VICI Properties (VICI) 29 Oct 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you standing by, and welcome to the VICI Properties Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that today's conference is being recorded today, October 29. 2020. the Properties. to turn Counsel Gallagher, now VICI with will call Samantha over General I

operator, good release you, be VICI company's The Thank Properties and and found third to have release www.viciproperties.com. section quarter the in access website the XXXX of information at earnings supplemental and Investors information. morning. supplemental can Everyone the should

Some federal securities the the meaning of our of comments today will be forward-looking statements within laws.

intend, what will, project, identified refer detailed the risks by we interpreting I other you the of believe, in to operating Forward-looking expect, subject which caution as should, cause that actual are could and the are usually discussion of phrases impact filings materially should results statements, and expect. more Therefore, risks to future uncertainties financial company's conditions. exercise or a could words similar them. use numerous and relying differ results on SEC such to from you for that

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earnings Samantha. call. you Good quarter third joining for thank Thanks, and our morning, everyone,

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Yes.

Sorry everybody. about that,

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exchange a in we fund at Thistledown Additionally rate. at XX% rent $XX agreed for JACK in July, incremental million the expansion to cap

long-term value our providing ways also having with demonstrates VICI all and benefits partner, partnered as that parties. JACK support them of as we capital a access incremental We efficiently in Entertainment create of the This and quickly preserve tenants liquidity. some by for to

transaction quarter, with Ed $XX as executed New on the an loan Chelsea Finally, in Piers City. York we highlighted during million

transaction We involving incomparable in experiential are incomparable an very city. an this excited to announce asset

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excited VICI $X.X remains gaming started sheer very believe to about is early our gaming activity gaming in pursue of given is growth of ago, transactions outside assets. billion that financial magnitude may before, said As and of we the transaction transaction come. years the story we're robust over and we the we Despite we market just since three innings will dwarf what within likely and productivity

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any fair us for to consider asset You participating should gaming. expect an within in sale process

to and the investment Las markets stakeholders, imposed personally bid we real refinancing continue was the the have to unique of properties protect to yield have current in casino to amount been regional and brick-and-mortar to operating to of believe prospects environment. many properties week estate this on continues which across for and and numerous we are business the operating managed has our our With sectors, the the experience greatest John restrictions has greatest assets durability. have that operators the showcase and for operational quite as with many many the many of spectrum, nation, seller guest superiority is asset in the impressed its prove an proceeds respect and giving the our broad growth. profitability. changes the experience, of proud earlier that of enhanced Vegas across our assets to includes our continue tenants improve that other very their visited reopened Despite way done of a challenges likely Given environment, the relative

gaming financial in sheet and lease we stand primarily run We now ready touch other are through capital. support and operators invested extremely flexible proud of long-term results. and initiatives growth and through balance our integrity on tenants to our to be the I'll fair terms,

related Just statement. non-cash of $XXX.X items. XX.X% turning of January QX, XXXX and during total income GAAP from the to the the XX.X% and AFFO in 'XX of and included XXXX; of per loan revenues were over were Eldorado increase an QX, and and Century which as result Forum XX.X% was mortgage; income million, 'XX closed increased QX, over per AFFO Caesars million year-over-year increased quarter. or QX, share primarily the million in QX, of for diluted million. the $XXX.X QX, AFFO revenues in GAAP adding transaction; result over XXXX. acquisitions Total the These XXXX $XX.X late Cincinnati Rock loans in to XXXX. increases Accordingly, which JACK quarter closing the increased Thistledown Cleveland rent over closed million the $X.XX $XX cash XX.X% share the a revenues $XXX.X acquisition 'XX. Total of Hard

increased share approximately balance XXXX, of our closing our primarily of result a of Eldorado-Caesars which shares Our our in transaction. portion fully settlement XX%, sale sheet in the June agreements count added of XXXX forward million the on advance June to as diluted XX

efficient highly high-XX% the into XXX.X% triple-net quarter expanded results as further for flow-through once was and margins Our model, our highlight again the range.

line $X with items was on in percentage was statement. triple-net of a G&A Our income projections two ratios for full highlight just the I'd to the sector. of like total is year in the and quarter the just X.X%, represents million lowest as our and revenues which one

allowance CECL is which In first quarter. CECL our was third non-cash new The to related allowance. investments made the ongoing the we the during is million, $XXX.X the quarter, primarily

