Gaming and Leisure Properties (GLPI) 21 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Joeseph Jaffoni	executive
Peter Carlino	executive
Desiree Burke	executive
Matthew Demchyk	executive
Brad Heffern	analyst
Steven Ladany	executive
Ronald Kamdem	analyst
Barry Jonas	analyst
William John Kilichowski	analyst
Greg McGinniss	analyst
Brandon Moore	executive
Ravi Vaidya	analyst
David Katz	analyst
Michael Herron	analyst
Caitlin Burrows	analyst
Todd Thomas	analyst
Mitch Germain	analyst
Chad Beynon	analyst
Richard Hightower	analyst
Daniel Guglielmo	analyst
Robin Farley	analyst
Colin Mansfield	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Gaming and Leisure Properties Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Joe Jaffoni, Investor Relations. Please go ahead.

Joeseph Jaffoni

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

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

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

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

the financial earnings reminder, detailed statements to current estimates, update discussions well release earnings factors company's related a to with future. and in obligation the statements statements XX-Q forward-looking listeners and no contained as the non-GAAP to company's measures in risk forward-looking in its assumes contained release. As reconciliations represent filings any We SEC, forward-looking more and including the and of the the management's definitions encourage as company the in the review

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

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

Peter Carlino

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

are, the forward. those to we great especially earnings present from going projections highlight release. variables are Desiree, what see well course, with which out, in of this difficult our is estimates believe, so there that to pain, you'll bit pleased we many day. quarter, should Nonetheless, strong a because that are, has We quarter were deal fair a of we have another put I summarized representation that hear with who every

you be that vehicle is of, the capacity may to flow. best dependable tenants, committed gaming we that things that I committed of maintain long-term, be with funds and because aware drawn have to to And folks that are that are of all we known that difficulty to the even handle we for want we we a space. demands estimate ability. we're Nonetheless, are handle our develop to some project, our when rests have to the determine emphasize going cash to can't sense large and One prepared us we only when the could so with on best that solid that it's the to horizon. rock the are

mind, table, in I'm and looking on. that Desiree, with you're across So the

Desiree Burke

morning. Thank Okay. you, Good Peter.

fourth quarter by quarter of million over has $XX was escalation. This 'XX, XXXX acquisitions of by growth driven and income real million. For of the $XX from resulting estate our the fourth in exceeded total increases over cash rent from

Bally's Chicago increased Tropicana by million, $X.X by The and cash the example, by $X loan acquisition income Tioga land income cash income million Rockford our funding increased The increased City cash increased acquisition Kansas by $X.X $X cash strategic million. by by $X.X and Bally's $X.X For The Bally's Shreveport million. increased million. million. income

approximately our also adjustments rent cash the $XXX,XXX. income. escalation, cash percentage million had Ione which and loan, the increased $X.X recognition obviously, our We added of income And of by which

adjustments noncash of these lease $X.X revenue investment gross offset million. collective a of adjustments ups, and combination year-over-year in partially driving The increases, decrease straight-line

index mainly noncash in million, resulting $X.X the projections. commercial for losses, by from increased adjustments expenses credit in the provision increases primarily estate due operating Our to real

received will capitalize financial deferral in For during interest for rent the company's development reporting we development properties, purposes.

back add rent at interest in AFFO. the However, capitalized deriving and deduct will the we

to $X.XX include share the transactions. share gave full we note and this release, does units. Please OP today's future In per guidance of that not $X.XX diluted per impact year from guidance ranging

anticipated approximately include for June However, forward funding development of the of our our agreements $XXX 'XX. it expectation projects million sale in does to and settle the

loan, notes consensus night, review development which and a of $XXX X; guidance settlement, million of AFFO our the assume the during remain note Bally's our should it revolving which as amount that tax assume strategy all outstanding. well there a should new including towards subject will appears timing of impact part assumptions, and to will funding, of I and the slightly of guarantee is interest weighted end bond due repayments, forward the year; are it's the the issuances, you we will changes XXXX that which last expense, as XXXX From the factors: XXXX timing interest share number of below a our June which bond expense multiple the to their

March redeem on of bond will We $XXX X.XX% the X million 'XX.

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

the turn back to I'll that, With Peter. call

Peter Carlino

notes a Thanks, I say you has like think them. Desiree. highlighted lot have variables that you'd Matthew, to of that some of share? I many Desiree did

Matthew Demchyk

Sure. Good Thanks, Peter. morning, everyone.

