Gaming and Leisure Properties (GLPI) 28 Apr 232023 Q1 Earnings call transcript

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

pleasure your my Joe now is to host, introduce Jaffoni. It ahead. go Please

earnings you, everyone. Leisure Gaming XXXX morning, And Properties’ and thank quarter Thank good joining And Stacy. you for first call webcast. and

section yesterday distributed available Investor at release press on afternoon website The our on is the Relations www.glpropinc.com.

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

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

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

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

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

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

And Well, Joe. thank you, good morning.

well outlined report another to positive in happy, as yesterday. of quarter are course, We our release very

couple want, to Matthew. of the you thorough done information course, over a I a well But of always, team would think, Desiree very you things and all and of As turn floor is there. then, highlight job the encapsulated giving I’ll that very our it has to

ever, stock highest well. but soon. there quarter at hit And say we’ll happy was price our as this level back to that high through dividend its our I’m be all-time an

successful had. in which And this most incredibly been even today, times. turmoil the many, performance tough many are pretty the in we’ve backdrop been market hope reflected we’ve accomplished what achieving in our that’s many of goals underscores very and of the for So I in rough success been years, the gaming going stable, saying against has for and that we’ve revenues

that good think, XXXX I’m questions. be Matthew that And There Desiree number but should for And going are your is to nothing I this share. a be say significant while certain, directed that leave to year by a to of I prove of will for and very course, our shareholders. company believe of the the and we achievements should those quarter, to then, balance

that, are with And Desiree, on. you

the yet of created as million $X by We which increase the addition rental by Thanks, the drove was The of total of our estate Hawk another results cash in Tiverton LV $XX and Biloxi well Island and Trop income approximately income million. rental transactions and live as Rock land rental cash quarter’s lease $X.X income properties, increased million. an cash and XXXX quarter $XX XXXX growth first of Bally’s Peter. exceeded morning. for income Black driven real the first Good quarter record of the This of by our reported million. over quarter from

million. investment and in rent of also added rent recognition leases percentage cash million approximately our gross combination which increase drove up, noncash of on of had then we rent leases a increases straight-line higher revenue and $X.X The of adjustments, escalators collective and a year-over-year $X.X

offset resulting from noncash by that on credit an by period Cordish the items in performance our provisions is due primarily losses declined but as expenses for transactions. expense, recent partially primarily operating prior our related such to Our increase leases, reversal to $XX.X million, improved depreciation of property

perspective, balance raising to see a net strong $XX.X first coverage million. and We $XXX proceeds these which during of leases settled X.XX% agreement fund shares, to November due continue used our of from across in rent We quarter, XX. partially the the proceeds issued million notes, forward redemption we were and coming million sheet X.X the our

Our leverage is now under five times EBITDA.

to year aftermarket XXXX for note share that units be of diluted this in refined unused from OP $X.XX diluted include units. billion does as impact transactions. $X We’ve Our and of remains future share OP AFFO the ranging guidance per program today. for our $X.XX to Please guidance not per full

will I turn Peter. With back the to call that,

keep won’t long. Matthew? I it And for

us And thanks macro interesting Peter. this up how institutionalization sectors relative ever. meaningful hold our real regional are while The of environment record Thanks, to and has the of flows and been secular other class stability the certainly continues challenges. experiencing Amidst estate track is as this as economic justified asset to been. unpredictable cash joining It’s everyone backdrop, morning. gaming continues for increasingly

GLPI, prepare worked have At this we to environment. for hard

Our protect tirelessly to perfect. focus we the dependability consistency to and flows, worked cash show stability on which in and continues of

more than PENN this our evident is in Nowhere lease restructuring.

