Can we add value, long-term value for shareholders. I really don’t care what it is, and you’ve heard me say before, and it’s actually kind of serious that — I don’t want a shack on the beach with no windows and doors. If the revenue from that — because I don’t care much about asset quality, I’ve being a bit facetious. What we care about is income quality. How secure is that income now and 30, 40, 50 years from now. That’s what matters. And that’s the only thing that drives us no matter where it is or what it is.
Chad Beynon: And then as we think about the, I guess, the purchase price size of opportunities, obviously, Rockford circa $100 million you’ve had others in the last year or 2 that were kind of in the $500 million to $1 billion range with Tiverton and Cordish. As we think over the next couple of years, should we expect more of kind of these bite-sized opportunities, the circa $100 million to $500 million? Or do you still think there’s opportunities out there that are north of that?
Matthew Demchyk: It’s tough to see out 2, 3 years, but in the relatively short term, we certainly see a robust opportunity set in that $100 million to $500 million range. After that, I mean, this environment has to season before we see kind of larger mega deals. That said, that can change.
Operator: Next question comes from the line of David Katz with Jefferies. Please go ahead.
David Katz: So I wanted to just talk more about the Trop side, which — and I think one of the earlier questions may have touched on whether this $175 million, like, what the ceiling on where that could go is, I assume that the — once the property does shut right the rent is suspended? Or do they continue paying rent?
Peter Carlino: It goes on forever. It goes on forever.
David Katz: Rent is forever. Got it. But in terms of where the boundary is as to what you would consider participating in, is there a boundary? And presumably, the outcome of whatever you do participate in is going to be rent based, not operating base at the end of the day, correct?
Peter Carlino: Absolutely. Look, there’s no — almost it relates to the last question. There’s no real limit. I mean we do a $5 billion deal, but is money available? Can we do it with a proper spread?
Steven Ladany: Project going to get a [indiscernible] long term?
Peter Carlino: Yes. It all gets down to the same issue. So we haven’t seen yet where this is going to go. The script is not written in, at the Trop site. We have an interest in, obviously, the long-term plan there to preserve the value of what we’ve got. We could do something more, but we haven’t seen that yet. We’re well ahead of where that is. So we’ll have to see. Anything is possible, but the same criteria applies.
Operator: Next question comes from the line of Smedes Rose with Citi. Please go ahead.
Smedes Rose: I guess, I was wondering, you talked about this on the last quarter call a little bit of — is there any sort of update from PENN in terms of their plans and your — would you still expect to put capital towards those projects next year that they’ve talked about? I think you said you bought some land maybe last quarter in Aurora. I’m just wondering if there’s anything on that, that you can speak to?
Peter Carlino: Nothing certain. I can say, because I’m in touch with some of the architecture or the architects doing work for these projects, that they are going full speed ahead with design and so forth. So precise timing, we don’t have really don’t. Maybe you need to get on the phone, give them a call, just refine and say what’s your timing. But we know that they’re committed to those projects. And — but timing, I don’t have, anybody around the table have a better sense?
Brandon Moore: I don’t have a better sense of timing as for our fund raws. I mean, I think PENN has said that those projects are moving forward, and we don’t have any reason to believe that they’re not. So I think it’s just a matter of where they decide or when they decide to draw our funds. And I think you can look at the market and their borrowing rates. And we’re trying to stay in close contact with them so that if there’s a change in the timing of the need over those funds that we would be — we would have advanced notice of that, but I’m not aware of anything specific that’s changed their timing at the present time.
Peter Carlino: But we’re looking forward to it. So — and expecting it somewhere down the road.
Operator: Next question comes from the line of Connor Siversky with Wells Fargo. Please go ahead.
Connor Siversky: First, I want to start on labor. I mean just across labor-intensive businesses in the U.S., we’ve seen a ton of strike activity over the last year or so, and I’m wondering where this sits on the spectrum of risk for GLPI, and then whether or not higher labor expenses are making their way into your underwriting framework as you address future opportunities?
Peter Carlino: Well, look, one advantage of having 61 properties now in our portfolio that we can have — I used to say that, and I still say our revenues are largely bulletproof. And I think they are. And then they used to say we’re taking an atomic attack to really threaten our business. We actually had one, called COVID, the equivalent of a neutron bomb that shut down properties coast to coast. But let’s hope that, that’s a onetime aberration that we’ll never see in our lifetime again. And again, then we look to the distribution of our income across the portfolio. And again, master lease means a lot in that case. So I don’t think there’s anything on the horizon that we find threatening anybody around the table have a different view.
