Q2 2025 VICI Properties Inc Earnings Call

Please note that this conference call is being recorded today July 31st 2025 going.

Now I'll turn the collaborative Samantha Gallagher General Counsel with Beach properties.

Thank you operator, and good morning, everyone should have access to the company's second quarter 2025 earnings release and supplemental information.

The release and supplemental information can be found in the investors section of the BG properties website at Www Dot Vg properties Dot com.

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

We're looking statements, which are usually identified by the use of words, such as will believe expect should guidance intends outlook projects or other similar phrases are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.

Therefore, you should exercise caution in interpreting and relying on that.

For you to the company's SEC filings for more detailed discussion of the risks that could impact future operating results and financial condition.

During the call we will do.

Discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance.

These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website and our second quarter 2025 earnings release, our supplemental information in our filings with the SEC for additional information with respect to <unk>.

non-GAAP measures a certain tenants and our Counterparties discussed on this call. Please refer to the respective companies public filings with the SEC hosting the call today, we have Ed <unk>, Chief Executive Officer, John Payne, President and Chief Operating Officer, David <unk>, Chief Financial Officer, Gabe Wasserman, Chief Accounting Officer <unk>.

<unk> senior Vice President of capital markets.

Ed and team will provide some opening remarks, and then we'll open the call to questions with that I'll turn the call over to Ed.

Thank you Samantha and good morning, everyone I'll begin today by going back to what I talked about in my opening remarks during our last earnings call in late April and those remarks I spoke of the Paramount importance of the BG dividend and creating value for <unk> shareholders.

Those remarks struck a chord for a lot of you as the feedback we received from many of our active management owners was along the line of the dividends is indeed important and were glad youre focused on it.

Today I want to build on those remarks by focusing on what the dividend critically contributes to and Thats total return.

Total return is of course, the function of dividend return plus dependent on valuation and incremented return generated by the capitalization of earnings growth.

In a recent note in early July the Bofa equity strategist Savina assume Romanian wrote this headline welcome back to a total return world.

So then it goes on to say and I quote we expect a rising contribution to total return from dividends dividends contributed 40% of total returns from $19 36 to 2021, but just over 16% over the past decade from here we think.

Contribution of dividends to returns could rise demonstrably with aging demographics and sticky inflation risks the supply demand argument for inflation protected income via stocks is in our view compelling and bullish unfold.

Edward Pitoniak: Back to a total return world. Sevita goes on to say, and I quote, "We expect a rising contribution to total return from dividends. Dividends contributed 40% of total returns from 1936 to 2021, but just over 16% over the past decade. From here, we think the contribution of dividends to returns could rise demonstrably. With aging demographics and sticky inflation risks, the supply-demand argument for inflation-protected income via stocks is, in our view, compelling and bullish." Sevita was recently featured in a Wall Street Journal cover story on this topic of total return and the contribution of dividends to total return. In that article, as well as in a podcast with Mentor Favor, Sevita shares an analysis of nearly 100 years of total return from the Russell 1000.

Back to a total return world.

Savannah was recently featured in Wall Street Journal cover story on this topic of total return and the contribution of dividends to total return.

Sevita goes on to say and I quote, we expect a rising contribution to Total return from dividends.

In that article as well as in our podcast with met favor Davita shares an analysis of nearly 100 years of total returns from the Russell 1000 and in that analysis. She finds that the highest total returns over that period have been generated by stocks with higher dividends, specifically buy stocks in the SEC.

And first quintiles of dividend yield in that order.

Dividends contributed 40% of total returns from 1936 to 2021, but just over 16% over the past. Decade from here, we think the contribution of dividends to returns could rise demonstrably with aging demographics and sticky inflation risks. The supply demand argument for inflation protected income via stocks is in our view compelling and bullish unquote,

While stocks with the lowest dividend yields quintile significantly lagged the returns of higher yielding stocks and not by a little but by quite a lot nearly four times higher return for the second quintile and about two five times for the first quintile versus the diff quintile. According to the Wall Street Journal.

Edward Pitoniak: And in that analysis, she finds that the highest total returns over that period have been generated by stocks with higher dividends, specifically by stocks in the second and first quintiles of dividend yield, in that order. While stocks with the lowest dividend yields, the fifth quintile, significantly lagged the returns of higher yielding stocks, and not by a little, but by quite a lot. Nearly four times higher return for the second quintile and about 2.5 times for the first quintile versus the fifth quintile, according to the Wall Street Journal. Again, what Sevita stresses is that dividend return is a key driver of delivering superior total return along with the capitalization of earnings growth.

Again, what's to be distress is the dividend return as a key driver of delivering superior total return along with the capitalization of earnings growth.

Savina was recently featured in a Wall Street Journal. Cover story on this topic of Total return and the contribution of dividends to Total return in that article, as well as in a podcast with Med. Faber to be the shares and Analysis of nearly 100 Years of Total return from the Russell 10000. And in that analysis, she finds that the highest total returns over that period have been generated by stocks with higher dividends.

In the case of BT, we see our total return building blocks as having three key components dividend return capitalization of same store earnings growth.

Specifically buy stocks in the second and first quintiles of dividend yields in that order.

And capitalization of new store growth, whether through new acquisitions of property or new loans and property.

Our 2025 same in new store growth expectations are embedded in the updated 2025 earnings guidance, David will discuss in detail with you. Shortly the midpoint of our revised 2025 guidance now calls for four 4% growth in <unk> per share versus 2024, we believe this growth rate within net.

While stocks with the lowest dividend yield the fifth quintile, significantly lagged the returns of higher yielding stocks and not by a little, but by quite a lot nearly 4 times. Higher return for the second quintile, and about 2.5 times for the first quintile versus the fifth quintile. According to the Wall Street Journal,

Edward Pitoniak: In the case of VICI, we see our total return building blocks as having three key components: dividend return, capitalization of same-store earnings growth, and capitalization of new-store growth, whether through new acquisitions of property or new loans on property. Our 2025 same and new-store growth expectations are embedded in the updated 2025 earnings guidance David will discuss in detail with you shortly. The midpoint of our revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024. We believe this growth rate within the net lease rate category will put us among the leaders in AFFO per share growth for 2025. To date in 2025, we are generating our earnings growth through a combination of same-store earnings growth and new-store external growth.

Again, what to be? The stresses is the dividend. Return is a key driver of delivering Superior total return along with the capitalization of earnings growth.

In the case of VT, we see our total return. Building blocks is having 3 key components.

Lease REIT category will put us among the leaders in <unk> per share growth for 2025.

Dividends return.

Capitalization of same store earnings growth.

To date in 2025, we are generating our earnings growth through a combination of same store earnings growth and new store external growth. When it comes to same store earnings growth Vg's owners benefit from our same store NOI growth rate that according to Green Street's latest published net lease research is over five times higher.

And capitalization of new store growth whether through new acquisitions or property or new loans on property.

Our 2025 same and new store growth. Expectations are embedded in the updated 2025 earnings guidance. David will discuss in detail with you shortly.

<unk> then the average protect projected rate of same store NOI growth for net lease Reits.

Our external or new store growth has been funded substantially through the deployment of our retained cash flow, meaning at this point, we are growing our 'twenty to 'twenty five earnings without significantly growing our share count and without significantly growing our net debt.

The midpoint of our revised 2025 guidance. Now calls for 4.4% growth in af of overshare versus 2024. We believe this growth rate within the net. Lease rate category will put us among the leaders in afo for share growth for 2025.

Edward Pitoniak: When it comes to same-store earnings growth, VICI's owners benefit from a same-store NOI growth rate that, according to Greenstreet's latest published net lease research, is over five times higher than the average projected rate of same-store NOI growth for net lease rates. Our external or new-store growth has been funded substantially through the deployment of our retained cash flow, meaning at this point we are growing our 2025 earnings without significantly growing our share count and without significantly growing our net debt. What you are seeing through this internally funded growth are the advantages of VICI having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment.

What you are seeing do this internally funded growth are the advantages of BG, having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment.

I will also note that we are converting our revenue growth to earnings growth at a high rate of flow through given our continuing discipline around our G&A costs, which as percentages of both revenues and assets are among the lowest of large cap rates.

Today in 2025, we are generating our earnings growth through a combination of same store earnings growth and new store external growth when it comes to same store, earnings growth, BG's owners benefit from a same store, noi growth rate that according to Green streets, latest published. Net lease research is over 5 times higher than the average protect projected rate of same store. Noi growth for net lease REITs,

We believe our current use of our internal funding capability are what we call capital market's independents together with exacting cost discipline is a sound strategy for defending our dividend growing our earnings and creating the conditions that can potentially lead to compelling total return no matter if external funding windows are open.

our external or new store growth is been funded substantially through the deployment of our retained cash flow. Meaning at this point, we are growing our 2025 earnings without significantly. Growing our share count and without significantly growing our net debt.

Edward Pitoniak: I will also note that we are converting our revenue growth to earnings growth at a high rate of flow-through, given our continuing discipline around our G&A costs, which, as percentages of both revenues and assets, are among the lowest of large-cap REITs. We believe our current use of our internal funding capability, or what we call capital markets independence, together with exacting cost discipline, is a sound strategy for defending our dividend, growing our earnings, and creating the conditions that can potentially lead to compelling total return, no matter if external funding windows are open or closed. To be sure, we may in the quarters and years ahead develop investment opportunities that require and also increasingly support issuance of incremental equity and debt in greater size.

What you are seeing through this internally funded, growth are the advantages of BG having achieved, our current level of scale with more than 600 million dollars. A year pertaining cash flow available for investment.

Foreclosed.

To be sure we may in the quarters and years ahead develop investment opportunities require and also accretively support issuance of incremental equity and debt and greater size, but for the time being we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and Craig.

I will also note that we are converting our Revenue growth to earnings growth at a high rate of flow through giving our continuing discipline, around our GNA costs, which as percentages of both, revenues and assets are among the lowest of large cap rates.

Market reliance.

Before I turn the call over to John I'll finish by repeating with Davita said welcome back to a total return world here at <unk>, We always live in a total return world and Thats, because we always believed in the power of compounding total return as the power source of compounding no matter what the market does.

We believe our current use of our internal funding capability or what we call Capital markets Independence together with exacting. Cost, discipline is a sound strategy for defending our dividend growing, our earnings and creating the conditions that can potentially lead to compelling. Total return. No matter if external funding windows are open or closed,

Edward Pitoniak: But for the time being, we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and credit market reliance. Before I turn the call over to John, I'll finish by repeating what Sevita said. Welcome back to a total return world. Here at VICI, we always live in a total return world, and that's because we always believe in the power of compounding. Total return is the power source of compounding. No matter what the market does, we never lose faith in that power. And now over to you, John.

We never lose faith in that power and now over to you John Thanks, and good morning to everyone Vt's power source of compounding. Our total return is supported by our disciplined approach to building a high quality portfolio and cultivating a network of best in class operating partners the investments announced during the second quarter.

To be sure. We met in the quarters and years ahead. Develop investment opportunities are required and also incredibly support issuance of incremental equity and debt in Greater size. But for the time being, we believe, we are serving our stakeholders. Well, by generating earnings growth and striving for compelling Total return without significant equity and credit Market reliance.

With Red rock resorts, as well as cane international and Eldridge industries exemplified the relationship based nature of our capital and dynamic operators with whom we seek to partner as we shared on our first quarter earnings call. We entered into an agreement to provide up to $510 million for the development of the North Fork.

Before I turn the call over to John. I'll finish by repeating with sevita said, welcome back to a total return World here at Vichy. We always live in a total return world. And that's because we always believe in the power of compounding

John Payne: Thanks, Ann. Good morning to everyone. VICI's power source of compounding, our total return, is supported by our disciplined approach to building a high-quality portfolio and cultivating a network of best-in-class operating partners. The investments announced during the second quarter with Red Rock Resorts, as well as Kane International and Eldridge Industries, exemplify the relationship-based nature of our capital and the dynamic operators with whom we seek to partner. As we shared on our first quarter earnings call, we entered into an agreement to provide up to $510 million for the development of the North Fork Mono Casino and Resort, which will be developed and managed by Red Rock Resorts. Red Rock Resorts is a best-in-class gaming developer and operator with decades of experience across commercial and tribal assets.

Mono casino and resort, which will be developed and managed by Red Rock resorts Red Rock resorts is a best in class gaming developer and operator with decades of experience across commercial and tribal assets. We are thrilled to initiate our partnership through this project as we have known and have wanted to work with.

With the Red rock team for years during the second quarter. We also increased our investment in the mezzanine loan related to the development of the one Beverly Hills by $150 million for a total commitment of $450 million. We initially launched our strategic relationship with Kayne International and.

Eldridge industries through our investment in one Beverly Hills during the first quarter and our incremental investment is representative of the continued partnership we look forward to continue to support <unk> and international and Eldridge industries on the one Beverly Hills development as they work on their next leg of financing for the project.

John Payne: We are thrilled to initiate our partnership through this project, as we have known and have wanted to work with the Red Rock team for years. During the second quarter, we also increased our investment in the mezzanine loan related to the development of the One Beverly Hills by $150 million for a total commitment of $450 million. We initially launched our strategic relationship with Kane International and Eldridge Industries through our investment in One Beverly Hills during the first quarter, and our incremental investment is representative of the continued partnership. We look forward to continuing to support Kane International and Eldridge Industries on the One Beverly Hills development as they work on their next leg of financing for the project.