As a close, the reminder, when record allowance initial new investments P&L. we through an CECL

our part upon sales-type of our of reclassified accordingly, our marked gain. onetime XXX we lease leases under we non-cash. gain ASC leases required the to transaction, Eldorado million both market are leases These as classification. reassess were the a all to modification. to and $XXX.X modified Second resulting is Caesars When lease in them And we items

As or AFFO such, there impact to no per is AFFO share.

to should to used that AFFO we We and our be performance point our pay evaluate investors AFFO financial continue to believe to primary share, as metric per and dividends. the ability

remains of of the the The and settled the cap June a and $XX Piers only million our annual transaction. the which loan we And portfolio cash Eldorado-Caesars three billion bond the XXXX amazing years with September on closed well remaining of we this three XX, been Chelsea relationship X%, the assets truly portion loan were Vegas our And sheet. to agreement, Just rent of sale on term what as as on principals. on approximately $XX our as a acquisition on balance seven of a rate Chelsea our February with about term of we've Convention well million June capital adding million proceeds the from cash refinancing net held funded rent the came balance on On proceeds closed long-term Harrah's from has of the of $XXX million million the from million Palace from asset through activity. York. has loan total mortgage closed XX, offering undertook is Forum sheet with balance the Las to about consideration $X of initial million undrawn. to settlement utilized and balance asset cash as acquisition On a sheet transaction, the proceeds that This Center the Piers we touching billion We irreplaceable in in we is and Harrah's our XX, combination forward October through loan $XX on an stack in as an escrow $XXX July incremental an of New agreements, previously our of forward the of Caesars the our shares of Caesars spoken sale XXXX of on realizing interest with $XX mortgage sheet. the mentioned, Caesars, in September XX, for $X.X and as we fund cash. and utilizing then markets summer, on process the

average X.X Our of interest total debt no is at of $X.X outstanding we debt was have our and billion a approximately with quarter-end weighted average maturing rate X.XX%. XXXX. maturity years The debt weighted until

cash access investments, under hand, leverage which within therefore our have in in XX, leverage, liquidity true to $XX credit company and net levels, represent $XXX of the availability our maintaining revolving available transaction $X of reflective addition, $XXX.X billion Eldorado and the in EBITDA approximately from the from range are leverage does income in agreement. We shares million million XXXX short-term million net is run facility, does comprised times. which well not LTM-adjusted rate on sale billion in This approximately full undrawn. not subject settlement approximately actual is proceeds it months a of And currently $X.X times. between stated our to million has the the future not of our X.X five is of As include September approximately was ratio forward debt XX June then, of true our of that X.X XX.X to as

XXXX. dividend share. in any During of increase XX.X%, on dividend we a $X.XX REIT represented This of during quarter, highest one the the based per of increases the of $X.XX from the paid annualized third dividend an

for our payout line that, the XX.X%, with AFFO long-range of quarter line ratio please operator, target third open the was With in for XX%. Our questions.

Your Certainly. At may first Rich to from we'd Instructions] Hightower like is you any Evercore. this with questions take time, question have. [Operator

Your line open. is

if the And all John cleanup with storm you're there. listening, down best

I've again. moved can tried you me know hear and I'm don't on, if now. I locations

cell working. Yes. they're like Yes. No, the sound towers

I -- like. know what but So that's

maybe the appreciate loan. bit background credit to I the -- a as second of here. all guys talk Piers But best, but So, said I just on underwriting Chelsea yes the for about

the help or the loan? maybe lines? us those I or something and understand facility, said implied the that as beneath the owner loan then of us understand behind of land of is the terms help an is Just sits mind. some understand know equity loan one sits security you you VICI VICI's beneath expression EBITDA where that don't stack. the there in the Does improvement? it just cap if So, along details the the the own VICI's But us help only maybe

David?

Rich. There's ground in a there's Yes. Thanks it's even lease though -- the or lease on ground a river.

to excited asset is years struck throughout EBITDA was New the during film with and going businesses months. of just global some business past reopening. the Some the The are when Financial did content. the the think asset studio of need The but and productive with all is location a shut assets the the and Chelsea history. very X/XX, EBITDA. blooming as it Trust, Financial complexity EBITDA This Sandy, XXX,XXX the to the a XX public Crisis. and weathered in XX-year has the magnitude few are Piers. majority own low the the has improvements generators about their is and they've of businesses for generating and And consistently generate metrics excited that the about of we're of the there's the size Hudson asset XX river York you a said COVID Great the the and they this And obviously, past of and highly high peers acres this and LTV the peers reason but with Park Hurricane very, been And operating revenue feet. support aren't ability square asset that Ed

about and we're So, the in lead excited what this may this to future.

sort And to we David. I make there. is near at it mean just infer that should or early helpful is term, medium that's then that longer-term Okay, far least as that the too plausible potential sale/leaseback in to transaction somewhat as of a assumption?