to We cash to our improve opportunities quality the flow. of leases seek will continue

foundation we In the role addition, purposefully long playing few do. after a all a We focus on as remains our the its conservative. that deleveraging, years balance for with game of sheet respect

high available due EBITDA addition with debt billion profile of liquidity. a Xs, In of under to $X.X the September maturity close to until and managed also XXXX staggered maturity we to next our managing not

so relationships and the folks that with a We we years Headwinds attractive the lost be that Lending wide-reaching over more continue months talk more set predictable to the and have counterparties. positioned in them. we and on on pounce less be see to. is reality could stage banking not sector potential to opportunities be dialogue robust as the to used coming that bank and costs for

the We’ve value both reality for partners get I of up widely that backdrop, our that current of can potential current partners our to partner, is also gone last. GLPI that the partners. And confident make in dependability tenant built is dependable a capital And and line. has The that for new always appreciated. comment been the to be finish one substantially. and

our Our want unique a specialty. solutions us just that but our not choice access bespoke structure, ideal which an transaction is makes multiple to financing sources capital a for including counterparties

not Our their to only have but into to partners current meet well the needs needs, can want continue solve who predictably often partner future. to those a

have and shareholders’ for As foundation, with of new we on capital. strong remain we opportunities financial move our we the unearthing what prudent improving our forward deployment focused and sound

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

Matt. you, Thank

well. says would Stacy, it think to the open it you floor pretty I questions?

Thank you.

with Instructions] Greg a go McGinniss conducting ahead. will [Operator Scotiabank. We Please First now question, be session. question-and-answer

morning. good Hey,

across pandemic? board in at revenues, touched are your this the more of view, but Peter, remarks, following or In seeing be your kind where saw coverage beginning stability escalators quarter. the So maybe of normalization the opening on there the of trend a leases you any of rent And you we risk? ratios decline a more are gaming also might

answer paid. kind guess us. I’d the been from very, way, the small long, we quick so that I get any I threat no has long make matter a point very what subtly of is in not to mean, given The movement is happens, our coverage

wanted so to see you on And we horizon. no absolutely Des, comment? threat the

Yes.

XXXX are coverage still rent levels. the well above ratios Our pre-COVID

of feel rent. so we And our still for they’re collection very strong

get to you’re going before we to paid. don’t hit disaster look, have And

So open front for reason, you obvious the don’t rent, door. get don’t

were you can’t tell from listen, and point do time, of I as the about a atomic and revenues So in that been bomb this I absolutely, one to long this the attack threaten neutron equivalent say the anything solid of I’d Well, very take talking of think we can had with I form the I’ve that it – we used further investors and in would shut a at talk rock, that the down make, our but internally, – gaming for many country. having revenues. to an

paid. companies contemporary and We our got all

know So I takes to their what make up give don’t do clear people that just not entertainment. it

has So the proof I well enough identified. been said, think

was just total Thanks. on market, to-date. whether for update saw the we Rouge cost of renovation a Baton article Are in then bit all then then taking spend you Hollywood million with investment an can And you on $XX that And thoughts Could a part a demand million Rouge, a Baton in announced year. Baton Okay. going of Belle Rouge, justify multi-parter renovation and on on late any investments? last after being customer do this expected investment? please provide on And $XX news development. also support have you approved those

over Rouge, about left that fund. to I’ll with and turn the in us. million that, going to you’re to with projects have cash to Baton asking start we $XX Steve about GLPI I’m So And talk other it at

building the tenant was with question We part Sure. Belle at Yes, and think Baton own Queen to your there. Casino I and of the do our is Rouge. of your Belle, second respect the land

They’re ongoing had Baton the dialogue the Hollywood Casino previously. in have Rouge that about just you We asked property them. with tenant also

have So dialogue we with them. ongoing

but you. We to something project, an are definitively tenants. tell And that continue only provide we have of once ways be update them going of around all always supportive are not for have to to our looking and we to dialogue we’ll

Yes.

that basis, being aware think Hollywood a in All time. date doesn’t said, all me which early add get on as we – targeting difficulties just probable well Let trying have There just moving things show Baton materials, a I any have equipment, are landside getting Rouge are an in the September way say example, HVAC along is that for we’re pretty safely, equipment well, to that tough. visibility on on the project. been national we let’s barring of

along So way. project the by terrific, looks well that and is

obviously With and comfortable in government marketplace with feel state and respect Rouge, university. a a Baton a the confident to city market presence very that there. of we It’s depth has

it’s market We the about of actually there. demographic. very a And the so feel good longevity growing

