Q4 2023 Gaming and Leisure Properties Inc Earnings Call

Operator: Greetings and welcome to Gaming and Leisure Properties' fourth quarter 2023 earnings conference. At this time, all participants are in a listen-only mode.

Greetings and welcome to gaming and leisure properties fourth quarter 2023 earnings conference call.

At this time, all participants are on a listen only mode.

Operator: A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference... Please press star zero on your telephone keypad.

Question and answer session will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

Operator: As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jim Leahy. Thank you. Thank you, Rob.

As a reminder, this conference is being recorded.

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

Jim Leahy: Thank you Rob good morning, everyone and thank you for joining gaming and leisure properties fourth quarter 2023 earnings call and webcast. The press release distributed yesterday afternoon is available on the Investor Relations section on our website at Www Dot shell prompt Inc. Dot com.

Jim Leahy: Good morning, everyone, and thank you for joining Gaming and Leisure Properties' fourth quarter 2023 Earnest Call and Locast. The press release distributed yesterday afternoon is available in the Investor Relations section on our website at www.glpropinc.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. Forward-looking statements may include those related to revenue, operating income, and financial guidance, as well as non-GAAP financial measures such as FFO and AFF.

Speaker Change: On today's call management's prepared remarks and answers to your questions may contain forward looking statements as defined in the private Securities Litigation Reform Act of 1995.

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

Forward looking statements may include those related to revenue operating income and financial guidance as well as non-GAAP financial measures, such as <unk> and a F F L X.

Jim Leahy: As a reminder, forward-looking statements represent management's current estimates, and the company assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to risk factors and forward-looking statements contained in the company's filings with the SEC, including its 10-K and in the earnings release, as well as definitions and reconciliations of non-GAAP financial measures contained in the company's earnings release. On this morning's call, we are joined by Peter Carlino, Chairman and Chief Executive Officer of Gaming and Leisure Properties.

Speaker Change: As a reminder, forward looking statements represent managements current estimates and the company assumes no obligation to update any forward looking statements in the future.

Speaker Change: We encourage listeners to review the more detailed discussions related to risk factors and forward looking statements contained in the company's filings with the SEC, including its 10-K and in the earnings release as well as the definitions and reconciliations of non-GAAP financial measures contained in the company's earnings.

Speaker Change: On this morning's call. We are joined by Peter Carlino, Chairman and Chief Executive Officer, and they should properties also joining today's call are Brendan Moore, Chief Operating Officer General Counsel, and Secretary Yesterday, Burke, Chief Financial Officer, and Treasurer, Steve Louden, <unk> Senior Vice President Chief Development Officer, and Matthew Demchak.

Jim Leahy: Also joining today's call are Brandon Moore, Chief Operating Officer, General Counsel, and Secretary, Desiree Burke, Chief Financial Officer and Treasurer, Steve Ladny, Senior Vice President, Chief Development Officer, and Matthew Demchyk, Senior Vice President, Chief Investment Officer. With that, it's my pleasure to turn the call over to Peter Carlino. Peter, please go ahead.

Speaker Change: Senior Vice President Chief investment Officer with that it's my pleasure to turn the call over to Peter Carlino. Peter. Please go ahead.

Peter M. Carlino: Well, thank you Jim and good morning, everyone, we're especially pleased to be here with you. This morning are.

Peter M. Carlino: We're especially pleased to be here with you this morning talking about the windup to a very good year last year and off to a good start in the first quarter of this year. I think the critical issues are well outlined in the first four paragraphs of my written comments in our press release. I would encourage you to read them there rather than have me repeat them. As is our normal approach, I'm going to ask Desiree Burke and Matthew Demchyk to make some or to highlight some things that we thought you might want to hear, and then we will go straight to your questions and answer the things that really interest you. So with that, Desiree. Good morning.

Peter M. Carlino: Talking about the wind up although very good year last year.

Peter M. Carlino: And are off to a good start in the first quarter of this year.

Peter M. Carlino: I think the critical issues are well outlined in the first four paragraphs of my written comments in our press release I'd encourage you to read them. They are rather than have me repeat them.

Speaker Change: As is our normal approach I'm Gonna ask Deseret Burke and Matthew that check to make some are to highlight some things that we thought you might want to hear and then we go straight to your questions and answers the things that really interested you so with that that's array right.

Desiree Burke: For the fourth quarter of 2023, our total income from real estate exceeded the fourth quarter of 2022 by over $32 million. This growth was driven by the addition of Valley, Biloxi, and Timerton, which drove an increase in cash rental income of $12.1 million. The Rockford acquisition increased cash rental income by $3 million.

Speaker Change: For the fourth quarter of 2023 are settling out.

Deseret Burke: Our real estate exceeded the fourth quarter of 2022 by over $39 is driven by the addition of Bally philosophy and park, which drove an increase in cash NOI I'm not quite 1 million.

Speaker Change: For an acquisition increased cash rental income by 3 million at Casino Queen Marquette acquisition, and the Baton Rouge Landside development increased cash rental income by $2 3 million the recognition of the escalators and percentage rent adjustments on our leases added approximately $3 6 million of cash rent and the combination.

Desiree Burke: The Casino Queen Marquette acquisition and the Baton Rouge Landside development increased cash rental income by $2.3 million. The recognition of escalators and percentage rent adjustments on our leases added approximately $3.6 million in cash rent. And the combination of higher non-cash revenue growth, investment and lease adjustments, and straight-line rent adjustments drove a collective year-over-year increase of approximately $11.6 million. Additionally, our operating expenses increased by $12.8 million, primarily related to increases in non-cash expenses such as depreciation and the provision for credit loss.

Speaker Change: Our noncash revenue gross ups investment in lease adjustments and straight line rent adjustments drove the collective year over year increase of approximately $11 6 million.

Speaker Change: Operating expenses increased by 12 8 million primarily related to increases in noncash expenses, such as depreciation and the provision for credit losses.

Desiree Burke: The annualized rent reduction in the amended 10 percent lease was $4.4 million, which began in November of 2023. However, we did achieve full escalation on that lease of $4.2 million annualized and $3.5 million escalation on the PEN 2023 Master Lease annualized. In addition, our PEN Amended and Pinnacle Boyd Master Leases have rent resets occurring on May 1st, 2024. We expect these resets will increase the percentage rent adjustments between $4 and $5 million annually.

Speaker Change: The annualized rent reduction and the amended Pep percentage 10 percentage lease was $4 4 million, which began in November of 2023. However.

Speaker Change: However, we did achieve full escalation on at least a 4.2 million annualized and $3 5 million escalation on the 10 2023 master lease annualized.

Speaker Change: In addition, our pant amended and Pinnacle Boyd Master leases have rent resets occurring on may 1st of 'twenty 'twenty four.

Speaker Change: We expect these resets will increase percentage rent adjustments between four and 5 million annually.

Desiree Burke: From a balance sheet perspective, during the fourth quarter, we sold 3.9 million shares of common stock under our APM program, raising approximately $179 million. Subsequent to year end, we sold an additional 182,000 shares. Our net leverage remains under five times EBITDA. Also included in today's release is GLPI's full year 2024 AFFO guidance ranging from $3.70 to $3.74 per diluted share and OP unit. Please note that this guidance does not include the impact of future transactions. For modeling purposes, our non-cash straight-line rent adjustments for 2024 will be approximately $62 million, which will be needed to be included in revenue and then deducted for ASFO purposes. I would also like to note that our first quarter dividend was declared at 76 cents per share, and our rent coverage ratios remain strong, ranging from 195 to 275 on our master leases as of the end of the prior quarter. With that, I will turn it over to Matthew for his comments. Thanks, Desiree. Thanks to everyone for joining us today.

Speaker Change: From a balance sheet perspective during the fourth quarter, we sold three 9 million shares of common stock under our ATM program raising approximately $179 million subsequent to year end, we sold an additional hundred and 82000 shares our net leverage remains under five times EBITDA.

Speaker Change: Coated in todays leases G. L. P is full year 2024, ASM guidance, ranging from $3 70 to $3.74 per diluted share in O P unit.

Speaker Change: Please note that this guidance does not include the impact of future transactions.

Speaker Change: For modeling purposes, our noncash straight line rent adjustments for 2024 will be about approximately $62 million, which will be needed to be included in revenue and then deducted for E. S. S. L practices.

Speaker Change: I would also like to note that our first quarter dividend was declared at 676 cents per share.

Speaker Change: And our rent coverage ratios remain strong ranging from 95 to 275 on our master leases as of the end of the prior quarter.

Speaker Change: With that I will turn it over to Matthew for his comments.

Matthew Demchyk: Thanks, Jess and.

Matthew: Thanks to everyone for joining us today.

Matthew Demchyk: Over this past quarter, we've watched as market participants vacillated between diverse views on interest rates, inflation in the economy, headlines around looming commercial real estate loan issues, and the potential for more. It's a very interesting backdrop to further highlight the relevance of GLPI's enduring cash flow. Our thoughtfully constructed portfolio of safe and durable cash flows, combined with our liquidity and capital markets discipline, have set the stage for opportunity. And to that end, this past quarter, we again demonstrated our team's ability to uniquely source and structure a transaction for the benefit of our shareholders. Our team created a bespoke solution for a new tenant partner, American Racing, with our recently announced Tioga Downs acquisition, in which we issued OP units and achieved an 8-3 initial cap rate on a $175 million investment.

Matthew: Over this past quarter, we've watched as market participants vacillated between diverse views on interest rates inflation in the economy headlines around looming commercial real estate loan issues and the potential for more downs. It's a very interesting backdrop to further highlight the relevance of G. L. P is enduring cash.

Matthew Demchyk: Those.

Matthew Demchyk: We're thoughtfully constructed portfolio safe and durable cash flows combined with our liquidity and capital markets discipline have set the stage for opportunity and to that end. This past quarter. We again demonstrated our team's ability to uniquely source and structure a transaction for the benefit of our shareholders are.

Matthew Demchyk: <unk> created a bespoke solution for a new tenant partner American racing with our recently announced Tayo. Good Downs acquisition in which we issued O P units and achieved an eight three initial cap rate 175 million dollar investment.