Rich, this Yes, Ed. is

I with a is it'd certainty, make develop. very relationship at it's throughout footprint New that think assumption a its utter be to region. but to It we've of is expanding early worked company any York kind hard that the least too

all of we the on term. we're with relationships So, very focus to as eager our partners growing longer over are our

put then a bit lately. quick look got Okay, a Would of a based on VICI words direction. specifically a the non-land-based chance form operators would area one specifically And of where capital towards different sale/leaseback be would in that facility, other provider land-based the investment And a sort pretty operator? to that? phenomenon see you sports but lot high-profile increase sort now? be of for a a VICI right been of just of online to the in in maybe In been the trends around of on But about where do deal feel obviously betting. That's a how the there's it. for a part on growth opportunity a proceeds flow you

right be important future. from for our very will of gaming know revenue focus an and on I'll companies tenants market, John. a But a and over to addressable those I even obviously turn profit the new in the and there's making of could kind profit exciting things industry now iGaming yield tenants total Rich. lot of providers going credit this and Yes, of think to that is us the in what betting. sports one better on then most on directly And lot it focus our start I our revenue

positive customers. the has powerful to discretion sector are where tailwind with a of the the a behind on of customers. them during generation discretionary comes we our separate proving question But that the you a gaming real think looking our way for from it that powerful centers I'll next cell is powerful think and Malls next-generation ask sector the asset estate inherently any that they're period the And turn gaming gaming of obviously you is customers helping And their our is And consumer to and productivity to does to much [Indiscernible] technology. discretionary generation thus for right most and technology I it one is for is how for whether they're John become and assets. we're certainly if is companies this technology over case is data going creating that a it is given be tailwind up of or generation, benefiting for not from where suffering tenants of things on gaming for example in this develop two gaming that Because examples to one and to obviously tailwind security the engage turn into technology, And in I else classes incremental now want where simplest -- estate. though me long-term from? and an as our extreme to terms those put John? REIT. terms towers potentially a key generation can this capital. which or come into that of a think to thus of pretty as side. Every to of real willingness this next most get the going being being enormously it at elements is

proud our remarks job to -- opening did to a tenants' reiterate you'll to tenants been we've and our is -- I I my years other to see with much our in cut-off. want company But of performance. grow. creative Yes. great think did help have reiterate for don't working I over apologize than to do and thing on one you wanting three want being our I add how quite deals I say Rich, David

they've record it EBITDA margins about X,XXX have burn in the think talking in we hospitality complement when environment still. talking are about industries glossed is a gets to the operators And points. many are now stress sometimes been. and want I and I over operators and how And right up that that incredible in that creative cash to we space it's really just this

So question. Rich that's our comments on that

guys. Thank Okay. you,

Smedes Rose Citi. Your with next is question from

line Your is open.

wanted Virginia just that in anything putting ask or limits number ballot regulatory in the there as What issues you year setting regions depending -- there's casinos are stands to more I cities or interesting out of the in on either Hi. this of you to those outcome a on making like Colorado. votes? less

John?

I'll -- jump I'll yes here. in

think watch is it's to I always on the ballots. what interesting

make Virginia is have think and is think provide that's to states a in I do stronger. are see some to to some we'll going that of don't one see to opportunity answer sports and to a are number have betting I commercial that But moving could Nebraska. them provide the opportunity. it about happens state forward. and what that us how watch looking I new going I some And how or days. continuing then for We'll for there that allow plays tenant opportunity to do we to the we'll that that that in move -- know a developments. just is gaming some be could And answered few forward question, out.

casino good operators and -- for in by be environment of kind just obviously they're normalizing which limits, debt increasing So Colorado, then will the the there.

watching closely be pretty positive. Virginia though. all I'm should So

to wanted just I then And back. switch Okay.