To everyone Vees power source of compounding. Our total return is supported by our discipline approach to building a high-quality portfolio and cultivating a network of best-in-class, operating Partners the Investments announced. During the second quarter with Red Rock Resorts as well as Kane International and Eldridge Industries. Exemplify, the relationship based nature of our capital, and the dynamic operators with whom we seek to partner as we shared on our first quarter, earnings call, we entered into an agreement to provide up to 510 million dollars, for the development of the North Fork, mono Casino and Resort, which will be developed and managed by Red Rock Resorts. Red Rock Resorts is a best-in-class gaming developer and operator would Decades of experience across commercial and tribal assets. We are thrilled to initiate our partnership through this project as we have known and have wanted to work with the Red Rock team for years. During the second quarter, we also

Cultivating new relationships is a key for VT, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of VTS sustained growth while recent headlines around Las Vegas have focused on slowing visitation dips in gross gain.

<unk> revenue and a decrease in Canadian travel, we remain confident in the city's long term trajectory as Las Vegas has experienced multiple years of record breaking growth. So it is not unexpected to see a period of normalization, particularly as it laps, a super bowl year amidst broader economic and.

Increased. Our investment in the mezzanine loan related to the development of the 1 Beverly Hills by 150 million dollars for a total commitment of 450 million. We initially launched our strategic relationship, with Kane International and Eldridge Industries through our investment in 1, Beverly Hills during the first quarter, and our incremental investment is representative of the continued partnership. We look forward to continue to support, Kane and international and Eldridge.

John Payne: Cultivating new relationships is a key for VICI, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of VICI's sustained growth. While recent headlines around Las Vegas have focused on slowing visitation, dips in gross gaming revenue, and a decrease in Canadian travel, we remain confident in the city's long-term trajectory. As Las Vegas has experienced multiple years of record-breaking growth, so it is not unexpected to see a period of normalization, particularly as it lapsed a Super Bowl year amidst broader economic uncertainty. As Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority, recently noted, the higher-end consumer remains resilient on the Las Vegas Strip, with higher-end properties still running at over 90% occupancy levels.

Industries on the 1 B Hills development are working on their next leg of financing for the project.

Certainty as Steve Hill, the CEO of the Las Vegas Convention and visitors Authority recently noted the higher end consumer remains resilient on the Las Vegas strip with higher end property is still running at over 90% occupancy levels. The lower end consumer who is budget conscious is the consumer who has declined recently in the opera.

Cultivating. New relationships is a key for vichi, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of Vees sustained growth.

<unk> of the lower tier properties are already making adjustment to attract that cohort.

From <unk> perspective, our Las Vegas strip real estate portfolio continues to be well positioned importantly, although these near term dynamics may impact operator performance VTS rental income remains well insulated from cyclical fluctuations in our tenants' financial.

That is the value of our model long term leases, 90% of which by rent roll include corporate guarantees that serve as a powerful risk mitigate guaranteeing rent at the parent level adds cushion to VTS overall lease coverage, allowing operators to pay rent from the total.

John Payne: The lower-end consumer who is budget conscious is the consumer who has declined recently, and the operators of the lower-tilt properties are already making adjustments to attract that cohort. From VICI's perspective, our Las Vegas Strip real estate portfolio continues to be well positioned. Importantly, although these near-term dynamics may impact operator performance, VICI's rental income remains well insulated from cyclical fluctuations in our tenants' financials. That is the value of our model. Long-term leases, 90% of which by rent roll, include corporate guarantees that serve as a powerful risk mitigant. Guaranteeing rent at the parent level adds cushion to VICI's overall lease coverage, allowing operators to pay rent from the total system, not just brick-and-mortar earnings, thus limiting the idiosyncratic risk of any one geography or asset. This structure has also supported VICI's track record of 100% rent collection in cash on time since inception.

While recent headlines around Las Vegas have focused on slowing visitation dips and gross Gaming revenue and a decrease in Canadian travel. We remain confident in the city's long-term trajectory as Las Vegas has experienced multiple years of record-breaking growth. So it is not unexpected to see a period of normalization particularly as it lapse. A Super Bowl year amidst broader economic uncertainty as Steve Hill, the CEO of the Las Vegas Convention and visitors Authority. Recently noted the higher-end consumer remains resilient on the Las Vegas Strip with higher-end properties. Still running at over 90%, occupancy levels, the lower-end consumer who is budget, conscious is the consumer who has declined recently and The Operators of the lower till properties are already making adjustments to attract that co-worker, From vichi perspective, our Las Vegas strip, real estate portfolio continues to be well, positioned importantly, all

System, not just brick and mortar earnings thus, eliminating the idiosyncratic risk of any one geography or asset. This structure is also supported <unk> track record of 100% rent collection in cash on time.

Inception, even as Las Vegas experience is what we believe to be temporary moderation, we have conviction in both the staying power of the city as a global entertainment epicenter.

And in the creativity of our operating partner partners. A recent article from the Las Vegas Weekly discusses how operators are focusing on attracting new generations as millennials overtake genex and visitor volume share. The article highlights millennial and Gen Z tastes for experiences different than the traditional gambling.

John Payne: Even as Las Vegas experiences what we believe to be temporary moderation, we have conviction in both the staying power of the city as a global entertainment epicenter and in the creativity of our operating partners. A recent article from the Las Vegas Weekly discusses how operators are focusing on attracting new generations as Millennials overtake Gen X in visitor volume share. The article highlights Millennial and Gen Z taste for experiences different than the traditional gambling enjoyed by their parents and grandparents, and experiential innovation is evident on the Las Vegas Strip, with the starting of day club concepts, elevated food and beverage experiences, increasing popularity of professional sports, and more. There are also long-term tailwinds for Las Vegas, including the planned construction of the Brightline West high-speed rail line, the extension of the F1 contract through 2027, and the forthcoming addition of the Ace Stadium.

<unk> enjoyed by their parents and grandparents and experiential innovation is evident on the Las Vegas strip with the starting of day club concepts elevated food and beverage experiences increasing popularity of professional sports and more there are also long term tailwind for Las Vegas.

Although these near-term Dynamics, may impact, operator performance, vests rental income remains well. Insulated from cyclical fluctuations, in our tenants Financial. That is the value of our model, long-term leases 90% of which, by rent roll, include corporate guarantees that serve as a powerful risk mitigate guaranteeing rent at the parent level. Adds cushion to Vic's overall lease coverage, allowing operators to pay rent from the total system. Not just brick and mortar earnings. Thus, limiting the ioc risk of any 1 geography or asset. This structure has also supported beaches. Track record of 100% rent, collection in cash on time, since Inception, even as Las Vegas experiences. What we believe to be temporary. Moderation, we have conviction in both the staying power of the city.

Including the planned construction of the bright line West High speed rail line the extension of the F. One contract through 2027, and the forthcoming edition of the stadium, we feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity. We believe continues to be offered.

As a global entertainment epicenter and end in the creativity of our operating part Partners. A recent article from the Las Vegas Weekly discusses, how operators are focusing on attracting New Generation as Millennials overtake Gen X in visitor, volume, share the article. Highlights Millennial and gen Z case for experiences, different than the traditional gambling enjoyed by their parents and grandparents and experiential Innovation is evident on the Las Vegas.

In the years ahead, now I will turn the call over to David who will discuss our financial results and guidance David Thanks, John with greatly appreciate you all joining us today.

Starting with the balance sheet and recent activity in April we closed our bond offering where we issued $400 million of three year notes at a coupon of 475% and $900 million of tenure notes at a coupon of 565% for a blended coupon of 534%, including the impact of our hedging program.

Strip with the starting of dayclub Concepts, elevated food and beverage experiences, increasing popularity of professional sports and more. There are also long-term Tailwinds for Las Vegas.

John Payne: We feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity we believe continues to be offered in the years ahead. Now I will turn the call over to David, who will discuss our financial results and guidance. David.

We now have no debt coming due until the second half of 2026, where we have September and December maturities, which we plan to address next year.

Subsequent to quarter end, we settled approximately nine 7 million shares under our forward equity ATM program for $296 million of net proceeds which were partially used to repay a $175 million that was outstanding on our revolving credit facility and to fund the incremental one barrel one Beverly Hills investment.

David Kieske: Thanks, John. Greatly appreciate you all joining us today. Starting with the balance sheet and recent activity. In April, we closed our bond offering where we issued 400 million of three-year notes at a coupon of 4.75% and 900 million of 10-year notes at a coupon of 5.625% or blended coupon of 5.34%, including the impact of our hedging program. We now have no debt coming due until the second half of 2026, but we have September and December maturities, which we plan to address next year. Subsequent to quarter end, we settled approximately 9.7 million shares under our forward equity ATM program for 296 million of net proceeds, which were partially used to repay 175 million that was outstanding on a revolving credit facility and to fund the incremental One Beverly Hills investment.

Years ahead. Now, I will turn the call over to David who will discuss our financial results and guidance. David, thanks John. Greatly appreciate you all joining us today.

Taking this activity into account, we have approximately $2 9 billion and total liquidity comprised of $325 6 million of estimated proceeds now available under our outstanding forwards $2 4 billion of availability under our revolving credit facility and approximately $233 million in cash as of quarter end such as.

Starting with the balance sheet and recent activity. In April, we closed our bond offering where we issued 400 million of 3 year notes, at a coupon of 4.75% and 900 million of tenure notes, at a coupon of 5.625%, for Blended coupon of 5.34%, including the impact of our hedging program.

We now have no debt coming due until the second half of 2026, where we have September and December maturities, which we plan to address next year.

On leverage when we account for the revolver repayment. Our total debt is $17 1 billion and our net debt to annualized second quarter. Adjusted EBITDA is approximately five one times well within our target leverage range of five to five five times, we have a weighted average interest rate of 447% as adjusted to account for <unk>.

David Kieske: Taking this activity into account, we have approximately 2.9 billion in total liquidity comprised of 325.6 million of estimated proceeds now available under our outstanding forwards, 2.4 billion of availability under our revolving credit facility, and approximately 233 million in cash as of quarter end. Touching on leverage, when we account for the revolver repayment, our total debt is 17.1 billion, and our net debt to any like second quarter adjusted EBITDA is approximately 5.1 times, well within our target leverage range of 5 to 5.5 times. We have a weighted average interest rate of 4.47% as adjusted to account for our hedge activity and a weighted average of 6.5 years to maturity.

Subsequent to quarter end. We settled approximately, 9.7 million shares, under our forward, Equity ATM program, for 296 million of net proceeds, which were partially used to repay 175 million that was outstanding on a revolving credit facility and to fund the incremental 1 b, 1 Beverly Hills investment

<unk> and a weighted average six five years to maturity or.

Our constant focus on managing our cost of capital balance sheet and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders.

Turning to the income statement.

<unk> per share was <unk> 60 for the quarter, an increase of four 9% compared to 57 for the quarter ended June 32024.

Taking this activity into account, we have approximately 2.9 billion in total. Liquidity comprised of 325.6 million of estimated proceeds. Now available under our, our outstanding forwards 2.4 billion of availability under our revolving credit facility and approximately 233 million in cash, as as of quarter, end touching on Leverage. When we account for the revolver repayments, our total debt is 17.1 billion and our net debt to annualized. Second quarter, adjusted evida is approximately 5.1 times.

And our results once again highlight our highly efficient triple net model given the increase in adjusted EBITDA as a proportion of the corresponding increase in revenue our margins continue to run strong in the high 90% range when eliminating noncash items, our G&A was $14 6 million for the quarter and as Ed mentioned as a percentage of total.

David Kieske: Our constant focus on managing our cost of capital, balance sheet, and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders. In turning, the income statement, AFFO per share was $0.60 for the quarter, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024. And our results once again highlight our highly efficient triple net model given the increase in adjusted EBITDA as a proportion of the corresponding increase in revenue. Our margins continue to run strong in the high 90% range when eliminating non-cash items. Our G&A was 14.6 million for the quarter, and as Ed mentioned, as a percentage of total revenue, it was only 1.5%, which continues to be one of the lowest ratios in not only the triple net sector but across all REITs.

Well within our Target, leverage range of 5 to 5 and a half times. We have a weighted average interest rate of 4.47% as adjusted to account for our hedge activity and a weighted average, 6.5 years, the maturity

<unk> was only one 5% which continues to be one of the lowest ratios in not only the triple net sector, but across all Reits.

Our constant focus on managing our cost of capital balance sheet and liquidity profile, through volatile markets, allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders.

Returning the income statement.

And finally moving to guidance.

We announced last night, we are raising our <unk> guidance for 2025 in both absolute dollars as well as on a per share basis.

<unk> for the year ending December 31, 2025 is now expected to be between $2 5 billion and $2 five 2 billion or between $2 35, and $2 37 per diluted common share compared to a prior <unk> per share guidance of $2 33 to $2 36, a raise represents an.

Yep. So for share with 60 cents for the quarter and increase of 4.9% compared to 57 cents for the quarter. Ended June 30th 2024 and our results. Once again, highlight our highly efficient, triple net model. Given the increase in adjusted ibida as a proportion of the corresponding increase in Revenue.

At both ends of the range by two pennies on the bottom and one penny on the top end.

David Kieske: And finally, moving to guidance, as we announced last night, we are raising our AFFO guidance for 2025 in both absolute dollars as well as on a per share basis. AFFO for the year ending December 31, 2025 is now expected to be between 2.5 billion and 2.52 billion, or between $2.35 and $2.37 per diluted common share. Compared to our prior AFFO per share guidance of $2.33 to $2.36, a raise represents an increase at both ends of the range by two pennies on the bottom and one penny on the top end. And based on the midpoint of our raised 2025 guidance, VICI now expects to deliver year-over-year AFFO per share growth of 4.4%.

Our margins continue to run strong in the high. 90% range when eliminating non-cash items, our DNA was 14.6 Million for the quarter and as Ed mentioned, as a percentage of total revenue was only 1.5% which continues to be 1 of the lowest ratios. And not only the triple net sector, but across all reads,

And finally, moving the guidance.

Based on the midpoint of our raised 2025 guidance <unk> now expects to deliver year year over year <unk> per share growth of four 4% and just as a reminder, our guidance does not include the impact on operating results from any transactions that have not closed interest income from any loans that do not yet have final draws structures possible future acquisitions or.