Matthew Demchyk: The transaction took a long time to finalize and underscores the sweat equity that our team invests in deals as we compete on capability and not just cost of capital. Our capital market actions reemphasize our commitment to balance each strength and our respect for the role it plays in our long-term success. With an appreciation for our pipeline of opportunities, including Teroga, we also opted to lock in equity through our ATM program. Our very healthy net leverage positions us to be highly opportunistic in our use of debt and equity for new deals. We've underlined our commitment to GLPI being both safe in a volatile environment and also very well positioned to take advantage of opportunities if and when they arise.

Matthew Demchyk: Transaction took a long time to finalize and underscores the sweat equity that our team invest into deals as we compete on capability and not just cost of capital.

Matthew Demchyk: Capital market actions reemphasize, our commitment to balance sheet strength and our respect for the role it plays in our long term success.

Matthew Demchyk: With an appreciation for our pipeline of opportunities, including today Okay.

Matthew Demchyk: We also opted to lock in equity through our ATM program.

Matthew Demchyk: Our very healthy net leverage positions us to be highly opportunistic in our use of debt and equity for new deals.

Matthew Demchyk: Underscored our commitment for G O P I to be both safe in a volatile environment and also very well positioned to take advantage of opportunity if and when it arises.

Matthew Demchyk: Our core message to potential counterparties is that, despite the macro backdrop and volatility, we are very much open for business. Our overarching objective remains the same, increasing long-term intrinsic value per share. Thank you to our shareholders for the confidence you've placed in our efforts to make prudent long-term decisions for you. With those comments, I'll turn the call back to Peter.

Matthew Demchyk: Our core message to potential Counterparties is that despite the macro backdrop and volatility we're very much open for business. Our overarching objective remains the same increasing long term intrinsic value per share.

Matthew Demchyk: Thank you to our shareholders for the confidence you've placed in our efforts to make prudent long term decisions for you.

Matthew Demchyk: With those comments I'll turn the call back to Peter.

Peter M. Carlino: Thanks, Matthew I think that well I'm a.

Peter M. Carlino: Well, thanks, Matthew. I think that summarizes kind of our philosophy of operating with this company and the growth, which I'd love to look at. The 19 properties we left when we spun from Penn, we did so with 19 properties today. Yeah, we just added that. The script I have here says 61, but you know, things get old here quickly.

Matthew Demchyk: Arise as kind of our philosophy of operating with this company.

Matthew Demchyk:

Peter M. Carlino: And the growth, which I'd love to look at the 19 properties would be left.

Peter M. Carlino: When we when we spun from Penn We did start with 19 properties today, we have.

Speaker Change: I own it.

Speaker Change: Yeah, we just added that the script I have here said 61, but you know things get old ear quickly. So we're pleased to say 62 properties and in the in the time, we've been in this business. We're proud of that okay with that time to open the floor to your questions. Operator would you. Please do so.

Operator: So we're pleased to say we have 62 properties in the time we've been in this business. We're proud of that. Okay, with that, it's time to open the floor to your questions. Operator, would you please do so? Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is busy. You may press star 2 if you'd like to remove your question from the queue.

Speaker Change: Yes.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Speaker Change: Information, telling you indicate your line is in the question queue.

Speaker Change: Press Star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we call for questions. My first question comes from Jay Kornrig with Wedbush Securities. Please proceed with your question. Hey, good morning out there.

Speaker Change: One moment, please while we poll for questions.

Speaker Change: Yeah.

Speaker Change: Our first question comes from Jay Kornreich with Wedbush Securities. Please proceed with your question.

Jay Kornreich: Hey, good morning out there.

Jay Kornrig: You previously mentioned having a number of opportunities to hit singles and doubles this year with new acquisitions. So I'm wondering how you currently see the opportunity set and, based on your conversation, you know, what the appetite of regional consumer owners currently looks like. Just for fun, I'm going to give that to Brandon Moore, who's lucky.

Jay Kornreich: You previously mentioned, having a number of opportunities to hit singles and doubles this year your acquisition.

Jay Kornreich: I'm wondering how you currently see the opportunity set and based on your conversation you know what the appetite of regional casino owners currently looks like.

Speaker Change: Just for fun I'm going to give that to the branded more who's lucky.

Speaker Change: Well how about it.

Speaker Change: I'm, sorry could you repeat the second part of the question.

Brandon Moore: Well, how about it, Steve? I'm sorry, could you repeat the second part of the question? Yeah, I think Bart was just basically conversing with current regional hotel owners about what their appetite currently looks like for sale. Sure, sure. Look, I think from a pipeline perspective, it remains very healthy and active. Our conversations are plentiful.

Speaker Change: Yes.

Speaker Change: Was.

Speaker Change: Conversely, what their current regional holdco or kind of what their appetite credit it looks like for sale leasebacks.

Speaker Change: Sure sure.

Speaker Change: Look I think from a pipeline perspective, it remains very healthy and inactive our dialogues are plentiful I think from a from a regional owner perspective, where we're currently having more dialogues with folks who have either generational.

Steve Ladany: I think from a regional owner perspective, we're currently having more conversations with folks who have either generational ownership type of complexities that they're working through or tax matters that they're working through. I think things right now are not necessarily down the middle of the fairway as far as people are just out there looking to transact for the largest number and regular way transactions because of where the capital markets sit in the macroeconomic environment. So I think what we're really seeing is... Interest remains high for people that have needs, and those needs are various. But we continue to have discussions, and I think we feel very good about the upcoming quarters. And Jay, I'll add it.

Speaker Change: Generational ownership type of complexities that they're working through or or tax matters that they're working through I think things right now or are not necessarily down the middle of the fairway as far as people just out there looking to transact for for the largest largest number and regular.

Speaker Change: Wei transaction because of where the capital markets and the macro economic environment. So I think what we're really seeing is.

Speaker Change: Interest is remains high for people that have needs in those needs are our various but we continue to have dialogues and I think we feel very very good about the upcoming quarters.

A J: A J I'll add if you look out in the environment. We're building on this reputation of being a unique problem solver and you look at Toyota to Steve's point. The fact that we use O P units, we're able to help tax structuring did the same exact thing in a different way with cordish.

Matthew Demchyk: Look out for the environment. We're building on this reputation of being a unique problem solver. You look at Tioga, Steve's point, the fact that we use OP units, we're able to help tax structuring, do the same exact thing in a different way with Cordish, that tends to help. And it also tends to help us get a better than market return when we close these deals for our shareholders because we have a true partnership with our counterparty. I'm smiling here; you can't see it, obviously, but my suggestion that we direct that question to Brandon, as our general counsel, was that he's always cautioned that we don't get too far ahead of what's out there. Look, we're very active in chasing down opportunities. These things are often complex and take a long time to get done. So, with those cautions, we continue to work. Early on, we used to get the question, "where's your pipeline?" Well, we've never had a pipeline.

A J: That tends to help and it also tends to help us get back to the sweat equity seem better than market return when we close these deals for our shareholders because we havent true partnership with our counter party.

Speaker Change: I'm I'm smiling here you can't see it obviously, but my suggested that we direct that question to Brandon as our general Counsel was.

Brandon: He's always caution that we don't get too far ahead of whats out there look.

Brandon: We're very active and and and and and chasing down opportunities. These things are often complex take a long time to get done so with with those cautions you know we continue to work away.

Brandon: Early on we used to get the question what is your pipeline well, we just never had a pipeline yet I highlight we've gone from 19% to 62 properties and it's not an accident. So we're encouraged and we'll see where it goes.

Matthew Demchyk: Yet, I highlight, we've gone from 19 to 62 properties, and it's not an accident. So, we're encouraged; we'll see where it goes. Okay, well, I appreciate all that Carlo, and then just as a follow-up on the Capital Rating Fund. You know, as you commented, you've recently been tapping the ATM, you have a robust $684 million of cash on the balance sheet, it looks like, so just wondering how you think about funding upcoming acquisitions, if that will largely be done on the balance sheet, or if you think about, or how you think about matching funding, kind of new equity and debt capital with new acquisitions.

Speaker Change: Okay, well I appreciate all that color and then just as a follow up on the capital raising front.

Speaker Change: As you commented you recently, we've been tapping the ATM.

Speaker Change: Our robust importantly.

Speaker Change: Fortunately all of our past the balance sheet it looks like.

Speaker Change: Wondering how you think about funding upcoming acquisition that will likely be done.

Speaker Change: Or if you think about or.

Speaker Change: Or how you think about match funding and kind of your equity and debt capital with no acquisition.

Speaker Change: Yeah, Jay I mean, one thing we've been certainly focused on is making sure that we're not exposed to the Windsor the capital markets. So you know towards the end of last year, we just derisked our bond refi that we'll see later this year with the bond raise that we did and you're right. We use the ATM to cover effect.

Jay Kornrig: Yeah, Jay, one thing we've certainly been focused on is making sure that we're not exposed to the whims of the capital markets. So you know, towards the end of last year, we just de-risked our bond refi that we'll see later this year with the bond raise that we did. And you're right; we've used the ATM to cover effectively all the cash needed for Tioga and then a little bit from a position where we already had really strong debt to EBITDA. The goal is really to be in a position to play offense.

Speaker Change: All the cash needed for Tayo got that a little bit.

Speaker Change: From a position where we already had really strong.

Speaker Change: Debt to EBITDA and the goal is really to be in a position to play offense.

Speaker Change: And when you think about the relative cost of debt and equity Theres, a period, where they converge decently and they're beginning to diverge a bit.

Speaker Change: If you look at our bonds that we did towards the end of last year the trading in the low sixes and that's really late and earnings potential to your point on incremental deals that we have the opportunity to use that as a tool maybe more so than we have over the past few years, because our leverage is so low and expect us to continue to pre.

Matthew Demchyk: And when you think about the relative cost of debt and equity, there's a period where they converge decently, and they're beginning to diverge a bit. If you look at the bonds that we did towards the end of last year, they're trading in the low sixes, and that's really late in earnings potential, to your point, on incremental deals. We have the opportunity to use debt as a tool, maybe more so than we have over the past few years because our leverage is so low, and I expect us to continue to pre-fund and match fund acquisitions with ATM equity, at the same time as maybe balancing things a bit more from an earnings perspective. But it's going to be a function of how big the opportunities we close are and the timing around those. And don't forget, we've also got Lincoln outstanding.

Speaker Change: Fun and match fund acquisitions with ATM equity at the same time, there's maybe balancing things a bit more from an earnings perspective, but it's going to be a function of how big the opportunities, we close are and the timing around those.

