Gaming and Leisure Properties (GLPI) 28 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Peter Carlino	executive
Desiree Burke	executive
Matthew Demchyk	executive
Jay Kornreich	analyst
Steven Ladany	executive
Greg McGinniss	analyst
Todd Thomas	analyst
Brad Heffern	analyst
Haendel St. Juste	analyst
Brandon Moore	executive
Daniel Guglielmo	analyst
Barry Jonas	analyst
Bennett Rose	analyst
David Katz	analyst
Caitlin Burrows	analyst
Ronald Kamdem	analyst
Mitch Germain	analyst
John DeCree	analyst

Call transcript

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Operator

Greetings, and welcome to Gaming and Leisure Properties Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Jim Leahy. you. Thank

begin. may You

James Leahy

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

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 to statements as the release. We discussions well forward-looking and in and contained the the including with in of factors encourage the filings as financial the earnings contained measures listeners detailed in XX-K and company's risk review definitions

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

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

Peter Carlino

in year year. very first good about last this and wind here you talking with Well, year morning, the good to of We're a quarter be to a of this thank everyone. start off you, Jim, especially the and pleased up morning, good

in me would are you of to there them the well X I in have comments read repeat the think paragraphs I rather encourage our press them. release, issues first critical written than my outlined

straight some to to to you. really the make that our is and Demchyk and you might Desiree Matthew to and go highlight normal things some thought As ask that want answer hear Burke your to or approach, we we questions interest to I'm going things then

Desiree? with So that,

Desiree Burke

Good morning.

adjustments quarter This over XXXX, driven estate quarter The was increased Tiverton, real from of Baton and addition by adjustments fourth rental million. approximately and adjustments percentage increased year-over-year and revenue of combination by $XX and increase of $XX.X Rouge income income rent $X Bally's, leases by The higher drove the For our Marquette noncash rent added straight-line of and approximately million million. and drove by $X.X escalators total development acquisition on of acquisition cash increase growth of $XX.X The the XXXX lease collective exceeded which Casino cash million. a Biloxi of the fourth gross-ups, income income investment million. Queen landside cash an cash our recognition the rent $X.X total Rockford rental million. the of of

XX provision percentage The percentage in increased $X.X of $XX.X noncash reduction expenses in began lease such primarily increases which to was credit as related operating Our November losses. the in rent depreciation the and annualized million, by for expenses million, amended XXXX.

achieve XX/XXXX did on master $X.X escalation lease we $X.X and However, million escalation lease million on that annualized full annualized. of

Master our leases resets May PENN and Boyd addition, Pinnacle amended on X, In XXXX. have occurring rent

million $X rent increase percentage resets We expect adjustments annually. $X will between these million and

an we shares. additional raising stock common shares the program, X.X sold From ATM XXX,XXX Subsequent under to year-end, of sheet we million perspective, fourth sold a $XXX our million. quarter, balance approximately during

under Our net leverage Xx remains EBITDA.

per this diluted units. share transactions. impact Included ranging include of Please in to GLPI's not release today's guidance that does OP future year note full from $X.XX XXXX the is for guidance AFFO and $X.XX

needed to in be will For for adjustments will revenue be then rent AFFO purposes. straight-line and approximately million, noncash be modeling XXXX included for our which purposes, deducted $XX

our rent leases remain our I per prior like quarter. quarter was declared note the end to of and share, X.XX as dividend ratios of the $X.XX on that strong, coverage master first ranging of would to our also from X.XX

turn that, to over for With comments. it I will Matthew his

Matthew Demchyk

Desiree, further relevance for quarter, loan and this diverse participants more economy, looming downs. real to flows. very market joining backdrop enduring inflation on vacillated launched we've a cash Thanks, as thanks Over headlines of between around for It's GLPI's everyone potential the highlight commercial today. issues the rates, interesting the to views interest past estate in

set to capital transaction portfolio Our our again and of stage ability constructed end, and with our and And discipline demonstrated for for the past safe have the opportunity. source shareholders. a of we team's this cash to markets that durable our structure benefit liquidity thoughtfully uniquely flows, combined quarter,

took long that team finalize OP for to and deals equity capital. issued and we Our our a underscores a team new into transaction sweat partner, the on a on with an invests Racing we Downs and as compete solution tenant units acquisition bespoke American created Tioga rate just our $XXX The announced X.X% of initial cost time recently cap in million capability which investment. not a achieved

an ATM market capital to of opportunities, commitment we in appreciation Tioga, for also lock in long-term plays for our program. respect and to our it our balance success through actions reemphasize sheet Our including our equity role strength the our opted with pipeline

and to healthy opportunity very be dual equity also to environment arises. highly a our in leverage for and commitment underscored in when volatile use and our debt positions us net deals. to it advantage safe positioned both new GLPI be very well Our We've of opportunistic for if of take

Our backdrop much despite for business. very counterparties and the open that core are potential macro we is volatility, message to

you placed increasing to to the for intrinsic value per decisions for confidence same, our efforts Thank long-term Our share. objective long-term prudent overarching make you. their remains you've shareholders the in

those to comments, the turn call And with back I'll Peter.