first in John, entity. in obviously gaming You made side. your relationships has for a very major non-gaming the deep investment

went And Piers. bit considered table relationship could they as opportunities? they with non-gaming of -- long-term the who for relationship just a Chelsea you look is you more you about But what as could to talk talk continue or you and what you will -- a through about mentioned maybe little kind how with forward, the brought recapitalization? to Going

of that both use experiential will to Ed. as relationship team in experiential advantage been with up much estate other gaming. relationships the we more real intend at superior we estate. is we have the we way absolute ownership long-term trust. John's Board long-term with relationships And estate asset estate the -- Yes, are VICI in a premise our able Chelsea returns from to through on investment those estate engagement enormously our of much American take real real management practice have investment Yes. lifetime's and real guiding an management classes. VICI Smedes, through And is superior worth as what our set in general we've had generated of have personally as this used But capitalize very real we a the founders. in Piers And I beginning unrivaled always principle

So that Chelsea Piers boxes is our a continue And over estate confident experiential superior to real all. in characteristics various returns? sectors. longer-term greatest piece all do focus superior this of find we're operating truly and Is time in marketplace opportunities we'll given investment its its promise of those and ticked very in like that

you. Thank Okay.

from McGinniss is question next Your Scotiabank. from Greg

Your line is open.

Hi, everyone.

Greg. Hey,

and remind they that sell operations transaction may you the whether they when for to the own the impact you those just On us and operate. look try front needs that's assets guys going Indiana like Can own lease? together still you -- you Caesars two to to process sell what how those master

John?

Yes.

active. the on dates have put-call two they're have David exact the we me remind when to Indianapolis will So assets.

I will add on into bit calling put-call now and added And David timing the on know little we of regional that? those a It's we'll a don't clear. our And have master if put-call Indianapolis about what do not assets. ROFR. They the details it's We actually be performance was want a you facilities. on weeks and love the six excited. in those lease. great So very we're be to Great I ago that. business, at

Yes. the Hammond. We Indiana you're Southern OpCos Southern till Evansville, and the the of of asking I part rent for the Greg, Indiana to the I real the and Eldorado, starts and for own is to three about are create of your you're Caesars rent as XXXX OpCo, was Hammond, change lease, end a would part XXXX. Southern think in Hammond, processes. question what tenant and If the our But was involved into estate it required was Those Hammond. Caesars master but diversification change Southern is as but not -- runs Indiana total on going processes required and sell just does in around Caesars think would of the that put-call opportunity merger there Indiana back right, sale the We're us. how those not running. is

see how play required Caesars processes the ultimately do out is we'll that work what So to will Indiana. and with how from bid

Okay.

going likely? to transfer a that just not most a Tropicana with similar the deal then? transaction It's to GLPI we're So operator to employed going Evansville see be

total I rent Yeah, to change assets not but change. lease Caesars either we're we're the think those being ends with one within the in clear, of is might our yeah, assumption, Greg. very with tenants whoever a process such just that be new those running – our new happy going in that's two the the in be And up rent very would master assets. to a great way confident operator And

Thanks. then a question Okay. just And me. from final

undeveloped Just and parcel longer you acquisition, curious regarding that why the one? pursuing what hereby, land no changed the forums are

Yeah.

of merger is Caesars it given that activity and is in, And was that was of parking the for various agreed issues not to both Greg, magnitude are unwind we engaged going will you quickly. is to land surrounding that entitlement discovered And terms the obligations. those that permitting relate us. best So in it there period that after in of that if be the what a easy integrating various currently Caesars' undertaking activities due of we diligence to and especially

and a a For perhaps return initiative put aside it when the time to the bit dust then we settled at has post-merger. meantime that

Okay. Thanks. color. Appreciate the

Your with Research. next is Wolfe from Shojaian question Jared

Your line open. is

appetite you how you environment compare Thanks think And for on underwriting strip depressed versus right just would now? real for taking Can pre-COVID? do my question. terms your this about in estate how today the about talk additional

John?

Sure. me touch out as want you was Vegas just to in said Do on that? week. I Las Well. this David

So an and with the had meet I to city. be strip throughout operators on opportunity the whole

now. this about still not place now back. U.S. XXXX is to And to to So Francisco that its but over compare really come New has Las Miami, Clearly will market be having that we meeting there's of It travel business, for United going that continue long excited we Vegas York, term. amazing to from Las Las to get that the and a right not believe some right like Vegas visitation think down found obviously, is the you Vegas. numbers, has Chicago, to business no a about Las substitute States When Vegas. their comparison like a San but cities lot consumer patterns other there's international

some EBITDA here We're that's more the So under and way a think understand of to the we likely still a is I their COVID answer we in Las the yes. operators Would think of rate belt believe what we run going after the a But is long in market. to this long-term you're true operations do the of Vegas, short-term? believe transaction better saying, I get do are if more in investors. asking resounding be.