Speaker Change: Don't forget we've also got a Lincoln still outstanding we've got the spend with 10.

Speaker Change: On the back burner that ultimately gets spent so we let our balance sheet to be able to handle walk and chew gum at the same time handle multiple things at once.

Speaker Change: Okay.

Speaker Change: Okay I'll make sense. Thank you very much for the time.

Matthew Demchyk: We've got the spend with Penn on the back burner that ultimately gets spent. So we want our balance sheet to be able to handle, you know, walk and chew gum at the same time, handle multiple things at once. Okay, that all makes sense. Thank you very much for the time.

Speaker Change: Our next question is from Greg Mcginniss with Scotiabank. Please proceed with your question.

Greg Mcginniss: Hey, good morning, maybe just a follow up on that funding question. So V cheese used the Ford feature and its ATM pretty effectively in terms of building up dry powder with a limited dilution impact. This is a tool that you've considered using or what are you looking for before utilizing it.

Greg McGinnis: Our next question is from Greg McGinnis with Scotia Bank. Please proceed with your question. Hey, good morning.

Speaker Change: Yeah, I mean, we have used the ATM in the past and you know we closed on an acquisition in February of this year. So the fourth quarter use of the ATM. We we knew we had that transaction Tayo got coming at US. So there was no need to enter and stuff going for that equity raise.

Desiree Burke: Maybe just to follow up on that funding question. So Veachie's used the forward feature on its ATM pretty effectively in terms of building up dry powder with a limited dilution impact. Is this a tool that you've considered using, or what are you looking for before utilizing it?

Speaker Change: But we absolutely know that that is a tool that we have to use them.

Speaker Change: You know when it makes sense for us to use it.

Desiree Burke: Yes, I mean, we have used the ATM in the past. You know, we closed on an acquisition in February of this year. So the fourth quarter use of the ATM, we knew we had that transaction Tioga coming at us, so there was no need to enter into a forward for that equity raise. But we absolutely know that that is a tool that we have to use, you know, when it makes sense for us to use it. And then I'm just trying to understand, on the guidance range, how you might hit the bottom end.

Speaker Change: Okay.

Speaker Change: Okay, and then I'm just trying to understand on the guidance range, how you might hit a bottom and because if we annualize Q4 were kind of in the middle of the range and embedded escalators appear to offset any additional share issuance that is guidance included share issuances beyond what we've already seen or is there something else to consider.

Speaker Change: Are there.

Speaker Change: Yeah. So yeah, we as you know the sofa or the forward curve and it moves pretty quickly on us and so it just as of last week when the fed came out with their announcement the curve actually shifted up as they didn't expect some of the rate declines to occur. So we do have.

Desiree Burke: Because if we annualize Q4, we're kind of in the middle of the range, and embedded escalators appear to offset any additional share issuance. But does guidance include share issuance beyond what we've already seen, or is there something else to consider? Yeah, so, you know, we, as you know, the SOFR curve, the forward curve, it moves pretty quickly on us. And so, just as of last week, when the Fed came out with their announcement, the curve actually shifted up as they didn't expect some of the rate declines to occur.

Speaker Change: Some room in our guidance around what that curve might do in the future based on future announcements and whether or not the 75 basis points or celebrate reductions will occur at the end of the year and so there is.

Speaker Change: Some noise and interest expense as well as the fact that we told you about our pipeline of Rockford funding, we don't know exactly the timing of the funding of some of the transactions that we have out there you know we have a commitment to find that that long, but we don't know exactly the timing of it.

Desiree Burke: So, we do have some room in our guidance around what that curve might do in the future based on future announcements and whether or not the 75 basis points or so of rate reductions will occur at the end of the year. So, there is some noise and interest expense as well as the fact that we told you about our pipeline of Rockford funding. We don't know exactly the timing of the funding of some of the transactions that we have out there.

Speaker Change: So there is some you know really around the timing of those transactions and the funding for those loans.

Speaker Change: Okay.

Speaker Change: Okay. So if those two of those are delayed then that's potentially how we get to the bottom end.

Speaker Change: Hum.

Speaker Change: It's just the term loan right that would be the.

Desiree Burke: You know, we have an commitment to fund that loan, but we don't know exactly the timing of it. So there is some, you know, room around the timing of those transactions and the funding of those loans. Okay, so if those, so if those are delayed, And that's potentially how we get to the bottom. It's just the term loan, right? That would be the... Yes, that's a $600 million term loan. That's right.

Speaker Change: Yes, $600 million term loan that's right.

Speaker Change: Okay alright, thank you.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Our next question is from Todd Thomas with Keybanc Capital markets. Please proceed with your question.

Todd Michael Thomas: Yeah, Hi, Thanks, Good morning, I guess I just wanted to follow up first on the comments around that capital costs.

Todd Michael Thomas: You said they've come in a little bit.

Todd Michael Thomas: You know what what's in the guidance for the September the $400 million.

Desiree Burke: Alright, thank you. Our next question is from Todd Thomas with KeyBank Capital Markets. Please proceed with your question. Yeah, hi, thanks. Good morning.

Speaker Change: <unk> at 335.

Todd Michael Thomas: And then if you do look to utilize that capital more in 'twenty, four with with pricing a little bit more favorable today can you just remind us how comfortable you are taking leverage up from from current levels.

Todd Michael Thomas: I guess I just wanted to follow up first on the comments around debt capital costs. Matt, you said they've come in, you know, a little bit. You know, what's in the guidance for September, the $400 million September maturity at 335? And then if you do look to utilize debt capital more in 24 with pricing a little bit more favorable today, can you just remind us how comfortable you are taking leverage up from the current level? Right, so in the guidance, clearly, we've already pre-funded $400 million for years 3 through 5, that we're taking out, right, with the $400 million that we issued at the end of 2023. So that is a known item and not a variable item.

Speaker Change: Okay. So so and the guidance clearly we've already pre funded the $400 million 335 that were taking outright with the 400 million that we issued at the end of 'twenty 'twenty. Three so that is a known item and not a variable item and we have not Matthew mentioned, we will.

Speaker Change: He is our balance sheet, when we think gets off the multi use our balance sheet, but are you know we can always.

Speaker Change: Increase our leverage we don't intend to keep it below five forever and we just you know one wants to have it as a tool to use when the timing is correct to use it.

Speaker Change: Talk about I mean over cycles that we've talked about our target range being five to five and a half.

Desiree Burke: And we've, as Matthew mentioned, we will use our balance sheet when we think it's optimal to use our balance sheet, but we can always increase our leverage. We don't intend to keep it below 5 forever. We just, you know, want to have it as a tool to use when the timing is correct to use it. Todd, I mean, over cycles, we've talked about our target range being five to five and a half and said, Hey, in this environment, our sweet spots are definitely towards the lower end of that. But to Desiree's point, we're well within it right now.

Speaker Change: Hey in this environment, our sweet spot is definitely towards the lower end of that but to desert race point, we're well within it right now so that gives us some some flexibility on incremental deals to.

Speaker Change: To navigate and think about what's that given those relative costs.

Speaker Change: Okay, and then just in terms of.

Speaker Change: The investment pipeline and pricing.

Speaker Change: How should we think about you.

Speaker Change: Pricing for for any future investments I'm. Just these are the the Tioga downs deal at eight 3% can you just provide some insight on pricing for future deals that that you're seeing in the pipeline today and how we should think about that.

Matthew Demchyk: So that gives us some flexibility on incremental deals to negotiate and think about what's best given those relative costs. Okay, and then, in terms of, um, Investment Pipeline and Price, you know how should we think about, uh, price for any, you know, future investment, just vis-a-vis the Tioga Downs, D.O.L.E.T., Eddie, and you just provide some insight on pricing for future deals at... Blaine today and what we should think about. I'd say, yeah, sort of, but not really.

Speaker Change: I'd say state sort of not really so.

Speaker Change: Must be a joke, but I I think look every transaction is very different there are aspects of each transaction rich rich.

Speaker Change: Neither garner additional risk adjusted return and therefore higher cap rates or or potentially lower cap rate depending on the transaction. So I think directionally speaking I feel like you can look at where the market.

Todd Michael Thomas: So not to be a joke, but I think, look, every transaction is very different. There are aspects of each transaction which either garner additional risk-adjusted return and therefore higher cap rates or potentially lower cap rates, depending on the transaction. So, directionally speaking, I feel like you can look at where the market has been on gaming, regional gaming transactions, even, you know, in the last 12-plus months, and most transactions have come in that 8 percent area, plus or minus. And I don't see cap rates moving materially in a very expedited way. So I don't anticipate seeing a 9.5 percent cap rate any time soon, nor do I expect to see 6.5 percent cap rates in a regional market any time soon.

Speaker Change: Has been on gaming regional gaming transactions, even in the last 12 plus.

Speaker Change: Plus months in most transactions have come in that 8% area, plus or minus and I don't see cap rates moving materially in a in a very expedited way. So I don't anticipate seeing a 95% cap rate anytime soon nor do I expect.

Speaker Change: I expect to see six 5% cap rate in a regional market anytime soon Vegas, obviously has its own.

Speaker Change: Different differentiating factors, but I think right now it's hard to say you should definitely model X percent into your into your.

Todd Michael Thomas: Vegas obviously has its own... its own different differentiating factors. But I think right now it's hard to say you should definitely model x percent into your forecast because each transaction is very different, and it stands on a, Okay, and is there any update at all on Lincoln, whether you have any insight or can discuss how you feel about that potential opportunity? prior to the end of the term, Yeah, we don't really have visibility or color into that. Obviously, it's an asset that is a premier regional asset that we would love to own in an accretive way. And so, all those factors remain true, but the when is very unknown.

Speaker Change: In your forecast because each transaction is very different and it stands on its own two feet.

Speaker Change: Okay and is there any any update at all on on Lincoln, whether you have any insight or can discuss how you feel about that potential opportunity.

Speaker Change: You know prior to the end of the year.

Speaker Change: Yeah.

Speaker Change: Yeah, we don't have we don't have a really visibility or color into that obviously, it's a it's an asset that is a.

Speaker Change: Premier regional asset that we would love to own in an accretive way and so all of those factors remain true.

Speaker Change: Deep win is a very unknown.

Desiree Burke: Obviously, as we did with the Tropicana transaction, we pushed out the option to the end of 2026 to give ourselves additional time to pursue and ultimately acquire Lincoln. So, we do have additional time. It's not required that we close that by the end of this year. So, we're kind of standing by and waiting to hear updates. Thank you.