Peter Carlino

Matthew. thanks, Well,

PENN, look I'd with so the today, properties XX that kind operating from when with our at, to we we I growth, XX we And did this love summarizes properties well the left think of of have... philosophy we spun company. which

Desiree Burke

Including Tioga ] [

Peter Carlino

Yes, script I have quickly. we that. just added but says XX, things older The here get

in XX in that. time the we're this say been we've of we're pleased proud properties to So business,

Okay. please floor questions. do you With the time to so. to your that, Operator, open would

Operator

[Operator Instructions].

question comes Kornreich Wedbush Jay first from Our with Securities.

Jay Kornreich

You previously this hit singles with and new number to opportunities a of acquisitions. doubles having mentioned year

So owners on I'm wondering of what's how you casino the looks currently see conversations, set the regional like? your and opportunity based appetite currently

Peter Carlino

at give Brandon [indiscernible], to I'm -- who's going Moore, to Just it have to we'll looking Steve. that

Steven Ladany

part you I'm repeat sorry, the could the of question? second

Jay Kornreich

Yes.

was looks leasebacks? sale like part on current appetite regional just currently what commentary with their based owners, for Second of your kind hotel

Steven Ladany

perspective, and healthy Look, active. Sure, very sure. it a I think pipeline remains from

are dialogues Our plentiful.

owner that dialogues more ownership, who through folks, regional either working a from we're that perspective, tax matters have type think complexities having currently or through. they're working I of they're with generational a

and right for looking because not think number down the the of largest the markets to middle people of regular the things now in way I out necessarily there far transaction transact the where macroeconomic fairway environment. are as just a as sit capital

we're I quarters. good So high those needs that seeing really for is And remained continue feel about people But we have is I have dialogues. are the very we to interest think upcoming think what various. needs, and

Matthew Demchyk

a the environment. of I'll you add, being unique out We're building problem look if Jay, this on solver. mean, And in I reputation

with Cordish fact to this in same also tax a at have tends when with exact look counterparty. OP structuring, point, it help that better sweat we to thing the to Steve's we do back way different that a a because used Tioga, tends able return for get partnership And help a the the You equity close these help. true units, than to we deals us theme, market shareholders, we our were

Peter Carlino

I'm smiling here.

You get long of direct our take often we're Counsel out chasing too done. opportunities. to that These far ahead complex, but get see what's things that there. obviously, was, it don't Look, suggesting that always General active are to by he's can't we cautioned we time very a Brandon in question down as

those continue cautions, work to away. we with So

Early an on, where XX Yet, had we've pipeline. to question, we've not get we gone and used a highlight, it's Well, XX accident. your from properties, I never to is pipeline? the

We'll So we're where goes. encouraged. see it

Jay Kornreich

just a And that color. front. follow-up all the appreciate on I Well, raising capital then Okay. as

As balance on you commented, been cash recently the of like. ATM, you robust million $XXX tapping looks

that how think think new the about about debt balance funding capital match you Or if you how new you kind funding with be or acquisitions? just if largely -- done think sheet? about [indiscernible] So upcoming equity acquisitions wondering will of

Matthew Demchyk

Yes, Jay, exposed on not I so focused been the to capital one markets. thing mean the that sure we've is we're of winds making

we'll right, we've a strong goal So position our where refi debt-to-EBITDA. and see used later then a little is cash And did. year, we towards to from cover play be really in needed had effectively Tioga bond that the you're we the bond with [indiscernible]. that a the we And ATM this year really all for raise to to the of the end position last bit derisked

same point, the there's trading acquisitions opportunity is to the I match expect Xs. if earnings as debt of the towards may where they time, than past to to your a incremental relative of equity. year, the a on we few continue diverge be converge we so you things perspective. maybe they're so because At use bit. And potential, beginning and and and our in at earnings And we when cost over end ATM more low with did from you latent look a think bonds and deals. And bit the mean have to leverage to equity, a about that as an debt years, fund the our last have decently, the period that's balancing us low really tool, more prefund

got of the forget, those. to going the Lincoln We've be are it's that But ultimately spent. get outstanding. And close opportunities still and got spend the big burner back also how we've with around don't we a the on timing PENN function

[indiscernible] our able once. to at multiple time, So same at balance things we to walk the and want sheet handle handle be

Operator

McGinniss with Our is next from Scotiabank. question Greg

Greg McGinniss

follow-up a question. funding on just that Maybe

its tool it? looking before impact? are So ATM that you've up used utilizing and dry full of Is dilution what a considered pretty limited this a VICI's building with using? future effectively in powder the terms you for Or

Desiree Burke

Yes. the past. the have used on this year. I We an in closed February ATM in of mean, acquisition we

quarter fourth use us. the knew So coming we transaction, at ATM, Tioga we had of the that

use So we it us for sense to forward equity and to go when to that tool makes there know for a is absolutely that use have But no enter we need that was it. raise.

