Q2 2025 Gaming & Leisure Properties Inc Earnings Call

Operator: 2nd Quarter 2025 Earnings Conference Call & Webcast At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad.

Greetings, and welcome to the gaming and Leisure Properties Inc, second quarter, 2025 earnings conference call and webcast.

Joseph Jaffoni: It is now my pleasure to introduce your host, Joe Jaffoni, Investor Relations. Thank you. You may begin.

Joseph Jaffoni: Thank you, Shamali. And good morning, everyone. And thank you for joining Gaming and Leisure Properties second quarter 2025 earnings call and webcast. The press release distributed yesterday afternoon is available in the investor relations section on our website at www.glpropinc.com.

At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host Joe Johnny investigation, thank you. You may be good.

Joseph Jaffoni: 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 AFFO. 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.

Speaker Change: Thank you, Shamaley, and good morning everyone and thank you for joining gaming and Leisure properties. Second, quarter 2025 earnings call on webcast, the press release distributed yesterday. Afternoon is available in the investor relations section on our website at

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.

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

Speaker Change: 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 afo,

Joseph Jaffoni: 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 Form 10-Q and in the earnings release, as well as the definitions and reconciliations of non-GAAP financial measures contained in the company's earnings release.

Speaker Change: 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.

Joseph Jaffoni: On this morning's call, we are joined by Peter Carlino, Chairman and Chief Executive Officer at Gaming and Leisure Properties. Also joining today's call are Brandon Moore, President and Chief Operating Officer, Desiree Burke, Chief Financial Officer and Treasurer, and Steve Ladny, Senior Vice President, Chief Development Officer.

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 form 10q and in the earnings release, as well as the definitions and reconciliations of non-gaap financial measures contained in the company's earnings release.

Speaker Change: On this morning's call, we are joined by Peter carlino, chairman and chief executive officer at gaming, and Leisure properties.

Peter Carlino: With that, it's my pleasure to turn the call over to Peter Carlino. Peter, please go ahead. Well, thank you, Joe. And good morning, everyone.

Speaker Change: Also joining today's call are Brandon Moore president and Chief Operating Officer Desiree. Burke Chief Financial Officer and Treasurer and Steve ladne. Senior Vice President Chief development officer.

With that. It's my pleasure to turn the call over to Peter carlino Peter. Please go ahead.

Peter Carlino: We are pleased to announce another good quarter. where most everything that we're working on has been moving according to plan. I promised you last quarter that We would achieve and should achieve a very strong year in calendar year 25. That's still the case, timing, unfortunately, doesn't always align with our four quarterly calls. So stay tuned. We still stand by that. In the meantime, in this seemingly quiet quarter, we achieved a record year-over-year revenue, AFO adjusted EBITDA, and so lots of good stuff happening, which we're excited to report as this year unfolds.

Peter Carlino: Well, thank you Joe and good morning everyone.

Speaker Change: we, uh,

Speaker Change: we're pleased to announce another good quarter.

Speaker Change: Where most everything that we are working on, has been moving according to plan.

I promise you last quarter that

we would achieve and should achieve a very strong year in calendar year 25.

Speaker Change: With our 4 quarterly calls, so stay tuned. We still stand by that.

Speaker Change: in the meantime, and this seemingly quiet quarter, we achieved a record year-over-year, Revenue afo adjusted IBA

Speaker Change: and um, so lots of good stuff happening which uh

Desiree Burke: With that, I'm going to quickly move to Desiree Burke, and Desiree, please go ahead. Sure. For the second quarter of 2025, our total income from real estate exceeded the second quarter of 2024 by over $14 million. This growth was driven by increases in cash rent of over $22 million, resulting from acquisitions and escalation. So we have Bally, Chicago Land, $5 million, the Tropicana funding, $1 million, Kansas City and Shreveport, $8 million, Rockford Loan, $1 million, Strategic Acquisition, $1 million, Ion Loan, $0.6 million, and so on. And the recognition of escalators and percentage rent adjustments added $4.9 million of cash income.

We we are excited to report as this year unfolds with that. I'm going to quickly move to Desiree, Burke and Desiree. Please go ahead.

Desiree Burke: The combination of non-cash revenue growth, such investment in lease adjustments and straight-line rent adjustments partially offset these increases, driving a collective year-over-year decrease of approximately $8.2 million.

Desiree Burke: Sure, for this second quarter of 2025 our total income from Real Estate, exceeded. The second quarter of 2024, by over 14 million dollars, this growth was driven by increases in cash rent of over 22 million resulting from Acquisitions and escalation. So we have Valley Chicago land 5 million, the Tropicana funding, 1 million, Kansas City, and SRI report, 8 million Rockford loan, 1 million strategic acquisition, 1 million, ion loan, 6 million and the recognition of escalators and percentage, rent adjustments, added 4.9 million dollars of cash income.

Desiree Burke: Our operating expenses increased by $65.6 million, primarily resulting from a non-cash adjustment in the provision from credit losses due to a more pessimistic, forward-looking economic forecast that is used in the estimates. It should be noted that all our rent payments are current from all of our tenants.

Desiree Burke: The combination of non-cash Revenue growth substance investment and Lease adjustments and straight line. Rent adjustments. Partially offset. These increases driving a collective year-over-year, decrease of approximately 8.2 million

Desiree Burke: Our operating expenses increased by 65.6 million primarily resulting from a non-cash adjustment in the provision from credit losses. Due to a more pessimistic forward-looking economic forecasts that is used in the estimation.

Desiree Burke: For the company's development properties, just a reminder that we continue to capitalize interest and defer all rent during the development for financial reporting purposes. However, we do add back that rent and deduct that interest in deriving at ASFFO. In today's release, our full year 2025 AFFO guidance is ranging $385 to $387 per diluted share and OP units. Please note that our guidance does not include future transactions. However, it does include the anticipated funding of $130 million for the Joliet relocation project, as well as $375 million for development projects with approximately $338 million remaining to fund during the second half of 2025.

Desiree Burke: It should be noted that all our rent payments are current from all of our tenants.

For the company's development properties. Just a reminder that we continue to capitalize, interest and deferral rent during the development for financial reporting purposes. However, we do add back that rent and deduct that interest in deriving at affo.

Desiree Burke: In today's release our full year, 2025 afo guidance is ranging 385 to 387 per diluted, share in, op units.

Desiree Burke: Our rent coverage ratios range from $169 to $272 on our master leases as the end of the prior quarter ends.

Desiree Burke: Please note that our guidance does not include future transactions. However, it does include our anticipated, funding of 130 million for the Joliet relocation project as well as 375 million for development projects with approximately 338 million remaining to fund during the second half of 2025.

Peter Carlino: With that, I'll turn it back to Peter. Thanks, Desiree.

Desiree Burke: Our rent coverage ratios range from 169 to 272 on our Master leases as the end of the prior quarter end.

Peter Carlino: With that. I'll turn it back to Peter.

Operator: And with that, we'll move to questions.

Thanks, Desiree. And with that we'll move to uh questions.

Operator: operator. Thank you.

Peter Carlino: Operator.

Operator: We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue.

Thank you. We will now be conducting a question and answer session.

William Kilichowski: For participants using speaker equipment, it may be necessary to pick up their handset before pressing the start One moment please while we pull for Our first question comes from the line of John Kilichowski with Wallace Fargo. Please proceed with your question. Hi, good morning.

If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press start to to remove yourself from the queue.

Peter Carlino: For participants using speaker equipment, it may be necessary to pick up the handset before pressing the start keys.

Peter Carlino: 1 moment, please while we pull for a question.

Speaker Change: Our first question comes from the line of John kroski with the Wells Fargo. Please proceed with your question.

Brandon Moore: I wanted to start by revisiting your interest in the Lincoln call option at the end of next year. it still remains and something we're counting on what what can we tell you about that Brandon.

John Kroski: Hi. Uh, good morning. Um, I I just wanted to start by, uh, revisiting your interest in the leaking call option at the end of next year.

Speaker Change: It Still Remains and something we're counting on. What, what can we tell you about that?

Yeah, well I I'm just getting a fair bit of interest, um, on my end from an investors. And I, I wanted to get your thoughts on this and really, as values as a tenant, you know, Fitch recently downgraded, uh, them to ratings, watch negative, based on negative free cash flow assumptions for 25 and 26. So it seems like the only way to plug that funding Gap would be with that sale at least back Capital. So I just want to get

Speaker Change: About how you think about growing with them as an operator, when you know, 1 of their only solutions to keep them out of the default is to kind of grow exposure to them.

Brandon Moore: Yeah, well, thanks, John. I mean, I think that when it comes to Lincoln, and as it relates to Bally's, as everybody knows, we still we currently own a large portion of the Bally's real estate portfolio as it is. So the question for us is, in my mind, is Lincoln an asset we'd like to own at that cap rate in that price in that market? So we have to evaluate that asset and say, is it an asset we'd like to own and add to that portfolio?

Speaker Change: Brandon. Yeah, well thanks John. I mean I I think that when it comes to Lincoln and as it relates to valleys is everybody knows we still we currently own a large portion of the valleys real estate portfolio as it is. So the question for us is in my mind is is Lincoln an asset. We'd like to own at that cap rate and that price and that market. So we have to evaluate that asset and say is it an asset we'd like to own an add to that portfolio.

Unknown Executive: Joseph Jaffoni, David Katz, Haendel Juste, Haendel Very helpful, thank you. Thank you.

Speaker Change: And so we recognize the challenges um that people have with valleys and our exposure to valleys in Chicago and Las Vegas and the various projects. We're working on, but we're looking at Lincoln on a property level in determining whether that's a property, we think is value additive to our portfolio.

Speaker Change: Very helpful. Thank you.

Bradley Heffern: Our next question comes from the line of Brad Heffern with RBC Capital Markets. Please proceed with your question. Yeah, hi, everybody. Thanks. On Bally's Bronx, you know, the Bally's doc cited a two and a half billion dollar commitment from GLPI. I know that specific project has a pretty uphill battle to approval.

Thank you.

Speaker Change: Our next question comes from the line of rad heer with RBC Capital markets. Please proceed with your question.

Brandon Moore: But, you know, given what you were talking about, about the risk reward of Lincoln, which is, you know, significantly smaller, I guess, how do you think about the risk reward balance for that type of commitment to Bally's for this project or any others, just given the leverage and funding concerns?