As we announced last night, we are raising our afo guidance for 2025, and both absolute dollars, as well as on a per share basis.

Ffo for the year. Ending December 31, 2025 is now expected to be between 2.5 billion and 2.52 billion.

Dispositions or capital markets activities or other nonrecurring transactions are items with that operator. Please open the line for questions.

Of course, we will now begin today's Q&A session, if you'd like to ask a question on todays call. Please press star one on your telephone keypad now independent to ask a question. Please ensure you should likely be question as to asked to limit themselves to one question and one follow up.

David Kieske: And just as a reminder, our guidance does not include the impact on operating results from any transactions that have not closed, interest income from any loans that do not yet have final draw structures, possible future acquisitions or dispositions, capital markets activities, or other non-recurring transactions or items. With that, operator, please open the line for questions.

Our first question today comes from John Keller Chomsky from Wells Fargo. John Your line is open. Please go ahead.

Hi, This is Sharon on for John.

Good morning, and thank you for taking my question.

Or between 2.35 and 2.37 cents per diluted common share. Compared to our prior afo pure per share, guidance of 233 to 236. The raise represents an increase at both ends of the range by 2 pennies on the bottom and 1 Penny on the top end and based on the midpoint of our raise 2025 guidance BT. Now expects to deliver year year over year afo per share growth of 4.4%. And just as a reminder our guidance does not include the impact on operating results from any transactions that have not closed interest income from any loans that do not yet have final draw structures. Possible, future Acquisitions or dispositions Capital, markets, activities, or other non-recurring transactions or items.

What drove the decision to increase your mezzanine loan investment.

With that operator, please open the line for questions.

Operator: Of course. We will now begin today's Q&A session. If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad now. When preparing to ask your question, please ensure you are unmuted locally, and questioners are asked to limit themselves to one question and one follow-up each. Our first question today comes from John Kilichowski from Wells Fargo. John, your line is open. Please go ahead.

The one Beverly hills by $150 million.

Just curious to know your thoughts.

Yes, David I can start as we've talked about with the original announcement. This was part of a bigger financing.

Of course, we will now begin today's Q&A session. If you'd like to ask a question on today's call, please press star. Followed by 1 on your telephone keypad. Now, when preparing to ask your question, please, ensure you are unmuted locally and question is, are asked to limit themselves to 1 question and 1 follow-up each?

The gain in Eldridge undertaking to develop what is upwards of $678 billion project in Beverly Hills and so.

Our first question today comes from John Kilichowski from Wells Fargo. John, your line is open, please go ahead.

Cheryl: Hi, this is Cheryl on for John. Good morning and thank you for taking my question. What drove the decision to increase your mezzanine loan investment on the One Beverly Hills by $150 million? Just curious to know your thoughts.

Our commitment to the to the project will likely increase over time as they work on it.

Hi. Uh this is Cheryl on for John. Good morning and thank you for taking my question.

Implementing the.

The construction financing to finish the project right now this is a.

Combination of our bank financing and in Spo financing that we are entering into this as a maturity.

Um, what drove the decision to increase, your mezzanine loan investment, um, on the 1 B Hills by 150 million dollars, just curious to know your thoughts.

David Kieske: Yeah, it's David. I can start. As we talked about with the original announcement, this is part of a bigger financing that Kane and Eldridge are undertaking to develop what is upwards of a $6, $7, $8 billion project in Beverly Hills. And so our commitment to the project will likely increase over time as they work on implementing the construction financing to finish the project. Right now, this is a combination of a bank financing and an SBL financing that we are entering into. This has a maturity in March of 2026, and Kane and again Eldridge are working on a broader construction financing that will, you know, is in process and be able to take the project to completion in '27.

March of 2026 and came in again Eldridge are working on a broader construction financing that will.

As in process and be able to take the project to completion.

In 2007.

Yeah, it's David. I can start as as we talked about with the original announcement. This is part of a bigger financing uh that came and Eldridge are undertaking to develop what is you know upwards of eighty 678 billion dollar project in Beverly Hills and so

Gotcha. Thank you that's helpful and.

We've seen a handful of loon and mezzanine opportunities recently are you seeing or expecting any see similar opportunities to come from these relationships.

Our commitment to the to the project will likely. Increase over time as they work on implementing the um, the the construction financing to finish the project. Right now, this is a

Yes in certain cases, yes.

<unk>.

It will it will take time for obviously those to realize themselves, but certainly in the case of cane and Eldridge as an example.

This has a maturity in March of 2026 and Kane and and again Eldridge are working on our broader construction financing that will, you know, is in process and and be able to take the project to completion. Uh,

Given the breadth and depth of their investments across the experiential spectrum, we would we would very much anticipate.

In 27.

Cheryl: Gotcha. Thank you. That's helpful. And we've seen a handful of loan and mezzanine opportunities recently. Are you seeing or expecting any fee-simple opportunities to come from these relationships?

Participating with them in our acquisition of fee simple real estate and that was obviously at the heart of what Todd bowling and Jonathan Goldstein.

<unk> said in the release, we put out back in February.

Gotcha, thank you. That's helpful. And um, we've seen a handful of loan and mezzanine opportunities. Recently, are you seeing or expecting any fee, simple opportunities to come from these relationships?

Edward Pitoniak: Yeah, in certain cases, yes. And it will take time for obviously those to realize themselves, but certainly in the case of Kane and Eldridge as an example, given the breadth and depth of their investments across the experiential spectrum, we would very much anticipate participating with them in our acquisition of fee-simple real estate. And that was obviously at the heart of what Todd Bowley and Jonathan Goldstein said in the release we put out back in February about our forming a strategic alliance with Kane and Eldridge around that very topic.

About our forming a strategic alliance with Kayne and Eldridge around that very topic.

Got it. Thank you that's helpful.

The next question comes from by returns from <unk> Sorry. Your line is open. Please go ahead.

Hey, guys good morning.

Maybe broadly speaking how have deal discussions been isolated for either salaries factor other launch any major differences in the last 90 days either gaming non gaming existing tenants or potential new tenants just curious at a high level how trends have been.

Yes, Barry nice to hear from you no big difference between quarter to quarter. Obviously, if we've continued we started the company eight years ago as a gaming REIT and we're looking at that point only gaming obviously over the past six seven years, we've continued to diversify to look at other sectors. So as you continue.

Yeah, in certain cases, yes. Um, and the it will, it will take time for obviously those to realize themselves. But certainly in the case of Cain and Eldridge as an example, uh, given the breadth and depth of their Investments across the experiential Spectrum. We would we would very much anticipate, uh, participating with them in our acquisition of these simple real estate. And that was obviously at the heart of what Todd bully and Jonathan Goldstein, uh, said in the release, we put out back in was that February, um, about our forming a strategic alliance with Kane and Eldridge around that very topic.

Cheryl: Got it. Thank you. That's helpful.

Got it. Thank you. That's helpful.

Operator: The next question comes from Barry Journess from Trivest. Barry, your line is open. Please go ahead.

The next question comes from Barry Jones from truist. Barry, your line is open. Please go ahead.

Barry Jonas: Hi, guys. Good morning. You know, maybe broadly speaking, how have deal discussions been as of late for either Sally's Bank or other loans? Any major differences in the last 90 days, either gaining, non-gaining, existing tenants, or potential new tenants? Just curious at a high level how trends have been.

To expand the funnel, there's obviously more and more conversations that we have and then just finished talking about we've also used our credit book to build.

Relationships new relationships that at the time may not have wanted to sell their real estate. So Barry to answer to your question is we're quite busy we have a lot of different sectors that we're looking at and there has not been.

Hey guys, good morning. Um, you know, maybe broadly speaking how have deal discussions been as of late for either Sally's back or other loans. Any major differences in the last 90 days, either gaining non-gaming, existing tenants, or potential new tenants, just curious at a high level, how Trends have been

John Payne: Yeah, Barry, nice to hear from you. I know the difference between quarter to quarter. Obviously, as we've continued, we started the company eight years ago as a gaming REIT, and we're looking at that point only at gaming. Obviously, over the past six, seven years, we've continued to diversify to look at other sectors. So as you continue to expand the funnel, there's obviously more and more conversations that we have. As Ed just finished talking about, we've also used our credit book to build relationships, new relationships that at the time may not have wanted to sell their real estate. So Barry, the answer to your question is we're quite busy. We have a lot of different sectors that we're looking at, and there have not been any changes at all in the past 90 days.

Any changes at all in the past 90 days.

Got it got it that's helpful and then.

Your closest competitor has taken a stand perhaps a bit against I gaming proliferation not sure. If you've recently addressed your views on a public call just curious to hear what they may be at this time.

Go ahead John.

I think youre, probably talking about our closest competitor I assume you said <unk> taken a stance on our gaming obviously, yet obviously.

Something that we continue to monitor.

It is important to many of our tenants to their overall credit as I talked in my opening.

Yeah, Barry. Uh, nice to hear from you. Uh, no big difference between quarter to quarter. Um, obviously, if we've continued, we started the company 8 years ago as a gaming REIT, and we're looking at that point only at gaming. Obviously, over the past 6, 7 years, we've continued to diversify to look at other sectors. So, as you continue to expand the funnel, there's obviously more and more conversations that we have. And then, just to finish talking about, we've also used our credit book to build, uh, relationships, uh, new relationships that, uh, at the time may not have wanted to sell their real estate. So, buried in answer to your question is, uh, we're quite busy. We have a lot of different sectors that we're looking at, and there has not been, um, any changes at all in the past 90 days.

Barry Jonas: Got it. Got it. That's helpful. And then your closest competitor has taken a stand perhaps a bit against iGaming's proliferation. Not sure if you've recently addressed your views on a public call. Just curious to hear what they may be at this time.

Remarks, we look at our tenants.

Across not only the bricks and mortar, but also there I gaming portfolio and something that we will continue to monitor.

Obviously, we're aware of what's going on around the United States at this point.

Got it. Got it. That's helpful. And then, uh, your closest competitor has taken a stand, perhaps a bit against iGaming proliferation. Not sure if you've recently addressed your views on a public call; just curious to hear what, uh, they may be at this time.

Edward Pitoniak: Go ahead, John.

John Payne: Yeah. I think you're probably talking about our closest competitor. I assume you said your GLPI has taken a stance on iGaming. Obviously, it's something that we continue to monitor. It is important to many of our tenants to their overall credit. As I talked in my opening remarks, we look at our tenants across not only the bricks and mortar but also their iGaming portfolio. And it's something that we will continue to monitor. And obviously, we're aware of what's going on around the United States at this point.

Barry I'll just add.

So.

I live in a state, Rhode Island, where the model is the lively experiment and I would say that American gaming is engaged right now and then lively experiment on how how the sector will continue to evolve both brick and mortar and digital.

And then of course in the case of digital both online sports betting and gaming.

<unk>.

I think that I think regulators states state legislators and regulators have a lot of decisions to make on how they will manage the interactivity of those various <unk>.

Edward Pitoniak: You know, Barry, I'll just add, so I live in a state, Rhode Island, where the motto is the lively experiment. And I would say that American gaming is engaged right now in a lively experiment on how the sector will continue to evolve, both brick and mortar and digital. And of course, in the case of digital, both online sports betting and iGaming. And you know, I think that I think regulators, state legislatures, and regulators have a lot of decisions to make on how they will manage the interactivity of those various categories of gaming in a way that does the best things for their economy and their state treasuries, but also, you know, for job growth and sustainment. Because clearly, brick and mortar casinos employ a lot more people within a given jurisdiction than either iGaming or online sports betting do.

I, I think you're probably talking about our closest competitor. I assume you're saying your glpi is taking a, a stance on, on I gaming obviously. Yeah, obviously, it's, uh, something that we continue to monitor. Uh, it is important to many of our tenants to their their, overall, credit, as I talked in my opening, uh, remarks. We look at our tenants, um, across, not only the bricks and mortar, but also, their eye gaming portfolio. And it's something that we, uh, we, we will continue to Monitor and, um, obviously we're aware of what's going on around the United States at this point.

Categories of gaming.

In a way that does the best things for their economy and their state treasuries.

But also.

For job growth and Sustainment, because clearly brick and mortar casinos employ a lot more people within a given jurisdiction then either I gave me or online sports betting due.

Perfect. Thank you so much guys.

The next question comes from Anthony <unk> from J P. Morgan Anthony. Please go ahead.

You know, Barry, I'll just add. Um, so I uh, I live in a state Rhode Island where the motto is the Lively experiment. And I would say that American gaming is engaged right now in a lively experiment on how, how the sector will continue to evolve, uh, both brick and mortar and digital. Uh, and of course, in the case of digital both uh, online sports betting and I gaming. And I, you know, I think that I think Regulators States state legislators and Regulators have a lot of

Alright, thanks, good morning.

My first question relates to just.

decisions to make on how they will manage the, the, the interactivity of those various

Making debt investments versus straight property investments I know theres some sensitivity around the debt book because of the shorter duration, but if you wanted to bring it up to say, 10% of the balance sheet or something.

There are good opportunities out there that youre seeing that youre, just being sensitive to because of the size of the book or do you feel like Youre doing what you wanted to do there just wondering about the broader opportunity set there.

Uh, categories of gaming, um, in a way that, you know, does the best things for their economy and their State. Treasuries, uh, but also, you know, for job growth and sustainment. Uh, because clearly brick and mortar, uh, casinos employ a lot more people with any given jurisdiction than uh, either I gaming or online sports betting do.

Operator: Perfect. Thank you so much, guys. The next question comes from Anthony Powell from JPMorgan. Anthony, please go ahead.

Perfect, thank you so much, guys.

We are really be very focus we are very focused I should say Tony on the cadence of capital as it goes out the door and obviously very much the cadence of capital as it comes back in the door and making sure that we are ready for not only again the allocation of capital out there.