Greg McGinniss

I'm we've beyond understand offset guidance already end, something the QX, middle annualize to seen? else as of might consider Okay. additional any share and range, just how to in the of there? kind include to bottom we shares [indiscernible] trying we're guidance there if embedded on what is the range But hit appear you issuance. And escalators Or because then the

Desiree Burke

Yes.

So curve, it curve, forward pretty we -- the on as you quickly know, [indiscernible] moves us.

week, when as of with their last of actually they declines expect curve as didn't the the Fed shifted just up rate came to so occur. And out announcement, some the

might around year. will points So end rate have in our the future of curve announcements occur we future XX so the do reductions on guidance what the some the based in do and basis whether room or not of at that or

So of the of funding well We there interest funding. we've is told we our some Rockford that that exactly noise you don't of as of some fact there. transactions the timing as in know out the pipeline have expense about the

that it. have loan, exactly a we timing but fund know of to We the don't commitment

is and some those of transactions those timing funding of loans. there around So the room the

Greg McGinniss

Okay.

the loan, the right, potentially term those variable if just side. from delayed that are -- to It's we how get then bottom So be the that's would end. the

Desiree Burke

$XXX That's term loan, that's Yes. right. million

Operator

Our with Capital KeyBanc is Markets. Todd from Thomas next question

Todd Thomas

the I in I the costs. the debt how in on September, us for then they've first just leverage bit comments security the guidance And X.XX%. you are current a million, comfortable little to capital the pricing said wanted come up just [indiscernible] bit. to utilize Matt, do if you a in more What's follow capital at guess favorable $XXX taking look you 'XX with up today, from you can little more levels? remind around

Desiree Burke

Right.

end X.XX% guidance, of we XXXX. out that already the million, the that we're at $XXX the prefunded million the taking issued So with we've $XXX clearly, in

tool known increase don't Matthew intend we always it use mentioned, keep and it's use think we've correct variable X leverage, optimal item balance we sheet, can have to as use our but that use And as we to to to below We to the forever. when a -- is not our So a want item. a timing sheet is we will just balance it. it our when

Matthew Demchyk

we're of about Todd, well Desiree's mean, within our environment, that. I towards talked to we've said, hey, to point, sweet But over spot lower now. X.X. end target being range cycles, the in We it is X definitely our this right

costs. flexibility navigate best that us those think given relative incremental what's to about So on gives some deals and

Todd Thomas

Okay. investment investments and about you're about we Downs X.X%, deals on pricing, and deal Tioga for pricing And seeing that? pricing any we in pipeline vis-a-vis provide terms how should at today in then how insight of pipeline some the future the future think just just for just think that should the

Steven Ladany

I'd say, not really. [indiscernible] of sort

not it's either There I but aspects additional on joke, higher is or garner therefore, which every are risk-adjusted the So a very transaction, look, transaction. each different. think, rate return potentially lower cap transaction depending of cap rates and

I you in come So the very don't materially XX-plus transactions think market on in look can even I transactions X% where plus in And see like has the gaming, way. last that area, speaking, regional And moving expedited rates directionally I at a or feel most have cap months. minus. been gaming

a its cap Vegas soon, factors. rate regional market right seeing X rate I anytime you a say to anticipate do very see differentiating don't has stands its think and cap it's nor anytime into percent because soon. hard I X.X% X.X% expect on feet. it in So own own I obviously different But should now, transaction model is to each your forecast, definitely X

Todd Thomas

whether And prior about the feel of you there update Okay. potential Lincoln, you at that any year? is opportunity discuss can any or to on insight all how the have end

Steven Ladany

an an Yes. that have premier Obviously, own that. We a color visibility that accretive into asset way. would don't is love really to or it's in we regional asset

unknown. remain ourselves true. the wind to give and ultimately to out XXXX is we end Obviously, the pushed And option as to we did time with The very transaction, those factors Tropicana so the all of acquire pursue Lincoln. additional

additional not that year. have end we time. would So that close It's the of do required we by this

and hear standing we're So [indiscernible]. to of waiting kind by

Operator

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

Brad Heffern

drawn, give can those at on is funds you the you but the groundbreaking? PENN I when briefly obviously, broader mentioned a start Matt, and think development update that funding, being expect would you or