Okay.

from Rouge, total well, I spend $XX the call? So the last definitely think on million that’s Baton still

about be Yes. million. It it’s $XX right. a just higher, That’s but might slight

Thank you.

question, Citi. Next go with Rose ahead. Please Smedes

a seen in maybe wanted or you what’s traditional marketplace, you speak some is assess the and of terms of also Hi. we’re opportunities issues you in might else with sources just little more potential of if banks to kind maybe to competing with could at going the any of and regional given a you just advantage changes that the as and that you on across I just seeing Do interested Thanks. broadly. here who of think be you just bit just looking relative ask have capital.

the that? but look add think to are, quick is to we want I I like Well, you think answer Matt, you

is model to started to we evolution cost and debt but business used availability it in they of we’ve I around, mentioned robust the folks their as my just also got prepared others, not access intro at which And effect. I and quarter, last poke you as common we’ve got the in mean, that And changed they’re as that access funding. mentioned remarks, private underscored, I competitive were. we’ve look equity to the little good has that was to a not Yes. and as certainly units, OP Peter’s banking think the environment equity, not like if

put lot in a relative you position folks. together and So total a competitors, than to to our capital cost other we’re ago or compared now those stronger two the to years relative year things and

interest companies, have won’t now. And folks some assets the for to I card we’ve space. of the the we to they public while suspect from release trying see remember, little as have, heard earnings stay we the other best we’re large to are, the relationships tenants they wild look our we’ve new in the of through we’ve certainly is a if and if you others a only got buyer for lot the The the push verbalized as names. things leases But in of see way are,

to we hope that find new opportunities. So we’re positioned and well use to

sticking on. my number got here we’ve that things shop out, the we’re neck interesting And Yes. of a working in

You bring good for but place. got pretty we is them to us market’s in over a think the line, the finish

opening relatively talked number overall, sort of sounds of And a as steady which mean, terms you’re you’ve or up? guys on of you definitely picked it just been kind that in just it last decline curious, And as about sectors well. kind I’m your transaction if seeing the wondering seen opportunities call I mean, you other activity. it like think kind as are of flow, has in if interested on just because of of is has Or potential mentioned we’ve in in, remarks, I people deal I assessing that well. are the

to take do cut enthusiasm want you gaming. that? Certainly hasn’t for Steve,

enhance type M&A people a scale Whether But adjustment with Yes. front. that market think without saying strategic for an or someone Look, portfolios. transactions, to valuations an of large caused be along to goes little of divestiture clearly property with has those still bit slowdown on still has addition it strategic. respect else impact a slowed. I that and The plentiful to one-off credit are a their looking asset asset could are of means that an needed

I it New like to side Baton Rouge. York, and redevelopment states be flow, expanding properties think whether Virginia, like we’re with PENN with of in plenty already deal the respect announced doing and existing seeing of construction which or even, Hollywood simply we’re and greenfield Illinois, like we’ve are on

different plenty of than continues in there It been years might in be slightly it be buckets has flow. So to deal just past.

you. appreciate Thank it. I

you. Thank

ahead. please Markets, Capital Keybanc with Thomas Todd question, go Next

as line of you changed here? in at new I financing investments appropriate all that in solution hurdles mean, of accretion underwriting your when you the GLPI the looking return Hi. how in I current new about that thinking around you’re guess questioning, Thanks. that for Good amount need, discussion environment. with following-up you Have the are a the just deals? morning. spread

spread, all. I of mean, we a an specific our approach opportunity. by I but the it’s changed opportunity, that really risk We varies market. appropriate the mean, the haven’t need of function at

compared see us should to figure they try continue others different create And to think again, the to how But watch things out we, or being way banks used forms same have not as you to where the tuned exact you’ll stay there and it be. So take may about way. we we end. to solutions

or a not an then where And I may you may Lincoln option guess Okay. question Bally’s about XXXX have happen. through that

do yield. cost can lease your the predefined or you risk where think lock where several and the of versus weigh waiting spread about potential that of a in cost quarters? to you do capital or funding in over you investment have that think that maybe You next today the How of How of see in your about near-term lock trends capital, options? pre-funding your sort