Yeah. Hi everybody. Thanks. Um, on Valley's Bronx, uh, you know, the ballet stock cited, a 2 and a half billion dollar commitment from glpi. I know that specific project has a a pretty uphill battle to approval. But, you know, give them what you were talking about about the risk reward of Lincoln, which is, you know, significantly smaller, I guess, how do you think about the risk, reward balance for that type of commitment to balance? Uh, for this project or any others, just given the leverage and funding concerns

Steven Ladany: You want to take that, Steve? Sure. Yeah.

Steven Ladany: Look, I think with respect to all of the New York projects, we've had a number of conversations with various parties and remain interested across the wide array of of projects and would be open to dialogue with multiple parties. I think the reality is right now where that process sits in the state of New York, your guess is as good as ours as far as which properties ultimately get the license and then how a location next door to you might impact your particular property or not. So once we know where everything's going, I think we'll have a better sense.

Speaker Change: You want to take that Steve? Sure. Yeah, I took look, I think with respect to um all of the New York projects. We we've had a number of conversations with various parties and remain interested across the wide array of of uh, projects and and would be open to dialogue with multiple parties. I think the reality is uh, right now where that process sits in the state of New York. Uh, your guess is as good as ours as far as which properties, ultimately, get the license and then how a location.

Steven Ladany: I think the way the process worked, most parties have asked for highly confident type of letters and from whether it be banks or real estate financing partners or any type of financing partners. So I think with respect to our relationship with Bally's in New York, as you know, we have the we have the roofer that still exists in the state of New York for all of New York, not just for downstate. And so with that, we have we're well positioned to be able to provide and evaluate real estate opportunities and financing opportunities there. So, look, we we're open to discussions not only with Bally's, but with other parties, and we've had many of those.

Peter Carlino: It just so happens in this particular instance versus others. They elected to use our name in their application versus using a bank.

Peter Carlino: Let me add and highlight something Brandon said earlier, and that is that we look at these projects on a property by property, project by project basis, and underwrite them in a freestanding sense, so that they have to stand on their own merits. And I think we ask ourselves, is this a property we want back, you know, if it under any circumstance, is it strong enough? So we look at it one at a time. Okay, got it.

Speaker Change: Next door to you, might impact your particular property or not. So once we know where everything's going, I think we'll have a better sense. I think the way the process worked most parties have asked for a highly confident type of letters. Um, and from whether it be Banks, uh or real estate financing Partners or or any type of financing Partners, so I think with respect to our relationship with BS, in New York. As you know, we have the, uh, we have the roofer, uh, that still exists in the state of New York for all of New York, not just for Downstate. And, uh, so with that, we have, uh, we're well positioned to be able to provide and evaluate, uh, real estate, uh, opportunities and financing opportunities there. So look, we we're open to discussions, not only with valleys but with other parties. Um, and we've had many of those, it just so happens. In this particular instance, um, versus others, they elected to, um, use our name in their application, versus using A banks,

Speaker Change: Let let me add uh and highlight something Brandon said earlier and that is that we look at these projects on a property by property project by project basis and underwrite them.

Speaker Change: In a free standing sense so that they have to stand on their own merits.

Speaker Change: And and I think we ask ourselves is this, the property? We we look back, you know, if it uh under any circumstance, is it strong enough? So we look at it 1 at a time.

Brandon Moore: And then on the casino queen lease combination, can you give some insight into the give and take there? I assume you would have preferred to keep the Bally's corporate guarantee, but then you were able to get this incentive for them to keep the leverage below 5.5x. So I guess, how do you see those changes netting out?

Brandon Moore: Yeah, I'll start there because I do think there's some confusion with our wording in the press release. So, Bally's Master Lease 2, we still have the parent guarantee. It's on the Casino Queen lease that we took the St. Louis property and the Baton Rouge property out of that lease and moved it to Bally's Master Lease 2. So, it's really only that residual lease of Casino Queen, which leaves the Bell project as well as Marquette that is without the parent guarantee, but it does have a guarantee from Bally's entities underneath. And the reason that we did that was to accommodate Bally's and we had proposed to do that because it was in an unrestricted group versus a restricted group within their credit facility.

Speaker Change: Okay, got it. Um and then on the casino queen lease combination, can you give some insight into the give and take their? I assume you would have preferred to keep the ballet's corporate guarantee, but then you were able to get this incentive for them to keep the leverage below 5.5x. So I guess, how do you see those changes netting out?

Yeah. Um, I'll start there because I do think there's some confusion with our wording, in the press release. Um, so ballet's Master Lease, too. We still have the parent guarantee. It's on the casino queen lease that we took the East St. Louis property, and the Baton Rouge property out of that lease and moved it to bali's Master Lease, too. So it's really only that residual lease of Casino clean, which leaves the bail project, as well as Marquette that is without a m without the parent guarantee. But it does have a guarantee from ballet's entities underneath and the reason that we did that was to accommodate um valleys and we had proposed to do that because it was in an unrestricted group versus a restricted group within their credit facility.

Unknown Executive: Okay, thank you.

Speaker Change: Okay, thank you.

Barry Jonas: Our next question comes from the line of Barry Jonas with Truist Securities. Please proceed with your question.

Speaker Change: Thank you.

Jeremy: Hi, this is Jeremy. I'm for Barry. Thanks for taking our questions.

Speaker Change: All right, next question comes from the line of Barry. Join us with truist Securities. Please proceed with your question.

Steven Ladany: Curious how you guys think about the pending interlock transaction and how that changes Bally's credit.

Steven Ladany: I'll give that to Steve. Sure, thanks for the question. So look, I think from our perspective, I think there are probably two major potential benefits that VALIS will receive from the GameSys intralot transaction. One is from a liquidity perspective, obviously there's a large amount of proceeds that would come back to VALIS and they've indicated to the world that the intent was to pay down secured debt. So I think from our perspective, I think that that liquidity infusion allows for debt pay down and ultimately it provides better collateral coverage for whatever secured debt remains in place thereafter.

Speaker Change: Hi. This is Jeremy on for Barry. Thanks for taking our questions. Uh, Curious. So you guys think about the pending inter lot transaction and how that changes, bali's, credit profile. Thanks

Steven Ladany: I think from our GLPI perspective, I think we believe that with the material pay down occurring, it probably does make it an easier path to removing the prohibition on the Lincoln Sale Leaseback, which would in turn provide $735 million of total proceeds to VALIS provided that deal got done. So I think there are a number of benefits. Another one I would highlight probably is just that the refinancing risk on their secured debt, which I think was an overhang for the company in 2026 is now reduced by the material pay down. So I think from our perspective, we view it as a positive outcome.

Speaker Change: That the intent was to pay down secured debt. So, I think, uh, from from our perspective, I think that that liquidity infusion allows for Debt Pay down and ultimately, it provides better collateral coverage for whatever secured debt remains in place thereafter. I think from our glpi perspective, I think we believe that with the material pay down occurring, it probably does make U the make an easier path to uh, remove the prohibition on the Lincoln sale lease back, which would uh, in turn provide 735 million of, um, total proceeds to valleys provided that deal got done. So, I think there, I think there are a number of benefits. Um, another 1, I would, I would highlight probably is just that the refinancing risk on their secured debt, which I think was an overhang for the company in 2026 is now uh, is now reduced, uh, by the, by the material pay down. So, I think from our perspective,

Speaker Change: Perspective. We view it as a positive outcome.

Unknown Executive: Got it, that's super helpful.

Peter Carlino: And then just one quick follow up. Peter, curious to get your thoughts on the big beautiful bill and implications for REITs as well as your tenants. Thanks.

Peter Carlino: Boy, I'm not sure I'm the best person at this table to answer that question. I don't think we've gotten really around to getting a grasp on the full impact of that. There's discussions about how it impacts REITs, but for GLPI, it will have very little impact on GLPI. And I really haven't spoken to any of our tenants about how they're viewing the bill for themselves, but clearly the tax rate remaining lower from a corporate perspective is a positive. Yeah, I haven't heard any negatives. I'm looking around the table and I think we all feel likewise.

Speaker Change: Got it. That's super helpful and then just 1, quick follow-up. Uh Peter curious to get your thoughts on the big beautiful Bill and implications for REITs as well as your tenants. Thanks.

Boy, I'm not sure, I'm the best person at this table to answer that question. I don't think we've gotten really around to getting a grasp on the full impact of that has. What do you? Well, there's discussions. Um, about how it impacts breeds but uh for glpi it will have very little impact on glpi um and I really haven't spoken to any of our tenants about how they're viewing the bill for themselves. But clearly the tax rate remaining lower from a corporate perspective is is a positive. Yeah, I haven't heard any negatives, so

Speaker Change: Look at, I think, I think we all feel likewise.

Unknown Executive: Thank you.

Thank you.

Robin Farley: Our next question comes from the line of Robin Farley with UBS. Please proceed with your question. Great, thanks.

Speaker Change: Thank you. Our next question comes from the line of Robin Farley with UBS. Please proceed with your question.

Desiree Burke: I wanted to go back to the provision for credit losses in the quarter. You know, it's a large one. Sure, so, you know, we use Oxford Economics and we use a very detailed model that is done by a third party called TREP, but the GDP forecast that is in that Oxford Economic Assumptions declined from the prior quarter. So they give you a base case, a downside case, and an upside case. The upside case and the base case weren't too bad, but the downside case, and they reference the uncertainty caused by tariffs as a reason for their downside case showing a decrease in GDP growth, as well as they're showing the CRE index growth declining from what it looked like prior quarter.

Speaker Change: Great, thanks. Um, I I wanted to go back to the um provision for credit losses in the quarter. Um, you know, it's a large 1 relative to to what you've done historically. Um, you mentioned that nobody's delayed on payments. I think, you know, in your annual filings, it looks like a lot of the provisions for credit losses, based on Commercial Real Estate, price index changes. And I, I

Speaker Change: Don't know if they've released Q2 data yet so I don't know. Just if you could give us some color on um that uh provision that expense this quarter. Thanks.

Desiree Burke: It was still increasing, but it was a decline quarter over quarter, which caused the charge. I, you know, look, anything can happen in the next quarter, but these are all based on assumptions of where the economy is and where it's going in the future and not necessarily based on whether or not we're receiving our cash rent, which is why I added that statement in. Yeah, it's an unfortunate requirement, I'll say. It's not a real number. It's not going to, you know, not anything to be taken with any great fear, but it's a requirement. We do it, but.

