Prepared remarks
Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Please note that this conference is being recorded today, July 30, 2026. I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties.
Thank you, operator, and good morning. Everyone should have access to the company’s second quarter 2026 earnings release and supplemental information. The release and supplemental information can be found in the Investors section of the VICI Properties website at www.viciproperties.com. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, believe, expect, should, guidance, intend, outlook, projects, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. I refer you to the company’s SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company’s operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website, in our second quarter 2026 earnings release, in our supplemental information, and in our filings with the SEC. For additional information with respect to non-GAAP measures and certain tenants and/or counterparties discussed on this call, please refer to the respective companies’ public filings with the SEC. Hosting the call today are Edward Pitoniak, Chief Executive Officer; John Payne, President and Chief Operating Officer; David Kieske, Chief Financial Officer; Jeremy Waxman, Chief Accounting Officer; Gabe Wasserman, Managing Director of Business Development and VICI Experiential Credit Solutions; and Moira McCloskey, Senior Vice President of Capital Markets. Edward and the team will provide some opening remarks, and then we will open the call to questions. With that, I will turn the call over to Edward.
Thank you, Samantha, and good morning, everyone. And for the analysts on the call, we are especially grateful for your presence today because we know that yesterday after market, you dealt with an absolute flood of earnings releases in your coverage areas. So, again, thank you. In the next few minutes, you will hear from John Payne on our growth outlook and activities and from David Kieske on our financial results, liquidity, and updated 2026 earnings guidance. To start, I would like to spend a moment or two talking about how we think about, talk about, and manage the growth of our business. You have heard us say before, frequently, we grow our business by growing our relationships, by growing new relationships and growing the scale of existing relationships. Today, I would like to take you deeper inside our approach to relationship building, and to do that, I will tell you the story of our new relationship with Club Med, which we announced back in June with the news of our investment in St. Croix, where we have acquired the Carambola Beach Resort. We first began getting to know Club Med in 2025, and it is important to understand how we came to be connected with Club Med. The connection was not direct. In this case, it was not about calling up their global headquarters in Paris nor their North America and Caribbean headquarters in Miami. Though we do regularly make cold calls on experiential operators. We did not receive a flyer saying there was a Club Med property or a Club Med opportunity for sale. We did not get connected through bankers or brokers. We connected with Club Med through a company that will remain nameless. This is a leisure and hospitality company we have been courting for partnerships since just about the birth of VICI. To date, we have not been able to find the right opportunity with them, though, to be sure, we will not stop trying. We have always worked hard to make our conversations with this unnamed company meaningful and collegial and frequent. In 2025, Club Med asked this unnamed company who they, Club Med, might partner with for financing of the St. Croix opportunity they were pursuing. The unnamed company said to Club Med, "We should connect you with our friends at VICI." And thus, in 2025, Club Med connected with John Payne and Aaron Furey to get a conversation started. When we commence a conversation with a potential new partner, we are not in sales mode. We are in learning mode. With Club Med, John, Aaron, Matt Perkins, and other members of the VICI team set about seeking to understand Club Med’s needs—financial, strategic, and cultural needs—not only in St. Croix, but into the future that Club Med envisions for itself. This is an approach that takes time, but we believe in this approach that leads to the strongest foundations upon which to grow together. And in this case, St. Croix became the foundation upon which we are building our relationship. When we first announced our new partnership with Club Med and our acquisition of the St. Croix property, the reaction from some was a small deal. I will offer a couple of quick thoughts on that take. First of all, the total projected investment of $75 million into one property is pretty meaningful by net lease standards, given that the typical net lease property tends to cost low-single-digit millions. Secondly, and to reemphasize the point, when we make a first investment with a new partner, we are highly focused on the foundation we are building for potential future investment. Two weeks ago, a number of us on the VICI team experienced this strong foundation when we joined our Club Med partners on the North Shore of St. Croix for what Club Med calls its first-stone ceremony. This ceremony celebrated the ecosystem of relationships that Club Med builds before it creates, and in order to create, great experiential resorts. The Club Med team of Global CEO Stéphane Maquaire, North America and Caribbean President and CEO Carolyne Doyon, and North America and Caribbean Senior Vice President of Development Eileen Kett brought together the St. Croix governmental, tourism, and development officials who have been and will continue to be instrumental in supporting the resort redevelopment, both strategically and financially, as well as the contractors who, over the next 18 months or so, will restore this resort to the glory originally envisioned by Laurance Rockefeller while making it a distinctly Club Med experience. What I witnessed on St. Croix made me proud of the new partnership we have created with Club Med and excited for what, together, we will contribute to St. Croix’s competitiveness as an experiential destination. What was also clear to me that day in St. Croix is the energy, creativity, and passion that Club Med brings to its growth activities. And with Club Med having a stated goal of growing its portfolio of destinations from 60 to 100 over the next few years, I am hopeful and excited that VICI will find ways to be supportive of and participative in that growth. If we do, it is because we will continue to grow our relationship with Club Med, with that growth relying on our working every day to understand and better serve their needs, which is what we strive to do with every one of our growth partners. And with that, I will turn the call over to John.