okay. Right,

think Las relevant would just pursue Vegas something? were genesis more I think discount reports really January you a more last I the if back mean, from of that's -- would of about from how genesis what really in have right would my question. think underwriting do participate more and to mean, of I ability the is about you to paid the you question is you I out now. maybe you probably in media week guess significant your

reported -- -- Go go talked Ed. And ahead. media you ahead

true a Jared, triangulate have an I you which in long-term say, is that of off to will to a going and was crisis situation have this temporary by think everyone's is what that value. end I agreement

sell that same also this a buyer of the way mindful like that long-term or somebody be the has to in needs does. wants sell to crisis value during And to

on as in be highly so wish if given particular So to value the it's asset, estate, of answer John, terms amidst going emphasis kind applied to any about talking discount temporary crisp temporary I -- would place crisis give enduring in it's that come of know, temporary take I right? what a don't you of trading a end a would being really real should add. to degree so an answer. But to I that could to up up this you uncertainty. to we're and cogent want our should decades general hold hard really And for with what we change case intend

the transact operating it's be needs also I think the critical. cap to we accretive. And were importantly, rate And we partner to have -- No. going-in ever important if most course is of

Strip. in I a the And said, Las asking asset interested we're asset so Vegas always about I assume large strong great gaming Las you're like on And hearing about Vegas. markets like

And of strength I rental potentially possible just in your the what be pandemic, think leverage that you and your credit for be agencies way? And Thank me. investment-grade want do a rating to how move? to helpful your How you. the make maybe that resiliency more then cost that see rating I liquidity any mean to about think one and would could this guys of capital it. would do throughout just Got think and helpful? you in

for would be Thanks would David. reduced. capital The access capital be of the significantly it's cost resounding Jared, The question. to helpful, would yes, increased. right? it The be

us is in highlighting to speak into itself volume bond not times investment-grade traditional record REIT prohibiting item. a that's year volume year. for concentration investment looking one the give pool. forward of gating of is The that But the is We a for by the assets loan. is having allow credit the and would but term just think us there having getting term secured for the And a getting X catalyst, of of which that's flip our I high-yield grade. this GLPI -- asset unencumbered that it's tenant is lot all is so which loan rid and to for really a a agency

Caesars from that from rent have Penn. they similar have We

it's the we'll And just there over do loan, is repayment to and which coming again path. the months that a work years here. So term

you very Thank Okay. much.

is Jonas question Barry next Truist Your with from Securities.

open. is line Your

Barry. Hi,

had Pre-COVID, space. We we Blackstone enter another enter had the space. triple-net gaming REIT to the about

now Given you the more some activity curious anytime those are expect newer reemerge operating from REITs I'm if results soon? of operators to seeing

you're Barry. asset of many estate examples very so you question, are towers attention very well real basis. regional think if think I obviously where did look across maybe relative paying That markets. ours than pleasant But are fundamental a you in how and how other is the the data strip think better see class they're identify terms is variety terms the done going profitability. in a the than they've in surprises of you tenants even big so the last on I It's are doing doing? in to mean, operators ask asset to sure as hard do centers again tenants from see again, I if cell you Well week, would to much of classes right and now true you're going

the crisis. be estate people got the and crisis of David you don't crisis. we estate, in asked gaming with get yes, have we durability I interest well performed. pleased streams? think, order three are So But to the really need need there often and our more When through estate a given comfortable story well increased our tenants to we the I should way VICI has with and telling a what were we we gaming said, going this been started one. again think team for validated real and income way be this And years the cannot real question. greatly guys in the real hell Well Then its the ago, John we

And non-commodity like on real boxes. are irreplaceable are These And I very the difficult my institutional-quality estate. definition that definition real own operate what or is something of estate the tenant. moving operate be can great the other that In landlord they threaten shop or our gym and real to I Barry to estate with crisis much block else real another that think gaming real are over coffee substitute. businesses. And is These of is of I the words, of away, not easily not is high-value relatively demonstrated tends one box commodity and estate commodity characteristic that certainly, fundamentally estate a leverage lot this Pretty or I occupying is In has to box another. not businesses. a not commoditized. a a have commodity one-of-a-kind a -- it if emphasis that fundamentally tenants categories, substituted key tenants good boxes.