unique quarter the through our deal continued strategy origination to Our financial success and of our bespoke conservative full in rooted results generate creation year capital for value and structures. mentality of approach, allocation reflect prudent deal the ability a both our our and fourth

year. provided purposely into well the this throughout capital and XXXX position groundwork The growth, flexibility XXXX the to laid Our past extending stay beyond. in proactive deployed for financial has strong

including positions all meaningful to a transactions, relationships us This others share end, remain new opportunities identify on announced and tenant tribal to well estate enabling that Our may and gaming secured in opportunities XXXX that through. year's proof beyond. us advantage, act overlook. bearing By of competitive is powerful continue we our our gaming world, uncovering strategy real the in innovation a

partnership also on. of effect are a possibilities, cornerstone time future These as long-term our compounding Each the creating powerful relationships growth. unlocks moves

the revaluation estate us real especially lease points. strength sectors estate with and to estate market. provide driving periods real consistency continue estate relative gaming end-to-end real valuable the data in to and continue volatility, a cash our the cash of of other newcomer wider position points, market These portfolio, from world, data in of coupled flow of broader While of to in the is flows cash gaming our real transparency still our relation coverage, flows our the

Looking ahead, shareholders, value our focus share. drive remains resolute, for our intrinsic simple: is all capital and to durable prudently deploying maximize per value long-term goal lasting and to

I'll turn back to it Peter.

Peter Carlino

open you Thanks, floor that, will to With Matthew. Paul, Q&A. the

Operator

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

Brad Heffern

would that less figure you on slippage The of ago you X million expected And year there I $XXX have than just been project? what any or timing Can is projects maybe versus has a that's down little that figure? those in thought. fundings months affecting by this maybe X break

Desiree Burke

Yes.

project. So the think of giving big the total timing in Obviously, of I tenants. it's the is when just fund the we're XXXX. our a of chunk million for expectation affecting only. we Chicago don't $XXX It's that project our

So and first, reimburse they will we out then put money them. will

might to what be lag a So you're thinking. there

Peter Carlino

that to too. going pace our Look, possible. what be they're We What We got tenants, They're But There's understand opening projects underway. is guess. we our is take what what our said guess just happen. the best you talk a may to comment, best be. do these with are I you and that Yes. I can't tell committed. say no my going can't in doubt to

Brad Heffern

deal Casino any the you see that now walk Okay. Got closed? positives has deal is negatives that closed. Queen been from it. or then And you obviously, that Can Bally's the through

Peter Carlino

I think comment? it's all positive, but anybody want to

Steven Ladany

as wants positive. to a anyone else I I some thoughts guess, Yes, join we can provide, I if Look, and success. Huge view speaking, think, this generally do in.

I is maybe think think not as standpoint, provide the forward will gives necessarily potential but it -- that newfound the the move equity from growth valuation exist can directly utilize impacting which didn't them forward for consideration company overall, going I a that and valuation they before. us, they

with relationship strong and folks our Bally's of it's ultimately, CQ as think, is even been. the with ever kind I

we look well are in with work different future play think currently to continue as on I as that to at opportunities. things them opportunities

are is we still the this expansion relationship the look going all view we forward. the to and This around, forward an So relationship. -- same expanding as still players of

Operator

Our Stanley. next Kamdem Ron question Morgan is with from

Ronald Kamdem

to X and conversations year. of you volatility bit and how little into just in from bit Just little end. in the rate a this a ones my love Obviously, had quick about pipeline sort the I going? December are more of hear environment

Just a they how flowing, just if are curious, level, not? high or conversations fell off

Steven Ladany

it's Yes. Steve. -- jump Look, I think again. I'll in

conversations level. I think transaction environment up scale, broad I of the not multiple M&A those have think back picked due billions rate one a on from to dollars, that's massive

domestic commercial of commercial, discussions and things, a generally a broader the though and pretty domestic, lot and had think We've I different market, discussions speaking, active. from has to redevelopment ranging lot leaseback international. been sale looking to at been of tribal more development

served see to and announced there. most lot on the a What properties largest things finally becomes So be you own very of this actionable focused gets to out up continue tell different. will seem time. we at their I operators is and

same that same and how land and are is announcement the side, take that tact. mentality about the might through starting well Boyd's Chest take pursue their and saw Treasure they You doing to fact others I Paradise think

land when same So operational which at I side. top assets things the repositioning to you of obviously enhance experience, like largest the kind the think helps the the going guys country move customer are on do provides in to focus efficiency line, time,

Ronald Kamdem

helpful. just back NOI the sort you those interest growth? to going provide other Any going what's any just costs would into can be And Great. on and color if chance color any guidance, assumptions of

Desiree Burke

So we have -- is most debt bond-related. our of

$XXX curve, rates. our on that SOFR have of fixed all we million we top X.X% have for they're debt. We So use forward the of rate honestly, spread. do the is variable and And

Operator

from is Truist Barry Our Securities. next with question Jonas

Barry Jonas

I was into Cordish? the equity about are estate your for wondering with And at potential bit opportunities if to a talk pipeline co-investment some little real point? swap you there could