The next question comes from Anthony powline from JP Morgan Anthony. Please go ahead.

Anthony Paolone: Thanks. Good morning. My first question relates to just, you know, making debt investments versus straight property investments. And I know there's some sensitivity around the debt book because of the shorter duration. But you know, if you wanted to bring it up to, say, 10% of the balance sheet or something, do you think there are good opportunities out there that you're seeing that you're just being sensitive to because of the size of the book? Or do you feel like you're doing what you want to do there? Just wondering about the broader opportunity set there.

Turn up capital to us and how we will manage earnings flow.

We're in it we're in a time right now where I think Tony given your coverage of real estate broadly and deeply.

We're in a time right now when credit is definitely getting a lot of attention and there does appear to generally be not just for <unk>, but generally appear to be.

Around the debt book because of the shorter duration. But, you know, if you wanted to bring it up to say, 10% of the balance sheet or something, do you, do you think there are good opportunities out there that you're seeing that? You're just being sensitive to because of the size of the book? Or do you feel like you're you're doing what you want to do there? Just wondering about the broader opportunity set their

Our credit opportunities in real estate transaction opportunity and again that is not.

Solely specific to BG.

Edward Pitoniak: And we would really be very focused. We are very focused, I should say, Tony, on the cadence of capital as it goes out the door and obviously very much the cadence of capital as it comes back in the door and making sure that we are ready for not only, again, the allocation of capital out, but the return of capital to us and how we will manage earnings flow. We're in a time right now where, I think, Tony, given your coverage of real estate broadly and deeply, we're in a time right now when credit is definitely getting a lot of attention. And there does appear to generally be, not just for VICI, but generally appear to be more credit opportunity than real estate transaction opportunity. And again, that is not solely specific to VICI.

Okay. Thanks.

My second question is.

On the income statement in the quarter I think you had about $7 million of transaction costs. It just seemed a bit high for a quarter that was fairly quiet I was wondering if you can.

Just elaborate on what drove that.

And we're constantly active.

Looking at opportunities of value.

<unk>.

Something sometimes things get to the go on and sometimes things don't so we wrote off some.

Costs that were pursuit costs from prior quarters that are no longer pursue cost.

Okay. Thank you.

The next question is from John Decree from CBRE Jones. Please go ahead.

And we would, we would really be very focused. We are very focused. I should say Tony on on the Cadence of capital as it goes out the door and obviously very much the Cadence of capital as it comes back in the door and making sure that we are ready for not only again, the allocation of capital out, but the return of capital to us and how we will manage earnings flow. Um, we're in a we're in a time right now where I think Tony given that your coverage of real estate, broadly and deeply. Uh, we're we're in a time right now when credit is definitely getting a lot of attention and there does appear to generally be not just for beaching but generally appear to be uh more Credit Opportunity than real estate transaction opportunity. And again that is not uh solely specific to vichi.

Anthony Paolone: Okay, thanks. And my second question is on the income statement in the quarter, I think you had about $7 million of transaction costs. It just seemed a bit high for a quarter that was fairly quiet. I was wondering if you can just elaborate on what drove that.

Hi, everyone. Good morning, Thank you for taking my questions.

John in your prepared remarks, you talked a little bit about your.

Your views on Las Vegas.

Some of the thoughts about about the summer then the long term.

Exciting stuff happening there and we agree but curious given.

Okay, thanks. And um, my second question is, uh, on the income statement in the quarter, I think you had about 7 million dollars of transaction costs. It just seemed a bit high for a quarter that was fairly quiet. I was wondering if you can, uh, you know, just elaborate on what drove that.

Given your experience the regional gaming markets have seen a nice uptick lately and we're hearing that as well. So I'm wondering if you could provide any kind of industry insights on how youre feeling about that market I think it certainly highlights the value of a diversified portfolio of your tenants in your business, but curious if you think thats.

David Kieske: We're constantly active and looking at opportunities of value, opportunities, and sometimes things get to the goal line and sometimes things don't. And so we wrote off some costs that were pursuit costs from prior quarters that are no longer pursuit costs.

Some real life that we're seeing in the regional markets and how youre feeling about that industry overall.

Similar constantly active and looking at opportunities, the value opportunities and um, something sometimes things get to the goal line and sometimes things don't. And so we wrote off some uh costs that were Pursuit costs from prior quarters that are no longer preserved cost.

Operator: Okay. Thank you. Next question is from John Ducree from CBRE. John, please go ahead.

Yes, John good to talk to them, we continue to be very excited about the industry as a whole we as.

Okay, thank you.

We love to break it out there as Las Vegas, and everyone else and we break the region as you know theres. So many different regions and Thats the beauty of our portfolio right that we've got all these different regional markets and there is different reasons why we are seeing upticks in revenues and EBITDA out of the regional market overall, our statement is we.

Next question is from John decree from CBR John, please go ahead.

Anthony Paolone: Hi, everyone. Good morning. And thank you for taking my questions. John, in your prepared remarks, you talked a little bit about your views on Las Vegas and some of the thoughts about the summer and then the long-term exciting stuff happening there. And we agree. But you know, curious, you know, given your experience, the regional gaming markets have seen a nice uptick lately, and we're hearing that as well. So I'm wondering if you could provide any kind of industry insights on how you're feeling about that market. I think it certainly highlights the value of the diversified portfolio of your tenants and your business. But you know, curious if you think that's some real life that we're seeing in the regional markets and how you're feeling about that industry overall.

Hi everyone. Good morning. And thank you for taking my questions.

um, John you and your prepared remarks, you talk a little bit about, you know, your views on Las Vegas and

We still really like the gaming business. We obviously are heavily invested in have a diversified portfolio in both areas.

We think we can grow in both areas.

And excited to see the operators continue to be creative.

Some of the thoughts about about the summer and then the long term, uh, exciting stuff happening there and we agree. But, you know, curious, um, you know, given your experience, the regional gaming markets, have seen a nice uptick lately and and we're hearing that as well. So you're wondering if you could provide any kind of industry insights on how you're feeling about that that market if you could certainly

To drive revenues in the regional markets and like I said in my opening remarks. This is just on <unk>.

Highlights. You know the value of the Diversified portfolio of your tenants and your business but you know curious if you think that's a

Temporary issue in Las Vegas, when you look at the forward booking.

Some real life that we're seeing in the regional markets and and how you're feeling about that industry overall.

John Payne: Yeah. Well, John, good to talk to you. We continue to be very excited about the industry as a whole. We, as you know, we love to break it up as there's Las Vegas and everyone else, and we break the region. As you know, there's so many different regions. That's the beauty of our portfolio, right, that we've got all these different regional markets, and there's different reasons why we are seeing upticks in revenues and EBITDA out of the regional market. Overall, our statement is we still really like the gaming business. We obviously are heavily invested and have a diversified portfolio in both areas. We think we can grow in both areas and are excited to see the operators continue to be creative to drive revenues in the regional markets. And like I said in my opening remarks, this is just a temporary issue in Las Vegas.

For group business in quarter four in the first two quarters of 2026.

Business is going to be strong, but it's just a credit to the operators that they in regional gaming that they have had some years, where they're a little bit down, but they're being more creative in adding assets a lot of capital deployment has been I've been putting our assets in the regional markets and it's exciting to see that those operators are getting some results.

Yeah.

Thanks, Jonathan.

Maybe to switch gears.

John or Ed.

One might be for you.

The amount of <unk>.

Volume and capital that your tenants are investing in your assets.

Kind of unique to the gaming industry and into your business.

We've heard that this week, whether it's new Orleans or MGM Grand Obviously Venetian has been a big one but it seems like that kind of gets overlooked a lot.

John Payne: When you look at the forward booking for group business in quarter four and the first two quarters of 2026, business is going to be strong. But it's just a credit to the operators that they in regional gaming that they have had some years where they're a little bit down, but they're being more creative and adding assets. A lot of capital deployment has been put in our assets in the regional markets, and it's exciting to see that those operators are getting some results.

And the value of your stock price levels in Asia is a big growth opportunity for you, but you think about ways to highlight that value.

Yeah. Well John good, good to talk to you. Um, we continue to be very excited about the industry as a whole. We as you know, we love to break it up as there's Las Vegas and everyone else and we break the region as you know, there's so many different regions and that's the beauty of our portfolio, right? That we've got all these different Regional markets and there's different reasons why we are seeing upticks in revenues and EBA out of the regional market. Overall, our statement is we we we still really like the gaming business. We obviously are heavily invested and have a diversified portfolio in both areas. Um, we think we can grow and, and in both areas, um, and excited to see The Operators, continue to be creative um, to drive revenues and and the regional markets. And and like I said, in my opening remarks, this is just a, a temporary issue in Las Vegas. When you look at the Ford booking, um, for Group business in quarter, 4 in the first 2 quarters of 2027,

Crystallize it I mean is there opportunities to do more.

Buying investments from your tenants.

Committing significant capital like that just curious your thoughts on that opportunity.

Yes.

<unk>, John but before I do I just wanted to apologize to those listening that responses are in some cases evidently cutting in and out we apologize for that night I believe we are in the process of fixing that or fix that.

Um businesses is going to be strong but it's just a credit to The Operators that they in Regional gaming. That they have had some years where they're a little bit down, but they're being uh, more creative and adding assets. A lot of capital deployment has been has been put in our Assets in the regional markets and it's exciting to see that those operators are, are getting some results.

Anthony Paolone: Thanks, John. And maybe to switch gears, John, or add, you know, this one might be for you. You know, the amount of volume and capital that your tenants are investing in your assets is kind of unique to the gaming industry and to your business. And we've heard that this week, whether it's New Orleans or MGM Grand, obviously Venetian has been a big one. But it seems like that kind of gets overlooked a lot, you know, in the value of your stock price. And as Venetian is a good growth opportunity for you, but do you think about ways to highlight that value or crystallize it? I mean, is there opportunities to do, you know, more, you know, buying investments from your tenants that are committing significant capital like that? Just curious your thoughts on that opportunity.

Thanks John, maybe to switch gears John or add a, you know, this, this 1 might be for you. Um,

It's a very good question John.

yeah, the amount of

From what we've been able to determine but I have to qualify this I'm sitting next to our GC, who always want to make sure I qualify everything I say.

We cannot identify another real estate commercial real estate category, where tenants invest more into that building that ours do with possibly the exception of data centers, where obviously that tenant invests a lot into the into the asset.

Venetian has been a big player, but it seems like that kind of gets overlooked a lot, um, you know, in the value of your stock price and of the nation has a good growth opportunity for you. But do you think about ways to highlight that value?

But it is obviously a different kind of investment.

We were very happy with our when our partners invest in our buildings and thereby de facto increase the value of our buildings. If there is the opportunity for us to contribute capital. We're obviously very excited and honored to do that in partnership with them, but there is simply no question that the <unk>.

Crystallize it. I mean, are there opportunities to do, you know, more, um, you know, buying investments from your tenants that are...

Committing significant Capital like that's curious. Your thoughts on that opportunity.

Edward Pitoniak: Yeah, I'll start, John. But before I do, I just want to apologize to those listening that our responses are in some cases definitely cutting in and out. We apologize for that, and I believe we are in the process of fixing that or have fixed that. It's a very good question, John. And from what we've been able to determine, but I have to qualify this. I'm sitting next to our GC who always wants to make sure I qualify everything I say. We cannot identify another real estate, commercial real estate category where tenants invest more into the building than ours do, with possibly the exception of data centers where obviously the tenant invests a lot into the asset. But it is obviously a different kind of investment.

Capital invested in our buildings with John now runs into the billions is it not.

Is is unlike any category, we've been able to identify outside of data centers and I do John Zink longer term.

Over the years, we will have opportunities to continue to use our capital to help accelerate the growth of our.

Our tenant's business, particularly in the large boxes that we see in Las Vegas, It's why it's a market that just so unique there is nothing like it were.

One of our boxes Venetian is what 17 18 million square feet. So we hope that continues to build.

Edward Pitoniak: We are very happy when our partners invest in our buildings and thereby de facto increase the value of our buildings. If there is the opportunity for us to contribute capital, we're obviously very excited and honored to do that in partnership with them. But there is simply no question that the capital invested in our buildings, which John now runs into the billions, does it not?

Pillar of growth for our company in years to come.

Thank you Jonathan appreciate your insights as always.

Yeah, I I'll start John, but before I do, I just want to apologize to those listening that we our responses are in some cases evidently cutting in and out. We apologize for that. And I I believe we are in the process of fixing that or have fixed that. Um, it's a very good question John. Um, and from what we've been able to determine, but I have to, I have to qualify this. I'm sitting next to our GC who always wants to make sure I qualify everything I say. Um, we we cannot identify another. Real estate commercial real estate category where tenants invest more into the building than ours, do with possibly, the exception of data centers, where obviously, the tenant invests a lot into the into the asset. Uh, but it is obviously a different kind of investment. Um, we, we, we are very happy when our, when our partners invest in our buildings and thereby the facto, increase the value of our buildings if there is the

Thank you.

Yes.

Next question is from David Katz from Jefferies. Please go ahead.

Good morning, and thanks for taking my question I do want to follow that up.

Anthony Paolone: Oh, yeah.

Edward Pitoniak: Yeah, is unlike any category we've been able to identify outside of data centers.

And it's similar but a different angle.

John Payne: And I do, John, think longer term, over the years, we'll have opportunities to continue to use our capital to help accelerate the growth of our tenants' business, particularly in the large boxes that we see in Las Vegas. It's why it's a market that's just so unique. There's nothing like it where, you know, one of our boxes, Venetian, is what, 17, 18 million square feet. So we hope that continues to be a pillar of growth for our company in years to come.

Some of your tenants and partners have begun talking to us about.