Speaker Change: Obviously as we did with the Tropicana transaction, we pushed out the option.

Speaker Change: To the end of 2026 to give ourselves additional time to pursue and ultimately acquire Lincoln. So we do have we do have additional time, it's not required.

Speaker Change: We would close that by the end of this year. So we're you know, we're kind of standing by and waiting to hear updates.

Speaker Change: Okay. Thank you.

Speaker Change: Yeah.

Speaker Change: Yeah.

Brad Heffern: Our next question is from Brad Heffern with RBC Capital Markets. Please proceed with your question. Yeah, thanks. Hey, Matt, I think you briefly mentioned the PIN development funding, but can you give a broader update on that and when you would expect those funds to start being drawn down? Obviously, Aurora has had the groundbreaking.

Speaker Change: Our next question is from Brad Heffern with RBC capital markets. Please proceed with your question.

Brad Heffern: Yeah. Thanks, Matt I think you briefly mentioned the pen development funding, but can you give a broader update on that and when you would expect those funds start being drawn obviously Aurora is how the groundbreaking.

Matthew Demchyk: I mean, we really point you to the comments they made around their expectations. I mean, all that we've heard points to them likely, given the mechanics of the agreement, and Aurora, likely using their balance sheet, using us probably closer to the end of the development period, first as early as more of a takeout, but it's really up to them. All right. All right. That is the best update.

Brad Heffern: I mean, we really point you to the comments they made around their expectations. I mean, all all that we've heard is pointed to them likely given the mechanics of the agreements.

Speaker Change: And Aurora likely using their balance sheet using us probably closer to the end of the development period versus early as more of a takeout, but it's it's really up to them.

Speaker Change: I know I think.

Speaker Change: That is the best update I mean, I I believe there while they are committed and moving forward on these projects.

Peter M. Carlino: I mean, I believe they're well; they are committed and moving forward on these projects. We'd love to put up money sooner, but that's, you know, that gets down to their balancing management and what they choose to do. So we stand ready, willing, and able and anxious to put money to work with Penn if we can, or as soon as we can. Okay.

Speaker Change: We'd love to put up money sooner, but that's you know that gets down to their balance sheet management and what they choose to do so we stand ready willing and able and anxious to put money to work with panic, we can alright as soon as we can.

Speaker Change: Okay got it.

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

Speaker Change: And then the coverage ratios continue to work down fractionally each quarter are we at the point now where you think kind of the COVID-19 tailwind. So we're elevating those numbers are are out of the numbers and these coverage ratios or sort of representative of the true fundamentals or is there still more to go.

Desiree Burke: Yes, that's a good question, probably more so for the operators than it is for us. But look, they've barely inched down. As you've noticed, we're still 195 to 275. It's still extremely strong.

Speaker Change: Yeah. That's a good question probably more so for the operators so that is for us but luckily.

Speaker Change: Luckily they barely inched down is as you've noticed that come up we're still at 195 to 275, it's still extremely strong and so we are confident that.

Matthew Demchyk: So we are confident that it's not related to COVID anymore. It's related to operational adjustments that they've made and strengthening their margins. But, you know, that is probably a better question for how the operators feel about their coverage. Yeah, we've said for a long time, we expect some of the benefits to ultimately be kept. But I mean, there are a lot of forces that were once in the So we started from a strong position, it got incredibly strong, and we expected to fall out somewhere in the strong plus category. Okay, thank you.

Speaker Change: It's not related to COVID-19 any longer it's related to the operational adjustments that they've made in strengthening their margins, but yeah. That's probably a question for all the operators feel about their coverage.

Speaker Change: We've said for a long time, we expect some of the benefit to ultimately be cats, but I mean, there are a lot of forces that were one time in there. So we started from a strong position they got incredibly strong and we expect it to fall out somewhere with a strong plus category.

Speaker Change: Okay. Thank you.

Speaker Change: Our next question comes from Handel, St Juste with Mizuho Securities.

Haendel Emmanuel St. Juste: Our next question comes from Haendel St. Just with Mizuho Security. So, the first question is on the dividend. The new annualized dividend of 304 implies, I think, an 81% payout ratio at the top end of the guide. So, I guess I'm curious, are you changing your target payout ratio here to something maybe above 80%, or is this basically just a reflection of you and the board's confidence in your ability to outperform expectations this year? Thanks.

Speaker Change: Yeah, Hey, sorry with that so.

Speaker Change: First question's on the dividend are the new annualized dividend of three or four implies.

Speaker Change: 81% payout ratio at the top end of the guide so I guess I'm curious are you changing your target payout ratio here.

Speaker Change: So something maybe above 80% or is this basically just a reflection of your you and the board's confidence in your ability to outperform expectations. This year. Thanks.

Desiree Burke: We are not changing, you know, around 80%. We've always been around 80% of the payout ratio. Obviously, it does change based on what our taxable income is at any point in time.

Speaker Change: We are not changing now around 80%, we've always been around 80% of the payout ratio. Obviously it does change based on what our taxable income is at any point in time, and we are reflecting a payout ratio to meet our taxable income distribution requirements.

Steve Ladany: And we are reflecting a payout ratio to, you know, meet our taxable income distribution requirements. Fair enough. And then a follow-up on the acquisition here to the downs in the quarter, the great CINO asset. I'm curious, you know, kind of what drew you to that asset type?

Speaker Change: Yes.

Speaker Change: Fair enough and then.

Speaker Change: A follow up on the acquisition here too the downs in the quarter.

Speaker Change: Racine, Alaska I'm curious you know kind of what drew you to that asset type.

Steve Ladany: Are we going to see you do more here in the near term? And any color on how that low 8% cap rate there may compare to where you think, perhaps, we are seeing regional, more traditional regional gaming cap rates in the market today? Thanks. Steve.

Speaker Change: Are we going to see you do more here in the near term and.

Speaker Change: Any color on how that low 8% cap rate there may compare to where you think perhaps are seeing regional.

Speaker Change: Traditional regional gaming cap rates in the market today. Thanks.

Speaker Change: See you.

Steve Ladany: Yeah, look, the proprietor of that asset, Jeff Gural, we've known Jeff for some time, and Jeff had some... some tax things he was working through with respect to the transaction and minimizing the leakage and the like. So we were a natural fit to have dialogue with him and try to find a complex bespoke solution. And so we embarked down that path. But we were not in the state of New York.

Speaker Change: Look I'm the proprietor of that asset just corral, we've known Jeff for some time and Jeff had some some some tax thing she was working through with respect to the transaction and minimizing the leakage and the like so we were a natural fit to have a dialogue.

Speaker Change: With him and try to find a complex bespoke solution and so we endeavored down that path look we were not in the state of New York, We obviously have an interest in geographic diversification at the same time you know, it's it's a wonderful asset and you know I think.

Steve Ladany: We obviously have an interest in geographic diversification, but at the same time, it's a wonderful asset. And I think we feel very comfortable that, whether it's Jeff or someone, someone will want to run that property long into the future, beyond when I'm here even. So we felt very good about the longevity of the asset and the counterparty we were dealing with and our ability to solve some of the problems that he was working through from a tax perspective. So those are all the reasons that kind of got us to the table as far as the transaction goes. With respect to whether you should take the 8-3 and just roll it forward for other transactions, I think I would go back to what I just said.

Speaker Change: We feel very comfortable that you know, whether whether it's jeff or someone some of them will want to run that property long into the future beyond what I'm here even.

Speaker Change: So we felt very good about the longevity of the asset and the counterparty, we were dealing with and the our ability to solve some of the problems that he was working through from a tax perspective. So those are all the reasons that kind of got us.

Speaker Change: To the table as far as the transaction goes with respect to whether you should you should take the eight three and just just rolling forward for other transactions I think I would go back to what I. Just said I think each transaction is different I think four for smaller transactions within individual proprietors, where we are providing additional benefits.

Steve Ladany: I think each transaction is different. I think for smaller transactions with individual proprietors where we are providing additional benefits, I don't know, maybe for the time being, that's an okay area to think about, cap rates in the low 8s. But I think as the markets kind of stabilize and the larger players come back and start to look at divestitures or larger scale M&A, things of that nature. I don't think we'll forever see low age as kind of the normal go forward cap rate for transition. Yeah, I got to appreciate the color and just look at it more broadly, you know. Are you interested in adding more of these?

Speaker Change: I don't know maybe maybe for the time being that's that's an okay area to think about cap rates in the low eights, but I think as as the market has kind of stabilized and the larger players come back.

Speaker Change: And start to look at divestitures or larger scale M&A things of that nature. I don't think we will forever see low eights as kind of the normal.

Speaker Change: Go forward cap rate for transactions.

Speaker Change: Got it got it appreciate the color and just more broadly you know.

Speaker Change: Or are you interested in adding more of these.

Peter M. Carlino: Assets to your portfolio and is there anything specifically with this operator that you can do, any offers or agreements to purchase any more? Which assets? I mean, I think if I understand the question, are we interested in adding more regional assets of this nature? I think if that's the question, that's Ruby.

Speaker Change: Assets to your portfolio and is there anything specifically with this operator that you can do any any brokers or an agreement to purchase anymore. Thanks.

Speaker Change: Which assets.

Speaker Change: If I understand the question are we interested in adding more regional assets of this nature I think if that's the question, that's where I'd be sure absolutely.

Speaker Change: So we can get the right cash flow sure.

Speaker Change: With the with the racing like this one's a little a little different so just curious on how well we have we have plenty of assets that have a racing component to them I think sometimes the racing component provides the entry point for these transactions and other times, it's unnecessary amenity to the transaction we're doing.

Peter M. Carlino: Sure. Absolutely. You can underwrite them and get the right cash flow. Sure, with a racing component, right? This one's a little different, so I'm just curious about that.

Peter M. Carlino: Oh, well; we have plenty of assets that have a racing component to them. I think sometimes the racing component provides the entry point for these transactions, and other times it's a necessary amenity to the transaction we're doing. Excuse me, I don't think we focus primarily on racing per se, but certainly, the racetracks are an important part of many of these gaming properties, and we don't shy away from them, and we certainly look for opportunities to get engaged in those transactions. I don't know that it's true, but I would wager, just sitting here, that we own more racetracks than anybody in the United States, the physical facilities.

