Unidentified Analyst: That makes so much sense.
Peter Carlino: And by the way, your guess is probably as good as ours on where we might end up. So…
Operator: Next question comes from the line of R.J. Milligan with Raymond James. Please go ahead.
R.J. Milligan: Just two quick ones. First is, what is the expected impact of the rent reset on the PENN master lease coming up here in a few days?
Desiree Burke: Right. So we gave you that in my introduction point. We expect it to be between $5 million and $6 million of a rent reset down for PENN.
R.J. Milligan: And then what is the expectation for internal growth for ’24, just sort of based on the rent escalators?
Desiree Burke: Right. So the maximum escalation that we can get in any year is around $20 million.
Peter Carlino: Operator, I think we’ll take just one more call. We’re pass 11:00, and I think it’s time to wind things up. I’m sorry, if we have to cut somebody off, but do you have anyone else on the line?
Operator: Mr. Milligan. Are you done with your question?
R.J. Milligan: Yes, I’m all set. Thanks.
Operator: Next question comes from the line of Chris Darling with Green Street. Please go ahead.
Chris Darling: Thinking about the Marquette transaction and given that you now own all of Casino Queens assets, can you help me understand how you think about the holistic risk of owning the entire portfolio of the single operator. And I suppose the flip side of that is you might also benefit from incremental growth opportunities given that deep relationship. So just any thoughts there would be helpful.
Peter Carlino: The quick answer is, if they’re doing well and have demonstrated they’re capable of running these properties successfully, but we’re thrilled to have it all and every last time of their opportunity. So far, I think I could say with some confidence, they’re doing a terrific job, and we’re delighted to be partnered with them. Any other thoughts around the table? That’s the quick and completely honest answer. Steve, do you have any thoughts.
Steven Ladany: No. No. I mean I just harken back to like when we did the Pinnacle transaction. There was only one asset that they retained that we didn’t own the real estate of at that point, and that was a tax-driven negotiated point. So — so it’s not the first time that we’ll have a tenant where we’ll own all or almost all of their underlying properties, and we’ve done it before, and it’s — they’ve managed successfully, and that’s kind of how we look at the underwriting.
Peter Carlino: Yes. So we’re doing well. We want to own all of everyone’s properties.
Desiree Burke: And they are one of our best performing rent coverages at around 2 times, almost 2.4 times and with the addition of the new Baton Rouge property, we expect that to continue to be strong. So we feel it’s a good underwriting effort.
Peter Carlino: Yes, we feel good about it. Okay. Well, look, I think we’re kind of out of time right now. We invite you always to contact us directly if we’ve let somebody at the altar here, and you have a question call any one of us, and we’ll do our best to provide what you would wish. With that, we thank you very, very much for dialing in this morning, and we hope this has been helpful. See you next quarter. Thanks, operator.
Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