Matthew Demchyk

we probably their is you of using it's we've that up Aurora mean closer likely more the mean development they of to around pointed their mechanics point and really a them. the takeout. really agreements all us I sheet likely early end the to of the balance and as to made using comments I expectations. to period them versus given heard But the

Peter Carlino

moving do. best management I are put they the what mean to is projects. choose money I but they're forward We'd believe their well, these down on that that think sooner, and up love I No, update. to -- to committed and gets sheet balance they

anxious put So as we or can as soon willing and can. with stand ready, enable money work we if we to to PENN,

Brad Heffern

still is fractionally COVID the fundamentals? point And are the numbers more Okay. now kind representative then ratios quarter. the coverage to you to work true where elevating Are of each we're there ratios that Got coverage and sort the Or down of these continue we at tailwinds the of out of think it. are those numbers go?

Desiree Burke

probably But so barely X.XX we than down us. as a look, for the question, It's . we're good couple extremely a X.XX you've strong. may it still is That's operators for to noticed Yes. inched still more

it's operators So a longer. their we are the that operational for confident they've coverage. and related strengthening better related not COVID their that It's to that feel probably how to margins, made adjustments is but about question any

Matthew Demchyk

some ultimately forces a expect the are were cap. of long I be mean that there. But there we said We've for in of a Yes. time, benefit onetime to lot

a out. to It incredibly and fall position. expect strong, from started we So got we strong it

plus strong we're category. So in the

Operator

Haendel next St. from question Our comes

Juste Securities. with Mizuho

Haendel St. Juste

] top [ of payout end like ratio implies, dividend. The question the annualized an think, I the the dividend first So at of guide. XXX XX% new is on

I'm ratio changing confidence maybe ability above of I target Board's year? you XX%? are you Or this reflection something to a your curious, So guess this here just in payout is outperform expectations to basically your the and

Desiree Burke

based it on reflecting We distribution point are income taxable XX%. our around we does in a any requirements. been taxable not around at time, change and changing ratio. of Obviously, payout income the to ratio always meet payout We've what is are our XX%

Haendel St. Juste

color the a see drew Tioga in here, then on acquisition you And what follow-up type? [indiscernible] we kind asset going Downs you more do I'm the enough. to quarter, to of curious that asset. Are are Fair X% here that compare any how And perhaps in rate you seeing rates near regional to low the regional in may more today? on the market term? think traditional cap where -- gaming cap

Steven Ladany

Jeff proprietary things and the was for had some and minimizing Jeff the Look, Yes. tax like. we've the some known Jeff that asset, transaction Gural, to through working with he leakage of the respect and time,

to have solution. with bespoke a So try and a to him we dialogue were fit complex find natural

And even. Look, And someone, diversification. beyond comfortable I'm an interest or York. the here, geographic want in whether not asset. were We feel the a time, long that someone we obviously to it's we that so the future wonderful run path. State very into New when think it's we of I property endeavored down same in have will At that Jeff

we asset the ability and with a some working from tax felt about our through the we the solve and perspective. very to of of dealing that problems So he good longevity the were counterparty was

as reasons So those the kind transaction the us the got are to goes. all far table as of that

would should ] With and AX to said. the forward go I take transactions, for just back whether other it respect roll think just to [ what you I I

is I think different. each transaction

think for as things proprietors M&A, to of of the Xs But cap stabilize providing divestitures think cap the forever and that think being, larger to go-forward back Xs. nature. start players transactions. area for larger normal of don't maybe come I low kind the where and smaller time I for don't rate I okay the are see scale an additional transactions or we'll I markets kind as benefits. about at look individual think the in we with low that's know, rates

Haendel St. Juste

of Got is assets purchase to portfolio? that color. anymore? anything it. you more And interested Got in any you Appreciate to it. broadly, [indiscernible] just this agreements more there with or are adding your operator the And can these do specific

Brandon Moore

the I I understand -- adding think are assets this of nature. Which well, interested assets question, mean, if I we regional in more

would if be sure, question, absolutely. think answer the that's I

right them cash underwrite get the and sure. can You flow,

Haendel St. Juste

component. wanted -- rate the different. I With a little just

just curious on. I'm So

Brandon Moore

of plenty to have them. racing component that we have Well, a assets

to focus it's But the important sometimes part gaming -- an think se. from and the for these certainly look I I other in many per racing we are on opportunities racing get certainly, primarily don't times, and we And engaged doing. amenity we're the them racetracks think provides point component transaction entry of necessary away to we're a these of those transactions don't properties. we shy transactions. for the

Peter Carlino

I I anybody racetracks but in that more don't just we States, own here the sitting it's true, United facilities. that know than physical wager would

everything So the think and And in well, that no, that, said mean, the to gaming. I entree has been it and gaming entails. we're it look, many, places, in business I gambling broader Brandon many

some did great facilities, those -- Ohio. race I last are that PENN the facilities great built of And we gaming at things were no, X in tracks well. So as

So now we're thrilled own racetracks. to

Desiree Burke

say environment historically of gaming right? -- license. and I because is So the we're gaming has regulatory Right. slot allowed with would component, the machines racetracks own to thrilled it other

Peter Carlino

racing, horse as love Desiree? don't You

us new the of kind PENN racing in of of here GLPI. joke entree lot That's a But been for time here. my Okay. and things it's for certainly been business at life. its has in a The to much

would we sure we more, own hope so. So

Haendel St. Juste

Well, again. Peter, wager and I wouldn't

record. pretty you've track So got good a

Peter Carlino

Thank you.

