Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Gaming and Leisure Properties Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Joe Jaffoni, Investor Relations. sir. you, Thank

begin. You may

Joe Jaffoni

is Maria. joining Good Earnings thank you, at yesterday everyone and section Investor on our morning, and Leisure for website afternoon distributed Gaming release XXXX The you on Properties the Webcast. Relations Thank www.glpropinc.com. press and available Second Call Quarter

of and On defined Securities Private in remarks your XXXX. may answers Act call today's prepared contain questions the Litigation to management's forward-looking as Reform statements

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

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

the forward-looking no future. the statements reminder, current management's company a obligation estimates any assumes update and in As to represent statements forward-looking

more the non-GAAP reconciliations SEC release its the company's earnings to related statements as the release. We discussions well forward-looking and in and contained the to including with in of factors encourage the filings as financial the earnings contained measures listeners detailed in XX-Q and company's risk review definitions

this Operating Secretary; Financial Senior joined and call Carlino, President Officer; Brandon Executive Treasurer; Chief Ladany, Vice Demchyk, and Chief President joining Counsel General & Officer. by of Chief and and are are morning's Gaming call, Chairman Officer today's Leisure Matthew Vice Senior and Moore, Peter Desiree Properties; On Burke, Chief and and Officer we also Development Steve Officer Investment Chief

to the turn over to Peter ahead. Peter, pleasure my call it's that, please Carlino. With go

Peter Carlino

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

we've XX to the portfolio strengthen properties. nice and I in by We from that, gaming way you'll call. of spun our team to highlight through probably And another and have spin which now PENN hear quarter our Look, most Joe continue them our build wanted totals entire we we XXXX XX as from properties. with this as and highlighted has had

XX a shareholder months, build to number. that, certain can we order the in overly I say to company. continue continue to also with while base. believe the get And build our dividend of this over large continue as We next in myself we is nothing current X price that So portfolio down, that that I can is base need am the focused shares building number something to to build. highly XX our which stock at generous. moment on million our I but And

briefly a I about talk think of of. me that aware Let you're projects couple well

first of ongoing The is time. for course been has Rouge Baton that some

excited physical we're that we've -- about it. of open we're $XX project that The I terrific. I all those bit We've its pushed budget related up the and Casino our excited will our what do Queen at has this of think think occurred facility and And there in end enhancements. are million August but certainly to proud at really to of that potential. property little is and team about announced end a

seeded The have that to A's. with the willing park site. all do a aware other because have nine to is project land valleys the that be we that Tropicana. that, Bally's for with know new job acres which financially is long-term Bally's the should and terrific Obviously, by a that of to course respect you're And well lease you unaffected of that we is spectacular

the You the that, and site. infrastructure we than more evolves also hope that that. construction a lot as we million that various know we've to and that, opportunity $XXX committed project believe have announced there's But at items

would to project. our our for this lot at shareholders of are course, more, desire about possibility We appropriate what course what subject is at the but excited whole Bally's look of doing company, we'll Bally's a of

But participate an level. at to We like even we'd that greater have the to competitive. being be case,

say I that things a And new hope, as that's couple well. months, we as of can of the big of a next So things deliver couple occurring number over are the now. we right

to of going some ask that, I'm to with Desiree, the go financial So through issues.

Desiree Burke

our of Thanks Biloxi the Peter. drove increased lease by by the and Las of Good by morning. second We real and which Tiverton cash the in of assets, total $X.X XXXX, an This addition rental $XX.X second over Tropicana quarter Vegas rental million, income was land exceeded estate the from income income results record reported of XXXX million. growth Bally's for $XX which quarter million. driven increase the cash

non-cash lease and year-over-year approximately rent million and which $XX.X increase increases rent on escalators rent approximately straight-line which combination adjustments leases of percentage $X drove revenue higher our of recognition of adjustments million. added investment and The gross-ups collective the of cash and a

such Our transactions. primarily items as for increase due to leases, loss the and million, increase operating depreciation related $XX.X in on provision the expenses expense the recent our non-cash in an Cordish primarily to credit increased

rent November of annualized reduction $X by $X negatively reset involves. impacted that an the five-year percentage beginning closures this that COVID, in million, in from anticipate the year this during We lease prior million and casino rent period amended the were PENN between

million lease. escalation full of this expect $X.X annualized also on We

have our May of on addition, Pinnacle Xst resets Amended and In XXXX. PENN rent Boyd Master Leases occurring