Thanks, Edward. Good morning to everyone. You just heard Edward tell the story of how our Club Med relationship came to be, and I will simply add two things. First, for our business development team, a partnership like this one is the payoff of years of patient relationship building. It is the way we like to grow. Second, the transaction itself marks several firsts for VICI: our first build-to-suit investment and our first property acquisition in the Caribbean. At closing, we funded the $20.3 million acquisition of the Carambola Beach Resort, and we will fund Club Med’s approximately $55 million redevelopment of the resort, which Club Med will operate under its premium Exclusive Collection brand following a targeted opening in the fourth quarter of 2027. As Ed said, we look forward to growing with Club Med for years to come. During the quarter, we also brought several previously announced transactions across the finish line: the closing of our $1.16 billion Golden Entertainment sale-leaseback, the commencement of our new lease with Clairvest at Northfield Park, and the completion of the acquisition of the Gamehost real estate in Alberta for approximately C$200 million alongside our existing partners at PURE. With the completion of these transactions, we have added Clairvest, Golden Entertainment, and Club Med as our 14th, 15th, and 16th tenants, respectively. This tenant growth was achieved by partnering with experienced and tenured operators, from Clairvest’s two decades of investing across 37 gaming assets, to Blake Sartini’s more than 30 years operating in the Nevada gaming landscape, to Club Med’s 75 years of all-inclusive operating experience. And the closing of the Gamehost transaction reflects the other side of that same discipline: our capital continuing to serve the growth of partners already on our roster. Turning to the trends across the portfolio we already own, there is no better place to start than Las Vegas. On a year-to-date basis, Strip gaming revenue is running ahead of last year, with room rates continuing to demonstrate the pricing power of this market. The resilience of Las Vegas continues to be reinforced by the ongoing diversification of demand. We have noted many times how this city has transformed itself into an entertainment epicenter with experiences like Sphere, and there has been massive growth in professional sports with the addition of the Golden Knights, the Raiders, F1, the Aces, and the upcoming relocation of the Oakland A’s. And now the prospect of an NBA franchise stands to extend the trajectory further. Every new demand driver makes Las Vegas that much harder to bet against. Then there is the convention segment, which we have long viewed as an underappreciated mitigant to the cyclicality of leisure demand. And it continues to strengthen. Last month, U.S. News & World Report named Las Vegas the number-one convention city in America, with The Venetian ranked the top conference hotel on the entire list. This is a powerful validation of the convention infrastructure our operators continue to invest in and of the nearly 6 million square feet of conference, convention, and trade show space VICI owns on the Strip. We often say we aim to make VICI bigger only when it makes VICI better. This quarter, we got better: three tenured and experienced tenants added to our roster, a new market in Las Vegas locals, a new geography and partner in the Caribbean, and continued growth with partners we know well. The roster-building, relationship-driven work is what will continue to define VICI in the quarters ahead. Now I will turn the call over to David, who will discuss our financial results and guidance. David?