Speaker Change: Sure. So um, you know, we use AC Oxford economics and we use a very detailed uh model that is done by a third-party called tropp, sorry. Um but the the GDP forecasts that is in that Oxford economic assumption declined from the prior quarter. Um so they give you a base case, a downside case in an upside case, the upside case in the base case weren't too bad, but the downside case and they they reference the uncertainty caused by tariffs. Um, as a reason for their downside case showing a decrease in GDP growth as well as they're showing the CRA index growth declining from what it looked like prior quarter. It was still increasing but it was a decline quarter over quarter which caused the charge. Um, I you know, look anything can happen in the next quarter but these are all based on assumptions of where the economy is and where it's going in the future. And

Desiree Burke: I don't take it seriously. No, that's fine. I just wanted to understand if it's this outside. Assumptions of an outside economic group rather than some. Yes, it is. Oh, yeah. Yeah. Thanks.

Not necessarily based on whether or not we're receiving our cash rent which is why I added that statement in. Yeah, it's an unfortunate requirement. I'll say like it's not a real number. It's not going to it. Yeah. Not anything to be taken with any great uh, fear but it's a requirement. We do it. But, uh,

Speaker Change: I don't take it seriously.

Speaker Change: That's fine. I just wanted to understand that it, if it's this

Speaker Change: Yes, it is. Oh yes, thanks guys.

Anthony Paolone: Our next question comes from the line of Anthony Paolone with J.P. Morgan. Please proceed with your question. Great, thank you. Peter, you started off talking about how things are moving according to plan and so can you talk about just progress towards maybe this year. So I think you've talked about that in the past is maybe something that's in the cards.

Thank you.

Speaker Change: All right, next question comes from the line of Anthony, um, alone with JB Morgan, please proceed with your question.

Speaker Change: All right. Thank you. Um Peter, you started off talking about how things are moving according to plan and so can you talk about just progress towards uh maybe all this year? So I think you've talked about that in the past as maybe something that's in the cards.

Brandon Moore: Happy to, as much as we can say, but I'll turn that over to Brandon. Yeah, I will say that we are in advanced discussions with a couple of tribes. I caution that only because any deal that we strike with a tribe will require that to be reviewed by the NIGC and the timing of the NIGC and therefore any announcement of a concrete transaction, definitive transaction will depend on that process. But we have visited with tribes in Oklahoma, California, New York, Connecticut, we have sort of been around the tour, we have a lot of interest, we are having preliminary discussions with a whole subset of other tribes.

Speaker Change: Uh, happy to as much as we can say, but I'll turn that over to Brandon.

Brandon Moore: And so I think so far the education process, the type of financing we are willing to provide and what we can offer to tribes and the circumstances under which we can offer it is becoming more well known among the tribal communities and we are getting a lot of positive feedback. But as we said early in the when this came out, this is going to take quite a bit of time. I think that we are seeing some fruits from our labor, but whether or not we can actually get that across the finish line with a couple of these tribes, we will probably find out in the next few months.

Brandon Moore: Okay, and so would you announce it and then take it through that process or you'd have to go through the process before you even announce it? Like, how would that work? It's a very good question. It's a fair question. I think in some ways, it depends on the tribe and the operator, if there's a third party operator and their motivation. And so, for example, if somebody else wants to put it out there, we will indicate that we're a part of it in our role in it. I guess if we had our way, we probably would wait until we had a concrete transaction through the NIGC to roll it out to the market, just so we don't get people stirred up in one direction and then ultimately have to back off of it.

Speaker Change: And the, and the timing of the nigc and therefore, any announcement of a concrete, transaction definitive transaction. Uh, will depend on that process but we, we have visited with tribes in Oklahoma, California, New York. Uh, We've in Connecticut, we we've sort of been around the tour. We have a lot of interest we're having preliminary discussions with a, a whole subset of other tribes. And so, I think so far the education process on the type of financing, we're willing to provide. And what we can offer to try tribes and the circumstances under which we can offer, it is becoming more well known among the tribal communities, and we're getting a lot of positive feedback. But but as we said, early in the year, when this came out, this is going to take quite a bit of time. I think that we are seeing some fruits from our labor, but um, but you know whether or not we can actually get that across the Finish Line with a couple of these tribes. We we'll we'll probably find out in the next few months.

Speaker Change: Okay, and so would you announce it and then take it through that process or you'd have to go through the process before you even announce it? Like, how would that work? It's a, it's a fair, very good question. It's a fair question. I think in some ways it depends on the tribe and the operator, if there's a third party operator and their motivation. So for example, if somebody else wants to put it out there we will, we will indicate that we are a part of it in our role in it. I guess if we had our way, we probably would wait until we had a concrete transaction through the nigc to roll it out to

Brandon Moore: So, I think it will depend on the facts and circumstances of the project and whether or not that project is going to be public anyway.

Steven Ladany: I would add, this is Steve, I would add though, I agree with everything Brandon said. The one thing I would preface our thinking is, I don't think there's a scenario right now where GLPI would fund any portion of a transaction absent the NIGC final approval in hand. So, that is one nuance. I know that some other deals have gotten announced recently where NIGC approval was pending, but fundings went ahead. I don't think that's something we're looking to do.

Unknown Executive: Okay, I understand.

Speaker Change: The market just so we don't get people stirred up in 1 Direction and then ultimately have to back off of it. So I think it will depend on the facts and circumstances of the project and whether or not that project is going to be public anyway. Yeah, I I would add this is Steve. I I would add though, um, every I agree with everything Brandon said, um, the 1 thing I would I would preface, uh, our thinking is, I don't think there's a scenario right now right now where glpi would fund, uh, any portion of a transaction at absentee nigc, uh, final, uh, approval, uh, in hand. So that is 1 Nuance. I know there's some other deals have gotten announced recently where nigc approval was pending. Um, but funding went ahead, I don't think that's something we're, we're looking to do.

Desiree Burke: And then just my other question for Desiree, maybe just over the next 18 months, any Thoughts on just how you think about refinancing debt, you did a couple of the couple hundred million of the swaps in the quarter and just trying to think about how how early you want to address those or any other types of approaches to it. Okay, thanks for the time. Thank you.

Speaker Change: Okay, I understand, and then just, uh, my other question for desire. Maybe just over the next 18 months. Any, um,

Uh, thoughts on. Just how you think about refinancing debt? Uh, you did a couple of the um, couple hundred million of the swaps in the quarter and just trying to think about how how early you want to address those or any other types of uh approaches to it.

Speaker Change: Yep. So you're you're absolutely right. We started with the hundred million dollars in Hedges right towards the 975 and we are internally reviewing our options and looking at the markets and the pricing and the spreads, the spreads happen to be pretty pretty tight right now which is good. Um but there's nothing I can really signal that we're doing at the moment but uh know that we are on it and we are well aware of our uh future commitments.

Speaker Change: Okay, thanks for the time.

Todd Thomas: Our next question comes from the line of Todd Thomas with KeyBank Capital Markets. Please proceed with your question. Hi, thanks.

Speaker Change: Thank you. That's all you can.

Speaker Change: Our next question comes from the line of Todd Thomas with keybanc capital markets, please proceed with your question.

Desiree Burke: First, I just wanted to follow up on that last question, actually, Desiree, when did the forward interest rate swaps commence? And are there additional interest rate swaps being considered? Or are you currently comfortable with where your variable rate debt exposure is today? Yeah, so the swaps that I'm talking about are forward starting swaps. So they're actually hedging the future bond issuance. They're not typical interest rate swaps, and they are effective at any point if we pull a bond down next month, that let's say they would be placed against that bond, and it would reduce the interest rate that we would receive based on where the tenure is today.

Todd Thomas: Hi, thanks. Um, first, I just wanted to follow up on that last question actually Desiree, when, when did the forward, uh, interest rate swaps commenced and are there additional, um, interest rate swaps being considered or are you? You currently comfortable with where your variable rate debt exposure is today,

Desiree Burke: Do I, am I considering more? It really depends on where rates are. And, you know, there's a lot of economic news that comes out next week. So we will be paying close attention to determine whether or not we want to do any additional swaps, depending on what happens in the market next week.

Yeah, so the swaps that I'm talking about are forward starting swap, so they're actually hedging the future Bond issuance. They're, they're not typical interest rate swaps and they are effective at any point. If we pull a bond down next month, that let's say they would be placed against that Bond, um, and it would reduce the interest rate that we would receive based on where the tenure is today. Um, do

Peter Carlino: Yeah, let me add just a gratuitous comment that look, we have a lot of things on the horizon. We're very mindful of our requirements. and spend a great deal of time sort of trying to noodle out where we can best head down that path. So we're very attuned to what our requirements are going to be and we're going to be as ahead of it as we possibly can. Nobody's asleep around that issue. Okay, that's helpful.

Todd Thomas: And my considering more, it really depends on where rates are and you know, there's a lot of economic news that comes out next week. So we will be paying close attention to determine whether or not we want to do any additional swaps depending on what what happens in the market next week. Yeah, let me add just a bit to this comment. That look we have a lot of things on the horizon. We're very mindful of our requirements.

Todd Thomas: And spend a great deal of time, sort of trying to Noodle out where we can best.

Todd Thomas: Head down that path. So we're very attuned to what our requirements are going to be, and we're going to be as ahead of it as we possibly can.

Nobody's asleep or around that issue.

Unknown Executive: And then I also I wanted to ask about the management changes that were recently announced and disclosed. You know, going back, the company went without a chief financial officer for a little while before Desiree was appointed to that seat.

Unknown Executive: And you now are eliminating the chief investment officer role. I realize you have a lot of activity in the works. And it sounds like the pipeline is active. You commented on tribal deals.

Peter Carlino: But I'm just curious if there are broader implications to how we should think about that decision at all as it pertains to the broader investment landscape and opportunities that you see emerging over the next several years. The quick answer is no. There's really no change in our thinking or our behavior. Look, we operate in a pretty flat basis, as you pointed out before Desiree was appointed. We have kind of an office of four. And there's certainly no financial decision made that everybody that is at the table isn't involved with. Steve is really pointed on all the gaming related stuff.

