Gaming and Leisure Properties (GLPI) 26 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Peter Carlino	executive
Desiree Burke	executive
Matthew Demchyk	executive
Brad Heffern	analyst
Jay Kornreich	analyst
Brandon Moore	executive
Barry Jonas	analyst
David Katz	analyst
Haendel St. Juste	analyst
Steven Ladany	executive
Smedes Rose	analyst
Greg McGinniss	analyst
Daniel Guglielmo	analyst
Ronald Kamdem	analyst
Shaun Kelley	analyst
Robin Farley	analyst
Chad Beynon	analyst
John DeCree	analyst

Call transcript

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Operator

Greetings, and welcome to the Gaming and Leisure Properties, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joe Jaffoni, Investor Relations. Thank you, sir.

You may begin.

Joseph Jaffoni

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

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

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

Peter Carlino

we've pretty actually growth, on that couple might the companies pretty from before anything some Well, of a well thank we locked quarters morning, been the years performance good creating. next working quarter for in in and we've else and of of various had eventful projects portfolio with this the everyone. Well, actualization succeed joe, good you, some time. We of

know our well. I'll $X.X billion You that for for we an earlier transaction Bally's company win-win believe announced with you'll reading that a well I and in we on find us the details is of through clear as month, that might Bally's skip documented And we written our approximate this miss, anyhow. of comments way it's that since my a release. what suspect press asking

Burke going to a few highlight Des. financial So let I'm Desiree items. Thanks,

Desiree Burke

everyone. P&L highlights going Sure. achieved of quarter in the normally as we do. and I'm Thanks, to morning, hit good what our Peter, for the I

the income from the So cash income of by XXXX, $X.X estate $X.X loan second increased income total the XXXX $X.X recognition increased then on second the added and leases, of Queen million land acquisition by cash, Rouge adjustments of development acquisition; Baton rent $X.X the escalators the income. quarter million. Tioga increased $XX including cash increased and the proceeds; by Rockford acquisition, our strategic for million, million, $X.X quarter income real which That cash by income cash acquisition, which Marquette growth Casino approximately the our cash of driven was the million; the exceeded million; our site by by percentage and which rental

of adjustments, investment year-over-year which increase lease drove approximately Lastly, million. in $X.X combination a noncash collective adjustments straight-line gross we the and ups, had revenue of rent

$XX by to decrease million, decreased credit expenses the the operating Our noncash for provision due in losses. primarily

had occurred leases resets rent Pinnacle and that resets annually. $X.X May million XXXX. Boyd master X, on percentage rent PENN These increased amended Our by

rent in $X.X contingent these of million received we annually. addition, leases, In on resulted additional full escalation which

that of would get additional master November annual of if $X.X million X on subject guidance include this to note today's due XXXX our from units. OP guidance obtained, escalation transactions. full to strategic Please share $X.XX of the $X.XX year. lease not AFFO is And in the in is full Finally, transaction. diluted the the does per rent. Included closing The impact contingent primarily release we increase is PENN to and amended year to this guidance ranging of a future

X.XX Our over to in master at bill Matthew the of on quarter. With ratios for matures to treasury that, 'XX strong, comments. implied August yield ranging our X.XX%, coverage the remained of end and as I'd leases turn like zero-coupon it of of an our X.XX prior from to

Matthew Demchyk

Thanks, who this leads those to everyone Desiree, History volatility prepared. periods and heightened joining for us to of are thanks for opportunity morning. shows the

related we ]. Chicago, of to our capital Bally's improvement commitment our of markets announced combined City and Our the set team's cash uniquely source again past transaction safe portfolio thoughtfully to more with quarter, have Kansas durable flows, balance a multipart and to sheet liquidity, strength Shreveport track [ record Lincoln demonstrated economics for discipline continued and constructed the with stage win-win with opportunity. This creativity our the recently Colliery Investments along the structure with of and along

combined the bespoke to confidence Bally's. to development offered Chicago input solution Our and open with as the another creativity team's we door our project in to opportunity,

counterparties course the of new across the with of announced Over close investments last $X X the to we've gaming months, X billion different world.

macro go-to healthy further real demonstrated has flywheel environment. been of the have all investments with choice each the of in as we a benefit. gaming our market estate an landlord The to gaming solidified these Strong of we that share effect within position of done have world. unpredictable late, We our yield deals have

and with as we unearth opportunities encourage interesting case remain Our existing to pipeline turn Peter. call that healthy. focused more on back to each prudent cash of flows our thoughtful the capital. With With remains perfecting that, the continue our investments. and new deal, of have our protecting We efforts we conversations shareholders' for I'll deployment potential our pipeline and studies

Peter Carlino

I'm we the if last you we've of Matthew. always guys next? It's create spin, what quarter go. This our apologetically, year, we think, the at is I I you What a comments, last since of no A the these was the pipeline. [indiscernible] tremendous years, quarters, amount with have you, terrific. time do. road look last it's that all or done I the today. even That -- work don't been question have And just got thank and this something of may. We of of get coming a good say, where time, we we the we over X where time your pretty a as ourselves a year, if collectively activity, Well, underscore quarter we on at I because have summary our And -- pipeline? find couple

we're pass we'll to over of questions. quite what accomplishing here. And we're your So that, with proud it

So Maria, please open the phones.