Thanks, John. Touching on the income statement, AFFO per share was $0.62 for the quarter, an increase of 4.6% compared to $0.60 for the quarter ended June 30, 2025. In terms of the balance sheet, our total debt is $17.2 billion, and our net debt to annualized second quarter adjusted EBITDA is approximately 4.9 times, below the low end of our target leverage range of 5.0 to 5.5 times. We have a weighted average interest rate of 4.45%, as adjusted for hedging activity, and a weighted average of 5.5 years to maturity. As of June 30, 2026, we have approximately $2.5 billion in total liquidity, comprising $288 million in cash and $2.2 billion of availability under our revolving credit facility. Turning to guidance, we are updating AFFO guidance for 2026 in absolute dollars as well as on a per-share basis. AFFO for the year ending December 31, 2026, is expected to be between $2.675 billion and $2.695 billion, or between $2.45 and $2.47 per diluted common share. Compared to our prior AFFO-per-share guidance, the updated guidance represents an increase at the low end of the range of $0.01. Based on the midpoint of our raised 2026 guidance, VICI expects to deliver year-over-year AFFO-per-share growth of 3.4%. As a reminder, our guidance does not include the impact on operating results from any pending acquisitions without announced expected closing dates, possible future acquisitions or dispositions and related capital markets activity, or other nonrecurring transactions or items. With that, operator, please open the line for questions.
Questions and answers
You may get back in the queue as time allows. Our first question comes from the line of Barry Jonas from Truist. Your question, please.
Hi. This is Jeremy on for Barry. Thanks for taking our questions. With Churchill Downs announcing last night that it is looking to sell its regional properties, what are your high-level expectations for regional M&A activity throughout the remainder of the year? And do you see regional valuations market-wide as reasonable at this point?
This is John. It is good to talk to you. I will talk a little bit about regional gaming right now. I was adding up the years last night. I have been in or around the regional gaming space for 30 years. My colleagues are laughing at me right now. But the business is resilient. There has been a really amazing rebound here over the past six months or so in the regional markets. It is very exciting to see the innovation that is happening around slot product right now that is helping to drive growth in the regional markets. As it pertains to the Churchill announcement that they are going to be selling their regional gaming portfolio, there are some assets in their portfolio that I am sure we will take a look at that would be a nice addition to our portfolio. I know there are some of our current tenants that are interested in those assets, and we will continue to better understand the opportunities there.
Got it. That is very helpful. And then, should we expect to see more build-to-suit structure-type deals similar to Club Med?
Yeah, Jeremy. It is very common across the net lease universe, and it is something that we are excited about. I think we continue to offer solutions to our partners, and this is a very attractive solution for those that are in growth mode.
Got it. Thank you.
Thank you. And our next question comes from the line of Caitlin Burrows from Goldman Sachs. Your question, please.
Hi. Good morning, everyone. I guess, just—considering that your two largest tenants are in the news to potentially be bought—we will see what happens with them—but I guess, just considering the time period that we are in right now, I was wondering if you could comment on how your conversations with those tenants today differ from a year or two ago and kind of what is normal course versus what is maybe on hold because their own structure is changing or potentially changing.
Yeah. Hey, Caitlin. Good to hear from you. I would say that our conversations actually have not fundamentally changed with our partners. We are in constant contact with all of our partners around various interactions involving our businesses. They are obviously in very intense operational mode day by day and hour by hour. We are always very respectful of that and making sure we do not waste their time. But we continue to have very positive conversations around opportunities that we see together, whether with existing assets or incremental opportunities. I will turn it over to John here because he can give you an example of an opportunity that we are discussing with a partner despite the fact that that partner is also engaged in some very meaningful activities beyond us.