Speaker Change: Excuse me I don't think we focused primarily on racing per se, but certainly the race tracks are an important part of many of these gaming properties and where we don't shy away from them and we certainly look for opportunities to get engaged in those transaction I don't know that it's true, but I would wager just sitting here that we are more racetracks that anybody in the United States. This physical.

Speaker Change: Facilities. So no I mean look we're in the gambling and gaming business and everything that that entails and I think Brandon said it well it has been in many many places the entre to broader gaming.

Speaker Change: So no we are we.

Speaker Change: Some of the last things that I did at Penn We're building two race tracks in Ohio, and Yeah. Those are great facilities, great gaming facilities as well so not worth we're thrilled though racetracks.

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

Speaker Change: At.

Speaker Change: Same restaurant sales leasebacks with gang component right. So it is the regulatory environment has historically allowed slot machines and other because the license you don't Love Horse racing Yeah Desert right.

Desiree Burke: Some of the last things that I did at Penn were build two racetracks in Ohio, and those are great facilities, great gaming facilities as well, so we're thrilled to own racetracks. Right. I wouldn't say we're thrilled to own racetracks with a gaming component, right? So it is the regulatory environment has historically allowed slot machines and other gaming because of the license. You don't love horse racing now, Desiree?

Speaker Change: Okay. That's it that's it was kind of a joke in here.

Speaker Change: <unk> business has been.

Speaker Change: Each of my life.

Speaker Change: But it's been a it's been the entre to a lot of good things for for for Penn in its time and certainly for US here at G. L. P. I, so would we own more we sure hope so.

Speaker Change: Well, Peter Thanks for that and I Wouldnt wage I guess, you've got a pretty good track record. Thanks for the color guys.

Speaker Change: Thank you.

Peter M. Carlino: Okay. That's kind of a joke here, but the racing business has been a big part of my life, but it's been the entrance to a lot of great things for Penn in its time. And certainly for us here at GLPI. So would we own more? We sure hope so. Well, Peter, thanks for that. And I wouldn't wager against you.

Speaker Change: Our next question comes from Dan Daniel calling them all with capital One Securities. Please proceed with your question.

Dan Daniel: Hello, everyone and thank you for taking my questions. The first one Peter you've been in the gaming industry, a long time and seen various cycles play out when you think about ROI projects and things operators can do to bring more people in the door what he thinks the best Bang for the Buck are there certain projects you would be excited to see announced by you.

Dan Daniel: Tenants in the coming years.

Haendel Emmanuel St. Juste: You've got a pretty good track record. Thanks for the cover, guys. Thank you. Our next question comes from Daniel Guggemal with Capital One Securities. Please proceed with, Hello everyone, thank you for taking my questions.

Dan Daniel: Wow that's.

Speaker Change: That's a difficult question.

Speaker Change: Oh, yeah anything that makes money.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Second attempt engaging in a well yeah Matthew.

Speaker Change: Matthew points out that Penn is a good illustration of folks wanting to invest more money in their projects to hotels that they're talking about Columbus and at the end of Las Vegas, but both.

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

Speaker Change: Absolutely need room expansion.

Speaker Change: And Columbus has long needed Odell.

Speaker Change: Plus they're going landside.

Speaker Change: In into Illinois properties, Aurora and Joliet, that's a positive thing I mean, we can point to the the casino Queens efforts in Baton Rouge, and how successful that roll into a landside property has been first we were much involved in that its a terrific property.

Peter M. Carlino: Yeah. 6.10 3.23 4.55 5.22 6.30 7.50 8.50 9.50 10.40 11.50 12.10 13.50 12.41 12.43 14.54 15.10 16.50 17.15 18..00 17.12 18.40 18.60 19.40 19.45 19.50 19.58 20.00 21.00 22.08, Well, Matthew just points out that Penn is a good illustration of folks wanting to invest more money in their projects. Two hotels that they're talking about, Columbus and a DM in Las Vegas, both absolutely need room expansion, and Columbus has long needed a hotel. Plus, they're going landside on two Illinois properties, Aurora and Joliet. That's a positive thing.

Speaker Change: And it has had the desired result, but it's really a tremendous so yeah, we want to see our tenants investing in opportunities that can.

Speaker Change: But that again, it's in a project by project basis.

Speaker Change: It was we're lucky that I think are pretty exciting pretty positive so.

Speaker Change:

Speaker Change: I'll go back to my original answer anything that makes money.

Speaker Change: Great. Thank you.

Speaker Change: And then kind of on a similar vein and as you guys are kind of looking at development. Just how is the development environment changed if any this year versus last and is there anything of note that youre seeing around kind of labor availability supply chain underwriting versus actuals, maybe Steve or.

Steven T. Snyder: So we're able to see you there.

Steven T. Snyder: So maybe to two things I think from a from a development financing.

Steven T. Snyder: Financing perspective, not a lot's changed between last year and this year, it's a difficult environment for folks that are trying to.

Steven T. Snyder: Ladies dollar so I think one thing that has maybe shifted a little bit is I think existing.

Steven T. Snyder: Tenants are starting to take a more of a longer look at their existing portfolios and what redevelopment opportunities or development opportunities may exist at those locations. So.

Peter M. Carlino: I mean, we could point to the Casino Queens efforts in Baton Rouge and how successful that roll into a landslide property has been. First, we were very involved in that. It's a terrific property, and it's had the desired result. It's really tremendous.

Steven T. Snyder: I think that's I think that has increased more recently than maybe a year ago with respect to supply chains and things like that I I feel like the most.

Steven T. Snyder: Most cases things have become a little easier not easy they're still long lead items for mechanical Ah things in and wide, but but I think that the process and maybe it's just that everyone has become more used to it so everyone's adapted.

Peter M. Carlino: Yeah, we want to see our tenants investing in opportunities that can—again, it's on a project-by-project basis. The ones we're looking at, I think, are pretty exciting, pretty positive. I'll go back to my original answer: anything that makes money.

Steven T. Snyder: More and so you know to put your order in significantly further ahead than we're used to but I think things are becoming a little more normalized with respect to the actual construction process.

Daniel Guggemal: Great, thank you. That makes sense. And then, kind of on a similar vein, and as you guys are kind of looking at development, just how has the development environment changed, if any, this year versus last? Is there anything of note that you're seeing around kind of labor availability, supply chain, underwriting versus actuals?

Speaker Change: Great. Thank you.

Steven T. Snyder: Our next question is from Barry Jonas with Truest Securities. Please proceed with your question.

Barry Jonas: Hey, good morning, guys.

Barry Jonas: You asked about the Tropicana can you talk about where things stand or maybe what are next steps. There I know the property is shutting down and roughly a month and then just curious how involved do you expect to be in a development of the stadium or the prop or they are new property. Thanks.

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

Barry Jonas: Granted it's going to take that I finally got my answer something [laughter] Oh, yeah.

Steve Ladany: So, I think one thing that has maybe shifted a little is that existing tenants are starting to take a longer look at their existing portfolios and what redevelopment opportunities or development opportunities may exist at those locations. So, I think that has increased more recently than maybe a year ago. With respect to supply chains and things like that, I feel like, in most cases, things have become a little easier. But not easy.

Speaker Change: Yeah. It sounds like I mean, I I think I think a lot of the news coming out of Las Vegas lately has been somewhat negative questioning the timing and development and maybe the viability of that project I think from our perspective, a lot of that noise I think a lot of this is proceeding along the timelines that we would've expected.

Barry Jonas: We understand that there's going to dip out of valleys in the A's are working pretty closely together to ensure that there as new stadium design and the integrated resort really maximize the use of that property that 35 acre parcel in the value that's there.

Steve Ladany: There are still long lead times for mechanical things and the like, but I think that the process, and maybe it's just that everyone has become more used to it. So, everyone's adapted a little more. And so, you know to put your order in significantly further ahead than where you used to. But I think things are becoming a little more normalized with respect to the actual construction. Great, thank you.

Barry Jonas: And you know we've had an opportunity to see the stadium architectural designs and we've seen several variations of the integrated resort designs.

Barry Jonas: And we still believe that the fully developed property will be will be a very good addition to that corner of the strip I think as far as how involved will be time will tell them where were the landowner and obviously, we're taking a very keen interest in ensuring that the value of the remainder parcel that we hold is is is sustained.

Barry Jonas: Our next question is from Barry Jonas with Truist Securities. Please proceed with your question. Hey, good morning, guys.

Barry Jonas: And if we can enhance that and we certainly are looking to do that but at this time I think we're waiting to see what valleys is proposing to do for the integrated resort and then we will figure out what our opportunities are to invest in that in that in some ways will depend on valleys needs for financing. So I think we're in kind of a wait and see mode, but we're.

Brandon Moore: I wanted to ask you about the Tropicana. Can you talk about where things stand or maybe what the next steps there are? I know the property is shutting down in roughly a month, and I'm just curious how involved you expect to be in the development of the stadium or the park or the new property. Thanks. Brandon's going to take that.

Brandon Moore: I finally got him to answer something. Yeah, so look, I mean, I think a lot of the news coming out of Las Vegas lately has been somewhat negative, questioning the timing and development and maybe the viability of that project. From our perspective, a lot of that is noise. I think a lot of this is proceeding along the timelines that we would have expected. You know, we understand at this point that the Valleys and the A's are working pretty closely together to ensure that the A's new stadium design and the integrated resort really maximize the use of that property, that 35-acre parcel, and the value that's there. And, you know, we've had an opportunity to see the stadium architectural designs, and we've seen several variations of the integrated resort designs.

Barry Jonas: We're still optimistic that this will be a good project on the corner of the strip.

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

Speaker Change: Yeah, I don't know that I can shed a whole lot of light on the structures themselves I can say. This you know we are focused on the tribal lands held in trust market as it is a very large gaming market here in the United States and if there's a way that we can find from a REIT perspective to generate good REIT income from an investment.

Barry Jonas: And with those trials on those properties, we see it as a tremendous opportunity we spent quite a bit of time and effort and structuring some things and I won't say that we're there we have a few ideas on how these things could work and we'll continue to spend some time on that in conjunction with some of the tribes and see if we can come up with a way that we can safely invest in these and these assets for.