COVID. because too it's expect effective May to were casinos included in the XXXX periods resets percentage result to we with the increased While resets rent early do predict X that these confidence, due will closed where adjustments, occurred

we've current spent Peter spoke development over currently project to-date. land about Our that, $XX site just million

the we an generating As X.XX% million and Peter beginning will will opening. upon $XX rent total mentioned be at spend begin rate, cap project

under program. a perspective, From our $XX.X at-the-market under leverage is sheet five We EBITDA. net balance times million approximately just raised our

strong, Our X.XX% the prior rent leases of from master end the ranging quarter. as on our of ratios X.XX% to remained coverage

units share. for AFFO guidance owned a share $X.XX transactions. the XXXX per diluted of in future not per And our to have of does we to OP Please range this $X.XX that refined guidance, note, impact include diluted

turn to back With it I'll Peter. that,

Peter Carlino

your you Thanks Des. And Matt, add would thoughts?

Matthew Demchyk

our results predictable, increasingly thing become business our through Sure. morning model. that's each Thank of quarter everyone. good reported of and consistency you, the Peter One is

compound a challenges. unique to results the of flows, for The consistently sectors and set other stage towards continue GLPI's is assets of convergence cash our while institutionalization continues, number perception path are for valuation. our continued real estate As facing

model simple. business incredibly is Our also

Our costs dropped typical of the other top line are routine impact common in estate improvements, that landlord bottom-line without CapEx segments the the or fees, re-leasing to market. rent payments real tenant other of

a to is addition this In supports institutionalization. consistency and our that thesis simplicity, to commitment transparency

our strength stability our that of points coverage conclusions, informed our reach We investor partners are investors long-term appreciate and have transaction their and who data positive model. own yields regarding that respected to four-wall view and business they valuable necessary as we feedback disclosure and about the enable

purposefully our our the long-term, focuses balance our managing underlying to know, to have we approach methodically on positioned of the you leverage. As strength cycle-tested have model, the company to and conservative sheet complement business

addition, with debt and managing debt next the until due EBITDA In available into to over of billion year high-Xs, maturities $XXX not million September to also $X.X the have next staggered we of liquidity. of

the and foundation provides strong well ballast that wherever balance environment the We both, our offense, uncertain to as and sheet prudent. as as play whenever an that value tool positions us a

and proving Traditional for clear less natural as also has and a the interest navigate GLPI. for sources we opportunity. clearly we rate As economic to abundant -- little which opening of be predictable, are environment that see are is capital potential precedent, monetary, not a

has existing the with quarter, and been counterparties past healthy. potential Over dialogue

We translate on dialogue our remain prudently in We tangible per long-term are unearthing share. in to increase the to effort that shareholders' to opportunities the to working deploy outcomes. hard capital value effort focused intrinsic

vote for call confidence. joining their to of today's for to investors turn now and our Thanks back the call Peter. I'll

Peter Carlino

open you the please? Thank Maria floor you, Matt. to would And questions

Operator

you. Thank

now Barry [Operator Truist will your Instructions] conducting We comes Securities. question a Jonas, proceed first Please question-and-answer question. with be session. Our from

Barry Jonas

it I some There's discussion been with acres nine be know Tropicana. thoughts guys, start there'll Hey I here? get wanted space, some for your about shared sufficient would be be morning. to to whether helpful a ballpark. will but good

Peter Carlino

Speaking Very me tell makes efficiently. is myself But design do can it the around and the thoughts have they that already could prepared. interesting a site integrated lot pretty it in that was can I that just work is they table. you plan. that so place the way surprised clear for I others accomplish of

been public. of Some it's

comments table. want that? Steve? to But some the to you did Others around add

Steve Ladany

I mean, is Peter. for parties acres. I constructing those and involved you are said nine-acre -- been the The plan The always has think the who it by the the number building No. nine right provided stadium. baseball number

is you're a which there portion So is Barry right also which space, parking. shared includes -- significant of

would that between lot parcel, and a So plan you stadium what purpose-built both see of itself. of stand-alone amenities to the be and casino land in there things in stadium exterior normally the will ancillary a a a make lot is shared the sure a

Peter Carlino

keeping numbers on meetings, is Bally's process there And been A's might moving. this have mention I focused highly design of lot this that mean, Yeah. tear. been have on the already detail. significant and of I And a a

So very is a moving this at pace. fast very,

Barry Jonas

great. follow-up That's color. how will thoughts projects deployment the schedule And to modeling then more PENN's just all funds a work appreciate for on maybe as construction that I question. Any a out? relating

Peter Carlino

want if wonder to I Des, take you that question.