Operator

first [Operator Instructions] comes Brad with question Our Heffern Markets. from Capital RBC

Brad Heffern

between transactions, the development Obviously, of funding debt maturities. lot coming and capital deals a up Bally's commitments

just you through expectations funded? can So for your how walk be when will and that all

Desiree Burke

Sure.

staggered needs transactions couple will with announced the be over for the years. funding recently of Bally's we the So next

mix As and we've we intend done both to historically, of fund debt with transactions equity. the the

results for of any both due. attractive actively our upcoming maturities a including sheet opportunities we to and the flexibility at quarter financial we'll that debt with capital advantage lock-in currently capital other lot to balance the markets rates as as of needs, well our have take these transactions second monitoring filed capital X.Xx gives $X.XX of Our below leverage XX-Q our obviously, and us revolver be undrawn. With announced, billion our coming

Brad Heffern

that Peter, been around making in bearish now. Obviously, investment changed curious, market. the Or about Okay. a market what Got make comfortable it specifically what large it. with somewhat I'm thoughts historically very your And you on then, there Illinois you've just asset? is you're this to that?

Peter Carlino

that promulgate a despite a successful. not had think of budget, seat confident competition look, makes ] have feel material is we of Bally's. a like of with And strong sense. that I going the and looked pretty time and project. that record team impressive. and Rod this at we've think in of at pretty lot the in we've Bally's assisting mean, it's the looking and that of We've carefully and But some big-time this that that. Look, what knowledge time. Governor, good. track spent are be forth years on I to [ think good Well, and project so increases it. We'll planned tax the some a more years creating is in any the over there, our of be to had coming things we look, former I project at the Blagojevich The assisting a sponsorship -- project and accomplishing going with we've to impact market a used on past that up this table lot I have to things hopefully, gracious obviously, is pretty is something is I the some key We like hope, is

very think outcomes, So any for we mean I think, it. feel is about of I pretty I very, range strong. in good case the us

Brad Heffern

Okay.

Peter Carlino

our we're doing None in business are Illinois now. business mean, of died. I them -- in doing tenants

So they're surviving.

that. being Joliet any I'm with in and side to business Aurora. the for So being We're done. case, you land move supportive, as is Ben, with pleased know, do

afraid money state. So invest we're to not the in

Operator

from question next with comes Our Jay Kornreich Securities. Wedbush

Jay Kornreich

tenant on a buyout about wonder you, a continue just because As you become credit that I Bally's, accepted to or you a was any them? underwriting General. larger strategies there about plans offer that you any or comments Standard have with think them, that headline to for standpoint. as changes yesterday we with translating they Just they if in see how currently And changes from think

Peter Carlino

Moore question. He to take I'm ask Brandon going that wait. to can't

Brandon Moore

know Bally's let and go was I what you you've Look, should off, known I excited we private one. for think, the you known. know Yes. about transaction, know. We this we've what first

at to say, about date. tent been don't transaction. more So in overall, at anything the will we Bally's under to look, I We're But think all. But with I it we that changes looking look transaction it. that understand haven't

existing not our hasn't that have to Standard not made approached saying make alterations any place. the we changes happen, been it in make have Bally's but by just to today. happened any I'm we've to General clear, documents So we might not to leases, not or

And sheet it's balance the carefully continue that it's between negotiate for will think try the announced, and the we're look to we'll it the so strike structure a we usual, and waiting what's terms tenant for a for transaction term at And what's the transaction but agreements us, I definitive when for ultimately control out comes we've to spell business as out. take as shareholders announced. best viable that our to

there'll sheet we're there's obviously, the a in But ultimately we lot the we've will time and take. have you do. be same that the learn the term forth that lot that path we transactions, optimistic. still hard We really come at transaction but set one we'll to think think on them. to more I into think out we positive will get this work of be a here to so And that, a And be not

Matthew Demchyk

Yes, if private some with the the aware things with the City on the on our having relative being underwriting nature focused that was the Jay. Kansas leasebacks in happy basis margin potential at a And of support at We you and cost, anything comfort. mean being on sale time. of the take And good those we're us Chicago very we're greater Shreveport I of in with safety basis at the any in basis. look beyond didn't that X, give the X, construction coverage or assets. rely else public to

Jay Kornreich

the stats big Okay. XX-year interest to is coming I lower transaction in it market too past the for one and more recently. from increased waiting year happening? come maybe just you rates rates maybe been Are early then start And as on to poised owners the sideline casino for already on guess, who down? have seems down and the and appreciate seen just conversation Fed seeing, that. to I the Or that cap piece

Peter Carlino

a I Every a I'll anybody that. sidelines. recurring. sitting don't think I on has at shot reason think don't the -- take transaction

Sometimes a reason. state been it's

a it's liquidity Sometimes reason.

evolve of a We seen. the Sometimes, sitting on things anybody needs opportunity asset drive I is waiting City the they Kansas move. somebody or Bally's knows might own so on far. time this think sitting never Lord you've Shreveport our over a foreseen Bally's make the what for day to can better move None in things of that foreseeable. other don't the that in could tenants. asset. These evolved as were They company sideline, asset. It's choice. that out their have case, these this. is to go I'll the of

guy, innovative to and on Soo Kim focused be thrilled a a is partner building creative company. We're who his these in transactions. is great

do. do. think, we have So to to it's you're use And that hoop. do, what we around That's term, I like somebody used what that's hanging the

anything they the happen, something mix. there's in always think don't special that we happen when I has So just things changed. have These and

more precise, I could pretty story. much the wish but that's be So

Jay Kornreich

thoughts. the Appreciate Okay.