Opportunity for us to contribute Capital. We're obviously very excited and to do that in partnership with them. Um, but there is simply no question that the capital invested in our buildings which John. Now runs into the billions of it, not. Yeah. Um is uh, is unlike any category we've been able to identify outside of data centers?

The effect of the new tax regulations and if.

Getting the drift properly and I'll ask for your confirmation of that.

Here's to induce them.

To invest in the properties either expand renovate.

Add amenities et cetera. It also appears to induce them to continue doing that.

Going to continue to capture the bonus depreciation and therefore the tax benefit.

And I do, John, think longer term, um, over the years we'll have opportunities to continue to use our capital that help accelerate the growth of our tenants' businesses, particularly in the large boxes that we see in Las Vegas. It's why it's a market that's just so unique. There's nothing like it where, you know, one of our boxes, Venetian, is what, 17 or 18 million square feet. So we hope that continues to be a pillar of growth for our company in the years to come.

Anthony Paolone: Thanks, John. Thanks, Ed. Appreciate your insights, as always.

Thanks John, thank that. Appreciate your insights. As always

Edward Pitoniak: Thank you.

Have you looked at it.

Operator: The next question is from David Katz from Jefferies. David, please go ahead.

Thank you, next.

Im reading that correctly.

Given that I think this is part of the investment case that you've been making have you begun to talk to your tenants about it.

Next question is from David Katz, from Jeffrey's David please. Go ahead.

Anthony Paolone: Morning, and thanks for taking my question. I do want to follow that up, and it's a similar but a different angle. You know, some of your tenants and partners have begun talking to us about the effects of the new tax regulations. And if I'm, you know, getting the drift properly, and I'll ask for your confirmation of that, it appears to induce them to invest in the properties, either expand, renovate, you know, add amenities, etc. It also appears to induce them to continue doing that, you know, ongoing to continue to capture the bonus depreciation and therefore the tax benefit. Have you looked at it? Am I reading that correctly? And, you know, given that I think this is part of the investment case that you've been making, you know, have you begun to talk to your tenants about it?

What kinds of conversations are you having thanks.

Yes, yes.

Yes, David Youre, absolutely right. There were a number of elements of the new tax bill that are they're beneficial obviously, we're very glad of the fact that.

Dividend.

Morning, and thanks for checking my question. I, I do want to follow that up. Um, and it's a similar, but a different angle, uh, you know, some of your tenants and partners have begun talking to us about, uh, the effects of the new tax regulations. And if I'm, you know, getting the the drift properly and and I'll ask

Deduction.

<unk> maintained along with a number of other features that are beneficial to reach but in the case, you're talking about the bonus depreciation yes. It is it is a very powerful and positive factor for our operating partners. When it comes to investing in their buildings I would point out David and I know you cover you cover hotels as well.

Bonus depreciation is a great thing, but you still need the capital in order to make the funding and.

And what what the gaming business does is create economic headroom that allows for that incremental capital investment and one of the things that I think will sustain not only sustain but continue to increase the competitiveness of Las Vegas over the coming years and even decades is the ability to continually reinvest, especially on the group side.

Anthony Paolone: And, you know, what kinds of conversations are you having? Thanks.

Edward Pitoniak: Yeah. Yeah, David, you're absolutely right. There were a number of elements of the new tax bill that are beneficial. Obviously, we're very glad of the fact that the REIT dividend deduction was maintained, along with a number of other features that are beneficial to REITs. But in the case you're talking about, the bonus depreciation, yes, it is a very powerful and positive factor for our operating partners when it comes to investing in their buildings. I would point out, David, and I know you cover hotels as well, bonus depreciation is a great thing, but you still need the capital in order to make the funding. And what the gaming business does is create economic headroom that allows for that incremental capital investment.

For your confirmation of that. It, it appears to induce them, uh, to invest in the properties, either expand renovate. Um, you know, add amenities, Etc, it also appears to induce them to continue doing that, you know, ongoing to to continue to capture the bonus depreciation and therefore the tax benefit. Um, have you looked at it, am I reading that correctly and you know, given the I think this is part of the investment case that you've been making, you know, have you begun to talk to your tenants about it and you know what kinds of conversations are you having? Thanks.

Yeah.

The U S Convention Center and Hotel Convention Hotel landscape is one that has seen significant underinvestment in the last 10, 15, 20 years going back to even the GSE and the fact that Vegas can continually invest in the main Convention Center Mandalay Bay, Venetian MGM Grand all of the big boxes.

<unk> is a real competitive advantage for Las Vegas now we introduced our property partner growth Fund a few years ago, obviously, our Venetian investment is probably the Hallmark example of us putting our capital into our buildings incrementally and we will continue to make sure our tenants understand that our capital can be.

Yeah, they, uh, David, you're absolutely right there. There were a number of elements of the of the new tax bill that are that are beneficial obviously. Uh, we're very glad of the fact that the, the re dividend, uh, uh, uh, deduction, uh, was maintained along with the number of other features or beneficial to reach. But in the case you're talking about, uh, the bonus depreciation. Yes, it is. It is a very powerful and positive factor for our operating Partners when it comes to investing in their buildings, I would point out David and and I know you've covered you cover hotels as well. Bonus depreciation is a great thing, but you still need the capital in order to make the funding. And um, and what what the gaming business does is create economic Headroom that allows

The cheapest source of capital they can find to continue to improve their buildings.

Edward Pitoniak: And one of the things that I think will sustain, not only sustain, but continue to increase the competitiveness of Las Vegas over the coming years and even decades, is the ability to continually reinvest, especially on the group side. I think the US Convention Center and convention hotel landscape is one that has seen significant underinvestment in the last 10, 15, 20 years, going back to even the GFC. And the fact that Vegas can continually invest in the main convention center, Mandalay Bay, Venetian, MGM Grand, all of the big boxes is a real competitive advantage for Las Vegas. Now, we introduced our property partner growth fund a few years ago. Obviously, our Venetian investment is probably the hallmark example of us putting our capital into our buildings incrementally.

If I can just follow that up.

I'm curious about the comment of convention facilities, you feel are being Underinvested could you elaborate on that and why do you think that to be the case.

Well I think David going back to as far back as the GSE.

Are you seeing.

You've seen especially that the urban hotel landscape. The one that has generally not been invested in whether it be through by the hotel Reits or other owners of Big box Convention hotels.

It doesn't give me any pleasure to say that but there's a lot of tired full service convention, serving hotel product across major American cities and and that combined with the fact that most of the Big convention centers in the big cities have not seen anywhere near that.

Edward Pitoniak: And we will continue to make sure our tenants understand that our capital can be the cheapest source of capital they could find to continue to improve their buildings.

Vegas can continually invest in the main Convention Center. Manderley Bay, Venetian, MGM Grand. All of the big boxes uh, is is a real competitive Advantage for Las Vegas. Now, we, we introduced our property partner, growth fund a few years ago, uh, obviously our Venetian investment is probably the Hallmark example of us putting our Capital into our buildings incrementally. Uh, and we will continue to make sure our tenants understand that, our Capital can be the cheapest source of capital. They could find to continue to improve their buildings.

Anthony Paolone: If I can just follow that up, I'm curious about the comment of convention facilities you feel are being underinvested. Could you elaborate on that and why do you think that to be the case?

Investment.

Las Vegas has seen weather again at the main convention center or as an example at Mandalay Bay, where MGM put $100 million.

The Mandalay Bay.

If if I can just follow that up, um, I I I'm curious about, you know, the comment of, you know, convention facilities, you feel are being underinvested, okay? Could you elaborate on that and why why do you think that to be the case?

Edward Pitoniak: Well, I think, you know, David, going back to, you know, as far back as the GFC, you've seen, you've seen especially the urban hotel landscape be one that has generally not been invested in, whether it be through by the hotel REITs or other owners of big box convention hotels. It doesn't give me any pleasure to say this, but there's a lot of tired, full-service, convention-serving hotel product across major American cities. And that combined with the fact that most of the big convention centers in the big cities have not seen anywhere near the kind of investment that Las Vegas has seen, whether again at the main convention center or, as an example, at Mandalay Bay, where MGM put $100 million in the Mandalay Bay meeting facilities to 2.2 or whatever million square feet it is. Was it last year, John?

Mandalay Bay meeting facilities to 2.2 or whatever it million square feet as we had last year, John Yes, a couple of years ago and David the other thing that happened was during COVID-19. Many cities cut their sales teams selling conventions Las Vegas did not do that so there's been an uptick of visitation of.

Well, I think, you know, David going back to, you know, as far back as the GFC. Um, you've seen

Groups to Las Vegas that then.

You've seen especially that the the urban Hotel landscape, be 1 that has generally not been invested in whether it be through by the hotel rates or other owners of big box, convention hotels.

Visit brand new facilities with brand new technology, when they're when they're used to have their meetings and other cities with.

Kind of a rundown facilities. So that has really helped accelerate the growth of the group business in.

In loss in Las Vegas, which we're excited about because we.

We own a lot of facilities with great meeting and convention space.

Thanks, very much I appreciate it.

Thank you David.

The next question comes from Smedes Rose from Citi. Your line is now open. Please go ahead.

John Payne: Yeah, a couple of years ago. And David, the other thing that happened was during COVID, many cities cut their sales teams of selling conventions. Las Vegas did not do that. So there's been an uptick of visitation of groups to Las Vegas that then visit brand new facilities with brand new technology when they used to have their meetings in other cities with, you know, kind of rundown facilities. So that has really helped accelerate the growth of the group business in Las Vegas, which we're excited about because we own a lot of facilities with great meeting and convention space.

Hi, Thanks.

I guess this is probably just a reminder, but.

And she gets closer to shrink gaming licenses.

Hopefully by the end of the year is.

If MGM where to get one.

Yonkers facility are they obligated to use.

The financing for their expansion there or if they would just have the option to do that.

There's I I it doesn't give me any pleasure to say this but there's a lot of tired full service convention, serving Hotel, products across major American cities. And and and that combined with the fact that most of the big convention centers in the big cities, have not seen anywhere near the kind of investment that Las Vegas has seen. Whether again at the main Convention Center or as an example at Mandalay Bay where MGM put 100 million dollars into the Mandalay Mandalay Bay meeting facilities to 2.2 or whatever a million square feet. It is was it last year John? Yeah, a couple years ago and and David the other thing that that that happened was during coid, many cities, cut their sales teams of of selling conventions. Las Vegas did not do that. So there's been an uptick of visitation of groups 2. Las Vegas that then uh visit brand new facilities with

It's the latter they have the option to use our capital in.

Monitoring the situation I don't think anyone knows at this time, where the.

Three licenses are going to go but.

To answer your question they have the option to use our financing.

Brand new technology when they're when they're they used to have their meetings and other cities with, you know, kind of run-down facilities. So that is really helped. Um accelerate the growth of the group business uh in loss in Las Vegas, which we're excited about because uh we own a lot of facilities with great meeting and Convention space.

Okay and then just.

Anthony Paolone: Thanks very much. Appreciate it.

Presumably there will be a third license issued.

Thanks very much, appreciate it.

Edward Pitoniak: Thank you, David.

Thank you, David.

Operator: The next question comes from Smeads Royce from City. Your line is now open. Please go ahead.

Would you guys be able to participate in that if you wanted to or is there some sort of restriction on the only working with MGM.

The next question comes from smees Rose from City. Your line is now open. Please go ahead.

Barry Jonas: Hi, thanks. I guess this is probably just a reminder, but you know, as New York inches closer to issuing gaming licenses, I think supposedly by the end of the year, if MGM were to get one at the Yonkers facility, are they obligated to use you as a source of financing for their expansion there, or they would just have the option to do that?

And the New York Theres No restaurant market. There is no restriction in the New York license.

Yes, Smedes, sorry, I might have been cut off there is no restriction at all for us.

Okay. Thank you.

Thank you Smedes.

Um, hi thanks. Um, I just, this is probably just a reminder but, you know, as, as New York inches closer to, um, issuing gaming licenses, I think, um, success was at the end of the year is um if if MGM were to get 1 at the uh, yonic facility, are they obligated to use?

The next question comes from Daniel Guillermo from capital One Tony Your line is open.

Resources financing for their expansion there or they would just have the option to do that.

John Payne: It's the latter. They have the option to use our capital, and we're monitoring the situation. I don't think anyone knows at this time where the three licenses are going to go. But to answer your question, they have the option to use our financing.

Hi, everyone. Thank you for taking my question.

Youll have the eight Canadian properties and we've heard about decline in visitation to Las Vegas from Canada. When you talk about talk with those Canadian operators are they seeing benefit from less of that outbound traffic to the U S. This year.

Barry Jonas: Okay. And then just presumably there will be, you know, a third license issued. Would you guys be able to participate in that if you wanted to, or is there some sort of restriction on only working with MGM in the New York?

It's the latter. They have the option to to use our capital and um we're monitoring the situation. I don't think anyone knows at this time where the the 3 licenses are going to go. But uh you're you're you're to answer your question. They they have the option to use our financing

That's a great question Dan.

<unk> been very pleased with the performance of the.

The assets in Canada, I think it's still a little bit too early to say exactly why they are seeing an uptick, but I think you're onto something.

Okay, and then just um, presumably there will be, you know, a third license issued. Um, uh, would you guys be able to participate in that if you wanted to? Or is there some sort of restriction on the only working with MGM?

John Payne: There's no restriction.

Barry Jonas: Market.

John Payne: There's no restriction in the New York license. Yeah, Smeads might have been cut off. There's no restriction at all for us.

More Canadians are staying at home visiting the local assets there and the performance out of those assets have been have been quite good this year.

In the New York, there's no restriction Market. There's no restriction in the New York license. Yeah, it's me. So I might have been cut off. There's there's no restriction at all for us.

Barry Jonas: Okay. Thank you.

Okay, thank you.

Edward Pitoniak: Thank you.