Steven Ladany

Cordish We in very good very space. in only a have the ongoing. to dialogue been the they've Obviously, with space, nongaming and not also but gaming active continue

paths, equity we respect an and clear-cut dollar estate. from how different goal. is there to component, and have to be our with but I estate, going with transaction-specific as how get there's continue that. investment modes REIT, real How to to them and think something reposition I take real goal that dialogues could ultimate to think a -- the around equity our we whether I And that, think, different a is there own is opportunity long-term we So get to we obviously, ultimately,

Peter Carlino

we mean, Yes. relationship pretty that and want obvious. where excited about folks, about the been the we they're it's feel aggressive those to with a I very And for future. we excited continue. It's prospects good have pretty

view that the we light. in So most positive

Barry Jonas

or 'XX Can question needs? And for your side about Matt. then a even plans your capital your you for 'XX plan, maybe 'XX That's business equity the talk on great. given

Matthew Demchyk

Barry, Yes. with we lot forward. into mean, came on our position. strong got a I cash currently year we've a the out

have you about including we're if cash the look the the when we sheet, the at covers So you and really to all the flow on it balance the business our cash think plan forward, and generate. for XXXX free going ins the outs, treasury

hey, chapter of spend. we're prudently forward the So or do forward a into into on XX-month look we the, really into next XX-month -- basis how next the

say And We I'd of to on to certainly move methodical, in capital chest we've lock be the spend doing have tool we're going what in we'll closer the some as we tools to help balanced. done. us continue way. our along forward that, our be We'll

going certainty to But greater further of for beyond that. spread detail what have wouldn't ultimately any I we're we deliver give So shareholders.

lot a optionality. have of We

Operator

next John Fargo. from Our Wells is with Kilichowski question

William John Kilichowski

contribution first Casino your I be the your I that Peter, want I development comment comments investments, of and of that to the Apologies, loan? talked sure guide, seems make $XXX the Chicago. understood contemplate timing Aurora, Does the Queen, Stadium, and any it in we Ione about And understand the PENN on the to the correctly. vast majority million just from

Desiree Burke

PENN have as don't and transactions Belle, Chicago at we The transaction well know forward don't $XXX contemplates that Marquette. this It for million funding in a time. it contemplates contemplates timing the That's have as anything of. we Ione and developing, announced. been the We which the the we have

William John Kilichowski

might Okay. or That's done of not but there just this the administration there, kind has level first helpful. maybe -- lot. secondly, be It's and high a And much, then month may just there's if the on far aware anything table is your gaming we business? or be they're be of as anything I'm else regional so. concerned that as doing impacting should that curious that's out

Peter Carlino

heard of anything, Anybody? table, I looking negative. certainly around nothing haven't folks. I'm the

Desiree Burke

at Not REITs, heard anything impacts all. haven't that the per I se.

William John Kilichowski

positive? Anything

Peter Carlino

or positive nothing No, negative.

it's... So

Desiree Burke

for positive of dollars can It's guess, country but our no, GLPI. I positive funds, specific save of billions if wasted nothing as he is whole, a to

Matthew Demchyk

level, at evidence a arms world, some there to get national it. I hurt. they can't doesn't the I'd care. actually in And to and -- they macro current and on their if position. deal There's debt the battle people And the outside are deficit around work a Definitely to say think at with the there's qualified uphill the really least

a that's So plus.

how very oftentimes, I a workforce you see that the opportunities. new the the to state X could plays drag think budgets the unemployment are large are if the or magnitude of of steps people rightsizing context. -- be they effective have some that new that's removed. if And phase a of to more government could and the gaming see has X to might maybe receptivity licenses scenario also But the opening license how state is, of we where in states to where depending some these on come door a We'll about, hope out with of in some little those and like

So let's see and a few what happens. months of more wait

Peter Carlino

Yes. anybody insights. at this table think I has don't special

give on that, a would please? get call, us a You line you

Operator

is McGinniss question with next Scotiabank. Greg Our from

Greg McGinniss

lease, Looking level. achieved? it's rent properties? dropped pre-pandemic the or is at guidance amended so coverage closer its not threshold And and quarter, those escalator is to are escalator facing challenges the below pinnacle the that assuming What this now

Desiree Burke

Yes.

revenue have I the the rent So that achieved, we the ratio adjusted it the says in is What end to of that think are the in is not revenue the all is calculation it assumes the of it properties they important. of is adjusted whereas low when lease, Plainridge gets actual to high to X.XX% end report on excluded that that of assumes they includes escalator guidance footnote the Plainridge. rent, us, achieved. which report do

calculated, little be at our higher helps escalator expectation So how all. a exclude you it if Plainridge, exactly should the bit the is isn't is so that when X.XX% that

Greg McGinniss

All right. Okay.