Well, Todd, either perspective. broader to be enough to EBITDA from the original we around debt we work raise did announcement, able raised path equity equity have this a when to

So got we’ve closing. loan is pre-funded majority incrementally effectuate look locked in leverage transaction a a term now. effectively the at we if mean, where that you we’ve right can a of our I

in cash actual the large So would come that majority. from

Yes.

be transaction, the funded would transaction debt, through that credit So have our through to Bally’s our actually bank agreement.

we revolving a have if allowed debt guarantee we’ve that that transaction. do We facility tagged a Bally’s we because have piece our to

that our the think we’re credit wait and at did we’ll If a pricing reason question is but answer effectuate I would transaction. rates would at the for assessment at look to time, is, drive So what it some assuming markets our not we accretive using make see we GLPI, our see, be that in the order agreement to your option. that for real is probably,

right, you. All great. thank Okay,

please question, Securities, ahead. Next Barry Truist Jonas go with

for its thoughts you international guys, just or see UAE. market any to for morning. Maybe if GLPI? other put on on could involvement have details get Curious good the see Thanks. where future any markets – potential that plans to some out you Hey maybe

do you take Steve, to want that?

for Canada I look internationally. recently. transactions some Thanks in do obviously more We mean Barry. the come we’ve seen continue to question, across

would tax more that of both type how in. potentially that up UAE. the transaction we each time impact government a would economics the with spend regimes better But these But will deep opportunities, of we to only international do pursue. that and on the in We be not taken importantly, not of a the legal have set arrangements dive and transacting respect any understand to bunch

So to we internationally. continue will look we – have

and but We in analysis. have it’s internationally, on dive a country-by-country an interest expanding basis deep a of

stadium. Trop. then a site is a follow-up, you the the And on word wanted just selected baseball could it. for as sure [ph] much say, another I Got touch to that but A’s how Not have

is to you developments of think a one are still there options being Or So discussed for of square it there? sort asset large-scale your that could involve there? back transformation

can’t A’s be all referencing the the respect goes, to to articles what out we’ve from to the we intend with do And can’t does as Bally’s don’t [indiscernible]. some or same speak read have yes, doesn’t an you’re with far how We just it and site. to of clear, – acquisition land we anything as But that the where to state front. all plays that ability on that

much so Thanks Appreciated. right. All it. Got guys.

Thank you.

go ahead. Capital Guglielmo One Next Please Securities. with question, Daniel

Hi my everyone. taking for questions. Thanks

have share respective data the you market a The It on allowance the is gaming have just like been based generation that and wants. the reporting. like what first seems for found casinos one their all Live! casinos. gaming looks new on balances state recipe in Cordish It taking cities, been also those they

a it’s been relationship year, think the can how that that term? How you all relationship? now do all So you that long do big get over think

for is It are impressive giving Right. Look, involved, basically about we’re the been incredible. I is just very Frankly, Cordish team have out see playing away on that. optimistic how good. Look, David involved their the like, when these the operators is are flat incredible. he, It’s good really money. promotions guys his floor sons, properties. very floor and on in it to himself personally

very close and them, And for expect can’t much them. So is we like with do I want hope to going they’d with to more We tremendous that think I well. speak more the us I opportunity think them. forward. but stay do with would as We

thing. very They terrific operators. are that’s So very, a positive

in softness one a have and just there second reported. Louisiana But so some operators about few some the only then And mention – Great. was is Mississippi.

lease. in that’s trended down and for I appreciate really Any like exposure slightly it there you does going have coverage look is don’t by that the much markets is those how quarters. and the on guys lease, over next the some few will there ratio years? disclosures last those few the but But there, over think comments on what Pinnacle You evolve

Well, holistically, a dialogues perspective. been we’re getting from relatively property the in our as you in the has flat a that by get tenants. the know, up information and holding U.S. the from tenants But we with line domestic whole year-over-year our as sense don’t market

tenant might quarter. of discussions I feel from So, or hit some around hysteria running that feel trends. are in of that, the sense people any be our any that domestically. state a one there’s the think the get quarterly people about regional that of I type of the I for don’t hills like market do phenomenon the gaming very comfortable But

Great. you. Thank

Haendel St. question, Next

with Please go Juste Mizuho. ahead.