John Payne: Thank you, Smeads.

I appreciate that thank you and then as a follow up to an earlier question. Some of the loan investment maturities are coming up and the principal balances will get paid down do you have that potential capital inflow kind of earmarked for certain investment.

Thank you, thank you. It's made.

Operator: The next question comes from Daniel Guglielmo from Capital One. Daniel, your line is open.

The next question comes from Daniel quickly and we're from Capital 1 don't know, your line is open.

Daniel Guglielmo: Hi, everyone. Thank you for taking my questions. You all have the eight Canadian properties, and we've heard about declined visitation to Las Vegas from Canada. When you talk about talk with those Canadian operators, are they seeing benefit from less of that outbound traffic to the US this year?

Your projects and then if the investment environment is it right at that time to deploy what would you expect to do with that excess capital.

Hi everyone. Thank you for taking my question. Um you all have the the 8 Canadian properties and and we've heard about decline visitation to Las Vegas from Canada. When you talk about talk with those Canadian operators, are they seeing benefit from less of that outbound traffic to the us this year?

John Payne: That's a great question, Dan. We have been very pleased with the performance of the assets in Canada. I think it's still a little bit too early to say exactly why they're seeing an uptick, but I think you're on to something that more Canadians are staying at home, visiting the local assets there, and the performance out of those assets has been quite good this year.

Yeah, our apologies folks.

Gabe had just begun to answer the question that Dan had asked about.

The use of regained proceeds gain.

Yes, and I apologize I repeat myself not sure of when when we got cut out, but we're actively working with all of our partners to understand when loans may be repaid.

Then working internally on evaluate alternative investment options when that capital comes back or Alternatively talking with them about refinancing options I think the great Wolf <unk> loan is a great example, last year that loan matured was part of a pool that the Blackstone a great Wolf team securitized and refinancing we participated in that.

Have been quite good this year.

Daniel Guglielmo: I appreciate that, Tom. Thank you. And then as a follow-up to an earlier question, some of the loan investments maturities are coming up, and you know the principal balances will get paid down. Do you have that potential capital inflow kind of earmarked for certain investments or projects? And then if the investment environment isn't right at that time to deploy, what would you expect to do with that excess capital?

Refinancing so a lot of times theres opportunities to reinvest with our partners and keep that capital Outstandings Thats, something we monitor very actively internally and always thinking about what we're going to do when that money comes back.

I appreciate that. Um, thank you. Um, and then as a follow-up to an earlier question, some of the the loan Investments maturities are coming up and you know the principal balance is will get paid down. Do you have that potential capital, inflow kind of earmarked for certain Investments or projects and then if the investment environment isn't right at that time to deploy, what would you expect to do with that excess capital?

Great. Thank you.

The next question comes from Chris starting from Green Street, Chris. Please go ahead.

Hey, Thanks, good morning.

Operator: Just having some difficulties with the speaker feed. Please stand by whilst we reconnect them. Confirming we're now rejoined by the speaker team. Please continue when you're ready.

Just circling back to the I gaming conversation as you think about states, where I gaming currently exists or may be legalized over time to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale leasebacks relative to say jurisdictions without any near term sightline for I gaming.

Because we're having some difficulties with the speaker feed. Uh, please stand by whilst we reconnect them.

Chris It's a great question and when we started the company.

At that point, there actually wasn't any any states that had gaming so some of our leases and some of our underwriting did not take that into effect. Obviously now we have a few years of states that have online sports betting they have bricks and mortar and they have a high gaming and so we better understand what has been the impact to all of them.

<unk>.

Three pillars and it definitely is a factor in the way that we think about underwriting the other the other thing we keep up with is what states may not have on a gaming today, but are continuing to have discussions about gaming and what could that impact have a positively and negatively on on.

Confirming, but now we joined by the speaker team. Please continue when you're ready.

Edward Pitoniak: Yeah, our apologies, folks. Gabe had just begun to answer the question that Dan had asked about the use of regained proceeds. Gabe?

Anthony Paolone: Yeah, and apologies if I repeat myself. Not sure when we got cut out. But you know, we're actively working with all of our partners to understand when loans may be repaid, and then working internally on evaluating alternative investment options when that capital comes back, or alternatively talking with them about refinancing options. I think the Great Wolf Perryville loan is a great example. Last year, that loan matured, was part of a pool that the Blackstone and Great Wolf team securitized and refinanced, and we participated in that refinancing. So a lot of times there's opportunities to reinvest with our partners and keep that capital outstanding. So it's something we monitor very actively internally and always thinking about what we're going to do when that money comes back.

On the asset that we would be underwriting in that state. So it's an excellent question. It is top of mind and we continue to learn as it goes and Chris I'll, just add that obviously in any investment category and investors should always be selective and how and how and where and when investments are made.

I would say and to reiterate I think the point, we made a call or two ago I do believe that the regional gaming landscape is in particular landscape right. Now we are an investor needs to take care in investing selectively given that not only given trends around I gaming, but.

Supply growth trends in certain jurisdictions, and so I think in that respect.

Yeah, our apologies folks. Um, Gabe had just begun to answer the question that Dan had asked about, uh, the, the use of regain proceeds, uh, Gabe. Yeah. And apologies. I repeat myself, not sure when when we got cut out. But, you know, we're actively working with with all of our partners to understand when loans may be repaid. Um, and then working internally on uh, evaluated alternative investment options, when that Capital comes back or alternatively. Talking with them, about refinancing options. I think that great wolf Perryville loan is is a great example. Last year that loan matured was part of a pool that the Blackstone and Great Wolf team, securitized and refinanced. And we participated in that refinancing. So a lot of times there's opportunities to, to reinvest with our partners and and keep that Capital outstanding. So that's something we, uh, monitor very actively in terms.

We will continue to be very disciplined in how we invest capital generally but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor.

Internally, we are always thinking about what we're going to do when that money comes back.

Daniel Guglielmo: Great. Thank you.

Great. Thank you.

Operator: The next question comes from Chris Donham from Greenstreet. Chris, please go ahead.

The next question comes from Chris, darling from Green Street. Chris, please go ahead.

Caitlin Burrows: Hey, thanks. Good morning. Just circling back to the iGaming conversation, as you think about states where iGaming currently exists or may be legalized over time, to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale leasebacks relative to, say, jurisdictions without any near-term sight line for iGaming?

Got it that's all helpful thoughts appreciate it.

Then I just wanted to circle back as well to the conversation around Vegas, a little bit of a softer backdrop, which you are on record as saying.

Saying you feel this is more of a temporary phenomenon.

But given the soccer backdrop I wonder if that's influencing how whether your tenants or perhaps other owners are thinking about new capital investment opportunities that.

Hey, thanks. Good morning. Um, just circling back to the igaming conversation. Uh, as you think about states where I gaming currently exists or maybe legalized over time uh to what extent does this impact? How you underwrite? Either incremental Capital deployment um or maybe new casino sales lease backs relative to say jurisdictions without you know any near-term sight line for I gaming?

John Payne: Yeah, Chris, it's a great question. And when we started the company, at that point, there actually wasn't any states that had iGaming. So some of our leases and some of our underwriting did not take that into effect. Obviously, now we have a few years of states that have online sports betting, they have bricks and mortar, and they have iGaming. And so we better understand what has been the impact to all of those three pillars. And it definitely is a factor in the way that we think about underwriting. The other thing we keep up with is what states may not have iGaming today, but are continuing to have discussions about iGaming and what could that impact have positively and negatively on the asset that we would be underwriting in that state. So it's an excellent question.

They're perhaps deciding whether or not to move forward with are you seeing any impact.

Any extent.

Not at all I think everyone is aligned on this who are big operators in Las Vegas.

This happened at times its a small blip again, you look forward looking bookings of of group you look at the attendance that's expected in the sports facilities that are built and are being built you look at the.

The tailwind that this city has.

We have not had one of our tenants talk about this short term blip impacting long term capital investment in fact, just walk down the strip right now you see.

Yeah. Chris, it's a, it's a great question and when we started the company, um, at that point, there actually wasn't any any states that had I gaming. Um, so some of our leases, and some of our underwriting did not take that into effect. Obviously. Now we have a few years of states that have online sports betting, they have bricks and mortar, and they have I damaged. And so, we better understand what has been the impact to all of those, uh, 3 pillars. And it definitely is a factor in the way that we think about underwriting the other. The other thing we keep up with is what states may not have a gaming today, but are are continuing to have discussions about I gaming. And what could that impact have a positively and negatively on

A lot of capital investment happening at our assets and others. So.

John Payne: It is top of mind, and we continue to learn as it goes.

<unk> to be a city that we're very bullish on just having a little bit of a slow summer yeah.

Edward Pitoniak: Yeah. And Chris, I'll just add that obviously in any investment category, investors should always be selective in how and where and when investments are made. I would say, to reiterate, I think a point we made a call or two ago, I do believe that the regional gaming landscape is in particular a landscape right now where an investor needs to take care in investing selectively, given not only given trends around iGaming, but supply growth trends in certain jurisdictions. And so I think in that respect, you know, we will continue to be very disciplined in how we invest capital generally, but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor.

I would just add Chris.

That our Las Vegas operators benefit from longer term booking visibility, thanks, especially to the group segment that gives them greater confidence in investing capital and I believe you cover Ryman.

And I would I would point out the degree to which our Las Vegas operators.

Kinda ryman enjoy that same forward booking visibility it really significantly de risks our business I don't want to say it eliminates risk, but it definitely de risks it versus a business it's entirely dependent on that.

Yeah.

That's an interesting point Ed I appreciate the thoughts and the time. Thank you.

Um, we will continue to be very disciplined in how we invest capital generally, but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor.

Caitlin Burrows: Got it. All helpful thoughts. Appreciate it. And then, you know, I just want to circle back as well to the conversation around Vegas, a little bit of the softer backdrop, which, you know, you're on record as, you know, saying you feel this is more of a temporary phenomenon. But, you know, given the softer backdrop, I wonder if that's influencing how whether your tenants or perhaps other owners are thinking about new capital investment opportunities that, you know, they're perhaps deciding whether or not to move forward with. Do you see any impact to any extent?

The next question comes from Ronald Camden from Morgan Stanley. Please go ahead. Your line is open.

Hey, Good morning. This is Jenny also Ron Thanks for taking my question first is regarding the Caesars Forum Convention Center call option you having September I'm, just curious about your latest thoughts on the deal and like if you would like to exercise the call options. Thank you.

Yes, Dan its David.

Thanks for the question as we've talked about with our other calls in the past.

We like the Optionality, we have around that if we think about that asset in particular it sits next to a couple of assets they already own. It sits right on the land that we already own. So it's a very attractive asset we obviously just talked about.

Got it. This is all helpful thoughts, appreciate it. Um, and then, you know, I just want to Circle back as well to the uh conversation around Vegas. A little bit of the softer backdrop which, you know, you're on. Record is, uh, you know, saying you feel this is more of a temporary phenomenon. Um, but you know, given the soccer backdrop, I I wonder if that's influencing how you whether your tenants or perhaps other owners are thinking about new capital investment opportunities uh that you know, uh they're they're perhaps deciding whether or not to move forward with you seeing any impacts um to any extent.

John Payne: Not at all. I think everyone is aligned on this who are big operators in Las Vegas. But, you know, this happens at times at the small blip. Again, you look forward-looking bookings of group, you look at the attendance that's expected in the sports facilities that are built and are being built. You look at the tailwinds that this city has. And we have not had one of our tenants talk about this short-term blip impacting long-term capital investment. In fact, just walk down the strip right now, you see a lot of capital investment happening at our assets and others. So it continues to be a city that we're very bullish on. It's just having a little bit of a slow summer.

The conviction, we have around Las Vegas, and so we'll assess that opportunity. It opens up bureaus in September and goes for a couple of years. So we've got a little bit of time to figure out what.

What we might do with that asset.

A nice also when we know there are about 33 acres of undeveloped or underdeveloped land around the Vegas strip that since like car until at least two Caesars I'm just curious about your plans to potentially monetize or develop with those assets maybe together with <unk>.

Not at all. I think everyone is aligned on this who are big operators in Las Vegas that that you know this this happens at at times, it's a it's a small blip again. You look forward, looking book ends of of group. You look at the attendance that's expected and and the sports facilities that are built and are being built. You look at the, uh, the Tailwinds that, uh, this city has. And and I we have not had 1 of our tenants talk about this, short-term blip, impacting long-term capital investment. In fact, just walk down the strip right now. You see a, a, a lot of capital investment happening at our assets and

Just curious about your latest thoughts on that thank you.

Edward Pitoniak: Yeah. You know, I would just add, Chris, that our Las Vegas operators benefit from longer-term booking visibility, thanks especially to the group segment that gives them greater confidence in investing capital. And I believe you cover Ryman. And, you know, I would point out the degree to which our Las Vegas operators, you know, attend to Ryman and enjoy that same forward booking visibility that really significantly de-risk the business. I don't want to say it eliminates risk, but it definitely de-risk it versus a business that's entirely dependent on FIT?

Yeah, I would say.

We think of that as a land bank. We have no current plans nor does seizures have any current plans as far as we know to develop that land, but it does definitely does have value as a land bank as we look ahead over the coming decades and as Vegas continues to.

Achieve what we think is an unrivaled position globally as hospitality entertainment and increasingly a sports destination.

Land very much an increase in value overtime.

Okay. That's all for me thank you.

And others. So continues to be a city that, uh, we're we're very bullish on is just having a little bit of a slow summer. Yeah. I, you know, I would just add Chris um, that our our Las Vegas operators benefit from longer term booking visibility. Thanks, especially to the group segment, uh, that gives them greater confidence in investing capital and I, I believe you, uh, cover Ryman and, you know, I would, I would point out that agree to which our Las Vegas operators, um, you know, akin to Ryman and enjoy that same forward booking visibility. That really significantly deep de de-risks the business. I don't want to say it eliminates risk, but it definitely dire risk. It versus a business that's entirely dependent on fit

Caitlin Burrows: No, that's an interesting point, Ed. I appreciate the thoughts and the time. Thank you.