Operator

Jonas with comes Our next Securities. from question Barry Truist

Barry Jonas

Can is for level is talk your you? design? a Chicago a and about this in more you construction role? for And informal input formal little or of bit now this How important

Brandon Moore

Yes.

the project So But role we're in agreements, continues. definitive the on taking we'll needless an to development the say, project. process agreement as that including the of active Chicago be negotiating

be, things. we'll all that, we'll close budget, and specs, So those timeline, be be and or construction improvements. And the as plans documents, as of keeping the process, funding said construction financing part of the that we've improvements in the the a we'll owning construction eye on the the

of into them I And example help these to but provide have a project, front delivered this timelines on We internal underwritten. confident be and that we on projects successfully, think we that sure someone have project ever we that resources expect seat think intend Bally’s to would has and and we to the have to gets all a very just it entered if would those, before budget be is that we'll this we along behind, make ensure as front time I we've weren't I another on done we bring and aligned. and line closely don't and the resource that is to can could -- do that we're think that. We of bear the done budget, we

Peter Carlino

do just And we're providing to resources that.

with place. some has our skilled a that We're to in team Bally's as great players of adding well. So

We assistance case, But both track knocking strong brand that I because new. I'm assistance, every have good when project in pretty say design a record. wood about our terrific feel is to on construction. we this provide ability

and on forth. So it. so We've done

Brandon Moore

this programming as project a in And sheet, we has Yes. see. from hand that saw significant ago looked changed put and a and you the in project I the the that term and the out we project first probably of in of to time development, the project currently long with pretty deck at And the we the think you redesign conjunction we had dramatically structuring that design that announced.

Peter Carlino

PENN. old of And know reassembled I've ground all built team have the my Yes, casinos across you some many that over from at street up. we

front we're line putting this the us. on So for is not muscle new territory And here. the

it. feel good pretty we So about

Barry Jonas

follow-up. new the assumes Casino might in specific but remind some it with M&A for for what and are more someone a speculated Queen, your broken great. just also and M&A That's be can happening tenants? believe some there's talk I is rights helpful And then being criteria, of us there's event to just parties. for a lease lease about the is clearly So here. Bally's other just you up or it your new

Brandon Moore

In Yes, consent want require them can. leases, our you the I general will up, if of terms, to GLPI. break

or leases new of tenants, lease leases or approval will or into GLPI. The multiple generally to all So in flexibility require and want tenants some out take have speaking, transfer consent them may for the not to little be be to defined bit is then what certain different. thresholds, to a if eligible The transferee their But the tend able that. would our transferee a we terms preestablished an meets withhold point be push that if of you lease conversation the a to do assets them, split discretionary to transferee. to

the think depends. I answer So it is

change another the of you're operator, structure portfolio not might rent, If and our you're consent. not you going to need the going leases, large our the to

things, to do any probably you want those you do. If of

Operator

question comes Katz with David from Our next Jefferies.

David Katz

ask on the respect Illinois. about at wanted answered part to with is I table seat to you of the think your I first what

to value exploring Bally Tropicana common like is I'd Las how to sense, reachy. it little is as just that redevaluing a them My And of seems pivot themselves Vegas. impression alternatives So to property. is to create out that resources

in new think of for And step Tropicana? given happen a with boundaries, now comment the what love way, in just us that getting through on so I'd you involved taken could help to you've your Chicago

Peter Carlino

Yes.

a that that what that have that call Las I be you work Bally's us clear active now with built in to think conjunction Vegas. Pretty process. to process answer in the at the about lead it will They taken quick doing Bally's the planning is the talk pretty that. I'll ought really and there to the likely will in design the stadium is site. role

there. Look, I'm am forth. is Again, comment think, We planning there. going site. essentially have that think but direction. Brandon, a team provided we've there. got now got ground something pretty design, happy on architects. since And assembled, with that place know But is team a assembled going amount input We you some want that they've so I fair and very long-term own I'm doing reluctant land project and head a reluctant I to add to do to the want valuable now, what's good to first-class but anything table good big into we the architecture at on, a to seat at they're I see about comment, do a that? what They've feeling to a that,

Brandon Moore

Yes. this largely reading the still despite just be is people in I'll of add, on may I schedule. press what still that project think some

So experience crucial have that Las team a of of a as professionals Bally's is in developed particularly lot Vegas said, the and has strong on the market, strip. Peter which

know out same put to with that there. gate, what we're might carefully confident If play to would as the they the for too want you're of going going but we together, professionals tricky. I the conjunction say, in to development. And is role kind But needs regional size, put planned. in us to team be that of it's soon pretty when still of is This build you this be to stadium a successful not project a