Desiree Burke

No, kidding. Yeah, not I'm really.

out So yet. PENN, they their haven't we're plans put but working with

quarter we to year. what want determine to be used to coordinated believe and Aurora but effort. anything see for definitely But relocation, gotten will a this start property ahead have until we've we I buy be we'll did at far but finally So that's this And point. next jump them, as of will when don't don't the wait it as they

Peter Carlino

these And in authority well-along and do planning on projects. we are they some architecture, that understand with design various

This that move relatively us to comfort. quickly. it's of moving. fast a but So is Never gives going lot enough

Operator

question comes Haendel from next St. Our

with Please Mizuho. with proceed Juste question. your

Haendel St. Juste

for taking my Good morning. question. Thanks

Peter Carlino

morning, Good Haendel.

Haendel St. Juste

there. Hi,

your dialogues, well peers perhaps talk competitive especially environment bit as you're of who capital? into today a guys newer and from to some first of have bit more about in tangible competition you landscape bit and Peter, convert opportunities, current entrants it's the some the a the Thanks. can from execute were better cost a and So you facing having known ability

Peter Carlino

us see I of improved change. If can't say things that this I a market. lot think have may anything we for in

nothing very the other very for discussions in but pretty active that, should occurring, again encouraged couple obviously a years but Any of be about how around pretty cautious Again, say can positive thoughts we really feel us. have the table? that, we're that, we we series We say good. of next

Matthew Demchyk

Yeah. banks real have from bank estate, juice they same void get up. to folks debt have and that debt low the when the could looking sheets. add equity interesting over wings we've their of Haendel. don't potentially private clipped I watched competitive past some been their And different for lever It's sell people price to kind things certainly little a at of months, way focus around number more solutions the bit. shifted watch their look also of mean, in at get I'll And balance who's a really

to record of to creativity in and of that and has compared put And think gaming a our take time else I'd deals to arguably more that banks to look I compared we're industry relationships the remember you got opportunity different over experience and lot other to almost mean, team mean back that's table this collective Peter's this together second anyone others. the position if REITs. or about around the respected our track design private we've -- I public we've equity none a and back step at place the we've than goes doing got a take a by differentiators.

perfectly in out certainly makes the fit I say to figured a what the of We sense slate has structure. for most And nuances, dependability. we counterparty, us certain mean with the don't clean something

at years but going someone run. today, that's partner be two, on our If to place there over to just long four importance the be out that counterparties of lot look the to able be you having three, a not a

can And deals. especially in equity to things. able banks you different in ability certainly It's private we balance to a public our as sheet tool a chest match have company fund fund or also our position folks know than be use to

able be solution a put natural very and together, the be got you for if at our table it first for call we've sometimes to seat to a counterparties. So all

Haendel St. Juste

other you're then philosophy? Thanks, and like how long-term Matt. and Chicago the a Very thinking takeout being would related potentially I follow-up their and about with relationship for your well-known helpful. sheet of guys Very Bally's. And a a project how Trop long I today this with you have curious perhaps balance the fit possibility guess helpful. running opportunities guess Thanks. I'm

Peter Carlino

is project. Well, every project project to

to it's We right be We in the in anything a are have Las than Vegas we would possibility. Bally's. want everything deal-by-deal obviously that offer to But and now Illinois. much more to look again, go-to Bally's involved would and at guys

great to build for company. the they're We have motivated respect highly that a imagination for their --

And it, at if fully want about it applies been but positively of it offered the kind think of nothing is understand Vegas. it horizon we -- in evolves. going. to anything on We've the how that also project be we moment. Las haven't see where but there's got yeah, So yet We part to and don't can, that we

Matthew Demchyk

balance it watched to certainly long-term the thoughtful the rates to how ATM, in. continue I and tool able use tool going funding. do business debt have And position ties sheet chest on we're size us things our to about be question be of the our in and transaction the support And on our we to structure we model. and you've to. going depending the to and We're to prefunding emphasize match how philosophy the same mean, we'll

Haendel St. Juste

Thanks guys. floor. you. I'll Thank leave the

Operator

Chad with proceed from Macquarie. Please comes your question with next Beynon Our question.