The next question comes from Greg Mcginniss from Scotiabank. Please go ahead.

No, that's an interesting point. Ed. I uh, appreciate the thoughts and the time. Thank you.

Okay.

Operator: The next question comes from Ronald Campton from Morgan Stanley. Ronald, please go ahead. Your line is open.

Hey, just one question from me John just wanted to dig in a bit more on the expanded funnel that you talk about so besides gaming, which aliens right now what's happening.

Question comes from Ronald, Camp captain captain from Morin Stanley. Ronald, please go ahead. Your line is open.

Cheryl: Hey, good morning. This is Jenny on the run. Thanks for taking my question. First is regarding the Seedless Forum Convention Center co-option you have in September. I'm just curious about your latest thoughts on the deal and like if you would like to exercise the co-options. Thank you.

Potentially the most investment opportunity for <unk>.

Or which industries are you more excited about today.

And for both that industry in gaming what do you think actually gets new operators interested in pursuing sale leaseback funding. So we can see maybe some more acquisitions in the future.

Hey, good morning. This is Jenny on Veyron. Thanks for taking my question. First is regarding the Caesars Forum Convention Center call option you have in September. I'm just curious about your latest thoughts on the deal and if you would like to access the call options. Thank you.

David Kieske: Yeah, Jenny, David, thanks for the question. As we've talked about with our other calls in the past, we like the optionality we have around that. If we think about that asset in particular, it sits next to a couple of assets that we already own. It sits right on some land that we already own. So it's a very attractive asset. We obviously just talked about the conviction we have around Las Vegas. And so we'll assess that opportunity. It opens up here obviously in September and goes for a couple of years. So we got a little bit of time to figure out what we might do with that asset.

Yeah, Great Great question.

We've talked about many of the sectors that we've been spending time in.

The embarks indoor water Park ski resorts.

We are spending a lot of time in sports you've heard us talk about this on the professional level.

Hey Jen, it's David. Um, thanks for the question. As we've talked about in our other calls in the past, we like the optionality we have around that. If we think about that asset in particular, it sits next to a couple of assets that we already own. It sits right on some land that we already own, so it's a very attractive asset. We obviously just talked about the...

Reagent level, we've obviously made it a good size investment in the youth sports area. We're excited about about the growth there, it's a little bit in many of these sectors of how our capital can work.

The conviction, we have around Las Vegas and so we'll uh assess that opportunity it opens up here obviously in September and goes for a couple years. So we got a little bit of time to figure out what, uh, what we might do with that asset.

Cheryl: Nice. Also, we know there are about like 33 acres of undeveloped or underdeveloped land around the Vegas Strip that seems like currently leads to Caesars. I'm just curious about your plans to potentially like monetize or develop those assets, maybe together with Caesars. Just curious about your latest thoughts on that. Thank you.

How it can help accelerate the growth of a team of a resort and so I can't tell you exactly which ones are going to pop what I can tell you is we are spending a lot of time and many of these educating folks about vg about how we think about partnership how we think we could do one transaction.

Most importantly, how we can be a partner for longer term.

Oh nice. Uh, also we know we know there are about like 33 Acres of undeveloped or underdeveloped land around the Vega strip that seems like currently at least 2 Caesars. I'm just curious about your plans to potentially, like, monetize or develop those assets maybe together with Caesars. Just curious about your latest thoughts on that. Thank you.

Edward Pitoniak: Yeah, I would say we think of that as a land bank. We have no current plans, nor does Caesars have any current plan, as far as we know, to develop that land. But it definitely does have value as a land bank as we look ahead over the coming decades. And as Vegas continues to achieve what we think is an unrivaled position globally as a hospitality entertainment and increasingly a sports destination, that land very much should increase in value over time.

So those are the sectors. It still doesn't mean, we aren't continuing to look at gaming I always when we started talking about non gaming I always like to bring up that we continue to look at the casino business as well.

I'll just add that.

Hi.

Our our ability to do to do sale leasebacks and to generally get capital out the door.

It depends to a great degree on serving the needs of growth minded operators in particular operators, who want to grow their store counts, whether being gaming or in other experiential categories.

Yeah. Um, I would say we we think of that as a land bank, we have no current plans, uh, nor does seizures have any current plan as far as we know, uh, to develop that land. Uh, but it, it does definitely does have value as a land bank. Uh, as we look ahead over the coming decades, uh, and as Vegas continues to achieve what we think is an unrivaled position globally as a Hospitality entertainment and increasingly a sports destination.

That land very much an increase in value over time.

And we've come through a period here, where the ambition levels to grow store count have not been necessarily what they have in the past, but it's interesting to look particularly in gaming to see who is trading really well and I would say for example, our partners at Red Rock, who.

Cheryl: Okay, that's all for me. Thank you.

Okay. That's all for me. Thank you.

Operator: The next question comes from Greg McGuinness from Scotiabank. Greg, please go ahead.

Barry Jonas: Hey, just one question for me. John, I just want to dig in a bit more on the expanded funnel that you talk about. So besides gaming, which areas do you see right now as having maybe potentially the most investment opportunity for VG, or which industries are you more excited about today? And for both that industry and gaming, what do you think actually gets new operators interested in pursuing sale leaseback funding so we can see maybe some more acquisitions in the future?

Next question comes from Greg, McInnis from Scotia Bank Greg. Please go ahead.

Our our growing store count.

They did it obviously in Durango, Theres endure theyre doing at North Fork.

Helped by our capital and.

I think over time.

More and more operators will realize.

Really want to get.

Anything resembling a premium valuation you have to show the market, how youre going to grow.

Excited about today uh and for both that industry and gaming. What do you think actually gets new operators interested in pursuing sales leads back funding? So we can see maybe some more Acquisitions in the future.

John Payne: Yeah, Greg, great question. We've talked about many of the sectors that we've been spending time in: theme parks, indoor water parks, ski resorts. We are spending a lot of time in sports. You've heard us talk about this on the professional level, the collegiate level. We've obviously made a good size investment in the youth sports area. We're excited about the growth there. It's a little bit in many of these sectors of how our capital can work and how it can help accelerate the growth of a team or of a resort. And so I can't tell you exactly which ones are going to pop.

Yeah.

I appreciate that and I just wanted to go back to kind of use sports. There was recently an article in the New York Times talking about private equity getting more involved.

You're seeing opportunities to co invest there you're speaking with.

With some of these private equity funds about those investment opportunities.

Yes, Greg.

Youre reading good articles so absolutely there is.

Ways to partner, there's whereas I'm sure with time Theyre looking at things that we're looking at and we're competing but thats exactly.

The relationship building that we're doing in model not only in youth sports, but in many other sectors, where you are seeing other forms of financing and capital looking at the same sector.

John Payne: What I can tell you is we are spending a lot of time in many of these educating folks about VG, about how we think about partnership, how we think we could do one transaction, but most importantly, how we can be a partner for longer term. So those are the sectors. It still doesn't mean we aren't continuing to look at gaming. I always, when we start talking about non-gaming, I always like to bring up that we continue to look at the casino business as well.

Sectors that we are and sometimes we will partner and sometimes we'll go it alone.

But that's the kind of the philosophy.

How we are going to grow in those sectors.

Yeah, Greg great question. Um, we've talked about many of the sectors that we've been spending time in um, steam barks indoor water parks, ski resorts. Um, we are spending a lot of time in sports, you've heard us. Talk about this on the professional level, that gets Collegiate level. We've obviously made a a good size investment in the Youth Sports area. We're excited about about the growth. There. It's a little bit in many of these sectors of how our Capital can work, um, and how it can help accelerate the growth of a team or of a resort. And so, I can't tell you exactly which ones are going to pop. What I can tell you is we are spending a lot of time. In many of these educating folks about vichi about how we think about partnership how we think we could do 1 transaction, but most importantly, how we can be a partner for longer term. Um, so those are the sectors. It still doesn't mean we

Yeah.

Okay. Thank you.

The next question comes from Caitlin Burrows from Goldman Sachs. Please go ahead.

Edward Pitoniak: You know, Greg, I'll just add that our ability to do sale leasebacks and to generally get capital out the door depends to a great degree on serving the needs of growth-minded operators, in particular operators who want to grow their store counts, whether it be in gaming or in other expansive categories. And you know, we've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past. But it's interesting to look particularly in gaming to see who's trading really well. And we, I would cite for example, our partners at Redlock, who, you know, are growing store count. They did it obviously in Durango. They're doing it in North Fork, helped by other capital.

We are continuing to look at gaming. I always, when we start talking about non-gaming, I always like to bring up that we continue to look at the casino business as well.

You know, Greg, I'll just add that. Um, I I

Hi, This is Jeremy Q on for Caitlin.

Circling back on the topic earlier in the call.

Given supply in regional markets, which regional markets are you most interested in.

Sure.

Again, our APA.

<unk>.

We greatly appreciate your patience, if youre still there appear to be having some Wi Fi issues and we're now in Hastings fault Hayes. Thanks for your phone.

And just.

Repeat Jeremy's question, Jeremy asked which.

Regional markets might be attractive to us and I will now turn it back over to John.

We apologize if I'm repeating myself a little bit here.

The number one regional market, we'd love to be in Las Vegas.

Edward Pitoniak: And you know, I think over time, you know, more and more operators will realize, you know, if you really want to get, you know, anything resembling a premium valuation, you have to show the market how you're going to grow.

It continues to be strong there are world class assets.

Those markets like Reno that have some wonderful assets that were not in that market there are new markets.

our ability to do, uh, to do sale lease backs and to generally get Capital out the door. Um, depends to a great degree on, um, serving the needs of growth minded, operators in particular, uh operators who want to grow their store counts, whether it be engaging or in other experiential categories. And, you know, we we've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past. But it's interesting to look particularly in gaming to see who's trading really well, and we we, I would say, for example, our partners at Red Rock, who, you know, are are growing store, count, uh they did it obviously in Durango they're they're doing it in North Fork. Uh, it's helped by our capital and uh, you know, I think over time, you know more and more operators will realize, you know, if you really want to get

Virginia, I would say our other retail markets just to name three that would be interested in.

You know, anything resembling a premium valuation, you you have to show the market how you're going to grow.

Barry Jonas: I appreciate that. And I just wanted to go back to kind of youth sports. There was recently an article in the New York Times talking about private equity getting more involved. Are you seeing opportunities to co-invest there? Are you speaking with some of these private equity funds about those investment opportunities?

A part of I'm sure. There's another four to five that you had to go through but you get the idea.

Great. Thanks.

And then just one quick follow up.

So on the news that I'm Lucky strike kind of EG recently did reverse like sales leaseback.

I appreciate that. And I just want to go back to kind of use Sports. There was recently an article in the New York Times talking about private Equity getting more involved. Um, are you seeing opportunities to co-invest there are you speaking with with uh, with some of these private Equity Funds, uh, about those investment opportunities?

John Payne: Yeah, Greg, you're reading good articles. So no, absolutely. There's ways to partner. There's ways, I'm sure, at times they're looking at things that we're looking at and we're competing. But that's exactly the relationship building that we are doing in not only in youth sports, but in many other sectors where you are seeing other forms of financing and capital looking at the same sectors that we are. And sometimes we will partner, and sometimes we'll go it alone. But that's the kind of the philosophy of how we are going to grow in those sectors.

That impact each year at all and are there any concerns on any other tenants could do something similar.

Hey, Jamie it's David.

Does that answer your question directly does that impact be Gee, we've got a great relationship with Tom and Bob.

Lucky strike and you may have seen this morning, they announced some acquisitions or some outdoor water parks as well so they continue to grow their business.

And how they ultimately capitalize their business over the long term.

Is up to them, but I think there could be more opportunities to grow with them in the future and there are an example of what I just talked about.

Operator that is growing their store count so it could potentially be more to come with them overtime.

Yeah, Greg. Uh, you're, you're, you're reading good articles. Uh, so, you know, absolutely. There's there's, there's ways to partner, there's ways. I'm sure at times they're looking at things that we're looking at, and we're competing, but that's exactly. Um, the relationship building that we are doing in. Not not only in Youth Sports but in many other sectors where you are seeing other forms of financing and capital looking at the same uh, sectors that we are and sometimes we will partner and sometimes we'll go It Alone. Um, but that that's the kind of the philosophy and of of how we are going to grow in those sectors.

Barry Jonas: Okay, thank you.

Okay, thank you.

Operator: The next question comes from Caitlin Burrows from Goldman Sachs. Caitlin, please go ahead.

The next question comes from Ravi <unk> from Mizuho. Please go ahead.

The next question comes from Caitlin Burris from Golden Sachs Caitlin. Please go ahead.

Caitlin Burrows: Hi, this is Jeremy Kuehl on for Caitlin. Circling back on a topic earlier in the call, given supply in regional markets, which regional markets are you most interested in? Thanks.

Hi, there I hope you guys are doing well I wanted to ask about Red rock deal has any capital been drawn down to that deal. Thus far maybe can you describe broadly the opportunity going forward you mentioned interest in the locals market in Las Vegas, I think Red rock owns a little less than 500 acres.

Hi, this is Jeremy Q on for Caitlyn. Um, circling back on a topic earlier in the call, given supply and regional markets, which regional markets are you most interested in next?

And that area is that something that you'd be interested in partnering with.

Operator: Apologies for the continued interruption. Please stand by. And confirming we're now rejoined by the speaker team. Please continue when you're ready.

And the relationship you want to expand upon.

Policies for the continued interruption. Please stand by.

Yeah, Rob It David I mean, we put of just under $80 million on the initial drop when we announce that.

