good So to needs years that. of the portfolio, X.X properties. time eventually

Steve Ladany

to I lot the the stuff make or may moot Look, have got lender suspect their the plate, Yes. a group consent. to bank they and back reset to on year along They've over their financing their of they'll so. be often next way

quite take So we the looking achieving later. happy to can forward take Lincoln that today we're to assets and

Haendel St. Juste

Got it. Got it.

less on rearview, are today maturity million looks next the Okay. $XXX than as rate REITs but pricey headwind the year, the A which, many I question refinancing X.XX%, I offers in lower see guess, facing talk comes refinancing, you're perhaps term? more a shorter bit today? cost you issue that guess would due. I what considering the XX-year consider could options about can today where And for you unsecured you

Desiree Burke

Right.

out and have that So decision to I forward our as of on year have we I par made is to August scheduled that There a do use the equity mature said potential $XXX next we want we free that haven't what is on no we the flow with million haven't when -- date cash call that. we bond. earlier, the the in there

or probably would but we to into XX-year there's that that rates our for would actually we think be enter yield. X.X% that bond looking at bond, nothing say is at a so I a

Haendel St. Juste

about effect for in that how do broader last occurring? way? new Any maybe then rate the included? a involved then assets I'm Northeast, I And you New that casinos any the And one, you your prospects in in. area impact possibility I City. curious could do if would how be here think freight and that of ripple the can Okay. chatter Last York sneak you. week's Peter, in it guess you

Peter Carlino

to of have years it's that have little That's going that. There's for cave doubt that a to much, keep an want Why say I'm going we've But that That's let's out been about arguing occasion. with to don't Jersey, is Northern some to on and him don't why impact. prospective way say -- yes, figure with I've leads say developers. -- too this, hand. conversations had at some process, I to Steve that except but ultimately, close business

what Steve, much. want to on don't prepared you offer So are I to that? say

Steve Ladany

We're unfolding. met we've of what's the parties with number anybody, not anxiously tied a watching exclusively No to we're Yes. and involved.

at back if I to think development financing this billion their about out. number. difficulty I we're But play we comments we have -- my close project to to of I projects time, think a $X that those think earlier greenfield number some continue it a dollars, the think could some financing to see how with is folks, it situation. anxiously We're to awaiting talking we're and will of

Operator

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

Jay Kornreich

back going any with be opportunities guess to Cordish the potential provide the investments in any further interest into they looking you Bally's can the terms nongame And company? and going of I back at? update addition, to in pipeline, further might

Steve Ladany

last Oh... What was the question?

Jay Kornreich

interest further into nongaming opportunities. Any

Steve Ladany

Yes.

Cordish the from maybe angle, then Matt let the piece on and touch and and gaming a I'll side Cordish base maybe I'll nongaming on Bally's touch So well. as

So we're some from communication perspective, stakeholders. Bally's constant their with company their and in and of -- the a

any of in Boyd. trying think with We're trying can tenants, be to transaction our see we've we just had always with tenants Penn, I our the Bally's, with helpful you supportive but not be. we're be can whatever as capacity to of to always conversations

need contracted other current continue run, involved they current with and than assets capacity the the dialogue to have with. in we'll a them. for don't to own be so us there's now ones with think any we've And I already right

But line. and on acquisitions line. gaming in them so the getting last focus to gotten to is finish number they of different With ongoing turn kind we've the look we goal of to the Matt, the potential on ways not maybe and And a that's which have you do respect try front. now, I'll in to closely those now. the Cordish, them and in quarters with few with to them our aspire to grow have dialogue help things worked expand

Matthew Demchyk

Sure. Yes.

bottom-up dialogue share. the very per a robust is remember, case value increase continue But opportunities we going the to nongaming, intrinsic question with you all on do going we're across And is, our is have folks. So whatever to base right long-term to decision-making.

of some know also light, algorithm in happy things pace do that gaming. up cost You at it them. doing of green we're the activity or not That said, move a more for of than outside scale. or pressured flashes gaming, capital, sake When to we're to and pricing of do of keep opportunities