Great. Tropicana in at just less start? exposure or And curious from appealing stake Evansville then made looked the it if your just you if that

still I REIT. sold Well there it's was it's gaming agreement odd was another by by now gaming owned it believe be to an And owned It a a REIT even Yes. and situation. not REIT. an that could

really So good real it's of a piece estate.

a to very in glad we do with able we own nice own And good They're Centaur exposure have the be Indiana we state them and And going Hammond. GLPI of going be And Southern with think best. very the we the to very are it. think already two obviously has your with increase so-called best the with Indiana continue in our it but will exposure to to assets they're tenant. what assets. I Barry, to to wish point

much Great. so Thanks guys.

is Carlo Our from Santarelli Deutsche next Bank. question with

Your line open. is

opco said I you make the expertise necessarily in to on earlier cost seem are like would picture look build as look question a question. has of to further, kind to capitalized carrying be buyer types that asset any Las Hey dilutive differently putting into today to it. we to how as a overly contribution over the of given the large would it large -- rental get try in for in bit has it the over this kind asset that where type large-scale pertained yourselves of multiple that's while your of taking you financial near though a support time. sale/leaseback would a structure to think or transaction up you? situation But be would buyer onus on there situation to the the in could are that asset as obviously not would EBITDA, term Thanks I the the a traditional In market get to just while of a -- maybe just the sale/leaseback the your guys a to -- Vegas. it on the for thinking the on way love the about, difficult, near structures as guess the so out are my that expected the guys, obligations ramps of term, and asset? of of type and potentially get on out wanted valuation little up opinion to carry big ask I to operator following -- all At not certainly rental the that stream is

opportunity Yes and up nature. turn is and be it crack that to be parties. done temporary we in then you I talked John, already to John financing it rightly to about that. of that? under But productivity be to are it complex to has issues. own by creative the definitely don't be identified? willing structures bridge kinds Yes. as I'll with certainly would come a when There a creative John complexity. possible are Would And able that revenue take you that be way devalue Carlo. over these be and address sometimes to could willing first or -- know to David, would would would David of structures ways do possible up and certainly we collapsing weight of if Complex come the their add by structures have it They right. structures would want with challenge

job look good next a that estate real that long at other over hopefully XX and we of the Ed. we No it's advantages blip. just term very a you than have years XXXX did for looking just back this -- the the I'll add at

And has the business in I measured your again going we what's in But advantages or to answered we're be is to so, not month of happen have questions. one Ed the next quarter. on the going specific think

much. you very Thank guys. great That’s

David Your from next with Katz Jefferies. question is

is line open. Your

question. taking Hi, Thanks my for

you that this just question fits answered. with think actually the some regard I in

it accounting with particularly that purpose. in to You core used they you about hear they of loans. given the traditional revenue have. a them would risk They've pitch. how some of been have that, value night bear think you more actually about engaged a with part think the done appears in I'm terms the how you through have more a us you be lease purpose could and that as than about terms looking those But prior of is last streams interested as less and streams talk in of value structure seemingly question

business they an moment the REITs Yes David a to to will And thing would them giving real Katz. if put go be and you've estate learn do David be otherwise to decades or say ourselves over if within term. to then estate eventually you effective another hope in either find opportunity that's to being risky and to come loan gets new sectors acquire it for REIT in loan going in absolute I would get and a gives we're turn we itself a it. And toward a very tied obviously be decades. acquire Loans underlying last for that position the because generally that acquire to exposure at and to repaid. long to got are the can real tool I'll may returned for to less to sector decades using way due we a biased capital loans with it engineered

want you Kieske? if know to add to don't that, to I add David So David

will covered the long-term in I our the structure REIT And of corporate No it the likely ownership, David total the ownership a that perfect that base of estate pitch, in there utilize like you Yes. may be safe, path scenarios over to capital some think term. lead investment we low long LTV Ed, very path well. to can to Katz I small percentage deploy

excited our capital continuing to accretively. So and use we're about excited about that's something

Got it. Thank you.

with Jordan from is question next Macquarie. Your Bender

line open. Your is

for my question. Thanks morning. Good taking

regional tied of about the revenue non-gaming, in be -- versus I revenues structurally tied wondering your the and with maybe escalators higher going EBITDA your forward. some think So turnoff to how be given that EBITDA. of but lower resets to was might you is future some structuring might

that? a John, to want take first crack you at

was and are necessarily but something have not consider we it's No, revenues We thought the their moving no some actually to learned that And going analytics forward. it's is going and question. margin it. think the that those coming have a that through was back? had simply to been just question that be of revenue will abilities question, I asked great I be operators to leading what their --

some answer we differently. differently, But say question -- a new if based there's back. think for both the create was way I so should could to leases, as we'll we're we your and will Good be that's what in it going about a we our we And fair always think way that leases it's that not on about to way escalators coming think question. escalators if about say And I'd do there's sides. different numbers, flexible

was of that Thanks. be of might of and And wondering some your not then in at some back gaming access repurposing thoughts then, on way with the not the the something that I non-gaming, possibly that's maybe coming properties, some sector? land

we're about Yeah. think obviously It's an talking interesting question, Jordan. interior I mean mainly I space.