Brandon Moore: And we still believe that the fully developed property will be a very good addition to that corner of the strip. I think as far as how involved we'll be, time will tell. We're the landowner, and obviously, we take a very keen interest in ensuring that the value of the remainder parcel that we hold is sustained. And if we can enhance that, we certainly are looking to do that. But at this time, I think we're waiting to see what Valleys is proposing to do for the integrated resort, and then we will figure out what our opportunities are to invest in that. And that, in some ways, will depend on Valleys' needs for financing. So I think we're in kind of a wait-and-see mode, but we're still optimistic that this will be a good project on the corner of the strip. And that it's really helpful. And then, just as a follow-up, kind of wanted to get your thoughts on the potential for maybe doing deals on tribal land. Curious if you have any thoughts on the types of structures that could potentially make sense.

Barry Jonas: Our shareholders and I think if we're able to do that is a tremendous market, but will do so carefully and we continue to work on that.

Speaker Change: Awesome really appreciate it thanks.

Speaker Change: Thank you.

Sheila Rose: Our next question comes from she needs Rose with Citi. Please proceed with your question.

Sheila Rose: Hi, Thank you.

Sheena Rose: We've been through a lot of questions, but I just wanted to kind of circle back you mentioned at the beginning that you are spending a lot of time with them.

Rose: Whether it's generational ownership issues and maybe some tax discussion I guess two questions. There was kinds of deals are they typically in this kind of rent range kind of a no call it $15 million to $20 million and do you feel that the companies that you have maybe you could have a competitive advantage against maybe yeah.

Sheena Rose: The other experiential REIT or just more of a traditional triple net REIT that want to play in this space and just kind of curious to know who you're seeing kind of at the table. When you engage in these discussions.

Sheena Rose: Yeah.

Speaker Change: Yeah, maybe I'll jump in and if anybody else with a cup and afterwards that's fine.

Speaker Change: Look I think as far as the size of the transaction goes I think it would be incorrect to assume that they are all sole proprietor transactions will be in this in the size range of $14 million of rent.

Barry Jonas: Thanks. Yeah, I don't know that I can shed a whole lot of light on the structures themselves. I can say this, you know, we have focused on the tribal land held in trust market as a very large gaming market here in the United States. And if there is a way that we can find from a REIT perspective to generate good REIT income from an investment with those tribes on those properties, we see it as a tremendous opportunity. We've spent quite a bit of time and effort structuring some things, and I won't say that we're there. We have a few ideas on how these things could work, and we'll continue to spend some time on that in conjunction with some of the tribes and see if we can come up with a way that we can safely invest in these assets for our shareholders. And I think if we're able to do that, it's a tremendous market, but we'll do so carefully, and we will continue to work on that. I really appreciate it. Thanks.

Speaker Change: Cordish family transaction was done with a with a privately owned business. Obviously that was a that was well north of a billion dollar transactions. So I I don't think I don't think that any deals cut with the same clause and in particular like sole proprietor transactions or closely family held businesses.

Speaker Change: Which a lot of gaming enterprises still remain today. Some are very large some some very notable assets in this country are owned by individual owners or or a small group of owners. So I I definitely don't think that there's an indicative size range for that separately, though I do.

Speaker Change: Think as we continue to do transactions with this type of of counterparty and we get and we perfect kind of our thinking around tax structuring transactions and and the use of operating partnership units and the like I do think we start to gain a competitive advantage. So I I.

Steve Ladany: Thank you. Our next question comes from Schmidz Rose with Citi. Please proceed with your question. Hi, thank you.

Schmidz Rose: You've been through a lot of questions, but I just wanted to kind of circle back. You mentioned at the beginning that you spend a lot of time with folks where there are generational ownership issues and maybe some tax discussions. I guess I have two questions. Those kinds of deals, are they typically in this kind of rent range, kind of, you know, call it $15, $20 million? And do you feel as a company that you have maybe sort of a competitive advantage against maybe the other experiential REITs or just more traditional triple net REITs that want to play in this space? I'm just kind of curious who you're seeing kind of at the table when you engage in these discussions. Yeah, look, maybe I'll jump in, and if anybody else wants to jump in afterwards, that's fine. Look, I think as far as the size of the transaction goes, it would be incorrect to assume that all sole proprietor transactions will be in the size range of $14 million. The Cordish Family transaction was done with a privately owned business.

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

Speaker Change: Yeah, and I would just add you know from a competitive advantage standpoint, Steve talks about when we when we spun the company out of 10 over a decade ago. It was really heavily focused on some very creative and and in depth tax structuring and I think we've kept that notion here at the company and when we when we look at potential Counterparties and potential 10.

Speaker Change: We often will put our resources, our tax resources and expertise behind trying to find ways to solve their issues and so sometimes people come in they say well, we'd love to transact, but we have these tax issues that we just are going to prevent that and we say well, let us take a look at those we might be able to help you find solutions to those and so I think <unk>.

Steve Ladany: Obviously, that was well north of a billion-dollar transaction. So I don't think that any deals cut with the same cloth, in particular sole proprietor transactions or closely family-held businesses, a lot of gaming enterprises still remain today. Some are very large. Some very notable assets in this country are owned by individual owners or a small group of owners. So I definitely don't think that there's an indicative size range for that.

Speaker Change: And our competitive advantage you know, we we show a willingness to try to take a problem and see if we can't put our resources behind it to try to solve it and I think that's led to the deals like Tayo, Yeah, Let me make a small commercial which I don't think I've ever done before.

Speaker Change: We.

Speaker Change: It's been my practice for many many years to bring our entire team to these presentations so that you've got a sense. There's no one person. It makes it happened in this company we have a kill a team of people highly skilled highly capable highly motivated and I think what we do is special.

Steve Ladany: Separately, though, I do think as we continue to do transactions with this type of counterparty and we perfect our kind of thinking around tax structuring transactions and the use of operating partnership units and the like, I do think we start to gain a competitive advantage. So I do think that it's a helpful thing to us as we continue to do transactions with counterparty tenants that do have this form and shape, we do start to kind of improve our position as far as competitive advantage against others in our system. Yeah, and I would just add, you know, from the competitive advantage standpoint that Pete talks about, when we founded this company out of Penn over a decade ago, it was really heavily focused on some very creative and in depth tax structuring.

Speaker Change: So.

Speaker Change: But that's that's my answer to your question I think we I mean smedes as you asked the question. It just reminded me of the Cordish dialogue I mean, they certainly have the opportunity to talk to whomever they wanted to and hearing directly across the table that the others treat it like it's other people's money, but you guys treated.

Speaker Change: If you're out of them.

Speaker Change: It underscores the philosophical differentiation, Peter and his history in being in the industry, the kind of competitive and just been able to achieve you know when people decide to take units in the company and become investors alongside us in this theme of partnership.

Speaker Change: Leaves them to decisions that might be not fully economics in the last sentence and that's why in their case. They said you guys weren't the best price you were the best decision.

Speaker Change: And we hope to have that rhyme with future dialogues. It certainly gives US case studies, we can put out and have them look at and understand the why behind the decisions that people have made to date.

Steve Ladany: And I think we've kept that notion here at the company. And when we look at potential counterparties and potential tenants, we often will put our resources, our tax resources, and expertise behind trying to find ways to solve their issues. And so sometimes people come and they say, well, we'd love to transact, but we have these tax issues that we just aren't going to deal with. And we say, well, let us take a look at those; we might be able to help you find solutions to those.

Speaker Change: Great. Thank you I appreciate it.

Speaker Change: Our next question is from David Katz with Jefferies. Please proceed with your question.

David Katz: Hi, good morning, everyone and thanks for taking my questions.

David Katz: You know <unk> covered a ton of ground and I think one of the areas. We haven't really discussed much is international.

David Katz: And the degree to which you know you would contemplate assets at this point that are sort of outside the United States and yes, I do consider Canada to be another cut you know international in another country.

David Katz: But you know any other territories that might be on your consideration board at this point.

Speaker Change: Yeah, Yeah, I mean every time a transaction comes up we do look at it. So we've looked at we've looked at transactions in South America Europe.

Brandon Moore: And so, to Steve's point about a competitive advantage, you know, we show a willingness to try to take a problem and see if we can't put our resources behind it to try to solve it. And I think that's led to deals like Tioga. Yeah, let me make a small commercial, which I don't think I've ever done before.

Speaker Change: Hmm.

David Katz: Canada 20 times, we have spent time, obviously, it's not an easy endeavor, because you'd have to do a bunch of tax analysis and understand what the leakage is and when we look at that you know just like we do with our underwriting when we looked at a risk adjusted return we looked at we looked at what's the net.

Peter M. Carlino: We, It's been my practice for many, many years to bring our entire team to these presentations so that you get a sense there's no one person that makes it happen in this company. We have a killer team of people, highly skilled, highly capable, highly motivated, and I think what we do is special. So, that's my answer to your question. I think we, I mean, Sneeds, as you asked the question, it just reminded me of the Quidditch dialogue.

David Katz: Tax impact cash flow and what does that mean from a from an investment perspective internationally. So so we have looked in a number of.

David Katz: International jurisdictions.

David Katz: Have bid on properties and the number of jurisdictions, but we've always looked at it with a net tax lanes and therefore, you know that at times I think that's that's maybe caused us to not win in a particular bidding scenario, but but nonetheless, that's that's the appropriate way.

Matthew Demchyk: I mean, they certainly had the opportunity to talk to whomever they wanted to, and hearing directly across the table that the others treat it like it's other people's money, but you guys treat it like it's your own really underscores the philosophical differentiation between Peter and his history and being in the industry, the kind of compounded returns he's been able to achieve. You know, when people decide to take units in the company and become investors alongside us. It certainly gives us case studies we can put out and have them look at and understand the why behind the decisions that people have made to date. Great Thank you. I appreciate it.

David Katz: We believe to look at these things.

David Katz: Is it fair to you.

David Katz: I mean, it sounds as though among the <unk>.

David Katz: If not the primary gating factor is the tax element of it.

David Katz: I wouldn't say that's the primary factor, but you certainly have to consider that you have when it gets to that country that you have to pay before you bring the proceeds back to the U S. For REIT purposes, you have to take that into consideration in what your return is that you're really getting them. It's not a primary factor, but it is a factor which well.

David Katz: Our next question is from David Katz with Jefferies. Please proceed with your question. Hi. Good morning, everyone.

