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Gaming and Leisure Properties Inc (GLPI) Q4 2020 Earnings Call Transcript


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Gaming and Leisure Properties Inc (NASDAQ:GLPI)
This autumn 2020 Earnings Name
Feb 19, 2021, 9:00 a.m. ET

Contents:

  • Ready Remarks
  • Questions and Solutions
  • Name Contributors

Ready Remarks:

Operator

Greetings and welcome to Gaming and Leisure Properties Fourth Quarter 2020 Earnings Convention Name. [Operator Instructions]. Please notice this convention is being recorded. I’ll now flip the convention over to Joe Jaffoni, Investor Relations. Thanks. You could start.

Joseph JaffoniInvestor Relations

Thanks, Sherry and good morning everybody and thanks for becoming a member of Gaming and Leisure Properties fourth quarter 2020 earnings name and webcast. The press launch distributed yesterday afternoon is out there on the Investor Relations part of our web site at www.glpropinc.com. On as we speak’s name, administration’s ready remarks and solutions to your questions might include forward-looking statements as outlined within the Non-public Securities Litigation Reform Act of 1995.

Ahead-looking statements handle issues which might be topic to dangers and uncertainties which will trigger precise outcomes to vary materially from these mentioned as we speak. Ahead-looking statements might embody these associated to income, working revenue and monetary steerage in addition to non-GAAP monetary measures akin to FFO and AFFO. As a reminder, forward-looking statements characterize administration’s present estimates and the corporate assumes no obligation to replace any forward-looking statements sooner or later. We encourage listeners to evaluation the extra detailed discussions associated to threat elements and forward-looking statements contained within the firm’s filings with the SEC, together with its 10-Q, the earnings launch and definitions and reconciliations of non-GAAP monetary measures contained within the firm’s earnings launch.

On this morning’s name, we’re joined by Peter Carlino, Chairman and Chief Govt Officer of Gaming and Leisure Properties, and Peter is joined by Desiree Burke, Senior Vice President, Chief Accounting Officer and Treasurer; Brandon Moore, Govt Vice President, Normal Counsel and Secretary; Steve Ladany Senior Vice President, Chief Improvement Officer; and Matthew Demchyk, Senior Vice President and Chief Funding Officer.

With that. It is now my pleasure to show the decision over to Peter Carlino, your host. Peter, please go forward.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Effectively, thanks, Joe, and welcome to all who’ve dialed on this morning. Let me begin by saying that 2020 was a weird yr I feel for all of us, and I am simply glad to be on this facet of a model new yr. However there are some good issues that got here out of final yr for the corporate, we in lots of respects had one of the vital profitable — if not probably the most profitable yr now we have had in since our spin into GLPI. The a part of the excellent news is that now we have proved what we have been saying all alongside that the actual power of gaming is within the areas, not in Las Vegas. We have all the time — within the regional space offered at a reduction, look, I get it. The win is a loss on account of spectacular property, like to personal it, however I might relatively have frankly if we had been in a position to sit in return on funding, the type of properties that we construct at Penn and the type of properties which might be within the GLPI portfolio, we are going to and did accumulate 100% of our rents this yr, which is terrific. Within the worst of occasions, which is what now we have stated all alongside, could be the case and we did various issues as effectively to — together with some undisclosed by the best way to strengthen relationships with every of our tenants notably, as you realize, we supplied the power with a lease credit score to assist Penn on the time when possibly solvency was a query. That transfer has confirmed to be spectacularly profitable. Clearly nice for us, our tenant is stronger by leaps and bounds, however furthermore, you may see what’s occurred with them. So now we have to really feel significantly good. We acted swiftly, we acted early, there have been a variety of questions on that on the time that we felt it was the appropriate factor to do in the long term and boy that proved to be an incredible, nice consequence.

Alongside the best way, let me simply spotlight a few issues, due to the issues, as I have a look at a abstract right here in entrance of me, that thus far again in 2020 I nearly forgot which have occurred. I will remind you that we did enter right into a membership curiosity buy settlement with Penn for the Hollywood On line casino in Perryville. With Caesars, simply shortly undergo a few this stuff, we amended the Tropicana Grasp Lease with Caesars to take away variable lease elements, present a hard and fast escalation and allow substitute of Tropicana Evansville and/or Greenville on the time in addition to the removing of Belle of Baton Rouge, advanced and tough issues, however we bought that completed for them. We exchanged Tropicana Evansville for the Isle On line casino Lodge in Waterloo, the Isle On line casino Lodge in Bettendorf. We entered right into a repurchase settlement, which could be very cool to choose up the Evansville property once more, it was achieved and we’re thrilled to say we bought it again, which was not a foregone conclusion within the lease with Bally’s, formally Twin River Holdings after which we permitted to switch Belle of Baton Rouge to On line casino Queen, which is owned by Commonplace Normal.

Shifting on shortly, we entered right into a membership buy settlement to promote operations at Hollywood On line casino Baton Rouge. We agreed to the phrases of the brand new grasp lease between Hollywood On line casino, Baton Rouge and On line casino Queen. And eventually, we entered into an settlement supplied a $4 million restoration of unsecured mortgage beforehand written off by the Firm with On line casino Queen. With Bally’s we entered into settlement to accumulate Dover Downs in Delaware, terrific. We’re enthusiastic about that, agreed to the phrases of the brand new grasp lease that would come with Dover Downs within the Tropicana Evansville and we helped to broaden our tenant base additional, which is all the time an goal for us. Miscellaneous stuff I nearly forgot, we acquired Lumiere Place in St. Louis, which we transformed from an unsecured mortgage that is means again, however that was an enormous accomplishment greater than you may guess, that we’re fairly enthusiastic about. We acquired to Belterra property in Cincinnati from Boyd Gaming in satisfaction of a mortgage. We additionally notably acquired approval to go landside with our Hollywood On line casino property in Baton Rouge, we’re engaged on that proper now.

I’ll say, it could seem GLPI is the one you REIT to announce and signal an actual property acquisition following the COVID [Phonetic] announcement final yr. In order I look again on this, it was a reasonably robust yr for us, we’re hungry and and laborious working now as ever, if I can get that business. And on has to really feel fairly good in regards to the regional gaming enterprise within the regional REIT enterprise as effectively.