Yeah. It is good to talk to you this morning. Edward is referring to the opportunity in Las Vegas with the NBA. I think everyone has seen in the news that the NBA is looking to put another team into Las Vegas. There are many people bidding on that team. We own, in conjunction with our partner Caesars, 50 acres of land behind the Horseshoe and Planet Hollywood, and we are working with them—Sean McBurney in particular, who runs Las Vegas—to develop a plan to house the arena that could be built for the new NBA team. So that is just an example of us working with one of our partners. The other thing I will address is, in my opening remarks, I talked about having our 14th, our 15th, and our 16th tenant. We are very different from other triple nets that have hundreds of tenants. We have 16, which allows us to have deeper and more frequent conversations. So we are constantly talking to our partners about ways we can grow together, how our assets are performing, et cetera. That is another example of how we are a little bit different.
Got it. Okay. And then I think you have probably touched upon it briefly in the prepared remarks, but I was wondering if you could talk about some of the trends you are seeing more recently in Las Vegas and maybe how they differ or vary between your specific assets and the market overall.
We continue to be very excited about the market. As I hinted, it is a place that constantly reinvents itself and not only has ways to make money in gaming, but it is becoming the number-one entertainment epicenter in the world. Someone can argue with me about that. It is a place that continues to add different reasons to come and visit. We obviously are well invested there. We have numerous assets there. They all continue to have specific reasons why the consumer segment comes to their property. We really like what the operators are doing, especially event-driven initiatives and creating unique events that can only be done in Las Vegas. So we continue to be really excited, and we continue to like how our tenants are operating their businesses and being creative.
I will just build on what John is saying, Caitlin, by pointing out what MGM disclosed yesterday with its Q2 2026 results, which was 93% occupancy for its Strip assets in the second quarter. That is an outstanding amount of occupancy given the amount of inventory MGM has on the Strip. I think embedded within that was the very meaningful positive outcome it is getting by being promotional and offering all-inclusive packages at Luxor and Excalibur. These are operators that respond to changing conditions, and they respond as energetically and creatively as any hospitality and leisure operators I have known.
Thank you.
Thank you. And our next question comes from the line of Greg McGinniss from Scotiabank. Your question, please.
Hey. Good morning. So I believe most of the free cash flow is spoken for this year, with investments to make. But as you look ahead, are you considering share repurchases, or do you think you can find more accretive investments with this capital?
Yeah, Greg. It is a question we get asked a lot. You have basically answered the question. We are putting money out at SOFR plus 525. That is a much more attractive use of our capital. That is just for the one Bear Valley Hills loan, and our loan book is close to a 9.5% yield. We can find much more attractive uses of that free cash flow, and Club Med is a very attractive return. What we have closed this quarter is a very attractive return. The buyback for a REIT, especially a net lease REIT that is dependent on deploying capital for growth, is just not something that makes a lot of sense, especially where we are now and with the investment prospects we have in front of us.
Okay. Thanks. And then we have seen the news that there are a lot of cities pouring billions of dollars of capital into convention facilities. I am curious what impact you might think this may have on Las Vegas and also whether this represents an investment opportunity for you.
It is a good question. I do think that the competitive superiority of Las Vegas as a convention destination is so well established that I do not know that anybody is tremendously worried about new convention supply in other American cities. A large part of that has to do with the ecosystem Las Vegas represents when it comes to appealing to and serving the needs, both convention and leisure, of conventiongoers. The entire ecosystem—including airlift, infrastructure, lodging quality and abundance, entertainment quality and abundance, and food and beverage quality and abundance—there is really no city in America that can come close. That is probably also due to the somewhat beat-up condition of full-service lodging inventory across many American city centers. I have very strong conviction around the competitive superiority of Las Vegas as a convention destination. As to the introduction of new supply in other cities, it could be something we would look at, but it would have to be a situation in which we can invest accretively, and we would also have to have high confidence that the destination can be competitive in a very competitive marketplace.
Great. Thank you.
Thank you. Our next question comes from the line of John DeCree from CBRE. Your question, please.
