Deal Pipeline and Growth Opportunities
Q: Can you discuss your current deal pipeline and growth opportunities?
A: Management expressed that they are sober about the marketplace and capital markets but continue to work on several opportunities in gaming and non-gaming sectors that excite them [0]. They highlighted the magnitude of their existing properties, especially in Las Vegas, such as the Venetian with 17 million square feet, including 300,000 unfinished square feet that present incremental investment opportunities [0]. They are exploring different target sectors like wellness, indoor water parks, pilgrimage, golf, and family entertainment centers, and have made their first investment in youth sports [0].

Caesars Call Option Timing
Q: What are your considerations for exercising the Caesars Center call option?
A: Management aims to be opportunistic with the timing of exercising the call option, depending on their cost of funding [2]. They wouldn't exercise it if it would create dilution [2]. While the rent coverage is set by the current agreement, they are in discussions with Caesars to ensure rent coverages are agreeable for decades to come [8].

Mezzanine Lending Strategy
Q: How is mezzanine lending becoming part of your capital deployment strategy?
A: They acknowledged that mezzanine lending and construction financing are growing aspects of their strategy, used to forge relationships and create steady capital allocation [6]. These loans will remain a minor percentage of assets under management, focusing on achieving the right risk-adjusted spreads by considering factors like the cost of senior debt, equity sponsorship, and loan-to-value ratios [6]. They emphasized rigorous underwriting practices and ensuring that their last dollar exposure is at a comfortable level [6].

Guidance and Forward Equity Impact
Q: How are you treating forward equity in your guidance share count?
A: Management clarified that there is no implied use of proceeds or drawdown from the forward equity in their guidance [1]. There's a slight impact from treasury stock dilution in the share count, but they are not assuming any credit or benefit from the funding and are actually taking a marginal penalty due to the treasury stock method [1].

Expanding into Non-Gaming Assets
Q: Will you continue to expand into non-gaming experiential assets?
A: They confirmed plans to invest in non-gaming sectors, identifying opportunities in experiential real estate that offer rich and profitable experiences [4]. Partners like Cabot, Canyon Ranch, Bowlero, and Great Wolf have network growth opportunities not readily available to gaming operators [4]. This diversification allows them to grow when gaming growth is limited, emphasizing investments in assets with lower-than-average cyclicality [4].

Indiana Assets and 77 Call Option
Q: How attractive is the 77 call option on the Indiana assets currently?
A: Management indicated that the 77 call is not as attractive as when it was struck a few years ago [6]. They would only consider exercising it if it is accretive and would avoid any dilutive opportunities [6].

Financing and Leverage Strategy
Q: How do you plan to manage upcoming debt maturities and leverage?
A: They plan to continue accessing the unsecured market to extend maturity tenors and increase their investment-grade debt [18]. They aim to migrate leverage downwards from the current 5.5x, both through over-equitizing transactions and leveraging neutral transactions, depending on deal size [22].

Performance of Las Vegas Assets
Q: How are your Las Vegas assets, like Fontainebleau, performing?
A: Management praised the quality of assets like Fontainebleau, noting it's a beautiful property built by a strong team [13]. While they didn't discuss financial performance, they emphasized that such assets take time to build up a customer base [13]. They also expressed that media negativity often doesn't reflect actual performance, citing successes like The Sphere and F1 events in Las Vegas [13].

Investing in Professional Sports Venues
Q: Are you considering investing in professional sports stadiums, especially in Las Vegas?
A: They are excited about opportunities related to professional sports in Las Vegas [23]. Owning land near significant venues like the A Stadium, T-Mobile Arena, and Allegiant Stadium, they see value in these properties [23]. MGM is enthusiastic about repositioning opportunities at these locations, reinforcing Las Vegas as a unique, high-growth market [23].

Balancing Low G&A and Team Investment
Q: How do you balance your low G&A expenses with investing in your acquisitions team?
A: Management relies on strong partnerships and relationships with advisors, which serve as force multipliers [12]. By engaging intensely with advisors and rewarding them, they keep G&A low while sourcing opportunities [12]. They are open to adding resources if they feel they are shortchanging shareholders by running too thin [12].