So understand. I

actually one is So of Funding one Plainridge, achieved? coverage doesn't on at so impact been the it's far. ratio, that then whether -- likely rent the not final not Okay. the it's the assumption. or the on has lower Stadium escalator's a And most end day, it dispersed but for actually the funding

$XX Or spend? all are I'm assumption you that So why there's expecting curious not -- is an the you're more of to there? million

Peter Carlino

Not Brandon, at looking unhappily but... I'm who's been here. silent, silent

Brandon Moore

as content been we being That ] little the a stadium -- around place. development sit location integrated plan goes. But as Vegas and the and bit. to resort I the master taking for I've development think listen now still proceeding here certain said, look, [ No, is of as far would is more the have the timeline and expected

moment. think constructed So on I the the asked to ultimately, at think, depend fund what being with will is and what in stadium, I we're still conjunction unclear that's

we the to depending from remaining would. hear might from what or and more on committed we agreed to the they're million. understand on as doing. we've development we're the So million expected be And and better the million to Bally's up us potentially for $XX We $XXX what demolition $XXX spent less waiting

I now, So early too think just to it's right tell.

Peter Carlino

are they engaged on But issue. the

that, can we you. So assure

Greg McGinniss

Okay.

there you any Sorry, process. of happen they commitments, expectation just Just for I so come is capital? happen? on... end that guys the that that guess, the may one will Is Or that PENN are more the would not at follow-up payment construction on right, that assuming you to on that

Brandon Moore

take be PENN, it so I think they earlier process. to the could the funding to relates in as clear, just

could but funding towards Aurora likely on where the expected the to So far, required. we've based they it take it's end The of are, before. come conceivably they is process that

projects required. The are other X not

the So they funding could technically, those not take for X projects.

at it's and But not at for so. do reason, any funding believe if XXXX of call that and that this that would they are what's of have projects for earlier won't construction, they will reason than those potential following don't these to decided point. out just beyond projects their funding they We they or that's to point. timeline seek impossible pushed We this us the some

Peter Carlino

to In one reverse I'm the flow have patient. cash be delighted they sense,

financially So they're strong.

Operator

is Our Haendel from question next St.

Juste with Mizuho.

Ravi Vaidya

on PENN? This more this I are think you in to with funding is fund a the Can $XXX some the other the well. for Haendel. that you is you hope describe some new offer is do little that, color able Vaidya you line deals How of Ravi million? And on it you'll I be you doing agreement guess Can the had lower guys likely please? X% that than the funding past.

Brandon Moore

bit of a on Yes, color little offer that. we can

typical the for having not which a had connection seeing is portfolio. agreed around asked discussions commitment us that we provide for our the rate with across funding this at competitive Chicago them project, PENN of to funding for the noncompete think I to rest you're in were we do.

the that doing we to at in agreement This negotiation is was our or be connection fund in we'll future. had. indicative So with not rates the we think competitive rate that are that of the

As I'm and it, Bally's zone. downtown Chicago sure provisions within was their leases that project know, in have you noncompete the noncompetitive

And us. that whether that. they much into I take read they way, was -- probably as it, probably okay won't. negotiation. if part I with don't, they take think that go if so or beyond not just it. Either that If they move, for wouldn't it's they'll they'll And of too

Ravi Vaidya

All right.

that adjustment can Just but process the just with looks color there? with more shorter give you Who what of more Rockford rate, and and initiated lower term, you happened kind one the as happened loan maybe Can that what here. to with the -- amendment -- the like? significantly also

Steven Ladany

Yes. Sure.

time. group wouldn't of the up lenders little And exceedingly the So the we at approached ownership that reality the had to a for we a negotiation and having offered loan to and well. a property other bit look, It's longer mind decided the on performing think on and refinance rate accretive opened is us. debt, budget, I outstanding we an number

we've coming slightly lower rate So of loan from no had and to a having income and repaid get option that additional or taking getting income. continuing the the

the was decision. that So

Matthew Demchyk

In or we it better and about with rate, I middle? go on interesting didn't the end in up, the second so as it, where Steve's were. you them way, that within to doing point, risk-adjusted return at as say, good an the the way even with to we mean maybe think well bite apple Steve, go to prepay to We banks of versus and bank. it met all kind open frankly, And fair letting need is the

the value we and fact relationship and turnkey a simple be the solution. that we'd So

Operator

Our David is from Jefferies. next question with Katz

David Katz

wondering updated see we that always of that whether and in Just And what opportunity more any and have I'm have updated there, any about you please? thoughts TAM? Native thoughts might America terms of we already?

Brandon Moore

Yes.

don't I itself, TAM the think David, have our views think, I changed.