Our goal is progress. not its activity,

So term. is the I'd way, economic being market, the the effectively more mentality volatile the of form starting do that just to opportunities. folks to outside thumb aspects how depending interesting its our market helpful that that, could and those great in the now not around sheet gaming. folks compared their capital long It the access the maybe conversations. big of achieve of be say our scale the have by to that markets end balance get, in somewhat, partners for broadly, Fed because of months found than from anything for that at the piece date for also for table of new, selling them, But the if making equity the very next on capital off and have the and more But subsidy fact Where boxes. to be how the more reason merits a the And way, bespoke or of might are a we capital our lifted same day, be in advantage across make and in win-win dislocated position. but attractive debt to is goals, and to dependable of more relevant, solid the haven't has our may we the they that's we're removed really well And some the we're at structures we'll be portfolio the XX check X something could see. us and our This point. for

Peter Carlino

and, Matt, for more to say, a Ohio then and an other put for off other -- look, as to that property it Columbus, to we'd like as performance money opportunities, to find that, look sense us let much that me enhanced in there, at makes continue some hotel go area. outstanding add to in

out of I come, that mean it several will of gaming maybe years run And visibility we haven't ahead We of projects. some day nice certainly have opportunities of but happened yet. now. pretty us hasn't

to space, along So gaming if we're where content we suffer you the with in are quite will.

Jay Kornreich

follow-up, to other if of and you process a just going your for together capital maybe the then the instead tap it's looking operators how Can And as to talk development after for that replicable add-on capital that opportunities recently time back debt about be markets? announced. might came

Peter Carlino

take say We're highly motivated let achieve. to talk existing wanted to as to they had I our kind REIT -- people make no to to is the to work that develop things tenants. Well, mean an -- difficult it you of an unwind for very we be Penn tenants objective with about It was reputation Desiree want small our happen. and willing that's to deal our to master properties out was our how job, It But choice of complicated. the of me a turn this. pull be over very, lease.

I to figure try think that, is out we've help do them job which to done. how Our to

us, lease strength goal ours. were of by master that, variability, them into we properties to disparate achieved, and parcel the was outside of favorable the less think and and wanted adjustments that that some took for way, which that we and lease lease rolled a Plus, the get were were we stability. part master some Now to long-term I

they bunch lookout, the you an and with, asked support on may Where to constantly we've of that to Clearly, have apply our we're them we'd mean focused for future. if Bally's, been being can, a But us answer I to us, whole will. supportive So the of of tenants, talk and in where all may on we be it to we're not. highly them. like we to things

Operator

Our Heffern proceed. with Brad next Markets. RBC question Please is from Capital

Brad Heffern

curious a comments, just know in process where the you the will I soon. in are give hopeful regulatory on you're I'm close exactly assets that Rhode if Island we detailed more said prepared the there. you can update

Peter Carlino

Brandon for is best equipped that?

Brandon Moore

that's no only documentation all us Island requested Rhode moment. been submitted X has made Island. we and with at in Rhode have the mind, in the -- REIT applications assets place of at So the GLPI, we've in all Keep

REIT Island. closely We're And regulators. the Rhode to first the so working we're to come with

of around regulator the to get and front their assets We that in will end Rhode in I are won't our doing for a year, Island. I we all the jurisdiction. But in It's will other position year, on a the close us put the it in a that hate Delaware, it's think line. to that, to in jurisdictions be us still January. a potentially new and of hopeful work, occur. those no went there it through clearly of work predict on now a done to on we're hard side, in, getting reason when going won't so to timely be think believe early that we're at exactly this I be each lot that But to problem there's this the a But have point. been basis and finish through we in us. We're having into in optimistic in licensed licensed process get we

Brad Heffern

as that. dilution have a then in preferred see months. that different during appreciate forward for capital I'm going little you don't raise number of to curious forward the that the a I equity way deals you a Okay. to was And close order when raise if manage the quarter. typically bit

Desiree Burke

I can Matt, want you to. take that, if

Matthew Demchyk

I'll start.

Desiree Burke

Sure.