A's think whether Chicago, for several behind. some progress. lot for into very the public us it's that invest and premature are you project at prudent a is to forward really for their with meetings not get things. where as the of moment. determine to And project. But moving us working too entitlement then I progress process this their the so shareholders, to they're steps the had and and look on They've And They're it's or simultaneously at our stadium into capital authority making recently, timeline clearly evaluate

probably project will of optimistic the on this so still remains is the we're delivered I that get can that timeline essence, a tight time, while And and there. is the I think time A's and think say potential about the still

Peter Carlino

think they're I Class That around Look, them Yes. And full feel know sense. A about I just it to little professionals. turn of what attention they've while sitting assembled Bally's certain focus But is I working a Chicago, lot period. their primary table, on. to Las Vegas. was for that for better whole And a know this team took my a we

So happy to I'd be Bally's, kind say stay find you to tuned, of and they'll tell themselves. they sure talk I'm where

David Katz

Just quick means? some that there it to schedule being what may. reference was or follow-up, Can one on there, is remind us you schedule. if In I

Brandon Moore

on think something. the April at or was schedule of roughly be I it I Well, needed completed moment, think the by, demolition to 'XX

target I for clearly think we're on that.

buildings They've the Vegas, you've towers. if you'll low-rise out stripped you gone. the to been If all Las are now see

can know, entitlement that little developed, is that line. all go of you process more as is go that So it The fast it if you've or part the slow. of squishy can that's part in and a

way they that to get believe can are things started still when know the where potatoes into meat and they But to got really are. of they wanted still started. that they the You've think to get today moving, get sit they I where

sure. the on to like out perspective, be to So would faster? moving moving would there, But clearly, see site, that. made like being our Yes, and developer I'm progress the you've from faster. if you is would Any be been they

David Katz

Got it.

Peter Carlino

our I to whole it very team get project this that anxious listening happen sooner the -- later. of make city the rather to than and their too, supportive sense, is to

past, and positive there's a delay it's any going vibe there frankly, think if was out I in And ahead. that what's the full is I over there think, speed now on. around So

Operator

comes from question St. Haendel next Our

Juste from Mizuho Securities.

Haendel St. Juste

asset? I question, one coverage My temporary a just Xx of X.Xx the underwriting confidence what is initial for projection in rent with guess, So has me. project, targets. your number on for gives and I the Bally's the It missed looks guess, that the you, casino like Chicago there to

Steven Ladany

-- for I Steve. Thanks question. Look, is the Yes. this

other of an I part think City, sale-leaseback go transaction, on overall -- a project. the it's whether underwriting deal through extensive Kansas we process or traditional every development transaction brand-new a this the like Shreveport

And budget budget. time we so brand-new to opportunity the construction obviously, the market. what's the standpoint and the have But and in can a development ultimate get profitability on somewhat to bring from importantly, predicated comfortable a respect that more on with project, that exists project we on the is

we is completely feel is when And probably to here. underwriting very think of so rent can different. outcome have we plus in But same Xx this this, very, third what that our I with we at done and this every instance, particular as you point north is guessed, property we've time, all put realistic coverage triangulated that presentation. be very the be that acceptable is very, we that think to our would look at comfortable a parties, of all the going takeaway market, done In successful. And of we've kind stuff that

really or ultimately at look how we that's on It's dictate willing so to get project. much this. the spend we not how And That's comfortable. willing how how to construction somewhat we we're

that's We rent a the the the coverage adequate. project is coverage day, to have end a that adequate at not not no desire of building see and

to how want long-term gone and about security So cash and we to stability that's flows, we've our this. provide

Peter Carlino

Yes.

a use be in city landmark advisedly. of Chicago. A project and the will that this that believe landmark, we that add me Let I

market casinos by hotels, One great great the far. in of one the of the

but they're Bally's. I that's a lot So the skill And can better tremendous think I undergoing from it, the we you more we add see a process we of that that opportunity tell about right comes here. that have -- part think to now. I

again. goal project than The to So here City that the landmark is create less nothing in a of Chicago. I underscore

Operator

Our Citi. from Rose next question comes with Smedes

Smedes Rose

your go But little to about next bit side, mix say I you mean, I do couple over just will be would back consensus the equity a NAV how capital presumably said of think you at the just fund billion some that and be a the of the lot NAV you consensus or equity $X issued but funding. I debt? And wanted program first issuing below staggered years. to be seem forward least like a was internal equity questions, place. know since to the talking about day, to guess, the doesn't to you estimates? just could to equity You of after see the least over commitments quarter one How at activity particularly of there end NAV, on you of in of at of of versus sort here. relative the I kind it it'd the

it getting you little that just how perhaps besides a be color you you around flexing the talk sheet pricing in if will more about just bit just equity more not kind that. you're some So staggered, balance think to maybe could if but near-term, of like and the

Desiree Burke

your the capital on Yes. think And equity what question, markets. we really both attractive find in Smedes, it and debt the to depends and I markets answer

strong. so is sheet balance Our

ultimate that spread the which capital. that on getting lot the to have way we're price. on and to the raise pricing intend really And depends of it we flexibility that we're we We transactions receiving a

Matthew Demchyk

level, remains sheet same. philosophy balance the Smedes, Yes, our high

bottom of spot the We've be range. measured long a the just be to X.X period historically. sweet our expect we as the time is it debt-to-EBITDA and the long-term. X balanced over in time; to know might to of that been But and hug us goal You thoughtful, over of kind have net be over

Peter Carlino

old we've the commitment of kind we to use To the term, proved I want the an balance what proof's And kind that pudding. have. to our in sheet of is think

could same. for the expect you So

Smedes Rose

Or on too, Do a I to land timing what just that? purchase any ask particular you need have the that the that sense of to wanted in overcome is you are to hurdles there you, finalize on Chicago. transaction?