Operator

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

Daniel Guglielmo

best industry bring play various a When think things and operators in projects certain one, you've years? to for in you the more cycles do the long gaming your bang can first see door, people there to excited the Are be do think The is ROI projects in you the you'd been announced seen by out. and tenants what buck? the about coming time Peter,

Peter Carlino

question. a Yes. difficult makes that's money. that Wow, Anything

Matthew Demchyk

PENN So it's the again. engaging

Peter Carlino

both that been. has hotels to X wanting out expansion long side of is about, properties, That's in successful projects. a a we needed a PENN points Baton Vegas, and role they're Queens room [indiscernible] in the a illustration folks Casino Columbus and their just Las need X efforts landside going into Illinois Matthew talking thing. in Plus, and in good absolutely Rouge hotel. property invest yes. that mean money Columbus at I point and Joliet. how more positive they're has Well, land Aurora could to that

involved terrific the much It's had were And a we that. property. desired really tremendous. First, it's result. in It's

can project-by-project yes, want tenants pretty a think, So again, exciting, that -- are we're pretty I looking positive. to our we it's see investing The that opportunities ones in basis. on at, but

go money. to makes original my Anything back So I that answer.

Daniel Guglielmo

Great. of Makes similar a And guys sense. looking then you as of kind development. are and kind on at vein

that changed, seeing underwriting there Just the of development environment Maybe chain this how actuals. availability, or... of supply kind has Is versus versus you're if year labor Steve any, around last? note anything

Peter Carlino

Steve?

Steven Ladany

X things. maybe So

lot to between I year last think trying folks It's financing a changed a for from a development that perspective, are has not this environment raise difficult dollars. year. and

existing tenants longer So existing I I at little that at redevelopment a or development think, and think exist their is, shifted has take more to of may opportunities locations. what maybe starting those one look are opportunities a portfolios thing

that think I recently than ago. maybe more has year So a increased

things it. easy. feel become maybe and that items supply more in I like. and have most like become the to mechanical just used it's think has that process respect easier, to like and But for not cases, There's little that, things that With the long lead a chains I everyone things still

more. a adapted little everyone's So

respect And think put to. so normalized with significantly the further becoming used things construction process. where order actual in you are than little to I a know to you your ahead But more

Operator

Our next Securities. question from Jonas Truist is Barry with

Barry Jonas

the just things be you stand month. And the roughly development maybe I then in shutting to down expect are how where steps about is Can talk I of property? wanted or curious property involved new to know ask next you Tropicana. there? the in what or about stadium a the

Peter Carlino

take to got to answer I that. going something. is finally Brandon him

Brandon Moore

Yes.

that out of been Las and has think timing I and coming negative news So project. questioning lot somewhat viability the Vegas of the maybe look, mean, of development lately the I a

from think perspective, I a noise. lot of our that's

is I that maximize parcel XX-acre think that lines resort We the property proceeding a A's and the designs, the use understand there. will that's believe this in that working value stadium the the of that Bally’s of really integrated see at strip. architectural stadium have to and fully the design closely together new point still that variations time we've are along expected. the the opportunity A's of ensure lot integrated had to this that property, the we've we would pretty And good to And developed an addition of several we designs. that seen and the the be a very resort corner

the Bally's is landowner. far sustained. for the at value see out certainly I tell. what be, Bally's do And we to of we in as parcel we're can I we time to a interest time, are that in what figure is resort. will very financing. for are And that, And that will proposing think opportunities do And remainder needs that. in obviously, invest But how waiting the to enhance that. the ways will on some as if integrated will keen think looking that tend our to We're ensuring this then taking we're hold involved we

be that a we're think strip. still I we're wait-and-see project will in a the the corner So kind but of this optimistic good on of mode,

Barry Jonas

land. any potentially if types thoughts your And the have maybe the for helpful. on to on just sense? really make thoughts on tribal deals you structures wanted doing follow-up, of That's kind potential that then Curious a could get as of