Hi. Good morning, everyone. Thank you for taking my question. I wanted to ask a little bit about the shift to private markets for your tenants. VICI had a unique exposure to public tenants relative to other REIT asset classes. I am curious if you find private companies that you work with being more willing, open, or flexible to use REIT financing relative to public companies. The last couple of years, we have seen public markets undervalue casino operators. Is the shift to private markets changing the outlook for M&A and refinancing in the casino space?
I think it could. It is somewhat understandable, given what a lot of operators have felt has been a somewhat lack of love in the public markets over the last few years. A number of them that we talk to appreciate the fact that in the private markets, they can do what they believe are the right things to grow their business over the longer term. Once they go private, they tend to be less focused on quarterly earnings and more focused on the IRR on incremental investments. We have found that private operators are more responsive to the use of our capital through our Partner Property Growth Fund because, from an IRR point of view, that capital is very attractive to them. Recent privatizations have left the now-private operators feeling quite good about where they are. I will turn it over to John for more specifics.
From the operations side, being in a private setting is quite beneficial for this industry. These are very intensive businesses, and there are times when you know something needs to be refurbished, but it will be detrimental to a quarter or two. That is not the right way to think about these businesses. You need to think long term about when capital should be invested. Although it may disrupt the business for 60, 90, or 120 days, you need to do it for the long term. IT is changing dramatically in this space, and the implementation of new systems and servers can be disruptive to an operation for 30, 60, or 90 days. In a private setting, you do not really worry about those periods. In a public setting, you might. We are enthusiastic about what we are seeing. We will see how it plays out over the coming months or years, but that is my take on how it is affecting operators’ view of their business.
Thanks, guys. I will hop back in the queue. Appreciate it.
Thank you. And our next question comes from the line of Chris Darling from Green Street. Your question, please.
Thanks. Good morning. Can you provide an update on the sports infrastructure opportunity and any discussions you continue to have with universities? Is there anything structural or related to pricing that is top of mind for these institutions? Anything specific that may have possibly prevented deals from closing to date?
Yeah, Chris. We have been very active in this space, and I would describe it as educational. We opened my remarks by talking about being patient and relationship building. The university space is exactly that: we are explaining that we are long-term investors and how we could help a university, particularly in sports, grow over the coming years. I do not think pricing or cost gaps are the reason we have not announced anything yet. It is more about us determining if this is the right place for us to be and many universities deciding whether capital-light VICI is the right way to grow their sports business.
And just to answer the second half of the question with any structural consideration, a lot of universities want to make sure that debt and other debt-like instruments are not on their balance sheets and impacting their credit ratings. We have made sure they understand how flexible VICI’s capital can be, that we are long-term partners, and that we provide a capital solution that works for the university’s needs and also works for VICI.
Okay. Those are helpful thoughts. That is it for me. Thank you.
Thank you. Our next question comes from the line of David Katz from Jefferies. Your question, please.
Hi. Good morning, everyone. Thanks for taking my question. I wanted to talk about regional gaming in a broader sense because operators are investing internally, finding those to be some of their best opportunities, and adjusting to dynamics across the United States. What we are seeing, including from your largest regional tenant, is some pretty good numbers. Is that a function of operators dialing in their strategies, internal investments, or an external demand moment? Specifically as it relates to your tenants, where I am most interested.
David, you have watched gaming a long time. You have seen how resilient local and regional casinos are. I tell people this is the people’s country club. What I have noticed over the past couple of years, as competition has come from iGaming and sports betting, is operators reinvigorating their offerings. The manufacturers have gotten more creative with products. Those combinations are paying off this year and will in future years. In tougher times and with more competition, the great operators step up and think differently about their business—how they reward, how they incent, how they improve their service. All of that plays into why we are seeing an uptick in the regional or local market. I am quite excited about what I am hearing from our operators, and I am excited about the technology I am seeing.