Brandon Moore

customary Smedes, hurdles. say, I'd

that, one, kind due by So phase stuff. mean diligence, title of typical survey, that all I

had running and agreement an the have professional a that ownership we we need to with. I take and hoops land to helpful, and [indiscernible] to the acquire has that work title been So will we're through team to appreciate that we acquire able real do say good it, and to with jump them obviously that in we property. The place do you've as land. team very an hurdles acquire on But working the as And in now. that a to to soon estate nature, reaching got to agreement we'll we're and few of partnership it. through we're there's

Operator

Our comes next question with from Greg Scotiabank. McGinniss

Greg McGinniss

got We General, coverage Bally's? to debt. more adding might cash that casinos. flows the plus recognize most at Standard flow to But cash which take of thoughts going your be is profitability healthy at rent on even you private through Especially still stress that's after and are more what the you transactions, a company's bit

you if and into are a about potential options what there thinking the parent So runs problem? cash flows

Steven Ladany

on can't we comment think I the Look, Yes. go-private transaction.

of have our the our Bally's Bally's the else. With in we tenants, master see same it's rent of our it's press can coverages any we've as around commentary As general to or leases, respect where the public of you Xx. significantly everyone covering, existing release, in stated, information excess

underwritten and when way think willingly that comfort someone been in if belief, if, position, any confident of those would in that tenants So that historically and happy lease have our someone operate and assets. fact, there will I our a they're such clip was of answer to any very else, any and always and and those tenant half underwritten of like we're assets cash the that issue. And of I assets is think that step Xx, an underwriting, position, that's that thought that, not answer. we I has profitable have not flow process take our a covering operate That's leases. If covering for we north in our, guess, be Bally's

it. way that's the we look So at

go-private had was the to with the same everyone Matt transaction, else Bally's. And there at I that's that mentioned on way we ahead. the to moving underwrote continue earlier, transactions respect this. this offer the that we look the that decided as a market with based we think the very were lie forward and rent And as in we information broader comfortable coverage we when profitability,

Peter Carlino

I these you've the They're because of going parent things, at happen to one could X-wall and It's of close coverage, wanted not a standalone. know again, reasons, anywhere. going level. irrespective in not to the always end, Matt, what They're emphasize,

it will that nice what good it's always So about individual is doing, property have to home. feel a

Greg McGinniss

those to have several coverage, gaming, the we away we've margin lately? broader guess the give-back last that seen some some Right. declined rent there from regards representative quarters. where And generally are kind regional during pressure shift of pandemic? on GGR the customers over numbers some of natural seeing from I Or in gain of Is

Desiree Burke

I nothing But they major declined in we issue the points, whatsoever. few still look, XXXX. of And We're bit a before seeing after there's little are by -- we so I Yes. the in COVID at mean, significant. give had even margins operating highs any basis a stronger do market pandemic. not think I back a than from that,

points And in. they're a few the we here very yes, confident there. coverage going basis So ratios, move to feel and

most down went up. up, went went a there few, few were a that but actually Some

Greg McGinniss

is still there any me that for that on to Lincoln. correct? transaction, one progress debt -- that that Last right. approve been on And Does has All just front? holders still requires

Brandon Moore

ask to have Bally's. You'd

acquisition we that first property the been your and confident we're the will to that. own end they ask have your where property. that. I that us at is on price go question, is property, yes. out for the some don't what the that by sorted Bally's to Bally's renegotiated for in they've that transaction question will that know. But have have second just us, we're announced and sit. look permit 'XX happy that the answer on pretty of And you'd answer timeline of manner think guess working My the The to purchase for that that I a to bearing we could private

Operator

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

Daniel Guglielmo

you all longer-term think these are always main And some The through the high focused seems and doing risk-adjusted curious, when of team on just was that what I deals? risks returns. capital

Matthew Demchyk

I'll start.

you timing. all, of up brought First

it to get Number development that what's in mean What's cost all side. the timeline leases of leases hopefully, our structure assets the of the really our for strong mean super shifting? the are our state point our the budgets, over master with majority shifting? risks. of with master assets of having the of of you the Bally's Peter then development, of the What's market? I comes risk timeline? help combination from made. Chicago, the cost mission-critical are states. time. support mitigate the to risk these in I the you vast coverage. And limited these I back So in it in two, what's mean, leases when involvement on the And license especially money What's risk relate our deal

of that's basis. chain the pieces to assets, to at the the it us, And comes That's for thought value the over up if there, process. But the market, rent this each having opportunities mean the takeout, the important. in sure we're of making safety our that So and that productivity end cost of of And very to at then prudent, the based we're important of out basis the vast you easy moved and a got given right the of you'd favorable balanced for locking comfortable do. I an really being then capital ultimately in day, get margin asset plays incredibly right we way very and a effectively, our of solve which thoughtful in density down not And structure world to to to the the decades. you it spread, next the transaction instead and we've got a the regardless time. and makes of a the able through your that the basis, to population, with piece majority in, is our long-term that and are involved thing Chicago level, how sure right point, sense. lock-in make look over on many early

