Steve Sakwa : Okay. Just a quick follow-up, and then I’ll yield the floor. Just is there a yield differential when you sort of think about international and currency risk against the U.S.
David Kieske : Yes, Steve, that end of your question has the key, right? What’s the currency risk and what’s the tax leakage and then underwriting a yield that makes sense to take that into account. And we did that with the PURE Canadian transaction. And as John mentioned, we’re learning about other parts of the globe and where our capital can make sense. I mean it’s and then where we can efficiently structure transactions that work for both sides.
Operator: We’ll now turn to Smedes Rose from Citi.
Smedes Rose : There was an activist proposal earlier around Six Flags that brought you guys in the mix. And I know you’re probably not going to comment on that deal specifically at that proposal. But I’m just interested would you be interested in sort of theoretically big picture in that kind of owning theme park land or real estate? And how would you think about underwriting that versus maybe some of the other asset classes you’re in?
Edward Pitoniak : Yes. So you’re right, Smedes, we won’t comment on any specific situations. But we have talked in the past on our earnings call and in our investor engagements about our interest in the theme park space. We think it has an awful lot of attributes to remind us in very good ways of our gaming investments. These are very complex assets. They’re very large-scale assets. They’re very capital-intensive assets. They have proven themselves over decades. What we also find interesting about the theme park landscape in the U.S. is it is really an un-networked landscape. You have hubs, obviously, in the form of Anaheim and Orlando, and you have spokes in terms of the regional theme park operators, but they’re not connected and that kind of puzzles us and can’t help thinking, well, geez, what would the power be if you could ever connect these things?
And we’ll see if anything ever comes to that. But yes, it is a category and experiential category that we believe has real investment merits for us, both strategically and economically.
Smedes Rose : And then I was just wondering, John, I mean, it sounds like obviously, Vegas is all go, go go, but I mean are you hearing maybe just a little more specifics around sort of regular sort of leisure visitation versus return of corporate groups or any kind of thing you’re hearing on your tenants kind of on the different drivers of business?
John Payne : Smedes, nice to talk to you this morning. I just spent time with all our Las Vegas operators over the past couple of weeks. And as you started out by saying the business continues to be very strong, robust. And the beauty of Las Vegas is that they’re seeing growth and demand from all those different segments. That’s what makes Las Vegas so special that they get the international gamer. They get the domestic gamer. They have the meeting business that’s coming back. They have business. And the operators there continue to add resources and add assets to their facilities. We just can’t say enough about our tenants that are there and the performance that they’re having, and they see — they do not see a slowdown in their business.
And then later this year, they’re probably at one of the biggest weeks and weekends that they’ve ever had with Formula One coming and then they’re going to turn the year in ’24 and go right into the Super Bowl. So it’s a city like no other, we talk internally is there a city performing better than Las Vegas in the world, and we’re not sure we can find one. And all the credit goes to our tenants and the way they are marketing that city and their properties
Operator: Our next question comes from Barry Jonas from Truist Securities.
Barry Jonas: I wanted to keep on the Vegas theme and maybe start with Fontainebleau. Can you talk about sort of your expectations for what this relationship could develop into down the road? Have they given any intentions around sale leaseback at some point? And then how should we be modeling timing of the full loan?
David Kieske : Yes. Barry, I can start, and John chime in with anything I missed. But look, we went in — we’ve looked at this asset over a period of a number of years, and I think it’s a phenomenal asset and even better backed by the equity support of the Koch Industries. And then the Soffer organization, we’ll have the vision and get it open towards the end of this year. So there’s nothing formal in terms of our relationship in terms of a path to real estate ownership. But when you act as good partners, and you’ll help support other partners’ objectives. That leads to more opportunities and just the size and scale of industries and everything that they have and the size of their real estate book, especially focused in leisure and hospitality, we think there could be more things to come in the future, and we’re excited to partner with them and be involved with that project.
Barry Jonas : Okay. Great. And then just — maybe just spending a minute on Hard Rock and Mirage. What are the next steps there for potential redevelopment and also the Partner Property Growth Fund loan — potential loan there? Is there a general time line for specifics to be worked out here?
Edward Pitoniak : John?
John Payne : Barry, it’s John. Yes. Very good to talk to you this morning. really more a question for our tenant on that. But Jim Allen and the Hard Rock team just took the business over earlier this year. They’re getting used to the property, understand their property, understanding demand, understanding how busy Las Vegas is right now, which is great. And the last communication is they’re studying their plan, working through this year, and we’ll be in contact with them over the next coming months, and we’ll have a better idea of what the ultimate timing and what their ultimate plans will be. So nothing new than last time we talked about this.
Operator: We now turn to Wesley Golladay from Baird.
Wesley Golladay : I just have a quick follow-up to the last question. I wonder you set the rates for these projects such as the Mirage or the Hard Rock?
Edward Pitoniak : Yes, Wes, thanks for the question. David is best equipped to answer this. And I don’t think David heard it quite clearly.
David Kieske : Wes, I think I caught it, you say when we set the rates for these Partner Property Growth Funds. Is that — did I get that right?
