Dan Guglielmo

Dan Guglielmo asked if GLPI is feeling more supported on the equity side given the strong 2026 guidance, and if the company believes it is receiving a fair portfolio premium in its current valuation.

Answer

Brandon Moore, President and Chief Operating Officer, and Carlo Santarelli, Senior Vice President, Corporate Strategy and Investor Relations, expressed dissatisfaction with the current stock price ($46-$47), highlighting strong growth, conservative leverage, and a high dividend yield, indicating room for improvement. Desiree Burke, Chief Financial Officer and Treasurer, added that the cap rate has crept up. Mr. Santarelli agreed that the portfolio premium might not be fully incorporated into the current valuation, and Ms. Burke emphasized the significant value of cross-collateralization in their leases.

Dan Guglielmo asked if GLPI is starting to feel more supported on the equity side given the strong 2026 guidance, and why the property portfolio does not seem to be receiving a premium in its stock valuation.

Answer

Steven Ladany, Senior Vice President and Chief Development Officer, stated that GLPI is not satisfied with the current $46-$47 stock price, believing there's room to run given the anticipated 2026 and 2027 performance. Carlo Santarelli, Senior Vice President, Corporate Strategy and Investor Relations, highlighted the stock's 2-turn discount, nearly 7% dividend yield, conservative leverage, and premium AFFO growth compared to peers. Desiree Burke, Chief Financial Officer and Treasurer, noted that the cap rate has crept up. Carlo Santarelli agreed that the portfolio's safety and cross-collateralization should warrant a premium, which may not be fully incorporated into the current valuation.

Dan Guglielmo from Capital One asked if strong regional gaming trends alter GLPI's risk appetite and whether the market is overly focused on potential negatives rather than positives for the company.

Answer

Chairman & CEO Peter Carlino asserted that positive trends don't make them more aggressive, as they consistently underwrite properties with a long-term view. He agreed that the market often focuses on 'what could go wrong' and doesn't give enough credit for consistent performance. Senior VP & Chief Development Officer Steven Ladany added that goals for the second half include closing a tribal deal and expanding relationships with current tenants.

Dan Guglielmo asked about any diverging trends in same-store metrics between tenant types or changes noticed this year versus last. He also inquired about the company's long-term growth prospects, specifically if there's a size where sourcing deals becomes harder and how far out that might be.

Answer

Pete Mavoides, President and Chief Executive Officer, explained that same-store ABR is primarily contract-driven, varying by negotiation, while sales and margin trends are more idiosyncratic to individual operators, with strong correlation to public comps in their industries. He expressed confidence in 5-10 years of solid performance and opportunity, noting that the company's measured growth pace and investment in team/infrastructure provide a great runway without significant concern about deal sourcing constraints as they grow.

Dan Guglielmo asked about any diverging trends in same-store metrics between different tenant types or changes observed this year versus last. He also inquired if there's a certain company size where sourcing sufficient deal volumes becomes challenging, and how far out that point might be.

Answer

Pete Mavoides, President and CEO, explained that same-store ABR and rent are contract-driven, while same-store sales, margin, and EBITDA trends are tracked, with most ebbs and flows being idiosyncratic to operators rather than industry-specific. He noted a strong correlation with public comps in their industries. Regarding company size, he wouldn't put a specific number on it but sees 5-10 years of solid performance and opportunity, emphasizing that their measured growth pace provides significant runway without immediate concern about sourcing constraints.

Dan Guglielmo asked if there are specific states or regions where Essential Properties Realty Trust sees better investment opportunities for the next year, given changes in ABR by state. He also inquired about any additional risks considered for higher annual rent bumps on newer tenant leases.

Answer

Peter Mavoides, President and CEO, explained that geography is an output, not an input, driven by tenant relationships across the United States, and he doesn't expect material deviation in geographies for 2026. Regarding higher rent escalations, Mr. Mavoides discussed the balance: while more is better, higher escalations can introduce inherent credit risk if rent growth outpaces tenant profitability. They ensure a healthy rent payment and coverage, especially in out years, to maintain durable tenancy.

Dan Guglielmo observed changes in ABR by state and asked if there are specific states or regions where Essential Properties Realty Trust sees better investment opportunities over the next year. He also inquired about any additional risks considered for higher annual rent bumps on newer tenant leases.

