Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) Q4 2022 Earnings Call Transcript

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Operator: Our next question comes from the line of David Katz with Jefferies. Please proceed with your question.

David Katz: Hi, good morning, everyone. Thanks for taking my question. One of the areas I continue to ask about and think about is the ways in which you might engage with Native American entities, who are more and more expanding what they have on reservation land as well as trying to grow off-reservation land or contiguous to reservation land. If you could update us on your pursuit of those potential opportunities, if there is any, please?

Peter Carlino: We look at such things and of course, recognize the potential if you can figure out a way to make it work. I don’t know, Brandon, you’ve been kind of saddling for a while that kind of rolls into the legal area as much as the business opportunity. What, did you add any color?

Brandon Moore: Yes. I mean we do spend a lot of time looking at opportunities in tribal gaming. I think there are some obvious challenges in dealing with the tribes from a protection standpoint because there’s only so much you can do to exercise on the collateral. And so for us, it’s a prudent research and development project to see if there’s a way that we could finance or otherwise invest in some of these commercial developments that Tribes are doing in a way that we can protect our asset, our investment and our shareholders. So it’s something that we do focus on. It’s an effort that we’ve engaged in for a number of years. We obviously haven’t done anything to date. But it’s not to say that we don’t think that there’s an opportunity there. I think there is an opportunity there with the right drive, the right project and the right investment.

David Katz: Okay. Thank you very much.

Peter Carlino: Thank you, David.

Operator: Our next question comes from the line of Daniel Gulino with Capital One. Please proceed with your question.

Daniel Gulino: Hey, everyone. Thank you for taking my question. Just one for me. So services inflation is still elevated in the U.S. even though you all run a light operating model, your tenants are large employers in their various locations. Are there certain things you all are watching out for into 2023? Thank you.

Peter Carlino: Look, my own opinion is not really again. We’re so far buffered with the kind of coverage we have with our tenants that it has to be a catastrophe of unimagined proportions for it to actually get down to us in any meaningful way. So there’s not losing any sleep this year over any real harm to our tenants. Anybody else have — I mean, that’s my flat-out answer, but anybody else have a thought about that?

Matthew Demchyk: Yes, I’ll add one, and it’s — there’s another angle here and it’s what do we think about when we look at acquisitions and we’re very thoughtful in disaggregating the income statements and finding coverage that has an appropriate margin of safety given the asset location, operating history, et cetera. And a piece of that is assessing this very point. And it’s something on the acquisition side, we give a lot of thought to.

Daniel Gulino: Okay, thank you.

Peter Carlino: Thank you.

Operator: Our next question comes from the line of Ronald Kamdem with Morgan Stanley. Please proceed with your question.

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