Speaker Change: For and then I also I wanted to ask about the management changes that were recently announced and disclosed um you know, going back the company went without a a Chief Financial Officer for a little while before Desiree was appointed to that seat and you, you now are eliminating, the chief investment officer role. I realize you have a lot of activity in the works and it sounds like the pipeline's active you commented on tribal deals. But I'm just curious, if there are broader implications to how we should think about that decision at all, as a pertains to the broader investment landscape and opportunities that you see emerging over the next several years,

Speaker Change: The quick answer is no, there's really no change in our thinking or the way or or or our Behavior look, we operate in a pretty flat basis. As you pointed out before, Desiree was appointed, we have kind of a an office of 4 and um,

Speaker Change: There's certainly no financial decision. Made that everybody, that is at the table is involved with

Peter Carlino: Matt had joined us, I think, pretty effectively early on with the idea of bringing up an investor's perspective, an outside perspective of what it takes to be a read and serve our shareholders well. And I think he did that quite well. His internal work and his agreement with that title was really for non-gaming things. Obviously, we have a great gaming team here. We were hoping that there might be an opportunity to do more outside of gaming things, which, as it turns out, never really materialized simply because we find ourselves in such a terrific space. We've not found anything better.

Uh, Steve is really pointing in all the gaming related stuff. Matt had joined us. I think, pretty effectively early on with the idea of bringing a an Investor's perspective and outside perspective of what it takes to be a read and, and serve our shareholders. Well, and I think he did that quite quite well.

Unknown Executive: And so it goes.

Unknown Executive: So this really makes this just involve no change at all for the team. We wish Matt well. We thank him for the things he did for us over in the early days. And that's really all we can really say about it. Okay.

Speaker Change: Um his uh, internal work and his agreement with that title was really, for non-gaming things. Obviously, we have a great gaming team here. We were hoping that there might be opportunity to do more outside of gaming things, which as it turns out, never really materialized, simply because we find ourselves in such a terrific space. We've not find anything better and so it goes, so this really makes is just involve. No change at all.

Speaker Change: For the team. We wish Matt. Well we thank him for the things he did for us over in the early days and um and that's really all we can really say about it.

Unknown Executive: All right. Thank you.

Speaker Change: Okay, all right. Thank you.

Haendel St. Juste: Our next question comes from the line of Haendel St. Juste with Mizzou Home Securities. Please proceed with your question. Hey, guys. Good morning.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of handle St. Juice with mizuho Securities, please proceed with your question.

Desiree Burke: Desiree, I wanted to follow up, I guess, on the capital deployment outlook for the back half of the year. You outlined I think there's another $338 million or so expected to be deployed in the second half of the year. So I'm curious, how much of that is tied to Bally's versus other projects like the Bell and I think ION and what's the risk of some of that slipping into next year? Thanks. Yep. So as you know, we didn't change the number for this year. So we're still at 375 for the full year. And yes, we only funded 25 million or so in the second quarter.

Hey guys, uh good morning, uh, desire. I wanted to follow up, I guess on um the capital deployment outlook for the back half of the year you outline, I think there's another 338 million is still expected to be deployed in the second half of the year. So I'm curious how much of that is tied to bali's versus other projects like the bell. And I think I own and what the risk of some of that slipping in into the next year. Thanks.

Desiree Burke: The majority of it is definitely Bally's. I will tell you that, you know, since the bell is opening in the fourth quarter, or at the end of the year, that will likely be fully funded. But the majority of that remainder to be fund is mainly Bally's Chicago project. And we feel good about the number. Okay, fair enough.

Speaker Change: Yep. So as you know we didn't change the number for this year so we're still at 375 for the full year and yes, we only funded 25 million or so. In the second quarter, um, the majority of it is definitely BS. I will tell you that, you know, since uh the Bell is opening in the fourth quarter or at the end of the year, that will likely be fully funded. But um, the majority of that remainder to refund is mainly that way, Chicago project. And we feel good about the number

Brandon Moore: And then maybe a follow up on Bally's, but from a different perspective. Curious, we're getting some questions or, you know, from investors on, on the, the lack of a guarantee there. So I guess your thoughts on why the Bally's Chicago's lease does not have a guarantee considering the Bally's credit profile and the inherent development risk for that project, and then maybe some color on how you're underwriting potential inflation and tariff headwinds tied to construction costs at that at that project.

Brandon Moore: Thanks. Yeah, Haendel, I can take the, this is Brandon, I can take the guarantee piece. So when we negotiated Chicago, Chicago development is in the Valley's Credit Unrestricted Group. And so that prevents them providing a parent guarantee on that project. There are, and they've disclosed this in their AK filing around the development agreement, there is a path to adding that, adding that Chicago property to the parent guarantee and the restricted group. But that will come upon completion of those that development property and certain other hurdles. I think what you see there is Valley's, Capdody, Marquette, DeBell, Chicago, all of their development projects that are not currently generating cash flow in that unrestricted group.

Okay. Fair enough. And then maybe a follow-up on B's but but from a different perspective uh Curious. Um you know we're getting some questions or, you know, some from the investors on uh on the the lack of a guarantee there. So I guess your thoughts on why the B is. Chicago's least does not have a guarantee. Considering the Valley's uh credit profile, any inherent development risk, project, and then maybe some color on how you underwriting potential inflation and tariff headwinds tied to construction cost at that, at that project, thanks.

Speaker Change: Yeah, I handle I I can take the uh, this is Brandon. I can take, I can take the guarantee peace. So when we negotiated Chicago, Chicago development is in The Valleys, credit unrestricted group and so that prevents them. Providing apparent guarantee on that project, there are and they've disclosed this in their AK filing around the development agreement. There is a path to adding that, um, adding that Chicago property to the parent guarantee and the restricted group, uh, but that will come up.

Brandon Moore: There are other assets in that unrestricted group that we got comfortable with. But overall, I would say with Chicago, it's not unlike the rest of these. We've underwritten that project that if in the unlikely circumstance that Valley's has to project or something happens to Valley's corporate, that project is still a great project. We know a number of different tenants that would be more than happy to be in that location in Chicago. And so when we look at that risk associated with having that in the unrestricted group, we're not terribly concerned about that at the moment, but that's why it's there.

Peter Carlino: Yeah, let me make a couple of comments. First, DeBell is a terrific project. You know how successful the Queen was in Baton Rouge, and DeBell is moving along extraordinarily well. And it's going to be a very cool project. It will be successful. I have no worries about that at all. In Chicago, we're much involved. Jim Baum, our head of construction, is out there several days a week, every week. And we have a team of people, a coming group, whose sole responsibility is to track costs, approve bills, invoices, work in place, and so forth. And then finally, I can say with some enthusiasm, the project's moving along pretty quickly.

Speaker Change: Upon completion of those developed that development property and certain other hurdles. I think what you see there is ballet is capped to the Marquette, the Bell, Chicago, all of their development projects that are not currently generating cash flow in that unrestricted group. There are other Assets in that unrestricted group that we got comfortable with. But overall, I would say, with Chicago, it's not unlike the rest of these. We've underwritten that project that if in the unlikely circumstance that valleys has to sell that project or something, happens to B's corporate. Um, that project is still a great project. We know a number of different tenants that will be more than happy to be in that location in Chicago. And so, when we look at that risk associated, with having that in the unrestricted group, uh, we're, we're not terribly concerned about that at the moment, but that that's why it's there.

Speaker Change: Comments first uh the Bell is a terrific project you know how successful the queen was in Baton Rouge and the bell is moving along.

Speaker Change: Extraordinarily well and uh it's going to be a very cool project. It will be successful. I have no worries about that at all.

Speaker Change: In Chicago.

Peter Carlino: Over 100 people working that site every day right now, more to come. And we feel pretty good about that. So at the moment, things are looking good.

Uh, we're much involved, Jim bomb, our head of construction, uh, is out there several days a week every week. Uh, and we have a team of people coming group that whose sole responsibility is to track cost to prove bills invoices work in place and so forth. And then finally I can say with some enthusiasm, the Project's moving along pretty quickly, over a hundred people working in that site every day right now, more to come.

Peter Carlino: And I think I've committed I know we'll try to get it out next week to start with a quarterly newsletter, if you will, that kind of lays out progress at the Chicago site, maybe including some photographs to let people recognize this is a real project moving along very, very well and that we're pretty excited about it. It might be an opportunity, too, for us to clear up a little bit of confusion that there's been around the Chicago Development Agreement that was recently filed. There was some confusion that there had been a change in economics or terms associated with that.

Speaker Change: And, um, we feel pretty good about that. So, at the moment things are looking good and, uh, I think, um, I've committed

Uh, and we'll try to get it out next week to start with a, with a quarterly newsletter, if you will, that kind of lays out progress at the Chicago site, uh, maybe including some photographs, let people recognize, this is a real project moving along very, very well and that we're pretty excited about it.

Peter Carlino: The reality is that that is the development agreement, the first version of that development agreement that was signed after the binding term sheet. So there have been no changes in the economics. We finally agreed to certain terms related to that project, and that was the filing of the document. So there was no change. That wasn't an amendment. And there was some confusion around the cap rate on the lease property. That was originally 8 percent. It's still 8 percent. The improvements are at 8.5 percent cap rate. But there were no changes in the economics on that transaction either.

Unknown Executive: And that's also the reason why we haven't had any draws under that contract to date. until all that was signed and done and committed. That'll follow shortly. Got it, got it.

Speaker Change: It might be an opportunity to for us to clear up a little bit of confusion that there's been around the Chicago development agreement. That was recently filed. There was some confusion that there have been a change in economics or terms associated with that. The reality is that, that is the development agreement. The first version of that development agreement, that was signed after The Binding term sheet. So there have been no changes in the economics. We've finally agreed to certain terms related to that project and that was the filing of the document. So there was no change, that wasn't an amendment. And and there was some confusion around the cap rate on the lease property that was, um, originally 8%, it's still 8%. The improvements are at 8 and a half percent cap rate, but there were no changes in the economics in that transaction either. And that's also the reason why we haven't had any drawers under that contract to date.

Speaker Change: Until all that was signed and done and committed. And

Speaker Change: That will follow shortly.

Unknown Executive: Appreciate the color.

Speaker Change: Got it. Got it. Appreciate the color.

Unknown Executive: Thank you. Our next question comes from...

Ronald Kamdem: Our next question comes from the line of Ronald Kamde with Morgan Stanley Investment Management.

Speaker Change: Thank you. Our next question, question.

Jenny Anfaron: Please proceed with your question. Hey, good morning.

Our next question comes from the line of Ronald Cami with Morgan. Stanley Investment Management, please proceed with your question.

Unknown Executive: It's Jenny Anfaron. Thanks for taking my question. I just want to follow up on the two properties that we transferred to Bally's Master Lease II. I'm just curious, can you talk a little bit about the four-wall coverage of those two specific transferred properties compared to the other Bally's properties in your profile?

Unknown Executive: Thank you. Actually, we do not receive individual property coverage. We only get it lease by lease, so there's really nothing I can add there. But as we move forward and reporting occurs, we will be updating you with where the four-wall coverage is in Bally's Master Lease II. Got it. Okay, sounds good.