TAM tribes cash lot expansion the from So opportunities is couple expected the of months. flowing at to opportunities productive the properties what existing course meetings existing development. a relocations, refinancing And We've greenfield be. over last it had range to debt to of we the with of to

So the opportunities broad. pretty spectrum is of potential

see really moving of of and tribes move number forward. that deals to further. many that into of It's the we'll do and had how I'll to explore are them want on positive there. to question, any, dig to -- anticipate what be these there's continue do a our are magnitude mutual desire to what, and meetings continue the and next the cash we've them will for those we forward We want flow these a deals into down to if drill entered We've NDAs these and now

us I to too that. it's predict little a for think early

will able financing many, there as how offer. is of be But communities we in how I So and don't interest may opportunity as big this is and what lot a better the tribal understand to far say know. what it to

Operator

Michael question Advisors. Green is next with Our from Tree Herron

Michael Herron

earlier Cordish on on the agreement the XX% equity. Just co-invest following to from up

also historical the racing that I'm investment agreement Some a believe viable be horse the falls of even to are guys' to the just the segment? your requires of curious And you if that that license scope what under planned of business, included? New on of kind reports equity a if just segment curious XX% have given Hampshire And new been development. it's thoughts develop

Steven Ladany

Yes.

around partnership JV conversations them. that haven't a have project We had there. with They

they're in of that one in We I state we have look, spoken other awarded. be with state. New have the might It's property But the that best a pursuing been I at that looked It's they think either have project And or believe before. them very a in that think we locations. successful. Hampshire have jurisdictions will well-located

we to So conversations obviously, look, that we partnership. respect -- I think have love have current we but would to their there,

Michael Herron

X-year quick that was exercise extended one And Understood. Boyd just one. the option. I saw lease their to

to there anything if over or that coming earlier? Also to that curious are assuming any visible wouldn't for reason lease, a us? there just no any year that Just was decision adjustments particular be

Desiree Burke

us There to is they advise no they're there's whether requirement extension, simply an little for going have there's It reason We're nothing but not -- special obviously, about -- the They are excited, nothing they it extend. to do no or there's did and did a early, it. but bit it. to adjustments have a lease.

Operator

from Goldman is question Caitlin Sachs. with next Our Burrows

Caitlin Burrows

funding. I another development the question on have

the loan the like of looks a is documents, in to kind mentioned X dollars, market and all up they your draw. then Chicago it So Belle delayed amount an Ione

amounts, you So just will makes if as Or those and amounts? think that full sense? technicality, it you might those think you is the do about we quoted reach not that's that

Desiree Burke

the we reach really will around do those. expect... we'll amounts It's I Yes. timing the when reach think we of

Steven Ladany

expect us I reach agree. I projects. the those of to amounts on top would each

Brandon Moore

mind, hard in funding Keep costs. we're

the But trying development projects. the real budget as before. project numbers. lot parts of see scope would to the of projects come up to and I we possible of were hard change some X property same the these appear on that a be why happening. less. scope the cost that on We that it's Those for think under, cost So and that's in don't fund hard focus We're to see if you reason, would

Caitlin Burrows

then them And might slower pace expect on Okay. because like reimburse mentioned the some you it's how the be timing, even of them. might we just and earlier, guys then you than tenant

when and would as says Is 'XX. 'XX So than spend the completed it that? that be an your the that funding like says year-end Or your be potentially is September funding? example, somewhat Chicago Belle will by by later

Desiree Burke

We could project fund for beyond sure. the to there the I be costs date those closeout mean know the opening exact hard on are. a of spend to has what

So definitely be it could beyond the opening date.

Peter Carlino

In any constructive that costs times always achieved, in insight. have come is project, will to I or we come -- knowing bills and know, can the exactly it we number think X as said going you think back-ended. now we the draws how top later, today, X would you just perfect while are be it's are I mean no expect the

Caitlin Burrows

Sounds just picture the development then business. on good. And maybe bigger of funding kind

those sale versus funding, As you repaid. get acquisition traditional the or how and think compares guys have you about it development the more leasebacks, opportunities obviously that

your portfolio and So for future when does you of sort funding versus how of think recurring like like in nature compare the income, the GLPI acquisitions? development view the of

Desiree Burke

the funding loan, but owned development It's rent the to that the funding estate a in project, and turns loan. projects are into happens is be our the rent project Ione So or Chicago our the many on different. is real Belle project project The Marquette run. not long a of

in loan. think normal So a term it does like would end you not

Matthew Demchyk

basis property if in as market. estate. lot X hit words, for pay in the is with favorable the we And end years a wait more to pro other In up a to the then the forma, generated, game, that's cash were is likely you you'd real later step and if flow

basis, direct over into coverage funding, our time which fall we're locking to So if we're the pieces lead place. better other should in

Operator

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

Todd Thomas

rate about Desiree, that's you today. the talked outstanding debt variable

for And time? that's environment. strategies tax a willing with about talk of just of new a much have is lot if the rate related the to that to out? ] Obviously, there versus administration, interest much And of higher exposure how speak uncertainty or debt I'm tax can mentioned. provision you expect Some the strategy how rate be you're you providing [ the but that curious tolerate? longer to you'd it over you to floating swapping And more more exposure that

Desiree Burke

Yes.