Matthew Demchyk

the using go is need well opportunities able us our towards then to debt and where Bally's long And free very will it thoughtfully costs actual prefund to to placement widely. as we us given you're add. or in sheet, And some when yes. gives and growth. as tool. simple fact start, effectively capacity we excess between business forward, up used that the tool -- and the cleanly necessitates some a people more us I'll fund it give balance that the to ability, the better we be fund are. have to mean the the the certainly issuance I equity within them just tool period the pivoted with to our our the model The And answer of range, used, keep used another once point we call needed chest Desiree's for future us the, to that have optionality, cash, it, case, it's and in transactions a the model for of

Operator

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

David Katz

the credit an the takes revenues? talk Can a we and of loans on avenues talk as as or that of of a notes capital issuing just vehicle about growing through using you just the one business, effectively extending for basis, avenue? Can puts growing sort of

Peter Carlino

loaning straight something in But we're earlier, can lot that of a our cost back. was not a not now Matt little of course, you is to a own some give bank, comment it make business. loan sense. important than I'll capital while we're quick appealing that more the Look, said a

we clear, competitive that yes, But the to would we with the real talked possibility. and now. real And folks at that we end have very consider about estate of own So the game. be more we're can have

Desiree Burke

and mean, Belterra loan-to-own got asset, I think in And and asset, basis. transferred lease REIT got Park our our history, our that is loans you've restructure. Yes. we that the got we seen were I the into Lumiere they historically, have both how

Brandon Moore

Yes. loans I we mean think use I strategically.

we as use bigger problems or of solve transaction. to of loans a So a way part as part

element use of And as probably safety. us sometimes, them see an you'll

something the that, we're So permits interest work period. if that generating sure like or us an rate not asset a capital will put during when loan to to start revenue at

as to a themselves. be not So means an I as in end used but think business to effectively loans end, our an can

David Katz

a environment. it fair. fair would mean totally they that's more think in that, And seem Is that do that the evolves I perspective? a I -- favorably current bit

Peter Carlino

the that I looking table wants the Yes. one. yes. We're mean all answer who is around

Operator

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

Bennett Rose

you realignment more about wondering maybe quickly that do and on classes. on When of I current what you've reset things sort given just to much -- sort have we I'm expectations kind of operators, see to outside pulled of your some maybe looming And of in refinancing quickly sort of and seeing there'll other issues guess just that if on you just of of look need thinking might base, the they'll more of ones this expectations your call. of horizon, that. and I into sense tenant maybe capital we're hearing thoughts the you're sort smaller mean, are a said that at maybe gaming like a very be relative that that sector? back credit asset is

over Just more year realize. all kind of if there opportunity be wanting the we than next might

Matthew Demchyk

the mortgage able solution do that gives I the in comes you're real a right people look extent we is Smedes, that's real a finance yes, us probably and house a that question the sale need. The that's they anymore. was estate, worth it from there, they important. out fact to real the they I and though frankly, person because with cost help that about now house. more flavor us we've our our forma sense lot expensive We're but on than And house, backwards, for to a down price of structure But really the until to the things what permanently it's there's was want happen. same hopeful stay earlier worth house be job the to of they're properties. here to for play. pro ago months some bridge Well, and the and to way that cases rates time knowing certainly to gap. game costs, gets at not It to is, a that any development like not them in that to into incremental a to the the do back-end versus And on his buy there's It's and little maturities, in ground a what those looking the sell some at of come doesn't back the And way X it's time. even, figure dialogue piece Steve's And has that's got have entered feels like made fertile time, what where to when Penn, talked like, is it market, And mean where right, right? bid-ask in point, them to to looming previously comes capital, we're the conversations but someone mean discovery. the phase, dialogue to in how matter case. our call the what really for the price doubled their people disciplined it the investments. we wait

Operator

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

Ronald Kamdem

Two quick ones me. from

pipeline. back going Just to the

stuff. just and up much contextualize sort just Can of talked straight just that You versus about buy? estate you sort loan-to-own is how taking real of opportunities