Speaker Change: Hey, good morning, it's Jenny on Van. Thanks for taking my question. I just want to follow up on the 2 properties that you transfer to ballast Master Lease 2. Uh, I just curious can you talk a little bit about the 4?

We do not receive individual property coverage. We only get it at least by lease, so there's really nothing I can add there, but as we move forward and Reporting occurs, we will be updating you with where the forward call forward. Coverages and valleys Master Lease too.

Unknown Executive: I think that I'm actually really interested in the potential financial commitment you guys are going to put in New York's downstate casinos. Do you have a number or budget on your mind now for like the total commitment of each of the projects? And do you have a preference, say, in your ideal world, if you win both, like, simultaneously, like, do you have a priority? Like, do you have, would you prioritize either of the properties?

Unknown Executive: Thank you.

Okay, sounds good. I think the uh I'm actually really interested in the potential Financial commitment. You guys going to put in New York. Downstate. Because, you know, do you have a number or Budget on your mind? Now, for, like, the total commitment of each of the projects and do you have a preference? So, you know, Ideal World if you win both like simultaneously, like, do you have a priority like, do you have, would you prioritize either of the properties?

Thank you.

Brandon Moore: Um, I don't, I mean, I guess it's never say never, but but I think based on the recent news around Valleys, I'm not sure that that's, I'm not sure that that project has an ability to go forward, at least based on the current voting that has occurred. So, but if, look, I think if the bottom line is, if the properties are constructed to the right size for the addressable market, from a diligence perspective, we get comfortable that there's adequate coverage. And by adequate, I mean, well north of two times coverage on the new development. And we're getting adequate spread to our cost of capital.

Brandon Moore: I think it's, I feel pretty comfortable saying we would probably look at any of the projects in New York and we'll be happy to engage in those discussions. I think our level of commitment, I'll use that word with an asterisk around it. I think our commitment varies based on every project. We're more than happy to engage in discussions, have detailed back and forth and try to help people find solutions. But I think where the dollars come from ultimately, if these projects were to be awarded, it may or may not come from us, I think is a pretty fair way to describe it.

Um, I I don't, I, I mean, I, I guess it's you never say never but, um, but I think based on the the recent, uh, recent news around valleys, I I'm not sure that that's I'm not sure that that project has um, has an ability to go forward at least based on the the current voting that has occurred so so, um, but if look, I think at the bottom line is, if if the properties are are constructed to the right size for the addressable Market, from a diligence perspective, we get comfortable that there's adequate coverage. And by adequate, I mean, well North to 2 times coverage on the new development. Um, and we're getting adequate, um, spread to our cost of capital. I think it's, I feel pretty comfortable saying we we would probably look at at any of the projects in, in New York and we'll be happy to engage in those discussions. Um, I think our level of commitment, I'll use that word uh with an asterisk around it. I think our level of commitment uh varies based

Brandon Moore: There's a long, long distance between where we sit today, the application process, the approval process, decision process, and ultimately somebody financing it. So, whether we're the person sitting with them at the end of that race is hard to tell.

Peter Carlino: be hard to make money. Not to make money unless you overspend. I mean, you can do something colossally stupid. But if you build to the market, as Steve highlighted, it'd be a nice problem to have.

Speaker Change: But I think, um, where where the dollars, uh, come from, ultimately if these projects were to be awarded, the mayor may not come from us, I think, is a, is a pretty fair, uh, way to to describe it. Um, there's a long long distance between where we sit today, the, the application process, the approval, process decision process. And ultimately, somebody financing it. So whether we're the person sitting with them at the end of the, at the end of that race, um, uh, is hard to hard to tell.

Peter Carlino: But I think we have a realistic sense of what the prospects are there.

Be hard to make money, not to make money unless you overspend. I mean, you can do something colossally stupid but if you build to the market as Steve highlighted, uh,

Speaker Change: It. It'd be a nice problem to have but I think we have a realistic sense of what the prospects are there.

Unknown Executive: Excellent.

Unknown Executive: Thanks so much.

Makes sense. Thanks so much.

Unknown Executive: Thank you.

Daniel Guglielmo: Our next question comes from the line of Daniel Guglielmo with Capital One Securities. Please proceed with your request. Hi, everyone. Thank you for taking my questions. Based on state revenue data and operator commentary, regional gaming trends have been strong this quarter. Do those positive trends change the way you think about your business as the owner of regional properties? Does risk appetite increase or the willingness to be more aggressive to go after deals? You know, I don't think it makes us... want to be more aggressive. I think we, you know, we underwrite these things the same way regardless.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Daniel the Google with capital 1 security, please proceed with your question.

Hi everyone, thank you for taking my questions. Um, based on State Revenue data and operator commentary Regional gaming Trends, have been strong this quarter to those positive Trends. Change the way you think about your business as the owner of of, of regional properties. Does risk appetite increase or the willingness to be more aggressive to go after dealing?

Bills. Any commentary.

you know, I don't think it makes

Peter Carlino: Is there an appropriate spread to our cost of capital? Can we make, you know, and, and, and how secure is that particular property now and for the long term that we're going to be involved with it? So we do underwrite this with that long term view in mind. But no, we're gratified. Look, I have said many times and many of you know that I have described gaming revenues as bulletproof. And I stand by that. They've been bulletproof for the many, many, many years that I've been in and around this business. And so we're, I think we're gratified to see that these companies are doing very well.

Speaker Change: Us want to be more aggressive. Um, I think we you know, we underwrite these things uh the same way regardless um is there an appropriate spread to our cost of capital? Can we make you know and and and how secure is that particular property now and for the long term that we're going to be involved with it. So we do underwrite this with that long-term view in mind.

Speaker Change: Um but no, we're gratified, look, I have said many times many of you know, that I have described gaming revenues as bulletproof and I stand by that. They've been bulletproof for the many many, many, many years that I've been in and around this business,

Peter Carlino: I would say, underwriting-wise, we don't look at one quarter, right? We look at history, go back three, four, five years to see how a property has performed. So one quarter wouldn't change our bullishness, per se. But obviously, it helps the rent coverage that we would be looking at at a point in time, but we even consider that in anything that we would, you know, bid on. Yeah, if you take, looking across the street at the Penn Entertainment Building, The company's doing extraordinarily well with its brick-to-mortar properties. We all know what caused the overhang on its stock value, but that has nothing to do with the properties that we own.

And, um, so we're I think we're gratified to see that. These companies are doing very well,

Speaker Change: Uh, I would say underwriting wise, we don't look at 1 quarter, right? We look at history. Go back 3, 4 or 5 years to see how a property has performed. So 1 quarter wouldn't change our bullishness per se, um, but obviously, it helps the rent coverage that we would be looking at at a point in time. But we even consider that in anything that we would, you know, bid on

Speaker Change: yeah, if you take looking across the street at the Penn entertainment building, um,

Unknown Executive: They're doing terrifically well, and we're happy that that's the case. Great.

Speaker Change: it it uh, the company is doing extraordinary well with this brick to motor properties. We all know what caused the overhang on its stock value, but it has nothing to do with the properties that we own, they're, they're doing terrifically well and, uh, we're happy that that's the case.

Unknown Executive: Yeah, I really appreciate all that color.

Peter Carlino: And then this one's a little more high level. But do you think the focus for the stock has shifted too much towards what can go wrong instead of the positive and what can go right?

Peter Carlino: And then on that, what are the team's goals for the second half of this year to maybe try and help shift that focus? Well, that is a really, that is a totally good question. In a sense, I'm glad you asked it. No, I don't think we get credit for the consistently good things that we have done here at this company. And I've never heard it expressed quite that way, that people focusing on what could go wrong rather than what could go right. I think that is the case. Well, in fairness, Chicago raises some questions. I think Valley's credit, not unfairly, raises some questions.

Speaker Change: Great. Yeah, I really appreciate all that color and then this 1's a little more high level. But do you think the focus for the stock has shifted too much towards? What can go wrong instead of the positive and what can go right? And then on that, what are the teams goals for the second half of this year to maybe try and help shift that Focus?

Peter Carlino: We're sensitive to that. But as I think we said earlier, we look at these projects on a unit by unit basis. And we're satisfied that if everything develops as we plan, that things will be fine. We're happy with kind of where we find ourselves.

Well that that is a really. That is a, a, totally good question in the sense. I'm glad you asked it. No, I don't think we get credit for the consistently good, things that we have done here at this company. Uh, and I've never heard it expressed quite that way, that people focusing on what could go wrong rather than what could go, right? I think that is the case. Look at fairness Chicago raises some questions. I think Valley's, uh, credit, uh, not unfairly raises some questions, we're sensitive to that. But as I think we said earlier, we look at these projects on a on a unit, by unit basis. And uh, we're satisfied that if everything develops as we plan,

Peter Carlino: Let me address one other point too. We've got questions about quote development. We're not out of the sale leaseback business by any means at all. I think you'll see some transactions evolve. shortly, we hope so, between now and the end of the year, that answer that question. We're just willing because we are capable of doing the development kind of stuff ground up, because that is the business that we all come out of, this group around the table. We're willing to do that, and I think it opens another avenue, but just one of several that we will pursue.

Peter Carlino: Our business is putting money to work at an appropriate spread. and we'll do it in any way we think we can.

Brandon Moore: Yeah, I think I think some goals for the I think some goals for the back half of the year would be try to get one of these tribal transactions that Brandon mentioned earlier, try to get one of those over the over the line and announced and, and obviously try to continue to expand our relationship with current tenants. I think there's opportunities to continue to do things. You've seen us announce things in the past with them with respect to their properties or expansion projects they've worked on. And I think we're going to continue to try to push those those processes forward.

Brandon Moore: And we're always we're always out trying to create new tenant relationships. So I expect this to be very, very active through the rest of the year.

Speaker Change: Yeah. So I think some goals for the I think some goals for the back half of the year would be try to get 1 of these tribal transactions. That Brandon mentioned earlier, try to get 1 of those um over the over the line and and announced and and obviously try to continue to expand our relationship with current tenants. I think there's opportunities to continue to do things. You've seen us announce things in the past, with them, with respect to their properties, or expansion projects. They've worked on and I think we're going to continue to try to push uh those those processes forward. And and we're always, we're always out trying to create new tenant relationships. So I, I expect this to be very, very active through the rest of the year.

Unknown Executive: Thank you, appreciate it. Thank you.

Speaker Change: Thank you, appreciate it.

