Peter Carlino: Probably, Robin, unrelated. Look, I don’t like auctions. I have to speak for myself around the table, whether it’s art, whether it’s cars, whether it’s anything, I’d like to say the winner loses. And I think often that is the case. So to say I’m high bidder in — for any one of those things, including — I wouldn’t take as a point of pride that we paid the most for any property of any type. So look, we, I think, do business around our — Matt has the best word for it. Our bespoke offerings, the ability to provide something that our clients want that maybe somebody else can’t provide. It’s a package of things, and I think we do that extraordinarily well. But just to straight up, we’re going to bid the highest price for almost anything that’s just doesn’t — in our DNA, not saying we wouldn’t do it under some circumstances, but it’s certainly not our goal, first, second or third.
It just isn’t. With respect to other properties, no, I don’t think we’ve lost a bid or anything like that or any other group of assets. Look, we’ve looked at golf courses. We looked at every possible entertainment on the planet. And we’ve been doing it year in, year out. just haven’t seen anything that gives us the kind of secure comfort that we get from the stuff that we present to you today. And if we run out of that stuff, I don’t know, maybe we’ll Well, we’ll deal with that if we ever get there. But so far, that hasn’t happened. In fact, we’re very encouraged by what we see as our pipeline and portfolio of opportunities right now. So we’re going to stick close to our knitting. We’ll look at other stuff. We do have almost every week. But we haven’t seen it.
Is that fair, gang?
Matthew Demchyk: I mean, when we look outside of gaming, the goal is not to focus on just experiential. It’s to find durable cash flows that have some strategic tie-in to what we do currently. And if you look at the continuum of consumer discretionary from one extreme staple to other extreme, totally discretionary, regional gaming tends to be about as stable as it gets. I mean, you can look at the resilience of the cash flows of our underlying company to start with overall. And it’s really hard to find that on a risk-adjusted basis outside of gaming. I think that’s the point you keep hearing from us. We know what it looks like. We do it in our day job all the time. And to the extent we see something that adds to that, we’re happy to do it, but it’s a tall task.
At least it has been, I mean the opportunity for alpha within gaming. When you think about where cap rates are and how durable cash flows is, there’s still a fundamental mispricing in the market. It has been institutionalizing, but it’s not there yet. And at some point, maybe it will be — maybe this math is the opposite, and maybe you do see us do more to Peter’s point. But we’re still somewhere mid-innings in that curve.
Peter Carlino: Yes. Let me add this, Robin. We’re not opposed to doing something outside of gaming, by no means at all. And maybe we’ll know it when we see it. But if we get on a call like this, and we’ve done something else. I want to be able to have the greatest confidence on the planet that the story we’re telling you is a terrific one. And we just haven’t seen that opportunity.
Operator: Next question comes from the line of Ronald Kamdem with Morgan Stanley. Please go ahead.
Unidentified Analyst: You have Janet [Indiscernible] for Ron. Just two quick ones for me. I think the first is, if we just dig in on the pipeline right now, like in this even higher rate environment, do you think that’s even lower your conversations in the last quarter? That said, if the deal conversations are ongoing right now, is it still on the same pace? Or I will party — rather wait a little bit longer to continue? Like, any color on that would be helpful.
Peter Carlino: Steve, do you want to take that, or Matt?
Steven Ladany: Is the question if conversations have slowed? I’m sorry, I wasn’t following.
Unidentified Analyst: Like even slower in the last quarter? Or do you think like all the conversations you have ongoing right now is still on the same pace or? Yes.
Steven Ladany: No, I think — look, I think the markets obviously cause people to kind of react, I think, at a little more measured pace. So I think there’s probably some truth to the fact that things are moving a little slower and people are constantly reevaluating where things sit and where things stand. So I don’t disagree with that. I think that’s accurate.
Unidentified Analyst: Nice. The second one is a follow-up question about the refinancing. I’m seeing like the current interest rate on that $400 million is only at $3.35 million. Given this higher for longer environment, like think about 2024, like from a modeling perspective, like how should I think about the potential, let’s say, interest rate headwinds on AFFO in 2024 or even 2025? Any color on that will be helpful.
Desiree Burke: I mean if we were to refinance it with the 10-year, we’re talking mid-7s. So you’re right, obviously, our cost of borrowing, like everyone else, is going up.
Unidentified Analyst: Yes. If I think about. Yes, right…
Peter Carlino: Yes, maybe the market will give our equity, the price it deserves. That will raise a lot of cash that way. Look, I said earlier today that we — this is a tough environment for everybody in the borrowing world. We look at equity, we look at bank debt, we look at bond debt. And it’s an everyday process. I mean, literally, people wandering around the halls among this group here, saying, where is the window. We’re not going to hold out for the unimagined — we’re going to be opportunistic as we see best, but we’re also going to be practical. So we’re going to pick that point along the way that seems to make the most sense for us. But really thinking about where it is. We want the lowest prices. However, we get there. And only time will tell just where that’s going to go. But look, we keep an eye on that.