talk maybe of asset. centrality was the could be you So a sports will repurposing evolves, we be And very week I be experience it for the Vegas the everyone opening interior in and that John would can demand. to of increased in the about really we'd be think this Las talking sportsbook, meet that interesting about sportsbook for John, maybe for what in evolves space. D. there And -- to who of betting changes experience way brand-new benefit the about bar wasn't at as that, respect, which especially, talking see And sports the

on the new Circa gambler. said Gate as and in Downtown wonderful opened Las very Vegas facility a Yeah. around The betting the I focused on just and centered sports asset and the Tuesday and

Now, And tenants. profitability. buffet, they but you're how in. do And they as amenities? trips one that build that? and to be how operators to for. could to weren't that or or were drive new back our driving if And hypothetically, improve different the will going the going coming And Ed not larger their that to space, extra beauty consumer they change I reopen your fill That's with drove about space do sportsbooks that that years as opportunities space outlets and think good revenue, realize revenues what to see amenities over other and driving They'll that see first restaurants mentioned. happen weren't they question question. Very operating add other used they about reposition a they're is

Awesome. Thanks, guys.

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

line is Your open.

morning, you're few the are you've approached changes ultimately wanted like in the do maybe at day impact starting -- relates from some everybody. and different just that these occurring this it instance at Good to than with I here Hi. this the margins And possibly ways think think or could the briefly what that there how some of end a I about past? wondering a changes your see Are view? as ask all a the regional of growth rates And of the -- fundamentals underwrite I'm cap the change high at the to level, normalization we're to at pay? just fundamentals of does some about would done faster the to little is just we for these in in you have willing to way how properties.

in that just clear so you tenant the the we you EBITDAR? mean growth be would underwriting of we're Shaun, speak growth And when

Correct. Exactly, Ed.

to X,XXX see stability fact, can the So basis Is portion lot of a do? type more this that higher you -- higher in you there a you today. seeing before need we're point do underwrite/or margins

has us more Obviously, And blows away just what amount And to in right? buying it's amidst try crisis outside reported them the confidence center more numbers. I talked so up tenants more QX nobody a less have, the it what time of this getting than confidence are ends I our Red good validated. and just of they call Penn end tenants' anything more tenant -- centers these right? tremendous the is amazing our a at day X.XX% business, gives are to I and again adds -- I But residing estate produce Like reported, about is there think And me what Shaun, reported the again, a don't data Rock certainty. And out in how think much than of way quality businesses know and the the value like are towers, of cap. in a for almost data our of real of cell else today.

commensurately to way There and estate real market we are see cash our underwrite around hope ahead our these see what of we So, that to we no they of in be is there's to that. around as flows a be But position of pay improve in to and would high obviously -- any assets our and we and we capital, will in of can't shouldn't pay more more security capital. recognizes that. quality. the what its relation of because will cost will quality the we potentially cost such our But get have way of capital and believe cost again for we happily

and to that part may every well. Shaun, of with as explained part Ed it what tenants performance we have operators back. just getting about to the but an the add that only real magnificent continue study And to these to may meeting underwrite of margin is and what operator that and delivering, – out quick. our is do why I'll of what understanding But I'm that are remain reason so going be we not

add tidbit. little So just that I'll

view XX sense some think I tell XX. how XX of may to can right? business maybe kind findings of initial you of or some John your you've trying be? companies your that maybe instinct since are. – of for But gut – little sustainable us thing all pushing been on or these us even and what's same your just the of further, XX just the the your exact do some years. a we're changes in give or

take to lost I that these good for they're meal So what business in business why just its but standalone a on it's and and big consumer order service? consumer. a margin service from room of that its example operations to what with room – in what What's as the forever. at you Nobu the are rather get other It's your resorts, improvements able at for in staff. there's a say is many room ideas restaurants And right? operator, at the of have a more they've improving and recovering Rao's and large going those from into variety now operator happened the a XX Nobu or keep and room kitchen and also and the pancakes allow making so turning own from those these it's restaurants. customer. great And seeing Would from for Vegas experience places the experience has I'm that like the Shaun profitable do are is room bacon other that are Caesars can better only businesses for the the order [indiscernible] Palace it negative it's for that better some operation the they'll room COVID, the First it's service restaurants their operator, consumer not XX, that of consumer. service With own been good Las an