Brandon Moore

do, to markets. in-depth and look Matt in addition on We a think it. we I do at that, touched pretty the

gaming, these -- not of chess in it's So now is this checkers. game are a

shown happening have adjacent jurisdictions, in to but to not what's "limited a only in think And be about jurisdictions. to license adjacent you're have increase states" You in, jurisdiction the going propensity licenses.

underwriting a And those time we're frame for trying so for and XX-year XX-year but time do to things, time a a cognizant not it of X-year time you we're frame, or be X-year a have or to frame frame.

we if And trying vendors level in-depth you those transaction. And master is can But those we you've so things that, a about outside transaction. like we and have all can markets it are do as do safety and part we different trying of something look to before things it an do, a over of prudent lease in underwrite or all and use you clearly, we do to market information in any take the the research increased time. to get at

Peter Carlino

risks further on experience the too, threaten bring of just Yes. of outside many we that and skill in and might on. And what helps are, that in, over understanding us And Brandon part as to that analysis. resources data it, us give own what adjacencies be years the our kind bring of us says, we

not So ever but it's you best your perfect, perfect, judgment. look, nothing apply is

Brandon Moore

time, I to healthy addition, there's as of gate. we think you We need too a touched the understand and in grow do and right we on our coverages on, the with safety. business, rent pressure to the flexibility see what much margin because out try ability of to rent over tenants transactions, in build the their to not and put try that Matt

Daniel Guglielmo

that do go all the you make when appreciate plate the other standards? do quick and higher And general, you have for really if work potential Or a the follow-up. hurdles just try capital commitments? I detail. as deal of full meets return deals Yes. funding Great. your a did In

Matthew Demchyk

try we the if lot make funding and standards. work time. latter, to spend a the We The deal our of meets

are years put many effort in. deals of these of many, Some

wouldn't we shoot and able walk be down. to So

Operator

Stanley. Ronald next Morgan Kamdem Our comes from question with

Ronald Kamdem

Just two quick ones.

couldn't this the happen look to So or just price. is that -- something able reduce other that to was Just just idiosyncratic in in we other Lincoln market? transaction sort about much that a that before of Is thought this have situations? trying guys get this could you Is future this the see do and parts deal? of and going purchase the of being to back how a sense unique to for versus to situation

Brandon Moore

to I it world Lincoln, moved. rates part that the related was have transaction look, think Chicago. in I we entered of agreement, with respect the of cap a And negotiation since think time course over into obviously, first to broader

acquiring in a X.X. that market, comfortable an this at but property. asset point were at That's more we're marquee still interested so rate And than very that in it doing were we X-cap at we

of part as package negotiation, was it. part of just total so the of that the And Chicago

unique a necessarily position. the circumstances tenants, that. circumstance we'd anything I better like any there our transaction. with to this unique have in chances might we But future That that are If do was that We in and horizon with think seeking the sure, don't renegotiate to there's on be to just we tenant.

Peter Carlino

tenant, think them tenant good of a relationships about holistic, good for we're I thankful the is is you, time hugely is establishing important, like a situation. partner that open-minded in terrific, that dealing don't mindful at with And having to transaction and same very who company balanced and a the appear our a and I want for with good These are for that a and way, we're taking of what advantage Bally's. by relationship a Yes. is and creditory,

Ronald Kamdem

guess just Just guidance just it on I decompacting financing transaction? was Any all any just Anything the side? raise? one on on strokes chance, my changed Is second the pieces be on would the the color guidance raise that the broad Helpful. any of range. helpful.

Desiree Burke

to Clearly, that count strategic obviously. the the range, income, mostly little proceeds, but raised end gets and a transaction. the of offset bit interest that's to ATM invest that going share and due the we in I'm by Sure. cash talk we'll high some about the it's but all increase,

And on high then vested. And the rent assumptions had really percentage low strategic did the well we the as going as well high It's as the mainly end, we end to adjustments exact end it's same for as So thing. on different up strategic transaction. on proceeds well transaction the proceeds the as as the related on it's on also, the different those being low end expense. interest assumptions than the then

Operator

Our next with comes of Shaun from question Bank America. Kelley

Shaun Kelley

major conversation to Barry's much of about and and think, it been obviously, curious wanted of M&A I you the tenant been build relates back has on of just about base too. I'm tenant the the But lot I question comment M&A think, call. as off earlier your lot it Peter, a the where here made, goes to a speculation, there's of, offer. really Bally's a kind privatization the of to, rest I and,

how these then question larger interest or picture a it especially of that? big would favorable when like transactions divestitures, consolidation you in call So it, sort amenable protect trying And let's meaningful to is GLPI's kind of, of you impacts are scale case how particularly are if to, one GLPI? require

Peter Carlino

operating is like everything I is Well, anybody are it say wouldn't Their outset, business way today. that highly They're reliable. profitable. works. tenants. it highly business the profitable, surprise me Their There and let at the is it

cross-collateralized upset see our very to what with ] look apple like towards diet reluctant here. would cart I leases, we anything have ] the [ could So be [jaundice the of anything We that change. would

we so will the period. I well period, am here, not end, in must. Look, we'll to what's -- our And good disposed company but it be what do for period,

speculate not So our anything particularly happen, we'll going have arrangement. would might to look, we or I'm me, and speaking up favorably what but might not break see. beautiful to just on not would for