Richard Hightower: Our next question comes from the line of Richard Hightower with Barclays. Please proceed with your question. Hey, good morning, everybody. Obviously, I think a lot of my questions have been asked and answered, but, you know, definitely appreciate the additional color on the VALIS II master lease. I think that was helpful for everybody here.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Rich high tower with Barclays. Please proceed with your question.

Richard Hightower: But I think maybe just more globally, you know, as we think about, you know, your position effectively as a creditor, you know, to your tenant base, and, you know, using VALIS as a great example, you know, what is the value of a parent guarantee in a situation where you do have, you know, a balance sheet constrained operator? And I'm also thinking, you know, in the context of iGaming and online sports, you know, stealing share, evidently, I'm thinking of, I'm looking at Pennsylvania and Michigan, but there are other examples, you know, what's the value of a parent guarantee?

Speaker Change: Hey, good morning, everybody. Um obviously I think a lot of my questions have been asked and answered but do you know definitely appreciate the additional color on The Valleys to Master Lease. I think that was helpful for everybody here but I think maybe just more globally. Um, you know, as we think about, you know, your position effectively as a as a creditor, you know, to your to your tenant base. And, you know, using valleys as a as a great example. Um, you know what, what is the value of a? A parent guarantee in a in a situation where you do have, you know, a balance sheet

Brandon Moore: You know, if sort of, you know, total system revenues, which would include some of those alternate, you know, gaming forms, you know, could contribute to the security of the lease? Just, you know, how do you think about the moving pieces on the table? And how should we think about that? There's a multi loaded question there.

Speaker Change: Constrained operator. And I'm also thinking, you know, in the context of eye gaming and online Sports, you know, stealing share. Um, evidently I'm thinking I'm looking at Pennsylvania and Michigan, but there are other examples, you know, what's the value of a parent guarantee? Uh, you know, if if sort of you know, total system revenues which would include some of those alternate you know, gaming forms, you know, could contribute to the security of the lease just, you know, how do you think about the moving pieces on the chessboard there and how should we think about it?

Brandon Moore: I'll start with the top of how we think about the parent guarantee. I think we don't look at the parent guarantee and work our way down, right? A parent guarantee is nice to have. And we believe it's important to have so that things like iGaming revenue and other things can be used to support our leased property and our rental income. That being said, we are very careful to underwrite each property on its own merits and look at the portfolio on a four wall coverage basis, which we've said in the past and therefore, if the parent guarantee doesn't end up having value because the parent gets themselves in trouble, we're hyper focused on making sure that these assets are a portfolio of assets that other tenants could come in and operate because it has the appropriate coverage.

Brandon Moore: We haven't allowed the rent to outpace the revenue in a way that makes that lease a weak lease. We're hyper focused on those things. And that's why when you hear us talk about Chicago and other markets, Lincoln, we're looking at the asset, the quality of the asset, the quality of its cash flows. It's risk to adjacent growth, supply growth within the state. We're looking at all those things because we don't rely solely on that parent guarantee. So I don't want to discredit it as something that's not important. I think it's important to have, and as the parent generates more capital and cash flow through things like iGaming, that parent guarantee has value because then all the revenues from those sources of income can be used to support our rent.

Speaker Change: There's a multi loaded question there. I I'll I'll start with the top um of how we think about the parent guarantee. I think we don't look at the parent guarantee and work our way down, right? A parent guarantee is nice to have and we believe it's important to have. So that things like I Gaming revenue and other things can be used to support our leased property and our rental income. That being said, we are very careful to underwrite each property on its own merits. And look at the portfolio on a 4 wall coverage basis, which we've said in the past and there and therefore, if the parent guarantee doesn't end up having value because the parent gets themselves in trouble, we're hyper focused on making sure that these assets are a portfolio of assets that other tenants could come in and operate because it has the appropriate coverage, we haven't allowed the rent to outpace the revenue in a way that makes that lease a week lease. We're hyper focused on those things. And that's why when you hear us talk about Chicago and other Markets Lincoln, we're looking at the asset, the quality of the asset, the quality of its cash flows. It's it's um,

Brandon Moore: But we don't rely on that in our underwriting as a threshold. So differently, if the if the if the tenant had a 1.1 times rent coverage, but had a had a massive, you know, valuable business that that sit outside of our property that caused the parent guarantee to be very valuable, and the and the overall corporate coverage to look great, we wouldn't feel any better about our position because the person could turn around and hand us the keys back at some point, because the asset that we have association with is not all that valuable to their overall enterprise.

Speaker Change: Risk to adjacent growth Supply growth within the state. We're looking at all those things because we don't rely solely on that parent guarantee. So I don't want to discredit it is something that's not important, I think it's important to have and is the parent generates more capital and cash flow through things. Like I gaming that parent guarantee has value because then that all the revenues from those sources of income can be used to support our rent but we don't rely on that in our underwriting as a threshold matter.

Brandon Moore: When we look at things, if we say, well, if they're making the equal amount of rent, they're making equal amount of EBITDA as we're making rent, then they are incented to try to make it work and continue to operate our business, regardless of what's happening outside of that. And that's why that four wall coverage is so critically important. Because at the end of the day, whether someone or some some company gets themselves into into hot water, because of investments they've done away, or leverage issues, or whatever it may be, if the core business is strong, whether it's that tenant or a new tenant will want to run that business.

Speaker Change: Yeah. So, so differently, if, if the, if the tenant had a 1.1 time, rent coverage, but had a had a massive, you know, valuable business that that sit outside of our property that caused the parent guarantee to be very valuable and the and the overall corporate coverage to look great. We wouldn't feel any better about our position because the person could turn around and hand us the keys back at some point because the asset that we have, uh, association with is not all that valuable to their overall Enterprise. When we look at things, if we say, well, if they're making the equal amount of rent, uh, they're making an equal amount of evidence we're making rent, then they're incented to try to make it work and continue to operate, our business, regardless of what's happening outside of that. And that's why the 4 wall coverage is so critically important because at the end of the day, whether someone or some some company gets themselves into into hot water because of Investments, they've done away.

Speaker Change: Or leverage issues or whatever it may be, if the core business is strong, whether it's that tenant or a new tenant will want to run that business.

Speaker Change: Yeah, I mean those are the highlights something that that you would remember. Well, when in the Apollo tpg Harris acquisition, I like to point out, I mean the sponsors had a problem.

Brandon Moore: We think that's where the value lies.

Speaker Change: Profitably. So that that's why we look at property buy property, as I think both Brandon and Steve have highlighted

Brandon Moore: Is this property worth what we're paying for it? Exactly.

Brandon Moore: And I think on iGaming, you know, we're keenly aware of the expansion of iGaming. We are in a state where iGaming was one of the first states to be introduced here in Pennsylvania prior to COVID. So we have many years of runway on iGaming here in Pennsylvania, and we own properties in Pennsylvania. And what we've seen is has it had an impact on the growth of the bricks and mortar? Yes, it's impacted the growth, but it hasn't resulted in deterioration as far as we're seeing. And so you have a somewhat mature iGaming market here in Pennsylvania.

Speaker Change: We think that's where the value lies. Is this property worth, what we're paying for it, or exactly. And I think on, I gaming, you know, we're keenly aware of the expansion of I gaming. We, we are in a state where I gaming was 1 of the first states, to be introduced here, in Pennsylvania, prior to Coe. So we have many years of runway on I gaming here in Pennsylvania, and we owned properties in Pennsylvania. And, and what we've seen is, has it had an impact on the growth of the bricks and mortar? Yes, it's impacted the growth, but it hasn't resulted in deterioration as far as we're seeing. And so you have a, a

Brandon Moore: The tenants that are participating in that market are getting fairly robust revenues from that source, but it isn't reaching a level where we're concerned about the viability of the bricks and mortar. And so we're cautious. But I think if you look at that as a data point, for us, it gives us a little little bit of comfort, but we still are very focused on the growth and proliferation of iGaming in different jurisdictions.

Speaker Change: somewhat mature, I gaming Market here in Pennsylvania, the tenants that are participating in that market are getting fairly robust revenues from that Source, but it isn't reaching a level where we are concerned about the viability of the bricks and mortar.

Unknown Executive: very, very helpful, guys. I really appreciate it.

And so so we're cautious but I think if you look at that as a data point uh for us, it gives us a little little bit of comfort, but we still are very focused on the growth and proliferation of I gaming and different jurisdictions.

Unknown Executive: I guess, you know, let me let me ask it another way just to sort of put things in a vacuum. If you agree to shift Transcripts provided by Transcription Outsourcing, LLC. I'm not sure I would necessarily agree with the characterization that we agreed to cater to the creditors. I think Valleys came to us with a proposed merger with Standard General, some of which we had a right to say yes or no to. Other pieces of it we did not, under the terms of our legal documents with them. Their request to move assets that are not generating income and keep them in the unrestricted group is something we agreed to as part of the overall transaction.

Speaker Change: Very, very helpful guys, I really appreciate it. I guess, you know, let me let me ask it another way. Just to sort of put things in a vacuum, if you agree.

Speaker Change: To, to shift.

2 assets out of a master lease or or whatever the arrangement was in order to cater to a tenants other creditors, what does glpi get in return? And how should we think about that sort of more in isolation if that's the right way to think about it?

Brandon Moore: And we were comfortable in doing so because of some of the things that Peter described, where we believe that the land side moves of those properties will generate a significant amount of additional EBITDA and revenue such that we're comfortable with those few properties being in an unrestricted group. So, I would say that was at the request of our tenant, but we didn't feel as though on the whole we were having any detriment in the quality of what we have.

Peter Carlino: Yeah, and look, we have a relationship now with Valleys that we are good partners. And as a result, I think we feel very strongly that they're committed to us as we are to them, as we are to all of our tenants as the sensible, friendly source of financing as time goes on. So, we think that we got a lot of benefit from that allowance.

Speaker Change: I'm not sure I would necessarily agree with the characterization that we agreed to cater to the creditors. I think valleys came to us with a proposed merger with Standard General. Some of which we had a right to say yes or no to other pieces of it. We did not under the terms of our legal documents with them, their requests to move assets that are not generating income and keep them in the unrestricted group, is something we agreed to is part of the overall transaction. And we were comfortable in doing. So, because of some of the things that Peter described, where we believe that the landside moves of those properties will generate a significant amount of additional ibida and revenue such that we're comfortable with those few properties being in an unrestricted group. So, I would say that was at the request of our tenant, uh, but we didn't feel as though on the whole, we were having any detriment in the, in the, in the, um, quality of what we have. Yeah, and look, we have a relationship now with Bali.