Brandon Moore

can the don't that I a structures can shed Yes. whole know light lot say themselves. on of I this. I

as we properties, can We there's see land the market on that with good And from to perspective those from if find in tribes income market gaming very trust have it generate we here way focused in a as held investment tribal on large tremendous those the REIT a opportunity. an a a REIT United.

a time I and bit in effort things. say there. of that We've structuring we're won't And some spent quite

shareholders. work up to in can some some trials way with few that, on spend on if continue that assets to these with do it's we could a we I and these a market, if in continue time can have that. things that a invest And tremendous so able we'll we carefully for think safely and but how do to work on we'll ideas see of We our come and we're conjunction the

Operator

from comes Smedes question Citi. next with Rose Our

Bennett Rose

but I just back. of through circle wanted to kind You've been questions, of a lot

of of beginning where the you million, REITs, you that at these you're there's at feel to REITs guess ownership other traditional REITs lot there this advantage X million? kind folks in issues when this a just a sort of kind of the are you typically you're or triple-net of call $XX the and discussions. tax company of, of with questions. discussions? kind who as spending competitive seeing kinds that kind mentioned You table deals, that have just more a it, curious If engage maybe against maybe time experiential range rent generational they some I maybe want And $XX in in play I'm space? is do

Steven Ladany

think $X fine. as far maybe $XX of I'll goes, transactions as I done will incorrect Look, owned proprietary size sole think privately was anybody Yes. if all Cordish range afterwards, of be the would in that assume billion a else in I north to transaction hop the well that would rent. the million size it business, that's in Look, obviously, with of transaction. family was jump of and be The transaction

same in transactions still of closely businesses, gaming sole family-held particular, with think cut remain So which I proprietor like the enterprises deals that or don't lot any a cost today.

Some are very large.

individual small group or of Some owners. owners are owned very a assets notable country this by in

that. size So for indicative there's don't I definitely range think an that

think our transactions do transactions I get partnership though, I and of tax Separately, of do we operating start and counterparty do the with the of like, use we -- a around continue thinking and kind to perfect advantage. this we as we think to type and gain units structuring competitive

do do form have it's to our start space. counterparty against that with that advantage do continue as competitive helpful think better transactions that us in we as thing we I this and tenants to as So others of our position do a kind far to shape

Brandon Moore

kept we've we resources, And trying over when tax I ways the Yes. decade company competitive look talks Steve of tenants, expertise from company. out just creative a that we a behind often in-depth about would at issues. think structuring. resources at when notion potential will and I And potential to our tax PENN and and very ago, we add spun focused solve advantage that counterparties some to our And put find heavily their on this standpoint, really here

And so say, those, going people to say, take we just well, to that us to help these be sometimes but we And we are we'd they tax to you a issues prevent find might look that." "Well, let solutions love come those. at able we and transact, have

I to willingness think problem the a advantage, and Tioga. so And Steve's we to competitive can't try deals to in to think like we a try put to point, our to it see a resources it. led that's if And show behind take I solve

Peter Carlino

Yes.

so been no makes that don't to done happen small team that make bring our a this commercial, which you've presentations many, in me before. a think We ever company. sense, there's practice for my one it's I've person to I these it got Let years -- many

of team I and have special. ] do highly motivated, what skilled, capable, people, is [ killy We a highly we highly think

that's answer to my your So question.

Matthew Demchyk

own Cordish reminded as the whomever it his the kind hearing to table industry, it's to of really treated differentiation the they dialogue, you the able question, talk of being directly and has -- and with treated in money, guys we me Smedes, the others achieve. philosophical compounded but different the asked you like that opportunity I mean, it's mean, had to they wanted the in other to people's certainly been your I across the I Peter think history just like underscores

put When people decisions the units certainly out the And decide gives fully and hope not them to studies said, you that in case best decisions That's of company theme why have become future to best the price, understand made they and the and line the have look case, alongside behind last went for can leaves economic them to take the the to that decision. investors guys us at that cent. dialogues. in were be you partnership, us people might it we we their date. why to have with It and

Operator

is Our Katz David Jefferies. with next question from

David Katz

ground. ton a Look, of covered

I discussed or the I areas be international consider we are degree other territories think and do consideration But that another States. contemplate much international point? that might at one at on to really any point yes, to another be your you country. is And which assets Board the would haven't the this United of Canada outside this

Steven Ladany

we up, comes transaction a time look at every mean do I it. Yes.

of we at with looked internationally. have perspective just not look do South flow, risk-adjusted look analysis impact we've a what do we I we transactions and we at bunch you an spent like from does Canada cash investment So easy that, in Europe, know, and don't our the time. look net that when from and because is tax underwriting, a return, we what's at a America, to understand tax have at [indiscernible] endeavor, an Obviously, leakage it's what mean the

So international we have jurisdictions. of a in looked number

at a at not us things. at way, looked think to scenario. jurisdictions, a in properties win but these number always a But bidding particular lanes. appropriate maybe net I we've bid And the have of with that's that's we nonetheless, it We caused to therefore, tax on believe, in times, look

David Katz

fair among is the as tax mean, the sounds if not is -- it I gating element of factor the, primary it? And it

Desiree Burke

have that to that's U.S. your into the you the consider factor, bring to you getting. say have for factor, cause to have back need but to that in have to certainly what repurposes, linkage that the before you primary wouldn't country more which take you us will pay to return really you I primary that consideration but income factor, is to a you're it a order overcome that It's is not and proceeds that.