With that, I’ve already stated greater than I often prefer to say upfront, I am taking a look at Desiree and I will ask her to make or spotlight a number of factors as you thought you have to be conscious of.

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Thanks, Peter. Good morning everybody and thanks for taking the time to affix our name. Our efficiency for the quarter was good is we’re forward of all of our key metrics in comparison with the fourth quarter of 2019 on account of the truth that we absolutely collected the On line casino Queen lease within the fourth quarter and mixed with their lease deferral settlement of $4.6 million. As well as, we had a number of non-cash gadgets which might be included in our P&L that I believed I ought to spotlight. First, as Peter talked about, we had the Caesars alternate transaction, the place we exchanged Baton — we alternate the Tropicana Evansville and acquired Bettendorf and Waterloo in return. We needed to acknowledge the non-cash achieve of $41.4 million in our revenue assertion.

Secondly, some straight-line lease changes within the quarter and people are — we’re simply deferring much less lease on account of the accounting guidelines than what we had up to now. For extra info on that, Be aware 14 in our 10-Okay has a variety of particulars about how we are going to acknowledge that lease deferral over the following a number of years. The share lease reset for Meadows occurred on October 1st and the lease reset was down by $500,000 for the quarter or [Indecipherable] million for the total yr. That is our final share lease reset till 2022,clearly excluding the Ohio share lease for On line casino Columbus and Toledo, which as we have disclosed Toledo is in a lease for $22.9 million. Moreover, our TRS properties continued with robust outcomes. Their web income and adjusted EBITDA had been each up $1.3 million and $2.4 million in comparison with a yr in the past. We proceed to see robust spend per go to, which is greater than offsetting the lowered attendance ranges. Our web revenue FFO, AFFO and adjusted EBITDA for the fourth quarter had been all forward of the prior yr, which is detailed all through our launch.

And with that, I will flip it over to Matt.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, and Matt, you need to add a number of ideas as effectively, please?

Matthew DemchykSenior Vice President of Investments

Positive. Yeah, first turning to our steadiness sheet simply after the third quarter name. We accomplished a profitable fairness elevate the pre-fund our Bally’s transaction, delivering on our promise of prudent steadiness sheet administration. Consequently, our steadiness sheet is characterised by sturdy liquidity and considerate leverage. As well as, our lengthy dated unsecured debt yields proceed to commerce materially inside these of our friends. This can be a helpful validation by the debt markets of the security inherent in our enterprise mannequin and a transparent profit to the weighted common price of capital that we make the most of for transaction. Primarily based on the power of our place, the theme for 2021 at GLPI that’s being offensively postured. As we navigate alternatives, we stay prudently self-discipline in our give attention to attaining a margin of security and our urge for food stays voracious. Our groups many years deep relationships throughout the gaming sector and our distinctive monitor file of being inventive and structuring win-win options for counterparties, each stand to be aggressive benefits. Our crew is dedicated to profiting from the chance set in 2021.

As I wrap up, I might prefer to take a step again for perspective. Greater than a decade in the past earlier than we’re asset class prompt, the worldwide monetary disaster examined money circulation resilience throughout the economic system and the actual property world. Actual property asset courses that had been newer, shortly turned battle examined. New winners and losers turned evident and at occasions opposite to historically held expectation. Within the a few years since, pricing developments and institutional curiosity, this come to replicate the sturdiness demonstrated amongst — amid challenges. Because the outdated saying goes, a hammer shatters glass, however forges metal. Of late, all the world has been topic to the remaining with the brand new and totally different hammer. The distinctive and difficult backdrop introduced by COVID-19 has resulted in yet one more vital check for our broader economic system and throughout the spectrum of actual property property. And to this point, triple web gaming property, particularly regional ones like present in our portfolio have collectively confirmed way more resilient within the overwhelming majority of actual property that’s presently thought-about to be of an institutional high quality, whereas the case research remains to be being written, it is going to undoubtedly function an vital signal put up on the trail towards institutionalization and a number of compression for gaming actual property — a number of enlargement for gaming actual property.

With that, I might like at hand the decision again to Peter.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks. Matt. So in abstract, I feel 2020 was an incredible yr for GLPI and I can say — I am stated about leaving it as we transfer into 2021, nevertheless it was a really impactful yr. So with that, we are going to open the ground to questions and maybe a create a possibility to listen to from the remainder of our crew current as we speak. So operator, would you please go forward?

Questions and Solutions:

Operator

Thanks. [Operator Instructions] Our first query is from Barry Jonas with Truist Securities. Please proceed.

Barry JonasTruist Securities — Analyst

Hello guys, good morning.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Hello, Barry.

Barry JonasTruist Securities — Analyst

Hey, let’s simply begin with the present M&A surroundings. I’d like to get any updates there what the pipeline seems to be like and any notable modifications over the previous 90 days?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Why do not I have a look at throughout to Steve Ladany, it seems to be — there’s life on the market, however I will depart it to Steve to inform you what he feels once more.

Steve LadanySenior Vice President, Finance

Positive. Yeah, good morning Barry. I feel from a technical perspective so far as the M&A panorama in entrance of us, on the non-gaming facet, we proceed to see myriad of alternatives coming throughout our desk. As you’d think about, gaming has held up splendidly throughout the COVID expertise, however different non-gaming areas of the leisure house and many others. haven’t. So there’s various alternatives to proceed to return throughout our desk. Nevertheless, as Peter has stated many occasions earlier than, we proceed to imagine that gaming presents us with the very best alternative for outsized returns on a risk-reward foundation. In order a lot as we’re taking a look at different alternatives, the M&A panorama within the gaming house continues to be very energetic and there are a variety of discussions we proceed to have with various events each present and potential new operators.

Barry JonasTruist Securities — Analyst

Nice. Nice, that is actually useful. After which simply as a follow-up, are you able to give us a standing on the Belle of Baton Rouge, I do know Caesars offered to On line casino Queen and it was faraway from their grasp lease with no adjustment to the lease. I am simply curious what your — in case you guys do not personal it or what the standing is there and if there’s any alternative for incremental ramp down the highway? Thanks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Brandon, it’s important to take this, it is a part of that regulatory piece.