Hey good out there. morning

your comments of risk and this found earlier of the I interesting. gaming So, on balance stability period uncertainty sheet mitigating during

impacting balance uncertainty maybe outside considering So, not was managing I also risk. restrictive be only the potentially thinking you. how investing incrementally availability, gaming the gaming? about sheet, about lending could and risk macro But you’re environment holistically hoping current more of about how and how of talk you’re that in riskier more how managing you but and mez the could investments you’re potentially Thank thinking development, [ph] like within debt

think Well, first, for for been competitive a and different lease, business, very a one-off business – that in advantage understanding transaction master pretty a is so the like I’d market. and we’ve say some the is market-to-market, from we do other you forth. and you risk, at do one time. this might this sponsor-to-sponsor, set one a its have to in operator one-off good us of team with every be I something mean long what a strong might on on that I would looked in

as we It’s our is going that raised. simple it’s So get deal. concern the you’ve that. deal same as And to paid. Are by

Matt, that? something So want you add to to do

we’re know we’ve on And a I will, gaming There’s way And gaming. we’re focusing kind of had mean of commitment go long got It’s double will, of And a go you shape. our things to in frothy brought level, should time. risk outside a at you things expensively on not high hurdle based they still of everything a margin we places. the market if way with we’ve it a than good. for where probably it safety. up means think a outside really we a it, don’t And think if in else investing mispriced Haendel, been been the you in they and good and trading caution trading should. been view of more then of really if lot gaming, that

cash looking. lined So things to it. makes keep move something forward gaming. up relationships. on of haven’t we extent tools, predictable But And sense, yet, flows And got we’ll durable, too. to looking for We’ve use the we deep continue outside

licenses, give protections, what cetera on got You macro, at We’ll when us same We’ve et leases corporate master look mentality we date. use cetera. micro protection think and as from known about really continue credit unknowns et selection, that risks, we’ve to operator opportunities. done to you also either layering new new that assess

own you. view the And if the couldn’t on in helpful. That’s with current you Thank curious, get you comfortable investing land? how house tribal? I’m would that what’s

that’s probably silent opportunities mean, involved. we Well, the else degree you time who’s lot, and giving we been underscore, at we years. to to how little can good so has a question. Brandon, a looking gaming Brandon, bit let looking some and at thought lot get look, for about that. far, a going put in been protect tribal actually a tribal I’m might We want of to color? to speak the [indiscernible] business spend everybody I ourselves

has focused been and have in the And I to. challenge happy about in different invest tribal types when others the side land on on where obviously I side then the think of lands. I’m to sought you gaming you’ve that I and gaming, when that tribal held there’s the trust us we trust there’s tribal – for that with the Yes, commercial gaming. There’s mean, government. is think think two

in routine place over the that the for I think become have robust. so, banks others of the protections and course more or last and decade

I that look those each to real of look unique you know those don’t and think the of see those can you over is little have and perfected are to situations that and real see I if think them estate across at very long-term protections ownership trust a at tribal port anybody’s estate the – there different. not I so model. I And markets tribe. I the it yet. – depends And think land a in is it and lot on I’m possible. country mean that