Brandon Moore

Yes.

analyze risks of economically whether regulatory look different whole when regulatory certainly look makes tax think a if is may the you when certainly other Canada, on that. But not risk, we at to environments. there's handful you these but about leading have you're at are jurisdictions, foreign indicators we And have there have I of we less that so, it one talking or sense.

currency political risks, have you You instability. have

almost Canada, is are numerous where could from on to few, always the or be America South depending but of be risks tax them. you could a they So one

Peter Carlino

been to Yes. a stuff we have you able whole as Look, it's and we're until jurisdictions the don't don't it, see safe to every the just not those But lot put of conscious and lot we over and we do opportunities. many a to we And of say many choices, and much. we miss make but of these one going now look move. top. miss then, continue at We'll look with make never other to

Operator

Caitlin Next Burrows Goldman from Sachs. question is with

Caitlin Burrows

back change? that that going operators? just Is Is not today think actively? how cost capital traditional capital it markets looking make a to capital guess, supporting of type just given it deals you're lot do the Like I are, deals where the could the lower more needs lower get that cap Maybe what simplest of you rates? by would what at type are

Steven Ladany

be opinion would My capital market stability.

a think think you those I as maximize and put on people the is all can of cost to M&A, debt trying think seller, critical the transaction. for you if about the a you leverage large-scale quantum that about or of in component inputs example, price

maximize inexpensive, of prices So we ago, price. a be was or few whether that amount to REITs real able plentiful public we're when utilize to clearly, because investors, and higher, able private leverage press years the purchase estate gaming saw to it the

and be do aren't that transactions to equity go operator on perspective out tenants gaming even a and gaming transactions. There fund the of our a from of think issue debt. that most those not I are a And operators tenants side, our lot most

slowdown the "traditional" more a in in on pricing regular little markets bit debt and capping capital a definitely way the are it as on expensive So transactions puts of sale-leaseback particular, causes side, a the aspect.

Caitlin Burrows

Got it.

over That makes number has in number how you, Okay. mentioned the earlier properties of on that And maybe past call increased sense. the years. just guys, the substantially of then activity

you at for So just any this kind on half? get 'XX, as can line the expectations give just activity and your to or over in the finish first look commentary current even of conversations you your deal year expectation for

Peter Carlino

well no. lot out said been a look We a no. that there. lot stuff answer The Look, at of it's there's The is I think is of is stuff. that answer

Bible are a many but are quote chosen. that used Sometimes called, few

I I could and unpredictable. of can't won't. you things the completely it's tell number So

that we're if to completely But this tell looking you even it done things I it we'd tuned. is year? to that to like Will could at, they're regulatory some there's happen lot Therefore, to fast. add it so unpredictable A going to likely is There's being tell to going we're see Stay happen it. stuff is we and of but so happen, many done, do. getting parts or just year? you complexities next approvals, happens the nothing pieces we're going where

Operator

from question Ron next is Morgan Our Stanley. with Kamdem

Ronald Kamdem

X ones. Just quick

one, Downs deal. I the is which times on Tioga website, deal. I guys out after one saw think the presentation put a So on have you of the a presentation the first

first ROFR? So of down, that obviously to just What's American super behind is Racing? with sort this one conversations sort to this on refusal they right color curious for sell? But why the start of burning you is Are on looking the of which decided question any one, with helpful. this

Brandon Moore

I'll talk somewhere. then the and ROFR got can start presentations, you on about the to which Steve touch base

So why not now.

of ROFR, a of look play. when the defensive think more the with we Vernon I at is

doesn't and be. monetizing. transaction. for way the focused property that And other Vernon that, to that in some of on that it's So has is or it and don't Vernon we a necessarily It's generate think Racing necessary have something focused challenges, I some on EBITDA things something and as ton the not tax that challenges American being came

or you in to and in it And a a right this get gaming it acquire mean I to where but facility. it is potential, want issue anytime New one didn't you you if the jurisdiction, it's doesn't sense the make sense that can in won't acquire is any think to today, have York that facility make future. to see acquire

And wouldn't make respect anything had But sense. or where in that so side I negotiated from to that's either the that much Vernon. our American there's ROFR Racing with we the foreseeable will future reason say