Brandon J. MooreSenior Vice President, Normal Counsel & Secretary

Yeah. That transaction will not be but closed, however I feel they’ve introduced that Caesars has agreed to promote the Belle of Baton Rouge operations to the Commonplace Normal On line casino Queen crew, however that is topic to regulatory approval by the Louisiana Gaming Management Board nonetheless. Our intention is to proceed to personal that property, so presently, that property remains to be within the Caesars lease, if that transaction is accepted in Louisiana we’ll take away it from the lease and put it in a separate lease with the brand new Commonplace Normal crew, however our intentions for the time being are to proceed to personal that property.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

And there’s no adjustment to the Caesars Grasp lease if that transaction does happen and that property comes out.

Steve LadanySenior Vice President, Finance

Obtained it, OK. I assume we’ll wait and see. All proper, thanks a lot, guys.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks, Barry.

Operator

Our subsequent query is from Greg McGinniss with Scotiabank. Please proceed.

Greg McGinnissScotiabank — Analyst

Hey, good morning. Peter, we have been getting a variety of questions from traders concerning the CIO and CDO roles as they appear a bit duplicitous. Are you able to please stroll us by the necessity for creating each these roles and the way tasks are break up between the 2?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

We have had a few questions like that alongside the best way. However look, it is really in our minds, fairly, fairly simple. Steve’s job primarily is to supply alternative throughout the gaming world with which he’s fairly acquainted and Matt I am simplifying this, is to take a look at — it is place in our portfolio, its valuation, its financing and the entire parts that relate to, effectively, if now we have an curiosity in a property, what does it seem like, how will we match of their steadiness sheet, that we pre-finance. So you have seen some proof of that already, that is max affect. So I can recognize the confusion, however there are actually two totally different roles, the man out on the highway, if you’ll, by telephone or in particular person is Steve, the man on the telephone, if you’ll, who works that is Matt. So — however look the 2 work collectively, our crew works collectively and functionally frankly it is working advantageous.

Greg McGinnissScotiabank — Analyst

Okay. Thanks. After which for a follow-up, the questions on these calls are so typically targeted on the acquisition pipeline and I do not actually really feel like breaking custom this morning. Are there any On line casino property which might be presently on the market and being marketed proper now, and in that case what I type of EBITDA do these property generate?

Steve LadanySenior Vice President, Finance

So to make clear the query, are there presently casinos being marketed?

Greg McGinnissScotiabank — Analyst

Yeah.

Steve LadanySenior Vice President, Finance

Yeah, I imply, there are numerous alternatives clearly we’re below NDA, however I can provide you a way. I imply there are some that aren’t so personal that there have been public leaks, very large-scale property which might be on the market on the Las Vegas journey. However there’s additionally particular person smaller single property property that exist as effectively and in between these two, our portfolio trades that would happen with multi-properties. I imply, I feel one of many issues that we’re seeing is that with the margin enchancment of those properties, I feel the sellers try to determine the place they’re the truth is going to land, so far as a run price, and that is a part of the complication on the client facet as effectively is the brand new operator, if the truth is it is a wholesale transaction must additionally ponder the place they imagine margins will settle in.

Greg McGinnissScotiabank — Analyst

All proper, thanks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, there you know the way to reply that. Clearly, it is — there’s all the time exercise of 1 type or one other, precise exercise is one other matter. So, in our job as I’ve stated for a lot of, a few years is to — we have a look at every little thing. If it is alive and respiration, you have heard me say this many occasions earlier than you may think about, we’re taking a look at it. What’s doable is all the time one other matter and whenever you get the vendor’s curiosity aligned, I imply, in case you had been to exit now and say what’s on the market, effectively, I do not know, I feel I can discover that property is on the strip, you might in all probability purchase, however this stuff evolve as they do. And our job frankly is simply to be prepared ready financially, that is a giant function that Matt performs, after all to ensure that we’re — as he stated earlier offensively posturing to be prepared as alternative seems. So I imply that we’re.

Greg McGinnissScotiabank — Analyst

I recognize that, Peter. Thanks.

Operator

Our subsequent query is from Jay Kornreich with SMBC. Please proceed.

Jay KornreichSMBC — Analyst

Hey, good morning. I assume simply sticking with — sticking with the acquisition pipeline, are you able to simply present any replace in your dialog with Bally’s, both round potential sale leaseback inside their present On line casino portfolio or additional enlargement with you?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Steve?

Steve LadanySenior Vice President, Finance

Positive, I imply, Bally’s is not any totally different than our different tenants and that we discuss to them very incessantly about totally different alternatives, whether or not they’re inside their present present portfolio or potential alternatives to develop. I imply I feel the world has come to acknowledge that they’ve been rising fairly quickly and taking a look at enlargement. So we’re consistently speaking to them about what alternatives exist, what markets they might be fascinated by and what issues we can assist them shake free. So yeah, we’re in fixed dialog.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah there look they’re hungry consumers, I feel as Steve says, they’re very hungry and we need to be their companion of alternative. So we work at that very laborious.

Jay KornreichSMBC — Analyst

Okay. After which I assume transferring to On line casino Queen, which was your troubled tenant and now give a grasp lease with them they paid again their deferred lease $4 million of the mortgage and you’ve got this rule for settlement. Are you able to possibly simply present an replace on their efficiency and is that this an operator that you simply’d prefer to develop additional with?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Who desires to take that, Steve?

Steve LadanySenior Vice President, Finance

Positive. So I feel one clarification I’d make is that the grasp lease would exist put up their acquisition of our TRS Properties. So, presently, that is nonetheless in a single asset lease. I feel the — we’re very snug with the administration crew. They’re skilled, they’ve labored in very aggressive marketplaces like Vegas locals markets and so I feel we’re snug that they’ve the expertise and essential required to proceed to handle these properties and get probably the most out of the efficiency and so far as their curiosity in rising, I feel it is similar to what you have heard with respect to Bally’s. I imply I feel they’re fascinated by buying property, increasing their footprint and I feel they may proceed to look to reinforce the attain, particularly on the sports activities betting and I-gaming facet as effectively, which you have seen with the renaming of the On line casino Queen asset to DraftKings.