Chad Beynon

question. for standpoint appetite up adult market expand from some capital GGR as touch seen deployed given some there, you into that to Good market? a that be recent kind and your spend on can per that's Thanks. into to been my that morning. United a more States Thanks as of Canada Peter, stable the we've appears taking and transactions

Peter Carlino

all we at it. some seen to us. I it. been never lot, have -- Yeah. talk find border at that? made the and but don't at to the Canada look look Happy Brandon, to look right about We've we about the when literally never is tax find look it to able mean you just that mean, been add issues. haven't thoughts know to we We a a I do you time. we able project sense want I across

Brandon Moore

that debt we strategies course the transactions to those to of tax much back getting There's we States to can have the between money the Canada, can look repatriating add. make and United know and on things lot think in out don't so at it employ I we do I mean I accretive. a could that that to put dividend I but And that. like leakage the it. more try we

with that to-date, I be profile in more both shareholders. a haven't that's growth we seen it transaction offered a turn that we something would accretive Canada But and think into where our way the in could for

far are risk look reward. how each as guess think and know we've seen how in different provinces we'll some you and I are their I them And so little a so of as those probably to But bit their structured less different. is regulatory more there. structured And continue systems and taxes are

that's project And so certainly we've project deal But we of We've a projects. and look uniquely the And the them. right been at right we We we looking look think just lot at us. those if in at each and we'll it. been find the I found all Canada. do haven't one for structure

Peter Carlino

the a Rama taxes the which management US the there bought a we got There experience. at course, was of great Just fight bought casinos company. at and government we between contract over is as Hollywood Canadian was I government when an aside when PENN, that the Casino

about later, colors it just And somewhat the I'm solved certainly be And by literally mess in to out was XX such year went extra sure relationship. in cautious even year then. years on my was that It year year for that a thinking out. not intercountry

Chad Beynon

wanted a put broadly maybe you. looks conversations. to a a revenues We've basis which points. pressure ask a even second and operators about report so And like margins. Great the then of down quarter in flat same-store has few bit follow-up little seen coverage Thank or as on far are on I rent it

there are around are the margin operators. questions place at we for there's peak So

rent it could does there do. some be in deals now relates margins done as to when that I change partners So, how Historically these think future. conversations to could that they this coverage were less were for and your opportunities done the increase there's still deals

to or start we types a deals standpoint? in So, future given Thank of we are you. should margin from where the see printed economics different

Peter Carlino

think question around I whose you. face Matt, the to table that answer is I'm looking dying it's just to see

Matthew Demchyk

And look number of heard in as this as the Okay. make cash underwriting our point We've safety. And us sure margins always about structured somewhere likely pound calling on safe. shy than our a expanded find max calls but the more of to of would to you've the back Yes not are of going flows margin we're get goes necessary to we're we set max. the min that reality feel coverage for a pound that a to continue talk philosophy. four-wall

settled prints a a at had happened the at has at I mean COVID. not high if we've also where And if usually crisis few financial I and very test now stress mean the we've look look both one you last handle. it what back handle and out two look the during

I mean both we've in proven than enough more to those have situations.

We where apply and as of thoughtful it's look consider clean pre-COVID judgment. So, things a well thoughtfully to kind our at it's we picture were case-by-case.

Chad Beynon

Appreciate Matt. Thanks it guys.

Peter Carlino

you. Thank

Operator

Guglielmo next from Please Daniel Our comes question proceed question. Capital your with One with Securities.

