Daniel Guglielmo: Okay, great. Thanks. And the next one is a little bit more like modeling focus. So we’ve talked about the dry capital powder you all have. And just thinking through the cash outlays for the next few years, should we be putting that capital to work as like potential development projects, acquisitions, a bit of both? We don’t have insight into the so-called inflation fighter deals. So just want to give you guys credit there. Yeah, any insight there would be helpful?
Peter Carlino: I’m not sure what we can say out that. Maybe turn that over to Steve for a moment. Look, it’s all the above. We expect to be doing all those things, large, small development, property acquisitions, everything. And I think everything in that list is on our plate right now.
Steven Ladany: Yeah, I don’t know, if I can give you any better insight. Obviously, we — the transactions, as Peter’s opening remarks commented on, these are complex transactions that do take time. And if I — even if I told you everything that I thought in my head that I sit here today and I think could it possibly happen, I know for a fact some of that’s never going to happen and other things that I don’t know about today are going to close. So it’s very difficult for me to give you precise advice on how to best forecast us going forward.
Daniel Guglielmo: Okay, thanks. I appreciate it.
Operator: Thank you. Our next question is coming from the line of Smedes Rose with Citi. Please proceed with your question.
Smedes Rose: Hi, thanks. I wanted to go back to something you talked a little bit about on your last call, where working with kind of generational owners, who are looking to efficiently pass along wealth and take advantage of tax structures, et cetera. And I’m just wondering if those conversations are, kind of live and well and have they changed at all with the upcoming election that Matt mentioned at the beginning of the call, some of those tax rules will be supposedly expire next year depending on who is President? I’m just wondering if there’s any more urgency or if people are kind of waiting to see how — who comes in?
Steven Ladany: Yeah, in my discussions and experiences, I think that the urgency that we saw last go round has not — has not kind of picked up again at this point. So there were — there were some discussions, which definitively were significantly more interesting, heading into Biden’s election and focus around potential changes that could happen there. I think this time, I haven’t heard the same dialogue or rhetoric coming from the counterparties. I also think like in many cases, these aren’t folks that are going to be impacted by a small change in the inheritance tax threshold or something of that nature. These people have significantly more wealth that’s already been planned for and things like that. So I think in many cases, it’s a matter of understanding, from the state planning perspective, where they’re at, where things lie.
And then honestly, it also matters what their health is like, because let’s be honest, a step-up in basis is a different and more interesting concept, if you think it’s something that might come to fruition in the near-term than something that’s further off. So these are all ongoing discussions. There’s no — there’s no specific point in time, that’s caused people to jump. But there — it’s constant front of mind for people and it’s an avenue that I think we can continue to pursue going forward.
Matthew Demchyk: And Smedes, Tioga is an example of something that came from that kind of bucket, if you want to think about it that way. And as Peter mentioned, it’s a situation where someone wanted to work with us specifically and we got risk-adjusted returns for our shareholders that were — we’d argue better than market based on the structuring and all the other things we bring.
Smedes Rose: Okay. Thank you. And then I just wanted to ask you, you talked a little bit about Bally sort of broadly, but I mean, are you — would you be interested in being kind of a solution to their problem? I mean, they’ve talked about needing financing to complete their Chicago, the permanent casino there. I mean is that something that you would erode you’d be interested in going down or maybe you can’t say, but I’m just curious your thoughts?
Matthew Demchyk: I’ve been looking for an opportunity to get Brandon more involved, because he is sitting here silently. So Brandon, we’re going to dump that, we all have answers.
Brandon Moore: I look perfectly comfortable here leading into that question. Look, I think, the Chicago project and Chicago market in generally is a complicated analysis. And I think we are — we are in dialogue with Bally’s and all the projects and things are working on. And if Chicago is something that turns out to be in our estimation, good for our shareholders and a good opportunity based on the build, based on the market, I wouldn’t rule it out as something we would consider investing in. I don’t think we have enough information today and I don’t think we’re far enough along in that to say that we definitively would or we would not. But I can tell you that we are looking at it. That’s about all we could say on Chicago.
Smedes Rose: Okay. Fair enough. Thank you.
Brandon Moore: Go ahead. Okay.
Smedes Rose: Okay. I appreciate it.