And optimistic round, is it we’ve we I quite don’t a so I’m that can wheel but done yet. think

regional curious the guess, history I’m more had more tribal? is has Brandon. Penn too, ask stickiness I the about I tribal curious or history with gaming But helpful see? – as downturn? I’m Penn, data there to Thanks. of to since guess Certainly ever you, can Is well of, I curious I a That’s assets. been really economic of invested you’ve any is there us able tribal curious, say been you’ve the think understand looking or it. during relationships historical any as, into assets lot how between perform history that much

several you last a that facility successful tribe relationship with the of [ph] San years from that operation. facility Penn they ago. tribe that Canada for where in the tribe had developed Penn very a may outside a the start successful relationship was recall for we and If and less with Jamul a Diego question, a Tribe, manage beautiful did

goes to by situation. tribe tribe I think that and depending situation this on back by

anything haven’t seen did. I here they and As in others during can as COVID, far chime certainly if specific tribe’s performance the

casinos, the because tribal regional like keep in facilities commercial generally mind around. that of Florida, similarly these in a where Oklahoma, trust are to performed think aren’t they California, there in held states other land are lot casinos I

in population states. the those the are facilities for really those So commercial densities

I were think today. experiences to similar commercial And so you casinos have very their there out see from that the what seen, I that

Great. Helpful. Thank you.

Next ahead. Katz question, Please with Jefferies. David go

gone get capital Thanks morning, of presumption color questions. looking cost like, changed, has is be whether for last your that’s on taking less a the opportunity right? increasing world specifically or The set to some broader Good developments flow up just far and just wanted is your just my getting what months, deals the of the new that whether in has market nine a little I like? in bringing what and and there’s looks of numbers way are available refinancing may shifts opportunities sense everyone. financing

this. is suggest my thing. me this personal And Let

We haven’t I you’re other not no interest day there as as in talked . Gaming, developing I a I was to have again And class in any any of have sense internally. much sense. is by of day. interest noticed gaming at Steve, this My sense say at and diminution facilities as today is time. again itself.

of course there that’s there That’s No, some correlated state around that’s think completely to are they’ve I like mean, some accurate. projects kind look, of I – been are floating of there years development credit the seem the that opportunity. to not for markets. correlated the underwriting

there his The have typical credit opening purse Matt on They’re hit traditional banks tightened rates. remarks. strings. with less a you go try still play. to could think to that and market I underwrite are is of even lender able further anyone up their The where to area up around, ocean from the a capital roll I end sleeves to think it optimal in be and middle then rates than became And less open So has perspective, cost optimal. willing and might this to

they as financed And how us others similar get that folks we their think, same projects are are. seats are getting phone from can sitting we ground. off in the trying are I’m to no different figure that and all calls sure out so the are I than of

So some property by process. a are by we’re seeing some opportunities, on underwriting of project, depends are and interested plenty not. all And it

Perfect. Got you. it. Thank

question, ahead. Please Next with Kamdem Ronald Morgan go Stanley.

quick ones. Couple much. so Thanks

on just starting so – Just the leverage.

generating, because of sort level, how do much the going If to you think you to [ph] cash range, you’re you X.X, leverage think into can on we of XXXX thinking? get going a about curious end where sort flow XXXX, X.Xs and are is company just where the guys

our [ph] transactions. end still We net again, assuming leverage. expect range around the given to Yes, guidance and current X.X no

on what specific change on Is drove the it Great. what NOI, you core is the be And guidance, interest there? Just income? was that then $X.XX bump? just it can

used expected. the end, than better then assumption our what average interest we so in end. than Yes, we high And on in on end high the that it’s had our the use guidance low rate in rate came not we what’s that interest our better average

So interest it related is really in general. to

transaction. then And just last on one, another one the Bally’s the Excellent.