Daniel Guglielmo

base undervalued call. that you to yield where is Thank back down. come just to on first comment everyone. dividend and number and the the for your Hey high? the dividend you you're Peter just you about my focused Is the too get the saying one the you're dividend highly think taking said trying to is yield price going

Peter Carlino

much aren't money adequately. too away it appreciating people giving to We're Absolutely. free

pretty don't You fulsome market it's bet. what now. control does right mean Absolutely. we Look the but I

Daniel Guglielmo

well with flexibility. vein a mentioned past with all sense. properties And question the it's knowledge lot you Bally's operators to Great, recently. partnership worked you and And out then appreciate and base would Cordish there put okay. makes of there's Matthew, flexibility good the operators that That provide of a on of kind to kind and similar the

you do next what and to the over or can would think leverage for strong you guys to them your guys put so to and table come So you leverage the year sheet? the happen allow balance

Matthew Demchyk

an either an look, way camps of people's outcomes. to Maybe planning have Maybe dramatically we Yes. when that in lot delayed where to really great have to But I fully economy environment very a counterparty haven't found you've moves get goal there's their wealth both for that And different shift typically expecting come mean estate a we to had opening of is we're is and or on strategic sides we've got uncertainty. lot that some the some they and transfer catalyst have when due generational tied do things. a stress the maturities M&A some us has. Goldilocks.

I mean the for rates we've reality we've period discovery. of rate the a cap some wants yet the mean price And have to inflection. sake moving tech sell we're top I and of who and that is in selling. someone seen are

and So are the situation what it's in discussions set. we've opportunity talked determine time, real might But be possibility helping our very dependent. about

Some wait to things things folks let happen bit. that might and all part trigger. a if And people season are be and the saying, the pull let's little waiting a when we're of

Peter Carlino

sheet we're balance to that day. at That's safe It's looking every say Yes. our business. our

at Looking priced. it's equity, how

Looking priced. how at it's debt,

Looking ahead, we we have. know what

in have over a we what time a is helpful particularly period is of spaced of this Fortunately, that lot of environment. sort

opportunities thoughtful what about where are we the marketplace. our very, are very in kind So and of

Daniel Guglielmo

you. Thank Great.

Operator

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

Smedes Rose

wanted more dividend. I on little ask bit you Thanks. just the a Hi. morning. Good to

change it's on policies is way year-to-date point? might going some the your NAV this opportunities of yield if they're selling looks underperformed the view think that the mentioned dividend think and given you not you at potentially at shares you or increases off look stock? of would that today, high. Does you below about make very trading you sort appreciated? the It consensus forward, being like You kind And purchase the have it

Desiree Burke

your I'm start of with going to your question. part first

as So our driven income investment taxable distributions by largely dividend is estate to remain real and required trust. a

question in million, ATM capital our as mentioned of and so. have that currently, And don't We in the not initial quarter dividend back the suggested. during been we just deploy So the looking to we the really a luxury we had $XX pulling raised are buyback.

Matthew Demchyk

giving Smedes, we interesting and any -- portfolio. back have in a threshold discount gears $XXX we things step a it, into a Yes. risk-adjusted flow we new I but for existing take and return a need that of we if up a time mean million our persistent acquisition kind cash to free do pipeline to than that year are and a up And for period us get go lines have change is repurchase. of see that it. us have for better We money stock pile of and we the

some this But in a But to the judging XX at up. those at the with have what we short-term, in months. we're line day-to-day. very with time to pass now might next happy point, is it's we're if But position same I the a certainly consideration very opportunities the very pieces game. six not mean come to regard long

Smedes Rose

you. Thank Okay.

Matthew Demchyk

Thank you.

Operator

question next your from McGinniss with comes proceed Scotiabank. question. with Our Please Greg

Greg McGinniss

Good Hey. morning.

credit wanting you flows mentioned your for go-to at the you cash considering company there of quality some of How the in be Peter, Bally's. when low-double-digits increasing to willingness continue debt underlying times? and your So trades exposure to their protecting the guy that are

Peter Carlino

go answer comment? Do can table. looking ahead. the you have around a that I'm I but

Brandon Moore

look we And think the the assets we of the we've first just that from we've say, at I good to And when portfolio we in think they're Bally's assets. we that that been focused was think to always beginning, own, -- I of we four-wall day the on out from assets I Well, coverage going the own. today.

feel like good solid we We and and that excited the constantly always lease at but look a we those about think the we I assets. the assets are portfolio doing have we're think they're in things that's

enables when are and assets at think of time the partner we're And projects and is their looking these that. if quality in and a the shareholders own good what we to good that us for from and there in be waiting them lot our I that hearing Vegas come to at while we'll to support the those us, it Las participate for opportunities portfolio and bolster own. out. at Bally's portfolio, same of so, the are see excited wait comes us are looking a And be we see. you're this efforts And to to how Chicago But

I we're assets So good to those confident strong in. that acquire careful they been Bally's are assets think the we've assets with markets in that the operate

Peter Carlino

Yes.