Brandon Moore

presenting shareholders want our if what we'll our to we shareholders? absolutely. and good kind We leases. for when we and be up to Peter the that's we I Yes. see that. Yes, company. people and I we're to And of anybody some do have Absolutely. best able break think transition into presented don't said, And something of opportunities us situation. to we will if with that Could and look do that that might in if interest what's been haven't as And we by what I think we'll approached mean, it anything is. know, Look, our do that, is

Steven Ladany

that. did we And

It was require did for when PENN. back value consent of didn't that, go existing We what and assets asked at out shareholders. we look you and historically If by acquired extract happened to Pinnacle separate our leases. for were our some

Shaun Kelley

have budget. these factors a one as some I you entertaining and now and for that a parcel this My which I more of budget pretty think, the have as is to detail. be follow-up mine struggling I is and approached. of transaction sure that But with, lot is, would of urban appreciate complicating simple, Thank overall angles lot landscape. making history you giving Oftentimes, developments, a it, there's going project, it when part stated is and of urban think and overages been back all dealing Chicago, structured you're the particular, to with your vertical relates a bit funded fully in obviously,

whole project funding are the like for we run need So that? the bigger line were found what's again, that kind get to and to this be maybe to on question still that finish protected into the And If extra get we a here to there's from? pretty flowing. Where projects, that budget is stages in simple. of regional you've overages kind here make other of over if experienced come how you latter this? And of cash dollars material the a does

Peter Carlino

not we're years Well, it, in certainly to that it to in like of make going doesn't project a sense paper, look, obliged if I'd business. say provide make asset, we're I field. when put the let me actually to say And at isn't spent the lot construction provide on the it. And not a to you sense obliged it

time the it get Jim thoroughly, PENN, were but fair and a with sure spending best is Head he project us, the call, right you in done Jim on certainty projects a Chicago to this front. budget. on I right together and who's as as is of I did make involved of now, possible that your not completely time, Baum, seen on much listening, how of Construction up work this on lot haven't we time; So of around advanced yourself. We're with I and office over he's amount he's at and him having working all protect suspect because and much which

but in a there putting advanced no what we're We difficulties that to and the make So got. of work is recognize lot sure we we know challenges, certainty. the

Steven Ladany

to that add there's will fact, responsible our responsible for was, available it, Peter negotiated any were a that's budget $XXX we say obviously to Look, I as not it. if in think maybe I the million in part there was transaction, of for of expansion we, and a budget. mentioned, solution problem Bally's

be can you're following not I'm that's Lincoln acquired, if So $XXX saying, what negotiated million.

was we have always I are will also in the projects, So there site. adequate existing building, which issue. fraught a been scrap an be feel is comfortable mention there fact, that unknowns, an But urban to if, nets of other retrofits is this, which safety into unlike some going with this

additional that So with, know comfort that which do feel we we're nothing. that, is some we starting what to us provides

Peter Carlino

exactly the this into we phase the what now look is right to that's job of phase product design a going to like. make time going planning now make to our is the in lot to a part that right help and is lot, that what know look, cost and And sure spending why we're that of And run don't they problem. sure Bally's

Brandon Moore

I'll built In a bit finally, underwriting And quite Yes. numbers underwritten. just of that contingency add. we've into this, the there's

will way. city, fact it the all -- been a while that be of so metropolitan may and been in not we've we've And solve ills, underwritten have tricky project that a cognizant large we not this that

no So have certainty, all things. thought these about we while

Operator

Robin Our next UBS. question Farley with comes from

Robin Farley

for I One full that a X-year periods things to And focused the earlier, your explain sort patient. Would you would back. digesting lot say that taking some sort and looking transactions right, be asked are point? a the guess the of lumpiness of you additional this step of lot mostly terms of transactions -- but mentioned of you may after, you be next period? pretty would plate just to announced at have this investors a as had had you my or where sometimes happening not to more that a of already. you little more which in yet, do been have some opportunities be questions are of that of -- is of obviously be really on do Or bandwidth, maybe in now

Peter Carlino

plate. bigger If a Look, It's own. stands not not filled, Robin, transaction plate, get we we'll a each its remotely filled. remotely on need bigger

have announced no, We actively a opposed as more in couple acquisition. But I we're so. a to think that straight-up don't involved

I that. the don't have horizon yet. the if -- comment anybody seen haven't know about a We haven't else seen

Steven Ladany

we have of remains strong, at continue market and lots and to conversations. look The

inclined shareholders look continue to So can as forward in when while to risk-adjusted grab go. way our itself, increase are climb opportunity we opportunity and dividend for thoughtful, the a we to presents we and our

looking grow to to we're continue So accretively.