on property expect Bally's Bally's have Lincoln I be million, do I acquisition, mentioned, that also to subject would outstanding, debt, variable the The guarantee. So cost do because look related which guarantee look it a is all that for but what same on about that million will And to $XXX basis. remain of that regular expect do potentially. vis-a-vis rate. right swap at a now, And for the of the the just we're I We of -- sense cost that swaps. do it amount make $XXX that as us we paying the at to it's the -- doesn't we is

Todd Thomas

Okay.

how fixed anything any future just layer related rate curious in cash increasing approaching flows, there you're I I that? mean, of intention rate, I'm mean, just with in potentially to include begin reducing or that the your debt? swaps Lincoln does guidance is to nature not swaps. generally longer-term that variable So exposure given

Desiree Burke

increase, variable of XX% right said, our I mean, debt as it. only entire And around I rate. do open it's to we're we Like stack now, as

with As that happens and enter what rates this into fixed certainly want 'XX. does during depending does they are and you what rates on, reconsider increase if we what to not with Lincoln come swap happens or rates, on swap to administration whether said, a where we'll to

Operator

with from JMP. is Citizens Mitch next question Our Germain

Mitch Germain

I'm Did transaction Ione it -- create incoming And was how from the other did it received. curious tribes? additional inquiries inquiries --

Brandon Moore

Yes.

in offering in is The did and both also leadership to of here Ione the credibility the and that Ione that structure general. led transaction is Mitch, a team and conversations answer, lot attention. short are generate the And some additional tribal So well our to the yes. community, we of has very respected

So yes, very tribes us. been more we're getting. the that to helpful more very, has And the meet interest with, we

structure long-term to and out about that we Ione be we'll fine-tune into opportunities, more at So continue a with more be meet the to might and tribes volume. thoughtful them that we try look and willing roll structure we'll with with have to

we'll a of out lot they're So not see be to tribe there as and long-term commercial different frankly, a we'd underwriting opportunity continue. tribes, conversations engage land every of out scenario. would in levels quite tribe a on there I underwriting We're to gaming us. And like these willing there tribe trust be a don't us underwrite There's every is would in in think transaction. with willing be just

months. far, we're So about we'll the But hearing we're see and so how think I much pretty seeing. what is coming in optimistic there

Mitch Germain

just interest one Desiree, just And you me. kind of maybe And Maybe should is recognizing just really on by balance the average going anything weighted can interest Great. your through cap we Belle it So curious start revenue, when funding rate? then that forward? I'm Go -- adjustment just average accounting? Like ahead. the about the we how outstanding walk more is -- changing? you're think for this

Desiree Burke

Yes.

that's an while that reducing spend your that average fire you're So interest and interest which expense per going a sheet take under your means putting amount capitalize your and on total the you're to month, rate, asset. project the rules as the is construction, balance times to you're of

capitalizing and will that once it opens, full and sense? your make instead, asset will depreciate answer expense you your have that opens Going forward, you Does deferring and Does interest stop depreciation. and once coming have stop would your income will interest question? that that you through project

Mitch Germain

It does.

amount it? Is and going to spending, as that to the Chicago that continue way to is So about rise. think Marquette start

Desiree Burke

Absolutely. Yes.

Mitch Germain

lumpiness to basically to you're your you're out. any it? So come that about the expense, not assets the way online, out Is that going of think kind -- to real be interest just smoothing it's when smoothing to any adjustment

Desiree Burke

Yes, words, other for In actually actually reduce decided towards AFFO capitalized as lumpiness. that has that's GAAP, to that paid interest. deferred that why was the show paid I have to and -- show that that income reason, remove show it's exactly for cash the that for

Matthew Demchyk

you've side, the revenue everyone, if look Mitch, you piece on mentioned. Desiree But And capitalized the is and one as reminder, there a effectively Belle, the at got step-up. interest

starts And year. June and we total. up rent until about be prevailing side there's that in million as whatever amount that being X $XXX collected the dollars then will they're this to that rent So up then out, the nothing ratchet X% beginning there June get of of on

power in the then or on captured isn't the So to from depending we'll much how of we beginning close this right year the kick at full the earnings asset full and time. deployed of now have

Operator

Our next Beynon Macquarie. question from is Chad with

Chad Beynon

please. Just me, one for

that are mentioned pretty leasebacks. commercial conversations sale potential the operators with active with You

the iGaming cycle ] it's meeting guess margin time. think across some of Is of are and I Or deals some meaning more point, at question do line? timing plateauing? the hesitation? some of to gaming obviously, the my they're waste the this getting threats, So caused [ where we What's the goal maybe hesitation you not is, these that just in uncontrollables of anyone's it specific,

Peter Carlino

I'll everything. give you, philosophically, been the timing is have about way I this. -- think There couple a of

want just to mean, reason And year I their reason You've of cash was have or don't known got a some or Where someone said, another. And the remember I for out. we leaseback then the telling because conversation owner can a absolutely cash. with got willing so a a had all. you seller have in, year another. I do to the much know. would with that to be some I so do money I've truth. way, years, that he put can't I you particular or asset, the it asset that much over to sale I don't put guys period anywhere.