Matthew Demchyk

span directly one and the I trying people for, these of a we the something Every -- of to ends your, could estate. they're it that future, kind in with spectrum. solve of mean have real in is solution the step

is So dislocation developments don't specifically say know that to The tease more exception there's in where I we and only may that. time, is people can some to out this maybe related real our debt solution leaseback sort broadly, permanently be position. or we do really looking solve and loan it's X-step before the conversations of But for how hey, at sale process. are, a first

Brandon Moore

any circumstances to add estate, foremost, And a change own estate it and do goal an owning asset our Yes. if doesn't is that's we're goal facts that it and to at, And a the avenue tenant, a our always from in current first real the is I new on loan based context, right? But goal think the our we'd is, transaction tenant broader estate. So the or a to looking something portfolio. certainly our of whatever real is with consider. real

Ronald Kamdem

you deals? sort and comfortable to as to potentially naturally you're that decline going is the a And now rent it then Great. just that will reduced level one get Or thinking variable of bit Is more that more? a any the exposure. Mass even some just from last -- is relief, my forward, that there was Penn do at obviously you're thought the of new down trying on little

Desiree Burke

Yes.

rents move take we we escalation entire be lease as our the reset. that. component X%, right? our amount a future and escalation the rent of just of forward. it would our component don't fixed it, about. We the lot also around is goals. an those guaranteed Both revenue XX% new to So escalation that of have balance extreme this than in rent I'll we reduced reduced significantly of reset, exposure as of variable percentage rather Basically, So transaction to variable that concerned we our were It a rent shored up have from on around the

we're happy position So we're currently in. that I with that the think

Peter Carlino

Look, important variable world, REIT us the certainty lot can is goes was come Made up. more look, very as we the than in But when this well going down. also it Yes. up look, what maybe we love a rent And happy. opportunity. understand,

So down nailing the has many this at goal shareholders. of frankly, request, long-term been a

a needed Joliet. those the desperately frankly, I there capacity. is just the And place properties with time. we the I'm good leave the to Columbus, developed Penn pretty And so their about years, feel And property many over accomplishment. in we -- performing having newer better literally, all and at the that, -- -- doing excited needs hotel stuff the extraordinarily good at and really, a up excited well, good well, more there, where that this new it And Penn. well at for And M we were properties most I'll in that got and got of about of and mean, facilities see needs has Aurora go long capacity. more tower, means

the over all unfold next and of quite to are things good going we're about excited these that. So that are years, couple

Operator

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

John Massocca

that original the investment, of some debt tenant? deal? of in negotiations by debt the of what that originally in are released kind documents covered of associated needs terms smaller the kind was Is with indemnification, Bally's transaction, kind So the contemplated that especially the with smaller amount tax context around a of the in of the

Desiree Burke

term GLPI's guarantee $XXX $XXX Yes. that that new requires financed the into agreement proceeds, from million is in we That entered and transaction. and debt that for of coming credit million debt allows that Bally's September loan to smaller announced transaction

John Massocca

rate this on financing in loan Is to Or and we market get Perfect. Okay. out you something is -- as at closing? need fixed go that the that that the point? term to fix closer on is

Desiree Burke

No.

unsecured facility is that basic Our is same loan rate our floating what in today. is term credit the exactly

John Massocca

that how the Okay. potential rate kind kind cap beyond And funding the put rate, but Or then in negotiation? that's de development determine Aurora in of to novo there to that? terms a of is Penn the of deal, place some in is parameters going market of is It's cap something that's determined? be of million kind $XXX for that economic in

Matthew Demchyk

want What projects our backdrop cap spread an entirety have for of well spread to that's John, to would say factors volatile. that do like given I'll make we'll dynamic pretty but pretty appropriate will into our the the pricing rate we not lock just nonpublic based sure it's on haven't the upfront didn't a any on discrete. shareholders. qualitative was in I that the it's cost There's structure we say about, it, specificity. future, because in permanent to we go talked capital is

X give the they the cap we have sure they we've So then up at if put rate, for could XX that current so to capital, prescribed things obligated, it, price, the they at ask this we X of a be and broke but we're structured place. piece other not what outside in price XX and

John Massocca

out market the million? of mean on come for pricing there I they providing projects do just tapping to you hotel to are they contingent find some $XXX terms have fund that in of better is future, in could of whatever reason they those that I'm how that expansion? can then something do the some Columbus, that without instance, thinking, Or And if to Okay. funding. a in you funding? the

Desiree Burke

is whether funding do or and the completely at not to and Penn's answer our it's take or not mean whether The yes. discretion I to Yes. project. yes

Operator

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

Robin Farley

my answered has Actually, been question offset.