Not that loan development and just the way the.

The funding cadence works, there's a little bit of pause from our capital.

The draw schedule pick it back up later this year.

And if you listen to the Red rocks call last quarter, not just two days ago.

Steve and Frank and Lorenzo talked about the long term relationships they've had with BG.

Nothing.

Off the table, there's no imminent opportunities to do sale leaseback, but as we've talked about on this call. When you do good things with your partners opportunities may come in the future and you should listen to their most recent call from two days ago.

Talked about the growing their store count Frank and Lorenzo speaking, specifically to their depth development capabilities and how good they are.

Expanding their portfolios. So we are thrilled to partner with them up.

Madera, California, and this will be a home run opportunity for everybody involved.

Now, rejoined by the speaker team, please continue when you are ready.

Edward Pitoniak: Again, our apologies, folks, and we greatly appreciate your patience if you're still there. We appear to be having some Wi-Fi issues, and we're now on Hayes's phone. Hayes, thanks for your phone. And just to repeat Jeremy's question, Jeremy asked which regional markets might be attractive to us, and I will now turn it back over to John.

Okay.

Got it thank you.

Our final question today comes from Jamie Feldman from Wells Fargo. Jamie. Please go ahead.

Great. Thanks for taking the follow up from our team.

So I just wanted to go back to the bonus depreciation discussion.

John Payne: Yeah, we apologize. So if I'm repeating myself a little bit here, I think the number one regional market we'd love to be in is in Las Vegas. It continues to be strong. There are world-class assets. There's markets like Reno that have some wonderful assets that we're not in that market. There are new markets like Virginia, I would say, or other regional markets, just to name three that we'd be interested in being a part of. I'm sure there's another four or five that could go through, but you get the idea.

Again, our apologies folks and we, we greatly appreciate your patience. If you're still there. Uh, we appear to be having some Wi-Fi issues and we're now on H's phone. Hey, thanks for your phone. Um, and just, uh, repeat Jeremy's question Jeremy asked, which, uh, Regional markets might be attractive to us, and I will now turn it back over to John

No it could be a pretty meaningful wave of spending here.

Lots of projects that probably do have a meaningful amount of tenant capex, which based on your comments before it sounds like a formula for you.

How much time are you thinking about real shifts in in your investment.

Attention based on what we might be seeing coming down the pipeline in terms of just very large scale capex projects that need.

That need capital.

Yeah, I think Jamie that.

Because obviously this bill gets passed.

Yeah, we apologize. So if I'm repeating myself a little bit here, um, I I think the number 1 regional market, we'd love to be in is in Las Vegas. Um, it continues to be strong, there are world class assets. Um, there's markets like Renault that have some wonderful assets that we're not in that market, your new markets uh like Virginia I would say or other Regional markets just to name uh 3 that would be interested in being a part of. I'm sure there's another 4 or 5 decades ago through but you get the idea.

Caitlin Burrows: Great. Thanks. And then just one quick follow-up. Saw on the news that Lucky Strike tenant VG recently did a reverse like sales leaseback. Does that impact VG at all? And are there any concerns that any other tenants could do something similar? Thanks.

And with it this bonus depreciation component.

I don't think everybody has a whole bunch of plans kind of sitting on the shelf waiting for this so I do think what you are likely to see over the next year is a lot of planning.

Great, thanks. Um, and I just want a quick follow-up, uh, saw on the news that um, Lucky Strike, 10 Avicii recently, did a reverse like sales lease back? Does that impact DT at all? And are there any concerns that any other tenants could do something similar? Thanks.

David Kieske: Yeah, Jeremy, David, does that, I mean, to answer your question directly, does that impact VG? We've got a great relationship with Tom and Bobby over at Lucky Strike, and you may have seen this morning, they have some acquisitions of some outdoor water parks as well. So they continue to grow their business and how they ultimately capitalize their business over the long term is up to them. But I think there could be more opportunities to grow with them in the future. They're an example of what Ed just talked about, the operator that's growing their store count. So there could potentially be more to come with them over time.

Based upon the benefits now of this bonus depreciation and with those plans getting executed.

The next year or two and three years.

That capital being spent over that time, so I don't think youre going to see an immediate spending of capital, but it has certainly created an environment where over the next few years. It should unleash it very strong wave of capital investment hopefully with some of our money, but in any case capital that will increase the value of our building.

Hey Jeremy. It's David. Um, does that— I mean, to answer your question directly— does not impact VT. We've got a great relationship with Tom and Bobby over at Lucky Strike. And you may have seen this morning that they have some acquisitions or some outdoor water parks as well, so they continue to grow their business.

Um, and how they ultimately capitalize their business over the long term.

Um is uh up to them, but I think there could be more opportunities to grow with them in the future. And they're they're an example of what I just talked about the operator that's growing their store count so it could potentially be more to come with them over time.

But I guess my question is more would you consider shift.

Operator: The next question comes from Ravi Vajja from Bizzy Host. Ravi, please go ahead.

Drifting away from your traditional focus gaming.

Our experiential if there are major projects that look interesting.

The next question comes from bravy you from bisou. Probably please go ahead.

Barry Jonas: Hi there. I hope you guys are doing well. I wanted to ask about the Red Rock deal. Has any capital been drawn down for that deal thus far? Maybe can you describe broadly the opportunities that are going forward? You mentioned interest in the locals market in Las Vegas. I think Red Rock owns a little less than 500 acres in that area. Is that something that you'd be interested in partnering with and in a relationship you want to expand upon?

Okay.

Not necessarily no not necessarily but it was outside experiential I would say right now it is out of scope for our investing I don't know, if you're sort of referring to data centers or something like that but right. Now we continue to believe very much in the secular power and secular sustainability of experiential isn't investment cash.

Laurie.

Hi there. Uh hope you guys are doing well. Uh, I wanted to ask about the Red Rock deal, has any Capital been drawn down for that deal? Thus far maybe we can you describe, broadly, the opportunity that I'm going forward and you mentioned interest in the locals market in Las Vegas. I think Red Rock owns a little less than 500 acres in that area. Is that something that you'd be interested in partnering with and in a relationship, you want to expand upon

David Kieske: Yeah, Ravi, David, I mean, we put out about just under 80 million when the initial drop when we announced that loan development. And just the way the funding cadence works, there's a little bit of pause from our capital, and then the draw schedule will pick it back up later this year. And if you listen to Red Rock's call last quarter, not just two days ago, you know, Steve and Frank Lorenzo talked about, you know, the long-term relationship they've had with VG and, you know, how nothing's, you know, off the table. There's no imminent opportunities to do sale leasebacks. But as we talked about on this call, when you do good things with your partners, you know, opportunities may come in the future. And you should listen to their most recent call from two days ago, and Ed just talked about growing their store count.

Okay, and then going back to your initial comments about the dividend and.

As you think about the earnings and cash flow profile.

Yeah, Robbie, it's David. I mean we put out just under 80 million funding initial drop when we announced that. Um,

Not that loan development, and just the way the

I know Tony asked before about debt investments versus real estate equity investments.

I think you broke up a little bit on the answer. So do you have a sense of when you think about dividend composition, how much of the cash flow you'd want from <unk>.

Net investments versus.

Fee simple equity investments.

Yes, I Wouldnt say, we necessarily break it decompose the dividend in that way what we certainly look look at is how we are going to grow <unk> per share over time and the degree to which we can use both retained and regain capital to continue to.

David Kieske: Frank and Lorenzo speak specifically to their development capabilities and how good they are at expanding their portfolios. And so we're thrilled to partner with them out in Madera, California, and this will be a home run opportunity for everybody involved.

Grow our <unk> per share and thus grow our dividend, but I wouldn't say, we necessarily decompose.

The <unk> in such a way that.

<unk> drives dividend policy.

The funding Cadence works is a little bit of pause from our Capital, uh, and then the draw schedule, pick it back up later this year. Um, and if you listen to Red Rock's call last quarter, not just uh, 2 days ago, you know, Steve and Frank and Lorenzo talked about, you know, the long-term relationships they've had with each and, you know, how nothing's, uh, you know, off the table. There's no imminent opportunities to do so at least effect. But as we talked about on this call, when you do good things with your partners, you know, opportunities may come in the future and you should listen to their most recent call from 2 days ago. And, and, and just talked about the growing their store, count, blink, Franklin, Lorenzo, you know, speak specifically to their death development capabilities and how good they are at expanding their portfolios. And so, we're thrilled to partner with them out in Madera. California. And this will be a be a home run opportunity for uh, for everybody involved.

This concludes today's Q&A session. So I'll hand, the call back to Ed for some closing comments.

Operator: Got it. Thank you. Our final question today comes from Jamie Feldman from Wells Fargo. Jamie, please go ahead.

Got it. Thank you.

Yeah, I just want again apologize to everybody for the technical difficulties today I appreciate your patience and very much look forward to talking to you next time. When we are very determined we will not have these issues.

A final question, today comes from Jamie Feldman from Wells, Fargo. Jamie, please go ahead.

Anthony Paolone: Great. Thanks for taking the follow-up from our team. So I just want to go back to the bonus depreciation discussion. You know, it could be a pretty meaningful wave of spending here. Lots of projects that probably do have a meaningful amount of tenant cap back, which, you know, based on your comments before, sounds like a formula for you. You know, how much time are you thinking about, you know, real shifts in in your investment attention based on what we might be seeing coming down the pipeline in terms of just very large-scale CapEx projects that need capital?

Thank you.

Okay.

This concludes today's call. Thank you very much for your attendance you may now disconnect your lines.

Great. Uh thanks for taking the follow-up from our team. Um, so I just want to go back to the bonus depreciation discussion. Uh, you know, it could be a pretty meaningful wave of spending here. Lots of, uh, projects that probably do have a meaningful amount of tenant capex, which, you know, based on your comments before it sounds like a formula for you.

You know how much time you’re thinking about, you know, real shifts in your investment attention based on what we might be seeing coming down the pipeline, in terms of just very large scale capex projects that need.

That need capital.

Edward Pitoniak: Yeah, I think, Jamie, that it's because obviously this bill just passed, and with it, this bonus depreciation component, I don't think everybody had a whole bunch of plans kind of sitting on the shelf waiting for this. So I do think what you are likely to see over the next year is a lot of planning based upon the benefits now of this bonus depreciation and with those plans getting executed in, you know, the next year, two, and three years, and that capital being spent over that time. So I don't think you're going to see an immediate spending of capital, but it has certainly created an environment where over the next few years, it should unleash a very strong wave of capital investment, hopefully with some of our money, but in any case, capital that will increase the value of our building.

This year is a lot of planning based upon the benefits of this bonus depreciation. With those plans getting executed over the next year, 2 years, and 3 years, the capital will be spent over that time. So I don't think you're going to see an immediate spending of capital, but it has certainly created an environment where, over the next few years, it should unleash a very strong wave of capital investment. Hopefully, some of that will come from our money, but in any case, capital that will increase the value of our buildings.

Anthony Paolone: But I guess my question is more, you know, would you consider shifting away from your traditional focus, gaming, experiential, if there are major projects that look interesting?

but I guess I guess my question is more, you know, would you consider

Shifting away from your traditional Focus gaming.

Uh, experiential. If there are major projects that look interesting,

Edward Pitoniak: Not necessarily. No, not necessarily. If it was outside experiential, I would say right now it is out of scope for our investing. I don't know if you're sort of referring to data centers or something like that. But right now, we continue to believe very much in the secular power and secular sustainability of experiential as an investment category.

Uh, not necessarily know, not necessarily if it was outside experiential. I would say right now it is out of scope for our investing. I, I don't know if you're sort of referring to data centers or something like that, but right now we continue to believe very much in the secular power and secular sustainability of experiential as an investment category.

Anthony Paolone: Okay. And then going back to your initial comments about the dividend and, you know, as you think about the earnings and cash flow profile, I know Tony asked before about, you know, debt investments versus real estate equity investments. I think you broke up a little bit on the answer. So do you have a sense of, you know, when you think about dividend composition, how much of the cash flow you'd want from debt investments versus, you know, fee simple equity investments?

Okay. And then, going back to your initial comments about the dividend and, you know, as you think about the earnings and cash flow profile.

I know Tony asked before about, you know, debt Investments versus Real Estate Equity, Investments.

Um, I think that you broke up a little bit on the answer. So do you have a sense of, you know, when you think about dividend composition, how much of the cash flow you'd want from that investment versus, you know, fee simple equity investment?

Edward Pitoniak: Yeah, I wouldn't say we necessarily break it, decompose the dividend in that way. What we certainly look at is how we are going to grow AFFO per share over time and the degree to which we can use both retained and regained capital to continue to grow our AFFO per share and thus grow our dividend. But I wouldn't say we necessarily decompose the AFFO in such a way that it then derives dividend policy.

Yeah, I wouldn't say we necessarily break it uh decompose uh the dividend in that way. Uh, what we certainly look look at is how we are going to grow afo per share over time and um, the degree to, which we can use both retained and regained Capital to continue to grow our afo per share and thus grow our dividend. But I I wouldn't say we didn't necessarily decompose uh the afo in such a way that it then derives dividend policy.

Operator: This concludes today's Q&A session. So I'll hand the call back to Ed for some closing comments.

Edward Pitoniak: Yeah, I just want to again apologize to everybody for the technical difficulties today. Appreciate your patience and very much look forward to talking to you next time when we are very determined we will not have these issues. Thank you.

This concludes today's Q&A session, so I'll hand the call back to Ed for some closing comments.

Yeah I just want to again apologize to everybody for the technical difficulties today. Appreciate your patience and very much look forward to talking to you. Next time when we are very determined, we will not have these issues.

Operator: This concludes today's call. Thank you very much for your attendance. You may now disconnect your.

Thank you.

This concludes today's call, thank you very much for your attendance. Give me now, disconnect your lines.