in with threw until they up times the person a you of because you around. guess, lead or away. try is point change. either give variables never towel stick is also that The deal you and availability that But day what I loop when knows walked lesson, asset? a the an be years somebody else, course, who we the there But to there stay it. just finally with few to close, close made to I die, of and So later, comes

today. well, reasons, all state a prepared do you. can do best fathom possibilities, but am of So for answer can give I to matter the That's just it's you some people this the it I

Chad Beynon

Yes.

tenant business guess, getting So I'm great the think the at? is growth you point the still overall, the feel partners that about of I potential

Peter Carlino

that? want something you to add Steve, to Well,

Steven Ladany

are the the Well, potential not gaming that dialogue are in partners companies. publicly I think active now most tenant traded

past. sole have by in So like on in there who, proprietors regional I are cases, private passed families, generations think, are this talking that with the many bigger a haven't done the those, And and been enterprises, meeting lot of private through opportunity or and assets held are not. gaming in guys is the

as learning then timing out, And that has there's a that pointed Peter to So ultimately, place. curve aspect align. takes it's the

the a have will are continues money a But selling Obviously, have they idea transaction. like times, company aspects stuff some and a look lot interest. transaction they of at to to to once kinds with the for sense the move underwriting so they Or or in this forward if point of come for on. goes a active make the son dialogue. than and way their cheaper while. or at to parcel, at align. of family estate. they we continue of lot is And Like likes all of And with time, to this real that all willing horses to every There unlock lot in a us the a moons borrow a their can move don't the the be forward of so value

the and very to I'm So looking about just ahead. be We optimistic constantly that future lie have active. opportunities constantly

Operator

Hightower Rich with is from Barclays. question next Our

Richard Hightower

of lot a Covered ground.

the So carried interest you maybe modeling changed. it benefit income Obviously, side. me. I of flip just maybe just to from cash a talked a last to interest we've a for expense, everybody perspective, lot the guys year. for lot has That think, Desiree, one But about of here,

accruing interest has the zero-coupon away. from bond think I gone the

modeling help side? us the interest understand So just income the on

Desiree Burke

Yes.

income So will into come interest $XXX year as mentioned, billion less XXXX. on we bond. million $X the over have side, be, than much cash, I did the obviously, had but with of X, in will we repaying we interest March income XXXX We in

we're of of how at the on free top of cash decline our lot is year rest June much way will and kind that, of a on to going So on flow. we that our time. call that cash And forward X. And fund based then the

throughout lower you what than but much it's fluid certainly it's XXXX, saw in So 'XX.

Richard Hightower

was helpful. be And income noncash statement, to on the bond, was be then even it that accruing to at just though That's Okay. the some the clear, clear? extent zero-coupon to time, just

Desiree Burke

interest That That's yes. during income in 'XX. was Absolutely, correct.

Operator

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

Daniel Guglielmo

of the you conversations have kind PENN on additional that of property more to any them PENN projects? with start Or had around Ameristar One potential? be redevelopment Could relationship. more

Steven Ladany

a projects. So think just in the their I'll think answer bottom I line right the the are we've started portfolio. operators jump reviewing don't actually And around definitive of redevelopment they is know performance decisions, but Rouge's development. I would all don't have I think will line. of number any top out anything. on of -- they've that and I anyone upside yes. have I Yes, properties think I go gaming tell these But most and now seen kinds Treasure on are you, have if else a that dialogue seen Chest if both number out of the Baton Boyd, They add the entire forward. they made of

and opportunities to others So will entire for evaluate their it. continue I enhance portfolio suspect to that PENN

Peter Carlino

it's a some not made more expect, wait They're they that. capital them little as could PENN's how bricks I hotel hope speak and we major mortar, see to in for easily the as And But I then more. some adding about afraid guess is can't development unfolds. that them. and bit which pleasing suffice they'll and to commitments, of invest see us. it, Well, I would I know successful know. And if

Daniel Guglielmo

your your lot Great. around and doing partners to And the expect that, building, a Jim ground Is as anything be appreciate follow-up a of I Chicago. those kind team projects? I really of would kind current timelines, color. environment construction are all chains? note and helpful. that of of then labor, you sense of around there and supply in What's the color across Any

Steven Ladany

Yes.

a materials As tariff a of United I'll hiccups far haven't domestic some construction, I United States as labor that on type be actual or had either their have of might that tell frankly, excluding heard any we you, the from have based and premium suppliers tariff was outside yet. -- of of the alerted assumption added that impact. folks the have bid any

United domiciled impacted is might So certain outside think the reality I there be it. bidding processes companies are reality ultimately companies that's a United against of but in that that States, just the be may of some that within that the States