Answer

President and CEO Peter Mavoides stated that geography is an output, not an input, and they follow tenant relationships across the United States, prioritizing the best opportunities with the best operators. He does not expect any material deviation in geographies for 2026. Regarding higher rent escalations, Mr. Mavoides explained that while more is generally better, higher escalations can introduce more inherent credit risk in out years if rent growth outpaces the tenant's underlying profitability. They balance this by ensuring healthy rent payments and coverage throughout the lease term.

Dan Guglielmo from Capital One Securities asked about the key characteristics Essential Properties looks for when investing in the convenience store space.

Answer

CIO AJ Peil clarified that a recent top-10 tenant addition was a rebranding, not a new investment. He explained that for C-stores, they look for operators with scale and underwrite based on gallons sold, inside store sales, and unit-level profitability. They focus on well-positioned stores with strong performance across both fuel and merchandise.

Dan Guglielmo asked if the higher end of NETSTREIT's net investment guidance should be considered a firm limit or if the company would be open to exceeding it under favorable market conditions.

Answer

CEO Mark Manheimer confirmed that sourcing attractive opportunities is not a limit, and they could do significantly more than the high end of the guidance if the cost of capital is strong and the stock price performs well. He also clarified that Q1 closings were more evenly spread than Q3 and Q4 2025.

Dan Guglielmo asked if the higher end of the net investment guidance range is a limit, or if NETSTREIT would be willing to exceed it under the right conditions. He also inquired if investment volumes in the last few days of Q4 were similar to Q3's back-end weighting or more evenly spread.

Answer

Mark Manheimer (CEO, NETSTREIT Corp.) confirmed that sourcing attractive opportunities is not a limit, and they could do significantly more than the high end of the guidance if their cost of capital becomes meaningfully more attractive. Dan Donlan (CFO, NETSTREIT Corp.) stated that Q4 was not as back-end weighted as Q3, with an average closing date in mid-December, though $77 million of transactions did close in the last three days of the quarter. Mark Manheimer added that Q1 would not be as back-end weighted.

Dan Guglielmo asked if NetStreet's view on regional focus has changed, particularly regarding population growth in the Sunbelt, and whether certain regions are more attractive for investment. He also inquired if tenant revenues are keeping pace with rising operational costs like labor and technology.

Answer

CEO Mark Manheimer stated that the company's view on regional focus has not changed, as they continue to follow retail growth driven by population trends in areas like the Sunbelt. He acknowledged that while labor costs have squeezed some tenants, the issue has moderated, and most retailers in their portfolio are feeling bullish and are in growth mode.

Dan Guglielmo of Capital One Financial asked about the macroeconomic and consumer spending assumptions embedded in the company's Q3 and full-year guidance. He also inquired about wage trends impacting operating expenses and whether the benefits from the dealerization program are expected to decrease as it progresses.

Answer

CFO Rob Giamatteo stated the Q3 guidance assumes a cautious macro environment with modestly negative same-store merchandise sales. He noted wage inflation is consistent at around 3%, offset by reduced hours. CEO Arie Kotler and Giammatteo both affirmed that they do not expect the benefits of dealerization to diminish, citing direct G&A reductions tied to store conversions and ongoing operational sharpening.

Dan Guglielmo of Capital One Financial asked about the acceleration in the labor expense line during the quarter and whether certain regions were experiencing higher wage pressures.

Answer

President & CEO Greg Lehmkuhl attributed the sequential increase primarily to annual wage adjustments, the majority of which occur on April 1st. However, CFO Rob Crisci added that despite this, same-warehouse labor costs were down year-over-year, reflecting successful productivity initiatives that are offsetting wage inflation.

Dan Guglielmo of Capital One Financial inquired if VICI's Canadian properties are benefiting from reduced outbound Canadian travel and asked about the company's plans for capital returned from maturing loans if the investment environment is unfavorable.

Answer

President & COO John Payne confirmed that VICI has been very pleased with the performance of its Canadian assets and suggested that more Canadians staying local is a contributing factor. Chief Accounting Officer Gabriel Wasserman stated that VICI actively plans for maturing loans, evaluating alternative investments or refinancing options with partners, citing the Great Wolf Perryville loan as a past example of a successful refinancing.

Dan Guglielmo asked if any of the company's four key three-year financial targets have significant momentum to potentially come in above the stated goals.

Answer

CFO Katie Fogertey reiterated the existing targets but highlighted the company's commitment to growing new units, finding productivity, and investing in marketing to drive traffic. She concluded that they expect all of this to result in 'pretty strong adjusted EBITDA growth,' signaling confidence without formally raising the long-term outlook.