Operator

question final our And Todd Thomas Please Capital Markets. proceed. from with is KeyBanc

Todd Thomas

to I'm guess, rent. as that not it amount on fixed In -- now, the annualized right of And you Penn rate the an variable I higher, to new of actually mistaken, lot rent basis. terms the fixed mentioned lease, it's shifted slightly structured, if maybe dollar a you like looks

Desiree points, can revenue I is you cut And Peter, bigger mean the feel sense timing about down, reset? is going portion both the remind rate base us think, ways. over little still rent when escalator, what's came the today, you but you mentioned, good the there? which, for which So about Any X%? do how a the next mentioned can right? variable of on I XX rising, happen variable And basis to

Desiree Burke

Yes.

percentage you transaction. period PENN is And that So we obviously, period, a had happen back the remainder COVID. lease, of resets XXXX in the and in that will happen in be And rent the on X-year that five-year looking November. that they

reset So we down expect year. certainly rent percentage a next

so the full trailing quantified have history. a we haven't X-year We amount, and

Peter Carlino

five Yes. can up go it as years But right, well. you're back later,

ways. So it does go both

Desiree Burke

won't have I X-year the would period. expect it to. in X next We

Peter Carlino

Exactly. Exactly.

on think, is us a transaction for balance, this I for Although good shareholders. and

Todd Thomas

Okay.

rent of might a variable in remains maybe be what at lease, we of any time next thinking of about book-end or the you if there's type that you In newly be terms should but between structured sense the though, and the could sort looking that? adjustment that or now reset, of range today? how Realize still bit

Desiree Burke

Yes.

yet. So it's number a nonpublic number, know we don't and the

really for not our I'm can what So it. guidance will put fourth to out the be. quarter, that look you XXXX probably we number ready in for when Well book-end

Peter Carlino

to information privy don't any not we're that have. Yes, you

So...

Todd Thomas

color necessarily -- real Lincoln -- so lender not curious, Okay. just then not consent And lender exactly achieved? terms Understood. what or any necessarily was back what what why happened go or far? consent in And I hurdles to by just last was question. I why just achieved I'm to there you of mean quick. wanted

Steve Ladany

our lender Look, our -- Steve. It's only We're it's can consent. not speculate, lenders. Yes. I right? it's not

I when cracks. market of their started think to can timing Look, It's the kind some we I tough speculate. when they launched only think So it was amendment. show

I of level were expenses requested. changes other anticipated, paydown and amount think fees there's whatever -- a amendments, were anticipated there's of was that obviously, qualitative probably a then that all being with certain and

that. So all I it really not align, can't did where speak to

Bally's to we their the deal makes remove the acquiring very sure reengage language needs and decide brand-new facility, and sense effectively that the in the accommodate in will current they credit company and then comfortable on think that it being company, parties comfortable, we though, all years, credit facility; recut that be us moment to feel parties, they'll the in a that cut there'll feel the a which or I either where Bally's, next X in a lenders and time assets. case, make

think good X-plus it I over as feel we to So for don't perfect answer I next going you a have the why but align. years, didn't forward

Operator

like the of session. back for our We question-and-answer over have comments. I Mr. to would end turn reached the conference closing Carlino to

Peter Carlino

this Well, morning. We're a catch of Thanks, quarter, and Bye-bye. thank a looking you to we'll in dialed thanks to this you, and you forward of have have Sherry, happy all next weekend. in great with couple months. who and

Operator

This does conclude you. today's Thank conference.

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

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