Peter M. Carlino: Thanks for taking my questions. Look, I, you know, covered a ton of ground. I think one of the areas we haven't really discussed much is international and the degree to which, you know, you would contemplate assets at this point that are outside the United States. And yes, I do consider Canada to be another, you know, international and another country. But, you know, any other territories that might be on your consideration board at this point? Yeah, I mean, every time a transaction comes up, we do look at it. So we've looked at transactions in South America and Europe. We have spent time. Obviously, it's not an easy endeavor because you have to do a bunch of tax analysis and understand what the leakage is.

David Katz: That's to me more income in order to overcome that yeah, I think when we look at these foreign jurisdictions taxes, certainly one of the leading indicators on whether or not economically it makes sense, but there's a whole handful of other risks that we have to analyze where we looked at that and if you're talking about Canada. You may have less so but you certainly are regulatory risks there are different regulatory environment.

David Katz: You have currency risk political instability, so depending on where you are from South America to Canada. The risks could be numerous or they could be a few but taxes almost always one of them.

David Katz: Yeah look it's safe to say, we look at a lot of stuff and don't Miss don't Miss a whole lot every now and then but we don't mismatch.

David Katz: And we make conscious choices and we just have never been able to put one of these jurisdictions over the top.

David Katz: Continuing to look as we do with many that those at many other opportunities, but you know.

David Katz: So you see it we were just not going to make the move.

Desiree Burke: And when we look at that, you know, just like we do with our underwriting, we look at a risk-adjusted return, we look at what's the net tax impact of cash flow and what does that mean from an investment perspective internationally. We have looked at a number of international jurisdictions. We have bid on properties in a number of jurisdictions, but we've always looked at it with a net tax lens.

Speaker Change: Understood. Thank you very much.

David Katz: Our next question is from Caitlin Burrows with Goldman Sachs. Please proceed with your question.

Caitlin Burrows: Hi, Good morning, everyone, maybe just back to that how a lot of the deals you are looking at today are not the simplest type given where the capital markets or I guess, what do you think would make that change is it just lower cost of capital supporting lower cap rates is it capital needs by operators like what could get that traditional type deals going more actively.

Desiree Burke: And therefore, you know, at times, I think that's maybe caused us to not win in a particular bidding scenario. But nonetheless, that's the appropriate way, we believe, to look at the question, And is it fair? I mean, it sounds as though among the, you know, if not the primary gating factor is the tax element of it. I wouldn't say that's the primary factor, but you certainly have to consider that you have leakage to that country that you have to pay before you bring the proceeds back to the U.S. for rate purposes.

David Katz: Yeah.

David Katz: And my my my opinion would be capital market stability I think you know if you think about if you think about people trying to maximize price.

David Katz: As a seller or you think about large scale M&A. For example, you know and all of those and all of those inputs that are critical component is the cost of debt any any quantum of leverage you can put on a transaction. So clearly you know a few years ago when when that was.

Desiree Burke: You have to take that into consideration in what your return is really getting. It's not a primary factor, but it is a factor that will cause us to need more income in order to overcome that. Yeah, I think when we look at these foreign jurisdictions, tax is certainly one of the leading indicators on whether or not economically it makes sense. But there's a whole handful of other risks that we have to analyze when we look at that. And if you're talking about Canada, you may have less so, but you certainly have regulatory risks.

David Katz: Plentiful and inexpensive we saw prices you know able to press higher because the amount of leverage whether it be public a gaming REIT or more private real estate investors were able to utilize to maximize the purchase pricing and I think from a gaming perspective on the opera.

David Katz: Peter side, most of our most of our tenants and even knows that R&R tenants fun. Most most transactions via debt. There are not a lot of gaming operators that go out and issue equity to do transactions. So as the capital markets or are you now more expensive on the debt side in particular.

Brandon Moore: There are different regulatory environments. You have currency risks. You have political instability. So depending on where you are from South America to Canada, the risks could be numerous, or they could be a few, but tax is almost always one of them.

David Katz: Definitely causes a slowdown in regular way quote unquote traditional sale leaseback transactions and puts a little bit of a capping on the pricing aspect.

Peter M. Carlino: Yeah, look, it's safe to say we look at a lot of stuff and don't miss, don't miss a whole lot every now and then, but we don't miss much. And we make conscious choices. And we just have never been able to put one of these jurisdictions over the top.

Speaker Change: Got it okay that makes sense and then maybe just on that activity you guys mentioned earlier in the call. How the number of properties has increased substantially over the past number of years. So as you look at your crane conversations and expectations for 'twenty. Four can you give any commentary on just your expectation for deal activity to kind of get over the finish line this year or even just.

Peter M. Carlino: We'll continue to look, as we do with many such opportunities and many other opportunities, but you know, until you see it, we're just not going to make the move. Understand? Thank you very much.

David Katz: In the first half.

David Katz: Yeah.

Speaker Change: The answer is low [laughter], there's no look.

Caitlin Burrows: Our next question is from Caitlin Burrows with Goldman Sachs. Please proceed with your question. Hi, good morning, everyone.

Speaker Change: Look I think it's been well said that are you know.

Speaker Change: The there's a lot of stuff that is out there we looked at a lot of stuff.

Steve Ladany: Maybe just back to that how a lot of the deals you're looking at today are not the simplest type, given where the capital markets are. I guess, what do you think would make that change? Is it just a lower cost of capital supporting lower cap rates? Is it capital needs by operators? Like what could get those traditional type deals going more actively? in my opinion, capital market stability. I think if you think about people trying to maximize price as a seller or you think about large-scale M&A, for example, in all those inputs, the critical component is the cost of debt and the quantum of leverage you can put on a transaction.

Speaker Change: Sometimes use the Bible quote you know that many are called but few have chosen.

Speaker Change: So it's completely unpredictable.

David Katz: I would tell you the number of things.

David Katz: Well I can tell you some things, we're looking at and we'd like to see it done, but they're getting done is completely unpredictable.

David Katz: The Bowl.

David Katz: Or even if it is likely to happen is it going to happen. This year will it happen next year a lot of complexity to the stuff that we do.

David Katz: There's regulatory approvals, there's just so many parts and pieces so that nothing happens fast. Therefore, we're just going to tell you where we're going at it.

David Katz: They tuned.

Speaker Change: Okay. Thank so stay tuned.

David Katz: Okay.

David Katz: Right.

David Katz: Our next question is from Ron Camden with Morgan Stanley. Please proceed with your question.

Ron Camden: Hey, just two quick ones. So one on the Tioga Downs deal I saw the presentation on the website.

Caitlin Burrows: Clearly, a few years ago when debt was plentiful and inexpensive, we saw prices able to press higher because the amount of leverage, whether it be public gaming REITs or private real estate investors, were able to utilize to maximize the purchase price. I think from a gaming perspective on the operator side, most of our tenants and even those that aren't our tenants fund most transactions via debt. There are not a lot of gaming operators that go out and issue equity to do transactions. As the capital markets are more expensive on the debt side, in particular, it definitely causes a slowdown in regular, quote-unquote traditional sale-leaseback transactions and puts a little bit of a cap on the pricing.

Ron Camden: I think it's one of the first times you guys are proud of presentation. After a deal so.

Ron Camden: Obviously curious why why he decided to start with this one which is super helpful. But the question on this one is just on this writer first refusal for Vernon Downs.

Ron Camden: Any sort of conversations with the with what with sort of American racing are they are they are looking to sell but how should we what's the color behind that are that that rover.

Ron Camden: I'll touch base on the Rover and then Steve can talk about the presentations, which you know you got to start somewhere so quite why not now.

Ron Camden: The ROE for the ROE for when we look at Virgin as more of a defensive play so Vernon doesn't generate a ton of EBITDA and it has some challenges some tax challenges and other things and the way that that property came to be it's not something that we are focused on as being necessary for the transaction and I don't think it's necessarily something that Vernon are or that American racing is focus on it.

Peter M. Carlino: Got it. Okay, that makes sense. And then maybe just on that activity you guys mentioned earlier in the call, how the number of properties has increased substantially over the past number of years. So as you look at your current conversations and expectations for 24, can you give any commentary on just your expectation for deal activity to kind of get over the finish line this year or even just in the first half? The answer is no.

Ron Camden: <unk> I think the issue in New York is there aren't any gaming jurisdiction anytime you have a facility and it's and it's.

Ron Camden: Potential you want it you want to see if you can get a right to acquire that facility and this is one where it didn't make sense to acquire today, but that doesn't mean it won't make sense to acquired in future and so that's the reason we had negotiated that rover with respect to burden, but I wouldn't say, there's anything in the foreseeable future from either our side or American racing, where that will make much sense.

Peter M. Carlino: Look, I think it's been well said that, you know, there's a lot of stuff that is out there. We look at a lot of stuff. I sometimes use the Bible quote, you know, that many are called but few are chosen.

Ron Camden: Yeah with respect to the presentations I think are I think we got hurt.

Peter M. Carlino: So it's completely unpredictable. I could tell you the number of things, but I can't and won't.

Ron Camden: Through the Rockford transaction that you know.

Peter M. Carlino: I could tell you some things we're looking at that we'd like to see done. But they're getting done. It's completely unpredictable, or even if it is likely to happen, is it going to happen this year? Will it happen next year?

Ron Camden: I think it would have been it would have been helpful. In some cases for us to have some nice pictures for people to look at and things of that nature. So I think to Brendan's point, we just figured we'd start somewhere and you know I think future transactions will have similar few pages of.

Peter M. Carlino: There is a lot of complexities to the stuff that we do. There are regulatory approvals. There's just so many parts and pieces so that nothing happens fast.

Ron Camden: Information for you to look at and Green sort of a sense of what we're doing.

Ron Camden: Helpful.

Speaker Change: My second question and we do appreciate the presentation. So my my second question is just just moving to the guidance.

Peter M. Carlino: Therefore, we're just going to tell you we're working on it. Stay tuned. Okay, thanks. We'll stay tuned. Okay. Our next question is from Ron Camden with Morgan Stanley. Please proceed with your question. Hey, just two quick ones. So one, on the Tioga Downs deal, I saw the presentation on the website, which I think is one of the first times you guys have put out a presentation after a deal. I'm obviously curious why you decided to start with this one, which is super helpful.

Speaker Change: Do you guys sort of came in below consensus right and.

Speaker Change: It sounds like there is some conservatism baked in there I think you made some comments about your interest cost assumptions, but is there any way we can double click and get maybe you know what the extra cases ranges caused changes versus the expectation for NOI cant just the big picture line items other than just the a F O situation just a weekend.