I months going December that in think or sort likely less past trying one. of should anything whether the get given Number potential it how likely? the That’s to – month there? any we timing, a two terms And less is two, XXXX to number of Thank know think that pieces it’s that any events we forward Is you. the to then the sort one, getting months more is deadline. does to month-and-a-half there scenarios of look here? let the month, should event it. just prior number lender about Like, change likely, sense of of impact consent, and of does on past more month-and-a-half us

ahead. go Steve, you. Thank

to make is it. got back there we’ll Whenever our Sure. we’ll decided whatever we we’ve look, on will actually up to to timely. basis we either that or And have we informing an updates pass try keep you deal signed be announced available think the It’s us. the provide decision. With option, apprised. I continue And timing quarterly respect from goes, them to that on be certainly, opportunity a the hear we’ll we’ve to to to the marketplace, that and to effectuate you

another, to you’ll way date think with I be So one up that. or

is needing selling going recent to how an the them credit that’s may create Look, facility language their refinance With going opportunity to credit respect the on. I from play the reality that likely remove to into they’re up asset. think what’s markets, that most to end prohibiting to

easier foresee in a if the involved don’t they future I lenders through current consent, with again Those – pursue maybe their So but a discussions were to either path lenders. we’re being refinancing. their or are their dialogues lender lenders not with their

be would of of would anxiously be kind So perception that movement path easiest sitting front, on the we’re here but – the would some forward be. that that my of what kind awaiting

much. so Thanks Great.

with Decree ahead. John Instructions] [Operator go CBRE. comes from Please Next question

Good Thank Hi. everyone. for you my morning taking question.

morning. Good

stress gaming in had it’s time, secular remarks comment durable is. the all kind But of some whether Peter’s about banking real the business classes asset it’s just an estate you or highlights prepared other the related. seeing, Matt, your are how or that economic point of interesting

see question realize bad So wants indifferent estate take whoever or real of as And implications, I we there any broad a broad. good, that’s business? your kind other it is, to for stress asset classes, in for are

competitors to haven’t of gaming you given additional are traditionally question industry at started some have investments. of have your looked in? outside position? have institutional who is pockets the looking that paths with maybe maybe other reaching the gaming specific So people have capital seen kind that need guys, assets out of more step you Or new capital the of been cross And you types for from

or So players implications kind of any broad, more but if kind there’s you’ve yet? seeing of or less that seen

are. not I we but as do look people one? is address is, found. that them, Well, lot at I easy where look to enviously want blame you a some can’t Matt, have say quick as getting here a answer of

a things their years classes all now position quickly that to Yes. they really got to stands estate. compared something they’re a how not wounds, treated, real other estate. how tends real and and a and it’s and very licking where track lending into at banks financial back look aggressively Thinking they’re to re-categorize impact of estate, relative real in certainly few added record, asset that’s crisis, Look, out we’ve that basis on and

So more a on count We you fairly can happens us it priced go, to as got to attractive we’ve like much money. environment, us. the ready extent in and this solution pretty makes and we’re again, that something because that

from benefit. something been should do there And be around where work that incredibly something for. some to able been incoming have we’ve to yes, So long to looking for folks time would has gap do where they’re we the and and bid-ask our want to talked a wide what

tighter. it’s now And

even we’re announcement. an But certainly, at a for development historically looked of more We’re have alternative not or realistically there gaming the being loans and yet than things talked as seen we were would about. you Steve outside or lot an

this a flux. think kind see too more happened the of and are things So sense. a season Everything our volume. in state little lot direction has before a that of But need in environment we in is to moving whole you world quickly of I still

– what we’re at next they’re if falls and we don’t look next getting and But going think years to to and spreadsheet business be into I use place. there, confidently you their couple XX so few quarters let’s XX that a planning of say, than the see because someone’s to over the for So something. or better something you’re going in watch seem plug hey

That’s everybody. good additional color. Thanks

you. Thank

Massocca Please with Next Ladenburg Thalmann. question, go John ahead.

morning. Good

John. morning, Good

Maybe on terms you it or if know investment couple last quarters? been any talked spread. kind movement gaming I But the months you over for bid-ask bid-ask there of opportunities kind comments has of Matt’s speaking of will, on non-gaming spread, about of assets. in

Go ahead, Steve.

side, side, seller I quite yes, on and the on think buyer not the yet.

think different were are XX credit – markets right? the Valuations that into of been a ago, anchored credit in honest, were that months have valuations a it that I different people materially So long kind place, look, let’s markets in place, that the hasn’t still changed. be been were

