Matthew Demchyk: I mean, it’s kind of interesting. If you look — if you went back to last June or summer of last year and asked the question, there would have been some names that we were thoughtful about that were kind of inside the bidding tent that aren’t there anymore. And anecdotally, at least 1 of them view this as kind of a mispriced credit and got into the space. And then I think came to the conclusion based on the capital markets and opportunities in gaming debt or other places that the better return would be elsewhere. It’s a lot of hassle to be a landlord. And you’ve also seen headlines from some noteworthy large private equity folks that clearly are not playing offense as aggressively as they were. And a lot of that speaks to they’re reliant on really where real interest rates in real time, where is inflation and what’s the cost of the, the juice that you can get from the debt side of things.
And we’ve got an arrow in our quiver from a competitive perspective with our cost of equity and access across all those areas I mentioned earlier, when you think about our capital sourcing that now gives us a competitive advantage in that bidding scenario. So again, we’ve positioned ourselves to use that thoughtfully throughout this year to the extent we get opportunities. And we’re hopeful that backdrop stays about the same.
Robin Farley: Great. That’s very helpful. Thank you.
Peter Carlino: Thank you, Robin.
Operator: And our next question comes from the line of John DeCree with CBRE Securities. Please proceed with your question.
John DeCree: Good morning, everyone. Maybe to kind of continue the conversation rather than potential competitors for new deal activity maybe Peter or Steve, wondering if you could elaborate on the type of activity. I think, Steve, in the prepared remarks, you’ve mentioned you are kind of seeing similar potential deal volume over the last couple of quarters. Curious kind of what the mix of that is. Is it existing tenants looking at M&A? Is it maybe sellers looking for an exit? And then the follow-up would be, how is the bid ask evolved? I think last year, given the volatility in capital markets that we’re still facing today, the bid-ask has seemingly widened for potential transactions. Curious if you’ve seen any normalization or reasonable expectations among different parties in the market.
Peter Carlino: Steve?
Steven Ladany: Yes, sure. As you would expect, sales processes, which were launched prior to the capital markets, and the debt market, in particular, dislocating. Many of those are probably not going to kind of reach finality other than DOA. So I think that in those cases, the seller expectation was dramatically different from the reality as the debt markets corrected and the cost of capital just rapidly increased on people. So I think that things that are coming to market now, everyone at least had the same lens that they’re looking at the world through. So I feel like things are probably a little more achievable at this point than they were the beginning of last year. So that would be my first commentary on that piece. But I mean, with respect to what we’re seeing, look, our current tenants are in various places within their life cycle.
So some of them are looking to grow with whatever type of assets may be available. Some are looking for certain geographic locations or certain sizes. But there’s dialogue and no one’s looking to be stagnant. So we have dialogue with them around potential acquisitions. We also have many more partnerships and relationships with folks that — and dialogues than have materialized into tenancy. So at this point, I think we’re very hopeful that transactions will continue to be able to be created and constructed, and we’re working hard to make sure that’s achieved.