John hope down I Great okay. and in color, hang you there,

thanks. Good,

is question Stanley. Allen Thomas with next Your Morgan from

is line Your open.

you. Thank

for So resuming kind of on earlier the businesses. that this transaction because operators their stalled market year, commentary assets the was I gaming of was think focused

that of operators kind pipeline? Thank Now trends been a transaction has well in businesses have their resumed and are going the there you. pickup

is also of and John. betting. incumbent those want bit want businesses their there's who and I answer of key sports betting. more iGaming and I'll mentality gaming well, Thomas, covered has grow so in that the crisis – excitement got to two I for to rush And how factors pins because – simply in around this do the what a counts store performed their two grow expose sports factors, a people more sports COVID very to with turn jurisdictions accretively. gaming in you to to and seeing you've think land such we're betting and of Yes. from the map recovering because and this. there's themselves that But proliferation then American and well the Thomas, it play: I'll players key this think over start well, put

to the that is quite got now. grow my establish that are you've as to pretty existing and and new incumbent capital well. assets to a players might be and And who to assets you've liquid in come of grow going got So owners create want to footprints hey, wants and among start right they sense valuable

an own don't I hey, really so I'm who and much an REIT in guys engineer gaming offer I'm sweated and financially It's So from doing think my my potentially be actually like a own existing it still going just a I to love existing these operators through VICI. so of it's a order do case COVID. be going would operator casino to who go going saying, But to owners sale/leaseback to to I to ought be take maybe glad business. alive well. to

So I think based in excitement travel. liquidity and you're to about increased the sector. what hearing going can seeing your around upon you're talk see the you And John

No.

to talk burning cash business don't margins I or hospitality sector that think a operating they're reasons around underestimate to this lot get numbers hoping about of about. putting as places excitement the years up the all open. record we've this how for and you and described in they're industries not I seen much it there's the talked Again, well, other think you continue and

I done. been the really what have it's operators think So,

both. Thank you

Thanks, Thomas.

final question. time have We for one

DeCree Our will John final from Union Gaming. with question be

open. is line Your

question. And everyone. my Good thank morning you taking for

you deal We've starting time how since assets kind of not of may and tenants think into activity. adapting lease on so ton curious at criteria anything the be anything transaction on to the spent seeing about doing Are a that one. underwriting or end? they from with you've for flexible So safeguard of of you few kind would-be face are and transaction and kind entering of kind a some to you their their -- on partners changed? more far But of criteria your reopened a talking months shutdown? change. in OpCo it's Just and they're your to may the looking But that of change been for a they or full maybe curious about only seen post-pandemic seeing they're look are willing have things kind how a -- that or how

John?

vocal on difference. we during deals the been to just to to lens based not talk what Good significant COVID. about Yes. I at a we our and saw I'm pretty another adding you. seeing underwriting we've mean, way look

them a better said help think that understood of to how couple help understanding important. first I operators the years VICI them And I trying we've have I've can and how REIT our spent they grow, three sure we're the think for like is make quarters, partner. and past a a which

GLPI we haven't we'll uncomfortable -- OpCo deals. can a continue with as, as to there sides both but we not and as -- from had said, deal are there in and ton yesterday feeling talked we you been work So, about, think, yet. gotten we'll haven't want accordingly, that I the walk make seen a if the you've it fair the lease items deals. we there they're And adjust table that good away of

Thanks John. Thanks, everybody.

John. you, Thank

further I'll turn questions. to Ed remarks. the We call for back have no closing Pitoniak, CEO

takeaway you resilience dividend being Thank you power Yes. we our on this growth revenue one be tenants' Please thanks call. the that reiterate in this in of economic quarter been in The number our all from by produced for and call fueled today's AFFO the should and our our businesses. of to let operator. has me our

you. our grateful health and very to operator. growing grateful, tenants superior are future. driving will to continue We thank into Thank good and this the believe do customers value shareholder our tenants' well positioned you That We all. and for it to Again, resilience. portfolio our we're

may today's concludes now disconnect. and you conference This call