I may think what pile to that comfortable have holds. I and What we're come it. What is future the future, with that says on in that. got Brandon. with very we terrific it on the will depend

So we anxiously they evaluate we'll await them as and new opportunities appear.

Greg McGinniss

Thanks. acquisitions And deals the regarding year. the lumpy. But then months Okay. besides the commentary with understanding been the six June since acquisition to there next in And new last be less deals PENN I deal announced opportunity – June announcements haven't appreciate potential XX over trough, of the since investment of and any to October.

confidence more anything changing getting there maybe mentioned, process likely your catalysts some you in or on that those is of deals that and done? Matt changing makes targets environment more So in broader the providing

Peter Carlino

Well, a we was introduction. can't highly ago, magnetic would A's as can, the I I had And take say as even focused just to except deal, that any well, made finding credit on the since site. few Bally's something weeks the think original of Bally's we at that, be for

the way. course the of to we fair early were for we And along that instrumental. nine But be to part acres. with is Bally's so agreed paying And

or sense than wasn't that. month more new little that a a here that's project that a in yes, So ago

lot cooking. a there's else and So

I of plan it lumpy. to said and strongly a pipeline gone "but It as as we we've we've by from happen of – have on. can. never deals. as didn't is just we're you properties working a stuff jokingly had We've that of XX So plenty XX" We've kind lot accident. we There's said

So we over can couple to today. add of see that's expect really years I that that all number. and build I you'll expect the next

Matthew Demchyk

redevelopment wouldn't with kind – structure drove past operators. about and time of goes PENN I the low-hanging a When there's that base. got mean of need on And or channel we on run folks stronger mean them here to life businesses. I expenditures of dialogue. I of another also. growth Greg, Yes what have better, and and if did with properties of our sort involved potential look there's capital their you make you've too where function for think We what ongoing that always tenant fruit that's it's another some

Peter Carlino

trying year again, take to value long We view for do here. feel shareholder, as don't I panic anything the We're a build to frankly.

there's find deal have like portfolio. have are road years to going by I but say I a down no to to lot As to deal going And really the by we're we deal. you're working few do we that sensibly deal think bigger I a do.

Matthew Demchyk

slow, you if very have And wouldn't and are these thought just announced sometimes probably slow Cordish, doing month Like we they – things we before were a we it. get quick.

Greg McGinniss

Okay, it. fair enough. Appreciate

Peter Carlino

Thank you.

Operator

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

Ronald Kamdem

just quick Hey, ones.

master amended just first is on the on commentary leases. So the the

it's XX that to we positive. for the XXXX, go but talked early very You about expect

would And year. of any it property next variable reset Just the a there that. Any single that leases there's looks color has helpful. be on then one like more also color

Peter Carlino

Des?

Desiree Burke

into There's – we're to two periods a in only is which mean, years. Yes. said as that Those I've that in what two-year early reset year can what reset, COVID reset in the the it's said in XXXX. my and there periods prior you opening tell were I too I it's remarks tell. I is

but up we've perform. you number It's early go to they to to a a wait them expect and give continue yet. got we to how So little bit see

Matthew Demchyk

easy an is comp. Zero

Peter Carlino

that. like I said. well, But

Ronald Kamdem

include properties? coming Belterra looking like there's lease, at what does the that there? single – And one May looks it Park I'm the comments about XXXX. Any

Desiree Burke

same Yes commentary.