Unknown Executive: Thank you very much. Excuse me, I've got a cold. Thank you.

Speaker Change: That we we are a good partners and as a result, I I think we feel very strongly that they're committed to us as we are to them. As we are to all of our tenants as as the as the sensible friendly source of financing as time goes on. So, uh, we think that we got a lot of benefit from that that, that that allowance.

Speaker Change: Thank you very much.

Speaker Change: Excuse me. Got a cold.

Chad Beynon: Our next question comes from the line of Chad Beynon with Macquarie. Please proceed with your question. Morning. Thanks for taking my question. It appears that some of these barge to land-based moves have proven to receive pretty strong returns. We heard this from one of your tenants last night on the earnings call, and we're excited to see Penn's upcoming opening here.

Speaker Change: Thank you. Our next question, comes from the line of Chad being on with McQuarrie, please proceed with your question.

Peter Carlino: So given that regional gaming revenues, particularly in the second quarter, have looked pretty good and there's still some opportunities out there, do you think the opportunity of barge to land-based moves will grow, and how will GLPI's funding opportunities participate in this potential growth? Thanks. I think it will grow there because I think states recognize that riverboats are an anachronism and we can all benefit from going landside. I think you're going to be quite excited about what Penn will do in Joliet and Aurora as well. I think it's going to be terrific and again, I expect great results down in Baton Rouge for Bally's with the Bell.

Speaker Change: Morning. Thanks for taking my question. Uh, it appears that some of these barge to, to land-based moves, have have proven, uh, received pretty strong returns. We heard this from 1 of your, your tenants last night on, on their earnings call. And we're excited to see, uh, pens up coming, uh, opening here. So, given that Regional gaming revenues particularly in the second quarter have have looked pretty good. And there's still some opportunities out there. Do you think, the, the opportunity of these? These barge lands base moves. Um, will grow and um, uh, how will G glpi, funding opportunities kind of participate in this potential growth. Thanks.

I think they will grow. They're because I think states recognize that look the the riverboats are in an acronym.

Speaker Change: Uh, and they, we can all benefit from going landside. I think you're going to be quite excited.

Peter Carlino: So I think that's a trend that's going to continue. Yeah, I think what you're seeing in regional gaming is the regional gamer values the additional amenities that can be added by these landside moves. So when you're gaming on a boat, you have multi-level of gaming with low ceilings and stairs and other challenges and adding amenities to the floor is difficult. So you bring these things landside and you add an entertainment venue and a sports book and more food and beverage outlets. I think you're seeing a big lift in some of these things. So overall, I think these are good for regional gaming.

About what what, uh, Penn will do in Joliet and, uh, and Aurora as well. Uh, I think it's going to be terrific and again, I expect great results. Out of Baton Rouge for BS with the Bell. So I think that's a trend that's going to continue.

Peter Carlino: And as we think about iGaming versus bricks and mortar, as these things turn into more entertainment destinations, as opposed to just floating slots, I think it's a value add to our portfolio and to gaming in general. Plus, Penn is investing in other bricks and mortar amenities, a hotel in Columbus, an expansion that they've long needed at the end. So there's some pretty cool stuff happening that we think will prove to be very successful.

Speaker Change: Good for regional gaming. And as we think about, I gaming versus bricks and mortar is these things. Turn into more entertainment destinations as opposed to just floating slots. Uh, I think it's a value, add to, to our portfolio and to gaming, in general, plus pen is investing in other bricks and mortar. Uh, amenities a hotel in Columbus and expansion that they've long needed in in uh, at the end. So there's some pretty cool stuff happening that we think is will prove to be very successful.

Unknown Executive: Great, thank you.

Peter Carlino: And then just in terms of international opportunities, I know this quarter, we saw a record setting EBITDA result from a company that's in a pretty good position in Singapore, so not specifically looking at Singapore, but it sounds like international EBITDA for this industry, you know, still has a long way to grow. So what's your appetite at this point to look outside of the United States and Canada? We've looked at things in the past, whether it be South America or Australia, we've looked at some European things, but I think the reality is it all comes back to what the tax treaties are and how you bring the money back and what that costs you, because the REIT is an IRS tax code, and therefore we don't get the same tax benefits in some jurisdictions.

Great. Thank you. And then, just in terms of international opportunities, I know this quarter, we saw a record setting even the result from from a, a company that's in a pretty good position in Singapore. So not specifically looking at Singapore, but it sounds like, um, International, uh, ibida or this industry, uh, you know, still has a Long Way to Grow. So, um, what's your appetite at this point to to look outside of, you know, United States and Canada? Thank you.

Speaker Change: Yeah, we think that's it. Yeah, go Fisher. Yeah, we've, we've looked at, um, we've we've looked at things in the past and and, uh, whether it be South America or Australia. Um,

Peter Carlino: So we have to consider that with respect to our cost of capital when we look at anything, and the same in Canada. So that's just an extra amount of diligence that goes into looking at anything, but we're clearly open to entertaining the idea, but at this point I'd say we're a little more focused on the U.S. and the tribal aspects. Yeah, and to be clear, we have looked at a number of things over time, but just again never found anything that worked for us. Thank you both. Thank you.

Speaker Change: We've we've uh, We've looked at some European things, but I I think the reality is it all comes back to what the tax 3DS are and and how you bring the money back and what that costs you because the IRS or excuse me, the the Reit is an IRS tax code, um, and and therefore, we don't get the same, um, we don't get the same tax benefits in some jurisdictions. So we have to, we have to consider that with respect to our cost of capital, when we look at anything and the same in Canada. Um, so so we that's just an extra amount of diligence that goes into looking at anything. But we're, we're clearly open, uh, to, to entertaining the idea. Um, but at this point, I'd say we're we're a little more focused on the, the US and the tribal aspects. Yeah. And to be clear, we have looked at the numbers of things over time, but just again, never found anything that worked for us.

Thank you, both.

David Katz: Our next question comes from the line of David Katz with Jefferies. Please proceed with your question. Morning, everybody. Thanks for working me in. Look, I just wanted to go back to the gaming side and ask Steve a question, which is, you know, we're seeing a lot of the opportunity set coming from, you know, existing tenants. You know, in our travels, it does feel as though there's a bit of a divide between, you know, those that that, you know, have a philosophical willingness to either be or not be tenants. Do you find in your travels, you know, that there's, that there are, you know, operators or prospective tenants that are on the fence?

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of David Katz with Jeffrey's, please receive with your question.

Speaker Change: Good morning, everybody. Thanks for. Um, working me in. Um, look I I just wanted to go back to the gaming side and ask Steve a question which is you know, we're we're seeing a lot of the opportunity set coming from um, you know, existing tenants um, you know in our travels it it does feel as though there's a bit of a

Steven Ladany: And I guess said a different way, is there a pipeline of new tenants within the land based gaming world that we could see adding three to five years Yeah, thanks, David. I think the key to your question was the three to five years, not necessarily five. But I think if you were saying, hey, in the next 12 months, how do you take a sole proprietor and convince them that not only do they want to now no longer own their real estate, but maybe they want to exit completely. And so I think you're right that there is a little bit of I'm in on the idea and I like it or I'm out and I've never really considered it.

Divide between, you know, those that that, you know, have a philosophical, um, willingness to either be or not, be tenants, do you find in your travels? You know, that there's, um, there are, you know, operators or prospective tenants that are on the fence and I guess set a different way. Is there a, a pipeline of new tenants within the land-based gaming world that we could see, adding 3 to 5 years?

Steven Ladany: I think that that ice cube melts as time goes on. In the conversations we've had, I think that the landscape of the gaming non-current re-tenant folks is predominantly sole proprietors and family owned businesses. There are plenty of those out there. And I think that there's an education and a comfort level that has to be built. And that takes time. And I think we are getting traction. I mean, I think if you had asked this question three years ago, I don't know that we would have said we thought Cordish was going to ultimately sell their real estate and become a tenant.

Speaker Change: Uh, yeah, I think the uh yeah, thanks David. I think the key to your question was the uh was the 3 to 5 years. Not necessarily 5. But I think if you were saying hey in the next 12 months um how do you take a sole proprietor? And convince them that not only do they want to now no longer own their real estate. But maybe they want to maybe they want to execute completely and I so I think there's a, I think you're right that there is a little bit of um, I'm in on the idea and I like it or I'm I'm out and I've never really considered it. I think that that um, ice cube melts as time goes on uh in the conversations. We've had I think that the landscape of of the gaming non-current uh re tenant folks is predominantly, sole Proprietors and and family-owned businesses. There's a there are plenty of those out there and I think that there's an education and a comfort level, that has to be built and that takes time. And I I think we are getting traction. I mean,

Peter Carlino: And they've done it and they're a huge fan of what it's done for them and they're a huge proponent. And then we've had them talk to other tenants that we now have in our roster who were considering it. So I think as we move forward, there is a continued opportunity to win people over one at a time. They have to be in the right mindset. They have to be looking for the right solution. And we have to have a relationship with them such that we are the provider of that solution. I think, David, as you've seen, you know, this industry is really very, relationships are extremely important.

Speaker Change: I think if you had asked this question 3 years ago, I don't know that we would have said we thought cordish was going to ultimately sell their real estate and become a tenant and, and they've done it, and they're a, they're a huge fan of what it's done for them and and they're a huge proponent. Then we've had them talk to other tenants that we now have in our roster, uh, who were considering it. So,

Peter Carlino: And we spend a lot of time here at GLPI cultivating both new and existing relationships. And so we don't take any of those things for granted. And as Steve said, you know, and we are like ships passing in the night sometimes because folks are out visiting with people and making sure that they understand we're interested. We're not twisting anybody's arm, but we do feel as though when the right time comes for some of these proprietors to think about monetizing some of what they have. We hope that GLPI is the first name they think of. And the way to do that is to cultivate these relationships over time.

Peter Carlino: And we think we do a pretty good job at that.

Peter Carlino: Look, I've said for many, many years, people do business with people they like. So being a landlord of choice and with the benefits that I think the sale leaseback arrangement offers is something that people have to come around to. And I think Steve's answer and Brandon's answer were as perfect as they could get, frankly. Okay. Thank you very much. Yep. Thank you.