Jay KornreichSMBC — Analyst

Okay, thanks very a lot. That is it for me.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks.

Operator

Our subsequent query is from Daniel Adam with Loop Capital. Please proceed.

Daniel AdamLoop Capital — Analyst

Hello, good morning. Thanks for taking my query.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Good morning.

Daniel AdamLoop Capital — Analyst

So that is, I imagine the primary earnings name the place Penn’s market cap is bigger than GLPI is roughly about 80% bigger. Peter, I am simply curious, what do you make of that dynamic, if something?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

It is nice. Terrific. Look it is all the time good to have a tenant that — that’s effectively capitalized and at the moment Penn clearly is. Look, I imply I based Penn. So, as you effectively know and seeing it develop and do what it has been in a position to do and it has been transformative, it is fairly exceptional. By the best way, the query hasn’t been requested but, nevertheless it’s a possibility for me to type of leap proper to it and that’s this, I feel what they’re doing with the bar retailer model is a gigantic enhancement to the bricks and mortar property that we personal, really feel very assured about that. Penn is dedicated to construct out bar store-themed services at its properties. I feel that function has begun now. Persons are social animals. I feel you are going to discover no matter else is finished on — on the Web, {that a} man putting a greater soccer sport on a Saturday morning is driveway, you are going to discover a great elevate, I am totally glad within the properties that we personal as effectively and it is going to assist change the demographic of who comes and performs of those services and so forth. So I could not be extra enthusiastic about what is going on on at Penn. I feel it is an enormous plus for us at GLPI and you realize it is — Brandon goes to say…

Brandon J. MooreSenior Vice President, Normal Counsel & Secretary

I will simply say, effectively, it is precisely why we did what we did, when COVID hit in early 2020 was to help our largest tenants and guaranteeing their long-term success. And I feel what’s occurred with them since that transaction that we did for Tropicana Las Vegas to assist them out within the time of want, it has benefited them drastically and due to this fact benefited us drastically.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

And I feel they have accepted the power to be worthwhile and our effectively earlier than every other participant within the area, and that is an enormous benefit that they anticipate to capitalize on. So look, the corporate is effectively run, they’ve bold targets. It is — I might really feel higher about what’s taking place with Penn, getting all to our profit in having a robust effectively capitalized tenant.

Daniel AdamLoop Capital — Analyst

Okay, nice. That makes lot of sense. After which I assume associated to that, any replace on the timing and degree of curiosity in a potential sale of the drop in Vegas? Thanks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, look, at others I imply, Steve is rather a lot nearer to it than I’m, though Matt additionally has had contact with folks. There was a surprising quantity to my thoughts, I will use that phrase, folks popping out of the woodwork signing NDAs to check out it. Now, a variety of them, I’ll say or what I name the greenback down, greenback per week crowd [Phonetic] with transactions that would not curiosity us in any respect, as a result of they cannot. We’re not — we’re not meaning to take any threat in anyway. We’re on the lookout for a money purchaser, if potential we might take part in one thing, however by no means to place our capital in danger, by no means. I can not underscore that sufficient. So there’s some fairly good exercise on the market. It is — who is aware of, once more bought a caveat that with who is aware of what is going to get to the signing line, however I’d say that it has been fairly spectacular. Steve, do you need to remark?

Steve LadanySenior Vice President, Finance

Yeah, I simply stated, now we have a really — there are a number of events which have proven very robust curiosity and so we proceed to work on that, however I’d additionally add that the Coke transaction that simply occurred on the Fountain Blue [Phonetic], we view as a really constructive sign for our capacity to train our gross sales course of.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

I feel, would you need to add something Matt, any thought?

Matthew DemchykSenior Vice President of Investments

Yeah, the one different thought that is related is simply we’re seeing indicators of a bit of loosening of the debt markets for developments, which is one other encouraging growth in that market. And I will simply remind everybody that each potential purchaser is taking a look at significant redevelopment plan there to assist maximize the potential of the property. In order that’s going to be an vital aspect for anybody who buys it and I will remind everybody we had been in a steadiness sheet place the place we do not have to do something. So we’ll wait till now we have a superb deal, if and once we’ll transfer ahead.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

That stated effectively. So look, we’d by no means need to promote stuff that frankly would mislead you in any means in any respect. And so we all know sure — it is not sure, however I’ll inform you in all honesty, we’re type of heartened by the extent of exercise is perked up as now we have gotten into 2021 with some severe purchaser. So that is what we are able to report as we speak.

Daniel AdamLoop Capital — Analyst

All proper, very encouraging. Thanks guys.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks.

Operator

Our subsequent query is from Thomas Allen with Morgan Stanley. Please proceed.

Thomas AllenMorgan Stanley — Analyst

Hello, good morning. Are you able to replace us in your dividend? You introduced within the launch that you’ll return to being a full money dividend payer. However simply, type of, the way you’re interested by it, medium to long-term? Thanks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Effectively, we’re interested by it rather a lot, however I will provide you with half a solution, as a result of sadly timing is simply not labored out effectively for us. Now we have a Board assembly subsequent week to debate the dividend monitor. I feel taking a look at a Normal Counsel. We ought to be ready to get an announcement out subsequent week, Brandon. Ought to we not?

Brandon J. MooreSenior Vice President, Normal Counsel & Secretary

We anticipate it could be subsequent week.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

We anticipate we are going to. Look, now we have stated money dividend 2021 and you’ll rely on that. The exact quantity, we have additionally stated we’re not going backwards, so the purpose after all is to maneuver ahead, however we are able to get forward of the Board and all I can say is, by the tip of subsequent week, it’s best to have a solution. Look, you recall, I’m at the start a shareholder on this firm and my ideas are utterly aligned with what’s finest for shareholders. I need to transfer the best potential dividend on the earliest potential time, in keeping with prudence and that is good sense. So we’ll have a look at it fastidiously and bear in mind the purpose is to construct worth, to construct dividend revenue over time. We have achieved that each one alongside. We’re again to that, simply how far how, quick we are able to push it, we’ll let you realize, shortly, however you may anticipate the money dividend going ahead.