I was from not potential what – people I think they valuation side, too are a seller think I perspective, seeking So reality on knew the long still think look, ago. a

some a are equity people current and are to. means down prices math put that buyer into they people’s cases, to I think from market have credit that, cost side, their in a realizing day

it So some might take And little a it short-term really not. a view. longer there’s of comes the I disconnect, look perspective is come cases that there to beyond kind rationale allows think of down strategic someone and in fruition and that others, and a bit do a to might to,

that’s at find So the where moment. I think ourselves we

Okay. And a what kind in you your focused funding tenants today investment of PENN new part deal on talks more And obviously is assets? appetite already place, major a either conversation current for have existing at is partners then the of of outside or broad that of development or even where deals? the de novo

dialogue. of whether it through things tell starting properties they capital projects. that I Many ongoing constant tenants on that and focus reinvest like a feel I are of be constantly improvements are our of own, hotel in line. their tenants to properties would more remodels, our doing and It’s the you

projects and They properties a more ongoing in to of our will and we’ll to months. that the work But put into finance desire an willingness continued, to So help think that sometimes pursue has the I we constant starting are actually themselves. kind people fund those projects. with the other recent them dialogue dollars are that’s and times, in around our financing dialogue

Okay. straight leasebacks? I for kind between of versus sale you hurdle what of would kind it’s is know kind broad kind a do bespoke assets there of at existing developments return acquisition but difference of deal-by-deal, sum those

No. Look, transactions. I accretion see trying think all to in we’re

folks we’re sweetheart we inside So offering not the transaction doing projects for own. dilutive pricing buildings we to already

appealing financing to in we’re have trying for So that we to to return. fact trying accretive where to be market depending our our and and stakeholders capital. we’re still constantly make accretive stewards being someone it go the time sure the an may, of earn might good But raise on where sit,

me. Great. That’s Thank much. you it very for

you. Thank

ahead. Please Next question Green Chris go Street. Darling with

the the in Diamond a with in the Good project recent to time? this ability get to you’d Bossier I’m some like Jacks by have on involved perspective your acquisition on any market’s of additionally, incremental hoping then City And potentially you capacity? just Thanks. Is to Cordish. over absorb supply get morning. thoughts

with to going I’m one. you let stick that Steve,

They I project. Cordish opportunity. about and think very Look, excited the about the talked to project we’ve the seem –

we of that. them the luck best So course, wish of with

I that There some as the been think, there. issues Shreveport market did have the support over ban in far due goes, previously. that casino As marketplace to smoking

reaped has benefits. So some Bossier

now. additional wonder competitor Texas. is gaming continue if there come I do expansion I think that in marketplace is clearly to might able But what for to absorb an

Got it.

They’re genuinely very this are. bullish project. They about

We they’re past but I never said earlier, that, them. haven’t talked are obviously they committed. would as so bet anything operators, And I about terrific against

their there maybe level compares helpful. And curious at is given time believe originally And to just the gears Live! you’ve underwrote guess I how healthy Maryland speaking is, property. coverage kind operators, switching acumen the of the bit, of coverage to first as this that you just rent understand It’s acquired that when disclosed lease, what a how property. that that you I’m I

Yes.

So at which they’re is... two right times,

Maryland.

Maryland, times, sorry, is Pennsylvania two yes.

the a The relationship acquisition, are nothing we’re Cordish we There’s – actually what looking the kind performing what properties with time. it, clearly, we with So – at the at we at together. obviously, better happy they just but underwrite two not But it’s underwrote than lease one of did time. we them expect.

looking a at X.X, we we’re originally But recall. on you Yes. basis, forma if pro

a property. So this is really for that strong outcome

Appreciate time. enough. Fair Yes. the

you. Thank

would remarks. I Mr. to over like to closing you. floor Carlino Thank for the turn

Well, the it sounds end. at like we’re

with So next that see I very hope you some we we we’re the hope excited year meet as we this thank you all quarter. pretty positive that deliver news about very much. and idea leave I ahead what can

Have again. So Thanks, operator. great day. a thanks

teleconference. today’s concludes This

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