Uh, very relationships are extremely important and we spend a lot of time here at glpi cultivating, both new and existing relationships and so we don't take any of those things for granted. And as Steve said, you know? And I we we are like ships passing in the night sometimes because folks are out visiting with people and making sure that they understand we're interested, we're not twisting anybody's arm, but we do feel as though when it when the right time comes for some of these Proprietors to think about monetizing some of what they have, we hope that glpi is the first name, they think of. And the way to do that is to cultivate these relationships over time and we think we do a pretty good job at that. Yeah, look I've said for many, many years people do business with people they like

Speaker Change: So being a an a a landlord of choice.

Speaker Change: And with the benefits that I think the sale leaseback Arrangement offers uh is something that that people have to come around to and uh, I think Steve's answer Brandon's answer was perfect as they could get frankly.

That's awesome. Thank you very much. Yep. Thank you.

Smedes Rose: Our next question comes from the line of... Smedes Rose with Citi. Please proceed with your question. Hi, thanks. You've obviously covered a lot of territory here.

Speaker Change: Thank you. Our next question comes from the line of the that's that's rules with City. Please proceed with your question.

Brandon Moore: I just wanted to ask you One question on the development of the ballpark in Las Vegas. Is there any kind of update there and maybe any change around your thinking in terms of your commitment to, you know, the Bally's kind of casino hotel that I guess eventually will be built there as well? There's a lot of finger pointing at the table here as to who wants to take that, but we have an answer. Brandon, we'll look at you, you take it. A decent amount of time out there these days. Look, I think we're pretty excited about what's happening on the site.

Speaker Change: Hi, thanks. This is obviously covered a lot of territory here but I just wanted to ask you. Um, um, 1 question on, um, the, uh, development of the ballpark in Las Vegas, is there any kind of update there and maybe any change around your, your thinking, um, in terms of your commitment to, um, you know, the ballet's kind of casino hotel, but I guess eventually we built there as well.

Brandon Moore: I'll say that from the get-go. Steve and I were out at the groundbreaking a few weeks ago. A lot of excitement in that town, both from the LBCVA, from the County Commission, from local businesses. I think people are very excited about what the A's are going to bring to Las Vegas. That being said, we are still working with Valley's on the remainder of the site and how a resort development with a combination of entertainment and gaming and retail can best complement the product that the A's are delivering. I think Valley's is coming close to a more final product there.

Brandon Moore: I know that they've shared that both with us and with various politicians there in Las Vegas, and everyone is pretty excited about what they're seeing. As it relates to our future investment in the site, as you know, we've committed $175 million, 50 of which we have spent through the demolition. $125 million remains. We are committed to funding that $125 million. Where it goes in the site is up for some negotiation because there's something we'd like to own for the $125 million. There are a lot of different opportunities. I think as we see the full financing of the site and the build-out of the site and the amenities and the third-party vendors that are coming in, there is an opportunity for us to invest more into that site.

Speaker Change: There's a lot of finger pointing at the table here as to, who wants to take that. But we have an answer Brandon. We'll look at you. You take it easy amount of time out there these days. Um, look, I think we're pretty excited about what's happening on the site. I'll say that from from the get-go Steve and I were out at the groundbreaking a few weeks ago, a lot of excitement in that town both from the LBC VA from the County Commission from local businesses. I think people are very excited about what the A's are going to bring to Las Vegas. That being said we are still working with BS on the remainder of the site and how a resort development with a combination of entertainment and, and gaming and Retail, can best complement the product that the A's are delivering and I think valleys is coming close to a more final product there. I know that they've shared that both with us and with various politicians there in Las Vegas and everyone is pretty excited about what they're seeing as it relates to our future investment. In the site is

Peter Carlino: Whether or not we capitalize on that opportunity will depend on what the opportunity is, how the financing of that property shapes up. At that time, we'll figure out whether or not more investment in that property by us makes sense for us and for Valley's, quite frankly. Valley's needs to decide how they want to fund and finance that site, and if they don't need any more capital from us, that's fine, too. But I think overall, there's a lot of excitement about that site and what it will bring to that corner in Las Vegas. Yeah, we, I think, did a good thing in connecting Valley's with the Mornell Organization, who have done a terrific job of planning out the balance of the site.

Speaker Change: You know, we've committed 150 or 175 million 50 of which we we have spent through the demolition 125 remains. We are committed to, um, funding that 125 million where it goes in. The site is up, is up for some, um, negotiation, because there's something we'd like to own for the 125 million. There are a lot of different opportunities and I think as we see the full financing of the site and the buildout of the site and the amenities and the third party vendors that are coming in, there is an opportunity to uh, for us to invest more into that site. Whether or not we capitalize on that opportunity will depend on what the opportunity is, how the financing of that property shapes up. And at that time, we'll figure out whether or not more investment in that property by us, makes sense for us and for valleys quite frankly. Uh, you know that Valley needs to decide how they want to fund and finance that site. And if they don't need any more capital from us, that's fine too.

Peter Carlino: But I think Brandon's correct. What happens next is going to be in Valley's court, and we stand by encouraging. The final script has not been written.

Speaker Change: But I think overall there's a lot of excitement about that site and what what what it will bring to that corner in Las Vegas. Yeah we we I think did a good thing in connecting valleys with the Barnell organization who have done a terrific job of of planting out, the balance of the site.

Speaker Change: But I think Brandon's correct. We what what happens next is going to be in Valley's Court?

Speaker Change: and we stand by encouraging, but

Speaker Change: The final script has not been written.

Peter Carlino: And thank you. Maybe suffice it to say. We're not going to do anything stupid. We're not going to jump off any bridges. That's reassuring. Thank you.

Speaker Change: Maybe suffice it to say, we're not going to do anything stupid.

Speaker Change: Off any Bridges.

It.

Speaker Change: That's reassuring.

Speaker Change: Thank you.

Operator: How's our time? We've got maybe one more question.

Greg Mcginniss: Sure. Our last question comes from the line of Greg McGinniss with Scotiabank. Please proceed with your question.

Speaker Change: Thank you. I think we're house our time. We've got maybe 1 more question.

Greg Mcginniss: Hey, hey, good morning. In the discussions with Penn on their request for the $130 million on Joliet, those conversations also touch on the other potential investments. And I understand that these items won't be included in guidance until there's a signed agreement. But what's your confidence that they could call on that what could be up to $600 million in additional funding? Well, the $225 million for Aurora is a definitive obligation that GLPI has, so that one I can tell you for sure will happen. The other ones remain, the only two that remain now would be the M and the Columbus Hotel, and those are really up to Penn to request their funds.

Speaker Change: Sure, our last question comes from the line of Greg, uh, mcginness with uh, scholarship Bank, please proceed with your question.

Speaker Change: Your confidence that they could call on that. What could be up to 600 million in additional funding?

Brandon Moore: Okay, thank you. And then I just wanted to clarify on that that Valley's proposal, did you make there is a $2.5 billion commitment from GLPI if they get one of the licenses? There there is a there is a yes, there is a piece of paper from GLPI that says that we were we would consider a commitment it is not it is not Well, I mean, yes, we would consider committing financing to owning land and funding building improvements, depending on diligence, where the licenses are awarded and a myriad of other terms and conditions which have yet to be discussed or determined.

Well, the 225 million for Aurora is a definitive um, obligation that glp high glpi has. Um so that 1 I can tell you for sure will happen. Um, the other ones. Uh Remain the only 2 that remain now would be the m and the Columbus hotel. And those are really up to pens to request are funding.

Speaker Change: Okay, thank you. And then I just wanted to clarify on, uh, that that Valley's proposal. Did you make there is a 2.5 billion dollar commitment from glpi, if they get, uh, 1 of the licenses.

Speaker Change: There there is a there is a yes, there is a piece of paper from glpi that says that we were we would consider a commitment. It is not, it is not um,

Brandon Moore: I think globally, I would think about it like this, the downstate licenses present a tremendous potential opportunity. And we would like to be a part of those opportunities should we have counterparties that would like for us to be a part of those opportunities. I think the valley script at that location is largely unwritten, right? We haven't seen plans and specs and budget and all the kinds of things that would be required for GLPI to commit a fixed dollar amount to that site. We're supportive of valleys, we're supportive of the project, just like Steve said, we will probably be supportive of many other projects in downstate New York.

well, I mean yes we would consider committing financing to owning land and funding building improvements depending on diligence where the licenses are awarded and a myriad of other terms and conditions, which have yet to be discussed or determined

Brandon Moore: Do we think $12 billion is the right number? Probably not. Is $2 billion the right number? That may be great. I think it all depends on how these unfold. And all I think you're seeing is that GLPI has indicated a willingness to use our balance sheet to fund what we think will be very accretive cash flow in downstate New York under the right circumstances.

Peter Carlino: Okay, thank you. Okay, any other comment from around the table? You want to do that, Steve? Yeah, a little discussion around the table about some statistics and information around the Chicago project. I think we'll wait until we issue a press release around that issue, just to bring people up to date, to be highly transparent with what's going on at that site and with that project.

Speaker Change: I think I think globally I would think about it like this. The down-state license is present to tremendous potential potential opportunity, um and and we would like to be a part of those opportunities. Should we have counterparties that would like for us to be a part of those opportunities? I think the valley script at that location is largely Unwritten. Right? We we haven't seen plans and specs and budget and all the kinds of things that would be required for glpi to commit. A fixed dollar amount to that site. We're supportive of valleys. We're supportive of the project, just like Steve said, we were probably be supportive of many other projects and downstate. New York. Do do we think 12 billion is the right? Number probably not is, is is 2 billion, the right? Number that may be great. I think it it all depends on how these unfold and all I think you're seeing is that glpi is indicated, a willingness to use our balance sheet to fund. What we think will be very accretive cash flow and downstate, New York under the right circumstances.

Okay, thank you.

Speaker Change: Okay, thank you. Any other comments from around the table? I

You want to do that, Steve?

Peter Carlino: So stay tuned, we'll get something out to you. So with that, I thank you all for dialing in today. We're kind of happy with where we are, except for I think our stock price, but that aside, we're doing fine. So thank you.

Speaker Change: Yeah. Uh, it was a little discussion around the table about uh, some statistics and information around the Chicago project. I think we'll wait until we issue a press release around that issue. Just to bring people up to date to be highly transparent with what's going on at that site. And with that project, so stay tuned. We'll get something out to you. So, with that, I thank you all for dialing in today. Um, we're kind of happy with Where We Are.

Operator: See you next quarter. Thank you. This concludes today's conference and you may disconnect your lines at this time.

Speaker Change: Except for I think our stock price but uh that aside we're we're we're doing fine. So thank you. See you next quarter?

Operator: Thank you for your participation.

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