Thomas AllenMorgan Stanley — Analyst

Good, thanks. After which only a clarification on On line casino Queen. So you have gone again to receiving $3.6 million 1 / 4 of lease, there was this catch-up fee within the fourth quarter for what wasn’t paid within the third and second, after which as soon as the Baton Rouge door closes, then it goes to that $21.4 million run price, is that — is that proper?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Des, you need to…

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Sure. So, sure, you are right. We collected $4.6 million of deferred lease within the fourth quarter. So our lease as of 2020 is absolutely collected. They had been closed in 2021, so now we have a small deferral that we anticipate to gather in 2020, when the sale of the Baton Rouge property is finalized. And sure, your quantity is right, that it goes to the elevated lease as soon as the deal closes.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah. It is tied to the opposite transaction with certainty, so that can receives a commission. Hopefully, they continue to be open as going ahead, however even when they do not, we nonetheless receives a commission.

Thomas AllenMorgan Stanley — Analyst

For the following couple of quarters till the deal closes, it ought to be $3.6 million of lease, however then given they closed for a time period, possibly barely decrease within the quick time period, is that what I am listening to?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Sure, it is about $2 million of lease that was deferred for January and February, however then I will return to money since they’ve reopened their property and that $2 million, we anticipate to gather throughout 2020 once we shut on the transaction.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

However in any case we are going to accumulate.

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Yeah.

Thomas AllenMorgan Stanley — Analyst

We’re sure.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Sure.

Thomas AllenMorgan Stanley — Analyst

Okay. Yeah. Obtained it. I simply need to ensure that we’re modeling accurately. Thanks.

Operator

Our subsequent query is from David Katz with Jefferies. Please proceed.

David KatzJefferies — Analyst

Hello, good morning everybody.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, good morning.

David KatzJefferies — Analyst

Good morning. So, look your feedback are fairly clear in regards to the Las Vegas Strip and a choice elsewhere inside regional gaming, I am simply making an attempt to assume by different avenues of development on the margin the place there could be type of parts of particular regional properties akin to a resort or retail aspect proper exterior of simply proudly owning the On line casino 4 partitions and whether or not these sorts of alternatives are on the market and fascinating ultimately?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

David, they definitely are fascinating and they’re on the market. We proceed to speak with Penn. I feel we have introduced that up earlier than a couple of resort in say Columbus and another growth that would happen. A few of our — I feel a few of our open property, undeveloped property has had curiosity just lately for various sorts of customers. We definitely had provides to promote some, however as I prefer to say, we’re not likely within the sale enterprise, we’re within the revenue enterprise and that is to not say we would not promote for some beneficiant worth we’d must suck it up and take the cash, however our actual purpose is to construct income over time and sure, we are literally taking a look at a wide range of issues and time will inform.

David KatzJefferies — Analyst

And simply to observe that up, if we had been to type of qualify between you realize proudly owning type of a brand new resort proper or taking part, I feel you have stated no taking part in growth of any type, proper, that is type of placing capital in danger. So you would be type of proudly owning the actual property on normalized or mature property relatively than type of newish ones, is that truthful?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

We do a brand new property with a credit score tenant. I imply we’re not taking the chance, the chance goes to go elsewhere. So, anyone goes to step up who’s going to have the ability to assist it. Once more, I’ve lengthy stated it on the Penn facet, you’ll bear in mind I like saying it once more, we aren’t within the playing enterprise, our clients could be, however we aren’t and that by no means goes to vary. We do not take dangers that we are able to keep away from.

David KatzJefferies — Analyst

I perceive. Thanks very a lot.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks.

Operator

Our subsequent query is from RJ Milligan with Raymond James. Please proceed.

RJ MilliganRaymond James. — Analyst

Hey, good morning guys. I used to be questioning in case you might simply stroll us by how we should always take into consideration each the escalators within the variable lease elements in ’21 and ’22 given we’re coming off such a low EBITDA yr in 2020?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Dess, we’re taking a look at your route for that.

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

All proper. So in case you have a look at the discharge, now we have a desk within the launch that particulars out the efficiency of the adjusted income to lease ratio for many of our tents and it describes how escalation would happen if the truth is it did happen. So it’s at lease by lease view on what you anticipate to occur in 2021. I’d say that we’re not anticipating escalators in 2021 for probably the most half, however we could possibly be shocked. I imply, I am taking a look at info that’s associated to 2020 and both projections for all of our tenants and the way they carried out into 2021 is unknown at the moment. However so far as variable lease resets — share lease resets we have achieved with these for 2021, there are not any share lease reset, the following one does happen in 2022 and now we have a variety of knowledge collectively earlier than them to know what these resets would seem like.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah. I ought to have began with it, only a temporary remark. I need to get into the business for our monetary and our authorized crew right here that we have all the time prided ourselves on releases that supplied an infinite quantity of element and as we put as a lot in that as you may probably taking the time to learn. So there’s a variety of element and hopefully that may reply it.

RJ MilliganRaymond James. — Analyst

Okay. Yeah, the desk is useful. Thanks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks.

Operator

Our subsequent query is from Shaun Kelley with Financial institution of America. Please proceed.

Shaun KelleyFinancial institution of America — Analyst

Hello, good morning everybody. I simply needed to get some ideas on possibly the depths, as we’re interested by the client pool and the M&A surroundings, broadly, I feel we’re beginning to see some new folks arrive on the working entrance as effectively and I particularly need to get your type of tackle a few of the Native American operators wanting on the OpCo facet of transactions and what which may imply for the broader depths of the type of shopping for and promoting market or the transaction market if anyone had any ideas there?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Effectively, it is a good factor and now we have entertained conversations with such votes over time. Nothing for the time being actionable. Steve, do you need to add any thought to that?

Steve LadanySenior Vice President, Finance

Positive. So, I feel we’re going to proceed to see the development. I feel various the Native American tribal gaming enterprises are well-capitalized and on the lookout for areas to reinvest their capital in industries that they are snug with, which at this level is unquestionably Gaming. So I feel it is a — I feel it is one thing that we’ll proceed to see. I feel — I feel there’s additionally various cases with a few of the on line casino enlargement that is been proposed in numerous jurisdictions like Alabama in Nebraska the place a few of that would additionally come into play. So it is an space we’re targeted on. We’re taking a look at and we proceed to attempt to construct out relationships there, as a result of I feel it is a chance for development going ahead.