Ronald Kamdem

noticed to XXXX XXXX. was one then was on the And option from the just it. Got Okay. I Lincoln extended last

are did how -- and Just the maybe sort that of about? potential the come conversations Thanks. there? you going how thinking And about

Peter Carlino

want then -- down or it Sure. give Brandon, you do we'll to Steve

Steve Ladany

Yes, sure.

of as pointed you part as December the to revolver their it of nine was which So to release to set outside negotiate Tropicana around negotiations the of out, you valleys it XXXX the we December expire XXXX, look extend Lincoln the look option date. if with to is maturity asked of acres,

So, past adjust that event the them get is if the The will the was currently event. there thinking refinancing asset. to refinancing likely language, allow sale of that it a we prohibiting

Ronald Kamdem

you it. Got Helpful. Thank

Peter Carlino

Thank you.

Operator

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

Robin Farley

that environment, Hi. just the always curious, pipeline Great. does sort other that kind back Two maybe quarter questions. and sooner discussions those between the just just in I'm you have words, fully little One the then, think kind like views understand last would you quarter? views or that. after delayed, based your a how lumpy. has of have whether new better it's your other that circling of is or macro characterize make you gotten credit over worse? to of I And pace the over Like might of one last something and on

Peter Carlino

Steve.

Steven Ladany

Robin. Sure,

So, of the down Because slowed this it as definitely look or What of really to looking through market the you last the the operators has the first capital dislocation to it's call tell markets, has the trouble the more accessing pace year. picked or just credit think really -- and year would operator late is, the buy, slows sell whether credit M&A operator looking down up. I everything. I pace two it quarter the environment,

that a tell year, lot might you, market discussions with isn't those this folks, because to able capital fully continue would access So, our early conversations focused I solutions rebounded. unique were and credit of around of the to be part provide

to or spectrum, think you credit divest more we on see do function I think will do to think, tell look certain to would to the start as larger of companies gaming to M&A I others However, market I normally acquire broader looking start that the them. assets continues I

far quarter. types on pick of last as as various as definitely the started to broad has So, I spectrum feel a do more up if over transactions, discussions

Robin Farley

was Okay. on you've how and question kind just of York. my discussions, of bidders for And Great. New Thanks. Thanks. York, with characterize you the then any New whether early the

Steven Ladany

So, a New folks with we discussions of have York. had in number

state. And await like as try through discussions bid, and are work much to continue think process -- our to I to been. responses discussions looking I have think that process been folks the the the our that stop, start and think I the from has

conversations evolve. look be and this participant But those to continue to forward a to we are will I'd conversations we point, there. having think trying at I say,

Robin Farley

you. Thank Great.

Steven Ladany

Thank you, Robin.

Operator

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

David Katz

everybody. morning, Hi,

Steven Ladany

Hi, David.

David Katz

Hi.

tracking will But, that or asking a how would to I'd So, you are involved. and time. Caesars. I'm might you won't how I've And for at factors, It's in Pompano look talk between you? just been about is, get some it project what project like potential gating positives, and a love quite you potential not of what Cordish aspects

Peter Carlino

touch around wants to Looking who that. see to

Steven Ladany

sale-leaseback transaction times would at foremost, would in the casino And first said have I on number that a do Well, to of and Caesars. a Pompano. a say we with asset we love folks

topics With respect those discussions look I'd of types around entertainment doing of Matt to his them the to probably has and is the stuff in locations. -- Cordish various that some he with

Matthew Demchyk

when for funded And behalf something folds I things opportunity do us Yes. how think there their casinos touch on on both all there's in overarching right and and that's of with speak the that if not their around gets win-win sides. kind strategy the to and to that on

the org there certainly So, we overall of haven't part dialogue. but yet gotten it's

Peter Carlino

want say, would partner you any as it front. quite such on happily experienced always Yes. Cordish to do is with and to they. somebody as that with Suffice we more developers smart They're just almost

David Katz

very Okay. I’ll take it. Thanks much.

Peter Carlino

Thank you.