Ron Camden: But, you know, the question on this one is just, on this right-of-first refusal, burning down. Any sort of conversations with American Racing? Are they looking to sell? Akashi, what's the color behind that rope?

Speaker Change: Piece together you know why is it that the $3 72, which is basically just fork you annualize it.

Speaker Change: Shaking out.

Speaker Change: Yeah, and I mean, given all of the information that we wanted to give but we you know look it's $10 million that nice spread on a billion.

Steve Ladany: I'll touch base on the ROFR, and then Steve can talk about the presentations, which, you know, you've got to start somewhere, so why not now? I think the ROFR, when we look at Vernon, is more of a defensive play, so Vernon doesn't generate a ton of EBITDA, and it has some challenges, some tax challenges, and other things in the way that that property came to be. It's not something that we have focused on as being necessary for the transaction, and I don't think it's necessarily something that Vernon or that American Racing is focused on monetizing. I think the issue in New York is, or in any gaming jurisdiction, anytime you have a facility and it's in its potential, you want to see if you can get a right to acquire that facility. And this is one where it doesn't make sense to acquire it today, but that doesn't mean it won't make sense to acquire it in the future.

Ron Camden: It's not all that significant.

Ron Camden: You know Lou Symbian, there, but and I I've tried.

Ron Camden: Actually to me, where we think we've put some of our own power ourselves given the timing of the transactions that need to be funded during the year.

Ron Camden: And you know as well as the interest rate movement.

Ron Camden: Is 38 basis points, a week ago. So that was in one day, that's what they're ready to buy so that gives you an indication of what we're not sure that what will happen in the future, but that comes out with more information and as inflation remains very strong and not not down to the 2% that theyre looking to get.

Ron Camden: To Atlas so.

Ron Camden: I don't I don't think it's significant in the scheme of things. Our high claim is 374 or we will modify guidance as we get more information throughout the year and get a little bit smarter as to what's happening.

Steve Ladany: And so that's the reason we had negotiated that roper with respect to Vernon. But I wouldn't say there's anything in the foreseeable future from either our side or American racing where that will make much sense. With respect to the presentations, I think I think we heard through the Rockford transaction that, you know, I think it would have been helpful in some cases for us to have some nice pictures for people to look at and things of that nature. So I think to Brandon's point, we just figured we'd start somewhere, and I think future transactions will have similar few pages of information for you to look at and glean a sense of what we're doing. Look, my second question, and we do appreciate the presentation. So my second question is just moving on to the guidance. So you guys sort of came in below consensus, right? And it sounds like there's some conservatism baked in there.

Ron Camden: But that is the color that we would like to give on this call.

Speaker Change: Great. Thanks, so much.

Speaker Change: Our next question comes from Mitch Germain with citizens JMP. Please proceed with your question.

Mitch Germain: Thanks, and congrats on the year just toward guidance I'm, just trying to make sure I understand what's in it and what's not so.

Mitch Germain: Tayo Guy and I guess, you provided some perspective Deseret on Boyd and Pinnacle resets is that in guidance today.

Mitch Germain: Yes. It is in guidance today and Tayo that is in guidance today, that's correct right. Okay, great and just curious about the competitive landscape are you guys seeing you know more organized capital kind of coming off the sidelines. These days.

Mitch Germain: Well it's.

Mitch Germain: A very small sample size.

Ron Camden: I think you made some comments about your interest costs assumption. But is there any way we can double-click and get maybe, you know, what the expectations are for interest cost changes versus the expectations for NOI changes, just the big picture line items, other than just the AFFO situation, just so we can really piece together, you know, why the 372, which is basically just 4Q annualized, is shaking out? I mean, we've given all of the information that we want to give, but we, you know, look, it's $10 million of a spread on a billion 50. It's not, it's not significant.

Peter Carlino: But I would say I would say not not necessarily I think just the same port organized capital I think is the word you used the same organized capital that we've been chasing chasing gaming real estate for.

Mitch Germain: For the last call. It two years is the same organized capital that's chasing it I don't think there have been new entrants that have raised funds or what have you to enter the space and I know we've had dialogue with one one you know provider private real estate provider.

Mitch Germain: Discussed potentially exiting the space. So so I think I don't think there's the headwinds are there I think it's mainly because of the leverage component and the cost of debt that it did have kind of kept some additional folks on the sidelines.

Desiree Burke: You know, move to be in there, but I, I've tried to articulate where we think we have some room for ourselves, given the timing of the transactions that need to be funded during the year. You know, as well as the interest rate movement. I mean, it moved 38 basis points a week ago. So that was in 1 day.

Speaker Change: Thank you.

Speaker Change: Yeah.

Desiree Burke: Our next question comes from John Decree with C. B R. E. Please proceed with your question.

John Decree: Hey, good morning, everyone covered most of my questions. So maybe just maybe one big picture question, Peter you've got quite a bit of experience in our new states legalizing casinos theres been some activity in.

Desiree Burke: That's what the rate moved by. So that gives you an indication of what we're not sure what will happen in the future as the Fed comes out with more information and as inflation remains very strong and not down to the 2% that they're looking to get to. So, I don't think it's significant in the scheme of things. Our high point is 374.

John Decree: Long holdout states on the Legislative front in Texas, Georgia, Alabama, maybe a few others that could be interesting so.

Desiree Burke: You know assuming you don't have a crystal ball there.

Mitch Germain: We will modify guidance as we get more information throughout the year and get a little bit smarter as to what's happening, but that is the color that we would like to give on this call. Great, thanks so much. Our next question comes from Mitch Germain with Citizens JMP. Please proceed with your question. Thanks, and congrats on the year. I'm just, toward guidance. I'm just trying to make sure I understand what's in it and what's not, so... Tioga, and I guess you provided some perspective, Desiree, on Boyd and Pinnacle resets. Is that in guidance today? Yes, it is in guidance today, and Tioga is in guidance today; that's correct.

John Decree: Is there anything that you're watching closely or or anything you think were there or if there might be some.

John Decree: Momentum.

Mitch Germain: Yeah, I mean, we should be paying attention about I'm not sure. If you have any any unique views on some of those situations.

Mitch Germain:

John Decree: We watch closely anything that looks like opportunity. So you can count on the fact that we're very much aware of what's going on out there in the world theory. It slipped my general view is everybody that game is gonna be everywhere, there's no place where it won't be just a matter of time states feel the pressure when the guy next door in half there.

John Decree: Population is going elsewhere to gamble sooner or later.

John Decree: They they they break down and participate.

Speaker Change: So we keep a close eye on that but abandon you want to add anything I think that's generally right I mean, where where we we are very close to what's going on in both Alabama and Georgia and then the addition in Texas, but I think Alabama, and Georgia, both have bills moving at the moment they could open the door for opportunities I think the difference in the south eastern part of the United States.

Desiree Burke: Okay, great. And just curious about the competitive landscape; are you guys seeing more organized capital, you know, kind of coming off the sidelines these days? Well, it's a very small sample size, but I would say not necessarily.

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

Speaker Change: Now versus maybe five years ago is you've had a promo differential of sports betting and in adjacent states and neighboring places and people are becoming more accustomed to the idea of gaming being more of an entertainment source as opposed to all the negative influences that people have historically associated with a gaming property and.

Speaker Change: I think in those states, you're having the general population generally be supportive of more widespread resort style entertainment gaming and I think that's why you're seeing more bills, you're seeing more things moving further each year I mean, I think each year. Each one of these states kind of pushes things a little bit further along and.

Steve Ladany: I think it's mainly because of the leverage component and the cost of debt that have kind of kept some additional folks on the sidelines. Thank you. Our next question comes from John Decree with CBRE. I'm pleased to see you with your question. Hey, good morning, everyone.

John Decree: I covered most of my questions. So maybe just one big picture question. Peter, you've got quite a bit of experience in new states, legalizing casinos. There's been some activity in long holdout states on the legislative front, Texas, Georgia, Alabama, maybe a few others that could be interesting. So assuming you don't have a crystal ball there, is there anything that you're watching closely or anything you think where there might be some momentum that we should be paying attention to? I'm not sure if you have any unique views on some of those situations.

John Decree: And eventually as Peter said I think you'll see it in both of those states and probably in neighboring states in the South east as well. So we keep a very close eye on that and those are will be opportunities for folks if those if those states get over the finish line.

Speaker Change: That's great I appreciate all that color. Thank you all.

Speaker Change: Thank you.

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

Peter M. Carlino: We watch closely anything that looks like an opportunity. So you can count on the fact that we're very much aware of what's going on out there in the world, period. Look, my general view is everybody, gaming is going to be everywhere. There's no place where it won't be just a matter of time. States feel the pressure when the guy next door and their... population is going elsewhere to gamble. Sooner or later, they break down and participate, so we keep a close eye on that. Brandon, do you want to add anything?

Peter M. Carlino: Well, thanks, operator, and thanks to all of you who have dialed in this morning, I hope that what we presented is helpful.

Peter M. Carlino: And there's always a we are looking forward to.

Peter M. Carlino: It's to seeing you all next quarter. Thank you.

Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.

Brandon Moore: I think that's really right. I mean, we are very close to what's going on in both Alabama and Georgia and, in addition, in Texas, but I think Alabama and Georgia both have bills moving at the moment that could open the door to opportunities. I think the difference in the southeastern part of the United States now versus maybe five years ago is that you've had a proliferation of sports betting in adjacent states and neighboring places, and people are becoming more accustomed to the idea of gaming being more of an entertainment source as opposed to all the negative influences that people have historically associated with a gaming property. I think in those states, you have the general population generally being supportive of more widespread resort-style entertainment gaming, I mean, I think each year, each one of these states kind of pushes things a little bit further along, and eventually, as Peter said, I think you'll see it in both of those states and probably in neighboring states in the southeast as well.

Peter M. Carlino: The conference has ended please disconnect your lines at this time. Thank you.

Brandon Moore: So we keep a very close eye on that, and those will be opportunities for folks if those states get over the finish line. That's great. I appreciate all that color. Thank you, all. Thank you. We have reached the end of the question and answer session. I would now like to turn the call back over to Peter Carlino for closing comments. Well, thanks, operator. And thanks to all of you who have dialed in this morning. I hope that what we've presented is helpful. And as always, we are looking forward to seeing you all next quarter. Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. The conference has ended. Please disconnect.