Shaun KelleyFinancial institution of America — Analyst

Nice. And Steve my different query, it referred to one thing you talked about earlier about a few of the problem in underwriting proper now’s this the flux that type of the margin profile of various type of Casinos discover themselves in hopefully it is largely a superb factor, however I simply needed to get your ideas on what do you assume that the long-term implication on valuation is from what many individuals are viewing as a little bit of a structural change in margin? And type of simply pondering, will this lead to doubtlessly larger general valuations and related metrics or might it lead to larger lease protection ratios are simply type of, how are you pondering this may really begin to play out?

Steve LadanySenior Vice President, Finance

Effectively, I haven’t got crystal ball, but when I needed to guess, I’d counsel it in all probability for brand spanking new transactions, which I am assuming that is what you are asking me about. So on a brand new potential transaction, I do not assume it essentially modifications the lease protection that is underwritten by a landlord and a tenant. And I do not assume it essentially modifications the valuation that the owner or the tenant would pay on a a number of foundation. I feel what modifications, is that now, you are — there’s extra cash circulation and due to this fact whenever you multiply the bigger EBITDA occasions all these elements, you are simply going to get to the next complete valuation. So I feel that is the primary driver. I imply, separate from that I feel a variety of worth goes to be decided by the Opco and that is going to be pushed proper now by whether or not there’s sports activities betting or I-gaming on the forefront in that jurisdiction or did the property already lower pores and skin offers and there’s no alternative or is it vast open and operator that acquired the asset now has that market entry. So I feel these are a few of the variables that can proceed to drive a few of the valuation anomalies.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

And let me squeeze in a single considered that, that is nonetheless early days and all of us see these margins lowered occupancies, larger margins. It is a weird, it is an unbelievable anomaly, a really constructive one and I feel it is going to be a lot sustainable. Is it utterly sustainable? Effectively time goes to have to inform. So from a purchaser’s perspective, shopping for of numbers as we speak in all probability contain some degree of threat or judgment or nonetheless you may need to have a look at it. However I do assume, as a result of I get that query rather a lot, is that this sustainable? I feel we’re not going again to the place they had been. They discovered that they will function these working firms far more effectively, however is it going to stay the place it’s? That is nonetheless an early unknown, that is my view.

Shaun KelleyFinancial institution of America — Analyst

Thanks very a lot.

Operator

Our subsequent query is from David Gallagher [Phonetic] with Inexperienced Road. Please proceed.

David GallagherInexperienced Road — Analyst

Good morning everybody, thanks for taking my query. Only a follow-up on Penn. Clearly market cap development over the past yr has been great. And definitely, there are a a lot wholesome liquidity place now to pay a yr in the past. Shifting ahead with that relationship, does that change the way you view lease protection in any respect? Understanding of those are clearly long-term leases and property degree dynamics are vital. Does that change the way you view lease protection?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Anyone need to open on that?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Sure, I imply the lease protection is restricted to the lease and the properties that is within the lease. So no that might not have an effect on what we’d anticipate for lease protection on the lease.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah.

David GallagherInexperienced Road — Analyst

Sure, I feel, simply to make clear what I meant is, I’d say, would you be prepared [Speech Overlap] lease protection, given the company, it is a bit of bit stronger?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Sure. I feel it as we’re going. Yeah, possibly, and the very best most I can say, however — possibly, however not a lot. I imply I feel we’re snug with the vary we’re. Matt, what do you assume?

Matthew DemchykSenior Vice President of Investments

It isn’t our intention to take much less. I imply we have not regarded on the company degree of protection, we have been targeted on the 4 wall protection for all the appropriate causes traditionally. So I feel going ahead, you may see us proceed to give attention to 4 wall protection as a result of on the finish of the day, it is a duplicative profit, proper, you get the larger of the company protection or the asset protection and as we transfer ahead, I feel that self-discipline will serve us effectively.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Effectively, regardless that they’re in a grasp lease, I feel we have all the time checked out 4 wall protection. A few of our opponents are a bit much less vigorous in that space, however we choose to have 4 wall protection that we be ok with.

Matthew DemchykSenior Vice President of Investments

Yeah. In the end, the company protection actually speaks to the a number of that the money circulation ought to commerce at proper as a result of this can be a very senior lien of their capital stack. However on the finish of the day they’ll view it as a enterprise unit like everybody else would and when it comes up for renewal, it is going to rely on our worthwhile these property are. And that is why now we have the best 4 wall protection that we targeted on that out of our peer set.

David GallagherInexperienced Road — Analyst

Obtained it. I is smart. Only a fast follow-up. The precise of first refusal for On line casino Queen, are you able to give us possibly some potential alternatives that would come up with that relationship with On line casino Queen in that proper of first refusal?

Brandon J. MooreSenior Vice President, Normal Counsel & Secretary

It is laborious to say at this level to be completely sincere. I feel it is — I feel they’re targeted on closing out the 2 transactions that they’ve introduced that they’ve signed, one with us and one with Caesars and and so I feel they proceed to look to attempt to discover areas to develop, however — however I haven’t got a superb sense to have the ability to provide you with any steerage round what which means on a quantitative.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

I do get the sense in speaking with their precept that, they’re are dedicated to doing extra enterprise with us. That’s for a wide range of causes, and I feel it is fairly clear that is the intent. So, we’re staying in tune with what they’re as much as and anxious to assist if and once we can.

David GallagherInexperienced Road — Analyst

Obtained it. Thanks everybody.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Fortunately, they’re very aggressive. Nice. Good to have a hungry companion.

Operator

Our subsequent query is from John Massocca with Ladenburg Thalmann. Please proceed.

John MassoccaLadenburg Thalmann — Analyst

Good morning.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Good morning.

