Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What is the realistic investable market size for properties still owned by gaming operators, and how much are you willing to give up on initial cash yields for potentially better growth from rent escalators?
A: (Peter M. Carlino, CEO) - There are significant opportunities with partners and others constantly on the drawing board. (Matthew R. Demchyk, CIO) - The focus is on structuring deals to make assets work, using tools like Master Leases to generate high-quality cash flow.
Q: Given the recent downgrade of Bally's credit rating, how have conversations around potential investment opportunities changed due to the tighter financing environment?
A: (Steven L. Ladany, Chief Development Officer) - Higher debt costs have made potential sellers more realistic about pricing expectations, leading to a gradual increase in expected cap rates.
Q: Regarding the pipeline commentary about doing $1.1 billion last year, what is the expected mix of traditional acquisitions versus funding commitments going forward?
A: (Peter M. Carlino, CEO) - The mix of deals is unpredictable, but the company is actively working on both modest and larger transactions.
Q: Can you discuss any moving pieces in the guidance, such as NOI, interest costs, and the impact of the treasury investment?
A: (Desiree A. Burke, CFO) - The guidance includes estimates using the SOFR curve and considers preannounced transactions like Rockford. The treasury bill investment is aligned closely with current cash deposit rates.
Q: How does the competitive environment for deals look currently? Are there new players, and how does this affect your strategy?
A: (Peter M. Carlino, CEO) - The company doesn't feel it competes directly with others as it focuses on bespoke transactions that provide unique solutions to partners, rather than just competing on price.
Q: With the upcoming resets in the PENN Pinnacle and Boyd Master Leases, can you provide an update on how these assets have been performing?
A: (Desiree A. Burke, CFO) - The resets are expected to increase percentage rent adjustments by $4 million to $5 million annually, with additional escalations anticipated, reflecting strong performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.