Steven Ladany

nice have think it I think Yes. in people of things would to some I through us look for respect for some Rockford that pictures we With have that to heard nature. at and the helpful transaction presentations, been had cases the to

doing. at few So I have And we future to figured just start look information of similar sense point, to of pages think somewhere. a we'd glean to we're transactions I will and think you Brandon's for what

Ronald Kamdem

presentation. appreciate and do second my Look, question, we Helpful. the

So just my second question the is guidance. to moving

right? in sounds consensus, came of like below conservatism sort baked there's there. guys some in And you So it

your cost that we change, expectation comments can AFFO cost situation. any than expectations get assumptions. some is way changes But and click just the just interest made the you think I NOI double line items big for what picture versus there for the other interest maybe

annualized $X.XX, shaking we out? so piece the which just XQ Just can really is is together why basically

Desiree Burke

for but Yes. as funded articulate of -- It's movement. it's to that a well significant $X.XXX to need ago. XX be room I of timing given in -- that mean week the information there, give. I as not think spread it points But we we've we transactions moved given during a interest be the on to $XX we basis look, the million want move ourselves all of billion. and some the to a where tried the mean, put year I've we

rates that by. in So was move day. X the That's what

what gives sure you an to very Fed inflation X% out strong, the not what future as with information. So indication the happen as that down in And not more of and that looking to. they're that to comes we're will get the remains

think scheme it's significant don't in things. of the I So

is Our high $X.XX. point

little happening. would as as bit information the more on like what's guidance color throughout to that give we the get this is to we call. modify smarter year get and But that will a We

Operator

Our next Germain question comes from Citizens Mitch JMP. with

Mitch Germain

the year. on Congrats

understand trying to what's I towards and in I'm make sure, guidance. not. just Just what's it

perspective, and some provided Desiree, Is you guidance Pinnacle guess I Boyd today? resets. and Tioga on in So that

Desiree Burke

correct. and is is Tioga today. guidance guidance today That's in it in Yes,

Mitch Germain

Right.

organized Okay. the Great. you of capital guys about off seeing landscape. And competitive sidelines Are days? the more kind just these curious coming

Steven Ladany

Well, it's But I size. very a sample small say, necessarily. would not

gaming have you it, one with been organized I estate And space. think provider is real been had enter the entrants capital same private word same funds has for chasing that there real is potentially I I the that's new it. call dialogue organized chasing what capital or exiting X estate space. the have was don't organized have raised provider, think -- discussed that last, years used. think I same The to the the we've that's know the capital,

So think I there. the are -- I think there's -- headwinds don't

the and cost it's additional kind think I the some folks leverage sideline. component debt the because of that mainly on of kept have

Operator

DeCree from comes CBRE. question John next with Our

John DeCree

I covered most of my questions.

long got others So of on legislative the big There's some bit Texas, that casinos. in maybe just a on states Georgia, been interesting. new maybe a activity front, maybe picture few could quite states experience Alabama, holdout you've legalizing Peter, one question, be

of that don't those So any have anything ball momentum should or there, watching attention have that about? assuming closely you on you a where might I'm situations? be unique be paying think not we some you're there crystal is sure some you anything views if there

Peter Carlino

We looks watch closely opportunity. anything that like

when of we're States aware and be to my that what's the the out fact to pressure guy is matter population going the their or later, time. next door elsewhere feel a there gamble, have on in general and on they count going game everywhere. is the There's down just of be won't can break world, sooner you going it is where much place So participate. period. view Look, the very no

on Brandon, to that. do we eye keep anything? a So add want close you

Brandon Moore

on are really and addition opportunities. open I moment that's and going could in Alabama moving close Georgia to and at Texas, both we have I bills both door right. what's I that very mean in for think the but Alabama think Georgia the then

of the and in part places had proliferation influences ago versus neighboring betting of is a sports think people being gaming are in X associated maybe more now have all with years States and difference historically southeastern adjacent people that the United gaming to the I you've more states the a as opposed of source property. of the idea entertainment becoming accustomed an negative to

And And having kind you'll states further style in resort generally that's each things states neighboring year. one bit more you're moving I more states population year, in And and said, Southeast probably a I both further of see well. supportive the along. it as things seeing of I think those those gaming. think why these you're each of states, more eventually, as widespread, think each bills, in be of in little entertainment I you're think general seeing Peter mean I pushes the

opportunities we if finish are will So a on those folks very close keep those states -- for get eye be that, and over the line.

Operator

call have now question-and-answer like back comments. would I of session. Peter We end to the over the turn reached the closing Carlino to for

Peter Carlino

morning. have you. looking and operator, thanks, next all helpful I we you all always, are to of forward this what in to who Well, we've as you hope dialed and that thanks presented quarter. Thank seeing is

Operator

conference. today's concludes This

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

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