Peter Carlino

rush. deal do. no sense. as as do. But time and it's makes no sense no and again, where have it to have to I'll shareholders, of our it I've to There's think do kind -- at We'll We emphasize, you feel transaction I pressure we don't, said that if There's simple to Robin. we're least anything. do no for makes that. it We we There's started,

uncharmingly don't can hard. a I've As We It's in said, not be that group. want have deal. do to bad any m****

Operator

question from Beynon with next Macquarie. Our comes Chad

Chad Beynon

with great scale As conversations nongaming year-to-date. opportunities? current you've conversation in wondering and had Peter, kind your of some certainly nongaming? the versus announcements has between where full, you gaming of changed partners terms just plate But mentioned, anything been lies has potential and

Peter Carlino

of answer the with. value in grants changed to close anything us We anything that. things things that one my changed. the seen look we and the really have if hasn't gaming hasn't and world. certainty matched Well, not would haven't We're We other all the kind and that at just

I find But the providing find And really announced our buy that kind deal, same doing so it. to we'll [ to I've ], take far, a that If down stick going transactions better the talking it. we'll car really a that's better for answer can could If knitting. coca a so we're last decade. continue been And road. we're we've But keep that that yields it's long thing the of we kind can about, at the as you of

Chad Beynon

of that more talked kind there's out of the comment they're partners' adjacent calls. some maybe is some the night wave these last high-level earnings then additional time properties, something that on talk that convention the these partners, maybe space? growth during maybe centers, And think gaming terms loud got of lot this kind another to another something a in this period, doing When follow-up. building hotels, would And your about hearing your thinking projects be us slightly thinking finance been you deferred. that of They COVID future? of Okay. that help could Last to at after have there you you just so out done in one properties. Do Just could night. in

Peter Carlino

looking we'll that it able It's seeing at question. do And there's PENN. good for a the right already as doing we're always and Bally's that, a to we're you're put and project. And doing and a with number to those of willing work now. We're answer undoubtedly we're with ready, money quality is

forth, so done Louisiana. we've terrific us. So yes, in know, it's no, land number and I Las tenants side terrific. pretty PENN some business. I a of Illinois, it's of Vegas big are good projects, sizable think Existing example, and so Ohio Illinois future opportunity for effectively as And think for projects and in very source a projects announced Look, X in a has I

Operator

Our from John next DeCree CBRE. comes with question

John DeCree

or is you've New look think similarly. Obviously, if it mix. look just anyone, and it's you out your views at taking it underway, the about licensing you the one, But look that's if at a Maybe seems and process York, Bally's there, Peter its would for further New I financing City on casino provided at thinking curious Chicago like time. in little that on we York the how template

might market to be and were on curious that you views and in how every in or and And your so different, for maybe But aggressive if market? is the some waiting cards opportunity York process active to appetite potential turn up, come I we're to New financing still over. participate think an on

Peter Carlino

I'll over The huge, Steve. appetite is answer to turn the but

Steven Ladany

with Yes. potentially a actively conversations that licensing of more are We've pursue handful than parties there. to looking had

the to and profitable we the be I those expect and very for marketplace ticket. extremely that think find it golden win to continue to ultimately interesting be intriguing

to any do that had their we We've question, said, have higher But So in respect State the I that level. not York. involved. And talked light have you number said, we do of think Bally's, continue to I with State think brought just ROFR interestingly New folks huge people like it the conversations I opportunity of in and a which to we've think intimate to happy move a we awaiting up with think forward, the I New with green around in conversations were to had the early around York. of because everyone's there's are we -- a project

John DeCree

be have earlier? until kind for can financing? in we of the soon is But be curious than substantial economics timing, willing to provide in in I Chicago York before of tough quite you at wait or to would terms you care a get project bit the this probably ready probably follow-up. wait might or point. I New in to pretty to you involved Chicago could or qualify, to context be other assume look as process it's ready shovels how mean, little almost I would conversations just a a something involved at the released. answer, to bit were ground facility much you'd more you realize if in Maybe but a extent asked at

Steven Ladany

to I'll ]. -- myself. York. timing continues just move we leave enough don't think speak good think New sense for of [ and and It don't I have in I a Bob

what have don't I land, of ultimate be. that and where process zoning contemplated, think will where and good permitting what I of licensing all will but that so And the the fun will understanding and and it's not stuff land, ultimately curtail actually will personally timing currently a actually where and it kind

specificity to things So nor to and pricing know be what would other any when any guesstimate couldn't with probably I those would would even type institution possibly of I come able try or be. together, thing all on

Matthew Demchyk

that's being can runs oftentimes gating we thing at attractive. The in And comes Chicago known that entity find return the with us one quantity that the from Yes. factor a is, for is risk-adjusted we bring dialogue the of end. the showing and in versus up situations. able of some competitive to ways the monetize one earlier advantage we've been having the That's process that to

Peter Carlino

Let going hour. call at me say now to cut to have the group. Maria, the we're this to

out any the with have to one available of may missed on please question, we us here. it. forward contact speak I have would We obligation. to say you, us who another Any and is to look

this So to call. we off on move at cut and apologize, left a going I some have if time but to we've waiting, we're scheduled to -- people another

that. Maria, affect you would So please

Operator

turn floor Of to Peter now over for comments. closing back to Carlino our course. This session. I the now would concludes question-and-answer like

Peter Carlino

a quarter. you. Thank See for all here. got shared Well, exciting that our next And from view, lot happened, of hope was that. it. we about And bit our being thank stuff point little of a of feeling we've you you that, and we've I

Operator

today's concludes teleconference. This

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

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