Operator

from UBS. is with Robin question Farley next Our

Robin Farley

prefer for maybe has Peter, thinking you about say remarks, from your gaming unlocked, before? kind Is gaming that, probably in whether getting that you're Great. tribal of about do. I your that -- than outside GLPI you you that further to the of outside looking quarterly how than deals it of of with ever ever segment gaming? go heard whole say in industry been terms fair much you Is opening comment the the especially would to fair

Peter Carlino

We elsewhere. But We've we and a loan appeared of development look look, continue had years things. us, opportunity, to never now gaming. of not other have gotten what we'll into always. word, but in business deal, not consider, We've at find the bit. actually we other things with many, we got while Robin, do front a we've better others now. everything. certainly that I've can you found would It's over region the a If We around And go now we many looking, or it. all we've on business, but the better we we're gaming consider don't to at at and stuff. this look and kind look at conversation I look mean, centered

years. they've Gaming I've for bulletproof revenue as Gaming any to are been in United and arguing proven on terrific. bullish, space property States. to close be revenues is the any

we don't elsewhere. can why we this, know go do still while I So

Matthew Demchyk

we're deeper, the we and know tribal keep going hit how and mine, digging in Robin, goes, think don't that Yes, with we gold, keep and a analogy, vein it there's piece. we the down and of like we just it. this second one And of it's and it, to more a there's I deep of

continually they There's Peter's players attractive about point, these, returns. it's of happen be And to X most looking to goal find one. lot in that to good our these And big only it, risk-adjusted opportunities. the only are we're So at if gaming. a is

of of this, outside people competing. And a there's lot

smart and we us. a gaming, changed monetize cost of the front people. of valuation people, the done happy periods XX, so XX, lot But to the of change? can't right we've to all that pretty now, all things gaming inside equation? other of outside our similarly the money maybe we're lot mean a date. that our XX in capital Sure, of in if much in time. I competitive And players got bidding advantages There's against Might what of to we're our long You've compared shifts with over of economy.

Peter Carlino

got good I news more the they deals to of are we more want put many Well, is mean existing vernacular, to doing going, and in be more stuff, so stuff. our it part that. the of tenants

So...

Brandon Moore

to this caution still are I on tribal we the on that. the just there so we're on side. a right? into translate viable working And volume, tribal of if think moment structures We're I'll Yes. that And side, exploring can determine

that I But just also deep -- optimistic. careful we know that at the not. we're I we how want So that don't moment. don't I suggest want be is to are to

that. that everybody So more be it And we opportunity more is. that. that. on become deals discrediting put I as I to start through still the as evident on not tribal to or that of any deep come side the want on will understands careful we're And board, I'm to working side to just how the commercial think

Robin Farley

Can talk Okay. if you about that loss just then this, credit it. provision in expect and for Great. I Super XXXX? Could where thing. small to don't I apologize one I heard missed -- And be you helpful. you I think

Desiree Burke

Yes.

for loans not leases. did estate going, to a ratios it's of XXX really the party leases in can't just projected that data, this real years environmental a those detailed because we commercial estimate of market adding was financing an and those accounting use macro as does a new third credit project we big 'XX. So We from the credit the of having help based in us XXXX for loss at for it's predict. file items set what are loan-to-value provision zero. perspective, a The see change losses, index where as lot leases new Look, that off provision for very context those we the to up a looked are it

we those that credit So again, gets zero our no goes it impact reserve it's losses on see start for happens back leases, item as, and through, so year have to change the we noncash out anyway. with a would for a what as AFFO, added

Robin Farley

Okay. Great.

nothing think words, in offer to, So other you 'XX. I

Operator

Our last question is from Colin Mansfield with CBRE Institutional Research.

Colin Mansfield

me. more for one Just

sort stake the the to Going issues for some that or back what's the legal Chicago. now a capital I being more subsidiary may of guess explored. being to invest know have with there capital Chicago project? company's for an out sold process IPO willingness to that right more it are potentially commit I minority there's S-X

it So capital more to company's to if the came needed? I commit if the to willingness it, project what's guess

Peter Carlino

for question Perfect Brandon.

Brandon Moore

the at Bally's we to bottom right committed commit structure. or is too creates we've The If think that. shape, us for takes line $XXX capital consider But million, spend. and we'll don't $XXX what early to we hole I what to it the whether I committed project. that more that's capital we've now, expect significant the in million, a think would not this it's say

in is them that reasons, project additional the a generally that will to piece think I impact asked. give or time, any of pocket evaluate it out it involved fails and we very creative we've at don't the asked, believe if us been come we'll funds. with and we're not the of reason to that any require have But project of in that folks process a way get of community that legal the project. a If to because lot IPO

Colin Mansfield

Great. Thanks, everybody.

Peter Carlino

next a hope Perfect equally this and answer. us, quarter good momentous news Well, for And dialed got we've of in good thank fun have you who we quarter. morning. was to This quarter. kind all

you. So see Operator, thank then. you

Operator

conference. today's concludes This

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

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.