Operator: Thank you. Our next question is coming from the line of Jay Kornreich with Wedbush Securities. Please proceed with your question.
Jay Kornreich: Hey, good morning. Can you highlight the timeline you see for funding additional ROI opportunities at properties within the current portfolio, such as the Amended PENN Lease and the Casino Queen Marquette?
Peter Carlino: Yeah, do you want to take that, Brandon?
Brandon Moore: I can. I don’t think there’s really been any change in our anticipated timeline of the funding of those projects. We still anticipate that PENN will probably fund their projects off their own balance sheet to start those projects. And at some point in that process, they’ll look to us for funding maybe closer to the end of that process. That being said, with the way the markets have been, depending on where they are, they could — they could knock on our door and ask for funding sooner. But at this point in time, we’re not expecting any change in that. And I think Marquette is a similar timeline. I’m not sure where they stand in permitting and the things they’re working on there. It’s a much smaller cash outlay, but I think we’d expect that probably to begin in the latter half of this year.
Matthew Demchyk: There’s a number of those opportunities that we’re looking forward to. And in one sense, we take some comfort in knowing that they’re out there, they’re likely to occur and we need something on a dance card down the road and we expect lots of opportunity to unfold in near time.
Jay Kornreich: Okay. I appreciate that. And then just as a follow-up, following the development funding for the Hard Rock Casino in Rockford, are you seeing additional opportunities for new casino developments around the country? And if so kind of what is your level of interest for being involved in those more speculative but higher-interest construction financing opportunities?
Steven Ladany: Well, our interest is very high, as you might guess. Look, we’re skilled casino developers as well. We bring that skill to the table, understanding markets, understanding costs. We’ve built a ton of casinos around the country. I’ve got the same team right here at GLPI. So we are well-equipped and you can assume that if it’s — I used to say on the PENN calls, when I was over there, if — when questioned about are you looking at this, are you looking at that? My answer then and now is, if it’s alive and breathing, you can imagine we’re looking at it.
Jay Kornreich: Okay. Appreciate it. Thank you.
Operator: Thank you. Our next question is coming from the line of Haendel St. Juste with Mizuho Securities. Please proceed with your question.
Ravi Vaidya: Hi. Good morning. This is Ravi Vaidya on the line for Haendel. I hope you guys are doing well. You have some percentage rents coming up here for the PENN Pinnacle Lease and the Boyd Lease. Can you give some color as to how those assets have been performing?
Peter Carlino: Des?
Desiree Burke: Yes. I think in my opening remarks, I mentioned that the PENN Pinnacle and Boyd Master Leases rent resets that were occurring this year we’re still expecting $4 million to $5 million of an increase. Additionally, we’re expecting to get the contingent escalation on those leases as well and that would result in $6.5 million of escalation.
Ravi Vaidya: Got it. And just one more here. But we’ve been tracking — tracking foot traffic data and other metrics like that. And noticed that there’s been — just broadly across gaming, there’s been a bit of a decline in footfalls. What have you been noticing across your portfolio and have you seen anything impact rent coverages moving on?
Desiree Burke: No, I mean in our earnings release, we do provide the latest rent coverage, that we’ve been given by our tenants, Pages 12 and 13, but they are still extremely strong. Our lowest rent coverage is at 1.98 and our highest on the Master Lease side is at 2.71. So some have come down, some have actually gone up. The 1.98 on the PENN Lease was 1.95 last quarter. But you know, even the ones that are going down, it’s small, a few basis points, not anything large at this point. But as I stated, they — those numbers are as of December 31st. We are on a quarter lag to receiving the rent coverage and certain properties, haven’t reported yet. So they are as of December 31st. So the first quarter, we do understand there were some weather issues at properties, but we don’t expect significant changes in our coverage.
Ravi Vaidya: But have you seen foot traffic down at your properties?
Desiree Burke: Yeah, we don’t have any properties to see foot traffic, so we have to rely on the same things that you all do, which is when our tenants report.
Peter Carlino: Yeah, we get no non-public information, none, zero. So we get it as you get it, frankly.
Ravi Vaidya: Understood. Thank you.
Peter Carlino: Thank you.
Operator: Thank you. Our next question is coming from the line of Chad Beynon with Macquarie. Please proceed with your question.