John MassoccaLadenburg Thalmann — Analyst

So what’s your view on steerage going ahead? Is that one thing you’d really feel snug offering once more after a few of these excellent offers closed or may that be considerably extra contingent on a normalized operator surroundings, given how that impacts escalators?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

You already know, that is a very reasonable query. It is one we’re kicking round sizzling and heavy right here. Will probably be a board dialogue shortly as effectively. Look, whereas now we have the TRS is on the market type of in limbo, unsure when exactly they’ll shut, and that clearly would have some huge impacts. We simply do not assume it is traders finest curiosity to have us put one thing on the market that could possibly be wildly dependent upon timing of closings and so forth, improper. After we are free and have closed these transactions and we’re down the pure learn operations, I feel that is one thing we might effectively think about. I am taking a look at Desiree, I feel shaking her head within the constructive means, so what do you assume?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

No, I agree. So proper now now we have the Bally’s transaction additionally, which might be $10 million 1 / 4 in lease, proper. So, not figuring out the timing of the sale of the TRS operations, not figuring out the timing of the closing of the steadiness enlargement, we simply thought it higher to get extra readability round these issues earlier than reconsidering steerage.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

That type of says it. Yeah, however we — assume — a severe have a look at it put up these transactions.

John MassoccaLadenburg Thalmann — Analyst

Nice. It makes loads of sense. After which constructing on Greg’s query earlier within the name, there’s one type of conventional C degree place, if you’ll, that you do not have full of the corporate. I assume as you concentrate on the experience that you’ve in CAO, CIO, CDO positions. Do you assume you should rent a CFO at this level?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Effectively, the fast reply is the proof is within the pudding, we have not as a result of we do not. We actually do not want such an individual, now, look, we’ll must fill that function in some unspecified time in the future alongside the best way. We put that subject on maintain, I imply, proper now we perform is type of the Workplace of CFO with Desiree, Matt and Steve absolutely succesful and the remainder of our crew internally of doing as you may see, every little thing that must be achieved, there isn’t any lack of expertise functionality or something you run the corporate like this ceaselessly. However it seems to be like a gap in this system, and we bought a pop a reputation and there in some unspecified time in the future and we are going to, however we’re not below any stress to do it. And I feel the proof is within the pudding, you have a look at it, as we speak. I imply, we pleasure ourselves on precision with what we current over all of the years that I have been on this enterprise and our crew has been collectively for a reasonably very long time. In order that’s actually the very best reply I can present. When you might have as a lot expertise as now we have right here, we interviewed some very succesful folks, nevertheless it nearly needs to be this crew seems to be throughout the desk and says wow, you bought Harriet otherwise you George, otherwise you bought — nevertheless it needs to be anyone so compelling that exceeds the aptitude that we have right here. And so for the second we’re type of going to play with the other of CFO, we have not introduced it publicly that means, nevertheless it may enable you to to know for the second at the least that is how we’re interested by it.

John MassoccaLadenburg Thalmann — Analyst

Okay. I imply if you concentrate on the asset class, it is a fairly simply manageable asset class. You stated you might have this group of gifted folks round, you imply, CFO is an additional price and it is not an enormous, however it’s an additional price. Is there any ideas of possibly simply both not promoting it in any respect or simply altering a title with the intention to type of not add the additional G&A, if you’ll?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

The reply is sure and possibly. Obtained it?

John MassoccaLadenburg Thalmann — Analyst

Okay.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

We’re actively interested by that proper now. However I feel you realize and you’ll see that now we have all the aptitude on this firm that we have to do what we do.

John MassoccaLadenburg Thalmann — Analyst

After which only a fast modeling query on the subject of On line casino Queen, I do know you place them on money accounting in 2Q, are they again on an accrual foundation as we speak and as of 4Q ’20?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

No, they’re nonetheless in money accounting foundation. As soon as you choose this, you may have to stick with that, so that they’re on money accounting.

John MassoccaLadenburg Thalmann — Analyst

In order that reimbursement, that $4.7 million, I imply that’s going to get again out — beginning 1Q ’21?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

You wouldn’t anticipate one other $4.6 million in 4Q 2021, that is proper, as a result of there won’t be $4.6 million of deferred lease that at the moment. As we stated earlier, there’s about $2 million that will likely be deferred out of the primary quarter that we anticipate to gather a while throughout 2021, nevertheless it’s not $4.6 million.

John MassoccaLadenburg Thalmann — Analyst

So if I take into consideration the relative impression although from 4Q ’20 to 1Q ’21, is that $6 million or so of lease and given what they paid in 4Q and given what they don’t seem to be going to pay in 1Q and the very fact, that is all money?

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Sure, that is right. You’ll lose $4.6 million that you simply collected within the fourth quarter plus their regular rents, that was within the fourth quarter, you wouldn’t anticipate to see all of it within the first quarter, aside from and different $1 million or $2 million for March..

John MassoccaLadenburg Thalmann — Analyst

Okay. That is it for me. Thanks all very a lot.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks.

Operator

[Operator Instructions] Our subsequent query is from John DeCree with Union Gaming. Please proceed.

John DeCreeUnion Gaming — Analyst

Good morning everybody, thanks for taking my query.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Good morning.

John DeCreeUnion Gaming — Analyst

Peter, I feel in an earlier remark remark, you have talked about that a variety of people have type of come by and taking a peek at Tropicana, however actually not severe consumers or perusing [Phonetic]. I am curious in case you’re seeing that on the promote facet as effectively for stuff that you are looking at? Are there actually motivated sellers or are folks simply type of placing signal out hoping that they catch lofty worth and are not significantly motivated?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, have a look at, by the best way, that is the right one level on the, the oldsters which might be taking a look at Trop. It isn’t that they’d severe consumers, they only do not have severe catch, that is the distinction. I feel they’re fairly severe about wanting the asset, simply not on phrases that we’re prepared to just accept. So look, there’s not a complete lot of stuff falling off the timber within the gaming world proper now, not stunning. There are some issues that we have a look at. Look, we have got some — we had an incredible yr final yr in a yr that we would not have think about could be the case. There are issues we’re taking a look at, however you bought to dig and scratch. It is, I imply it is as I might prefer to say, there’s not a variety of the simple pickings. After I began on this enterprise and it was in 1994 and fashioned Penn Nationwide Gaming out of a bit of racetrack in Harrisburg, Pennsylvania.

There have been firms galore in all places as a result of it was the early days within the within the river boat enterprise as you realize and corporations left and proper, and we swept up a variety of them. The truth is, between we personal, if not a lot of the good ones within the Penn portfolio, a lot of them for positive within the regional world, these aren’t on the market in these numbers. So that you’re seeing a variety of one-off alternatives, nevertheless it’s all timing. There are individuals who have property, single property that we would like to have in our portfolio, however till they’re actually prepared or have a necessity or state causes, all you are able to do is basically type of hold shut.