Operator

Markets. Our your from with question. next KeyBanc Please proceed Todd comes with [Operator Capital Instructions] question Thomas

Todd Thomas

amended more lease in the just PENN morning. measurement I and you reset PENN master mentioned on look year Pinnacle the period. master I appreciate as leases follow the if Good ahead so up commentary But two-year Des, rent Boyd around reset helpful. to And that's percentage we Hi. November here. the on the a little this the wanted bit detail

you impact periods total the period And bigger comp. comp than of lease. a easy from greater Matt master is an the said, closures those as shorter rent leases PENN two with amended percentage in master the So, combined on

lease rent million experiencing reset increase do $X XXXX PENN you outlined? than XXXX you're expect you $X decrease So that in be the greater to that on to percentage the the million

Desiree Burke

Yes.

two-year to As May June of said, like at to information in were -- saw that new and not not we're company rent But guesstimate we you PENN I'm willing all an transaction. to that decrease do back XXXX, if there number. am have closures as we're I percentage going I But a increase, our you a exact in trying expect in the period point to not the moment. to you that give look that prepared we period. amount reset the for That's for

Peter Carlino

Let try pretty me give we're just add. nail can't But optimistic. at do for today. unwilling answer. something and We've a guess labored thought quite is better cautious It should the to that over to down while. all can And you we be we

Brandon Moore

think months XX-month I Well, XX the left have of out you period.

to bit of have prudent probably that we before left place. takes for us reset time it's -- quite So a

Desiree Burke

Right. haven't even for us And to XXXX. they June reported of

is have don't information remaining there's year. we time about. over know a that So lot right? the a So last Well March, more I

Todd Thomas

net-net to Right. that comp. when positive the it shorter $X two the seems the rent PENN the on very you're on master combined that the reasonable Would would with the have It that Right. would could lease. those be leases million on decrease contribution of the percentage to to I seem to closures the XXXX prior net-net, should guess, combination be period with close period be But experiencing impact or the $X positive amounts assume? being million

Desiree Burke

that presume year my down trying it. exact the time next point was the is X% just we That early X% to other have get to period don't a Yes. that for at should offset of just resets commentary because

Peter Carlino

expect is -- internally we used we've word offset. the Look largely

responses about So as cautious and that's we caution can can give response -- we you. as

Todd Thomas

the was PENN on is just we as the And master lease. same helpful. so amended on That's the those it master calculation Understood. know two leases

Desiree Burke

is revenues over the five-year not math of X% a the But the the works compared a period period. to two-year yes So same base. calculation the

Todd Thomas

the amount percentage Right. that included base And the rent in it's calculation impact rent the rent? only that's and and the and percentage the will it land reset we'll

Desiree Burke

that It's right. percentage a only should impact. rent That's

Todd Thomas

it. Got Okay.

Desiree Burke

Land-based stays the same rent forever.

Todd Thomas

right. Thank All you. Okay.

Operator

Mitch Germain Our with next proceed Please your Securities. JMP with question. from question comes

Mitch Germain

you. Thank

by we year. do end How time the for the all to of fruition the approvals if the curious project? Stadium the Just line come consider -- how we should

Peter Carlino

Brandon.

Brandon Moore

park. this working they error. is have start think really begin I But lot that And Yes. XXXX of when want to I what project. a that you don't we they from backwards in from the room A's mean season for understand the

approval think a and we're they go begin. demolition reasonably of see think So out once the that will I project of start their league certain then the a current to is permit have you'll construction I stadium for physical baseball the the major to time come site line

say time done. I yet. when opening for XXXX work day, I backwards this margin team set the on a this line think you from the there's But As So get not don't of error will a lot there's for to

Peter Carlino

advance. on And in all-hands sat scheduled in pretty are they're thoroughly. you, I And tell We've well meetings. teams engaged. entire are planning design and this Yes. construction whipping process meetings can the The

So indicated lot not that of it's pretty and they very time there's evident that a as make has Brandon clear.

Mitch Germain

your And middle start, time the does the into of that project the or work portion how end toward line?

Brandon Moore

the answer yes. I is, think

So includes and the that then that be of frankly. come the construction quite which and shared at towards we've will obviously podium demolition, includes it would part of some the infrastructure the beginning to probably committed end project other the

demolition piece it see committed so back and the far think the we've And the of going then upfront at end. that so I rest you're to

Mitch Germain

you. Thank

Operator

questions this floor the would over time. further closing back There turn to at Carlino are comments. I like for no Peter now to

Peter Carlino

appreciate make you, I these and thank hope Well, helpful the opportunity everyone. to always we this presentations. has been

Thank quarter. you. next all you see So

Operator

concludes This today's conference.

time. lines at participation. for may your You disconnect you this Thank your

Gaming and Leisure Properties (GLPI) 28 Jul 232023 Q2 Earnings call transcript