Our former CFO, Invoice Clifford used to have a line, I type of prefer it rather a lot and so I quote him and credit score him and that’s this, a man is driving down the highway and he rides by your home, he seems to be on the window and says, wow, that may be a stunning wanting home and he goes jumps, pulls this name over the curb, he runs as much as the entrance door, luggage on the door and are available to the door and he says, you have bought a ravishing home and I actually need to have it, and also you say, nevertheless it’s not on the market and he says however you aren’t getting it, I actually need it and also you undergo these once more, it is not on the market. Effectively could also be, if I had a bit of iteration with forwards and backwards for some time, there’s a worth, which you learn into the again room and brag your keys and say, right here it’s.

However, by and huge, it is all a matter of timing and our job is to remain near alternative to reset that second when it could seem. And in addition frankly to domesticate that individuals who say we need to work with Penn or with GLPI as a result of these guys have their act collectively, they will do robust advanced multi-company transactions and many others. and many others. In order that’s type of the best way we have a look at it. It isn’t like these offers — effectively, check out final yr, what number of offers bought signed, moreover what we did, not a lot. So you bought to make, you bought to combat for, you bought to scratch for it day-after-day. I am not going to be over dramatic, however that is fairly effectively characterizes what we’re charged with doing.

John DeCreeUnion Gaming — Analyst

Understood. That is useful. Peter. If I can ask another, Matt, I feel it was earlier you have talked about that a variety of the oldsters which might be taking a look at Tropicana are contemplating a redevelopment plan. So, I simply needed to substantiate that remark. After which my query is, of the oldsters that appears to be most . Are you seeing curiosity from On line casino firms — conventional on line casino firms, is it monetary sponsors, third occasion actual property builders like we have seen maybe inside finish the strip get entangled earlier than simply type of curious the place you are seeing probably the most curiosity?

Matthew DemchykSenior Vice President of Investments

Yeah. So I will take the second half first and the reply is the entire above, and we have got a various set of curiosity from people from a variety of totally different specialties and the important thing factor, I might level out is you have bought 35.1 acres which might be a few of the most strategic acres on the strip proper now which might be prime for redevelopment. And what the Coke people are doing and what we’ll see occur on the strip over the following decade, actually this is a vital piece of that. And so, sure, all people is taking a look at redevelopment. I imply there’s a lot underutilized acreage there and there’s a lot upside of the operations from taking extra market share. I feel everybody is consider how one can make it most related for the upcoming decade or two. And as you see the advantages of the Raiders area not far-off and that into the strip coming to life, I feel you are going to see one thing actually fascinating occur there and we have been aware about a few of the — what the plans may seem like and so they’re all fascinating and compelling.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, look it is doubtless a multi-use growth as you’d think about from residential, retail the entire enhanced On line casino and many others. and many others. So it is the type of people who would do this, which might be most severe about this chance.

John DeCreeUnion Gaming — Analyst

Obtained it. Thanks a lot for all the colour and thanks once more.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks. How we’re doing time-wise. Now we have time for one or two extra questions.

Operator

Now we have another left which is Robin Farley with UBS. Please proceed.

Robin FarleyUBS — Analyst

Nice, thanks for becoming me in. Most of my questions have been answered, however simply going again to your earlier remark about potential transactions, you talked about the strip and it appeared prefer it was extra than simply the trough you had been referring to. Is there from consumers and type of working with you to do one thing with an present strip operation, not a redevelopment alternative, however simply extra typical of the kind of transactions we have achieved?

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Steve, do you need to take that one?

Steve LadanySenior Vice President, Finance

Definitely. So look, at totally different time limits, there had been totally different operators and clearly the market has continued to evolve. I feel there’s — there are some extremely built-in vacation spot resorts that sit on the strip which might be at anyone cut-off date being marketed and as we predict by these and have discussions with potential operators, we’re all the time and prepared to take a look at transactions. Completely different occasions we have had totally different people which have come ahead and we pursue issues with them. So yeah, we are going to have a look at something and we consistently discuss to present and new potential operators about potential transactions.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Yeah, look, we — possibly I ought to clarify, we’re not anti-strip. I imply it is some great properties there, simply needs to be underwritten in a different way. You’ve got bought a complete totally different price construction and when these inns for instance are empty and you have got a large price drag and so forth, it is not, to illustrate, a property in Toledo, Ohio, the place you do not actually have a resort, price construction is so solely totally different and the power to earn a living is a lot easier, it is simply extra advanced. So, we’re up for something and we’d do something, however you simply have a special view of how you place it collectively.

Robin FarleyUBS — Analyst

Okay, nice, thanks very a lot.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Thanks, Robin.

Operator

That does conclude our query and reply session. I want to flip the decision again over to administration for closing remarks.

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Operator, thanks very a lot and thanks all for dialing in as we speak. As we stated, final yr was a was surprisingly profitable yr for us. We’re charging forward in 2021, hoping we get by COVID and get out the opposite facet. So we’re optimistic about this yr and stay up for speaking with you subsequent quarter. Thanks once more.

Operator

[Operator Closing Remarks]

Period: 59 minutes

Name members:

Joseph JaffoniInvestor Relations

Peter M. CarlinoChairman of the Board and Chief Govt Officer

Desiree A. BurkeSenior Vice President, Chief Accounting Officer

Matthew DemchykSenior Vice President of Investments

Steve LadanySenior Vice President, Finance

Brandon J. MooreSenior Vice President, Normal Counsel & Secretary

Barry JonasTruist Securities — Analyst

Greg McGinnissScotiabank — Analyst

Jay KornreichSMBC — Analyst

Daniel AdamLoop Capital — Analyst

Thomas AllenMorgan Stanley — Analyst

David KatzJefferies — Analyst

RJ MilliganRaymond James. — Analyst

Shaun KelleyFinancial institution of America — Analyst

David GallagherInexperienced Road — Analyst

John MassoccaLadenburg Thalmann — Analyst

John DeCreeUnion Gaming — Analyst

Robin FarleyUBS — Analyst

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