I will add that there is a lot more live entertainment in America now that takes place in regional casinos, both commercial and tribal, to an extent that did not exist 30 or 40 years ago. That contributes to the relevance regional gaming operators achieve in relation to their geographic and demographic markets. I would also love to hear your thoughts on what you think are the key drivers of what appears to be fundamental strength in regional gaming.
I will ask my follow-up and quickly answer yours: I think there is some dialing in of strategies on value propositions and recognizing where competition is coming from and how to compete. Regarding the Caesars regional lease, can you comment whether some of this improvement and the backdrop alleviates the need to pursue that conversation in the near term?
I would not say it alleviates or eliminates it. That is a conversation that will take place as Caesars continues to develop its new ownership structure. We will remind everyone that we collect every dollar of rent in the meantime. We appreciate the work Caesars has been putting into the regional assets and the results they produced in Q2.
Thank you. And our next question comes from the line of Daniel Guglielmo from Capital One Securities. Your question, please.
Hi, everyone. Thank you for taking my questions. As a follow-up to John’s point about public versus private gaming operators, there is an impression that private operators are a black box for property owners around information, which I do not think is the case. Can you talk through the information you use outside of public earnings and SEC filings that keeps you up to date on private operator tenant trends?
Yeah, Daniel. You are spot-on. There is more transparency into gaming operators than across the traditional net lease landscape because of monthly reporting at the state level. Sometimes it is by region, but oftentimes by asset. Many private operators have public debt and report to the term loan market or the high-yield market. There are trading desks on the fixed-income side, and research desks report on those private companies. So there is improved transparency, whether they are public or private, versus the broader triple-net lease space.
We spend a lot of time with each of our private tenants, making sure we are getting the necessary reporting through our leases. Gabe is here and can speak to the asset management focus. We always meet with asset management to ask what we need from a reporting perspective so that we can monitor tenants in the same way we would with a public tenant.
We get property-level financials from all of our borrowers and tenants. As a group, we sit every quarter and go through every single lease and loan investment in the portfolio. So we have complete visibility into our tenants’ and borrowers’ financial performance, regardless of whether they are publicly traded or private.
Great. That is really helpful. Thank you. And then, as you mentioned in the opening remarks, Club Med was a new tenant this quarter. The property is in the U.S. Virgin Islands, but it is well known as an international brand. As you continue to expand into experiential, have international properties outside of the U.S. and Canada become more interesting to you?
This is Aaron Furey. Daniel, it is a geography we have looked at over the last five years, spending time mapping and trying to understand tax and legal structuring, as well as financing markets that could support investments outside of the U.S. and Canada. St. Croix is a bit of a cheat because it is in the U.S. Virgin Islands, so it is still a U.S. territory, but it is a geography we continue to look at expanding into.
Great. Thank you.
Thank you. Our next question comes from the line of Wesley Golladay from Baird. Your question, please. Wesley, your line is open. You might have your phone on mute. All right. Our next question comes from the line of Ronald Kamdem from Morgan Stanley. Your question, please.
Hey. Good morning. This is Jenny on for Ron. I want to dig a little into the allowance for credit losses. The 10-Q note says a tenant issued new senior secured debt at a lower credit rating. Can you talk more about that? Is it tenant-specific or macro-driven? I want a better understanding of that. Thank you.
Yeah. It is Gabe. For our CECL allowance, we look at the senior secured credit rating of our tenants and their parent guarantors. If a parent guarantor does not have senior secured debt, we use a proxy company. For one of our private tenants, we had been using a proxy historically to estimate the credit rating and profile. Last quarter, they issued debt privately, and we used that updated credit rating to estimate the CECL allowance. That is why we saw the change quarter over quarter. The property is performing well. We have great insight into the property performance; we get the monthly financials, and this was a function of additional information available for our model.
That makes sense. As a follow-up on the watch list, is there anyone else on your watch list now, or do you feel pretty good about the rest of your tenants?
We do not have a watch list. We go through every single lease and loan in our portfolio on a quarterly basis. We have complete transparency into our borrowers’ and tenants’ performance. That is why it is important we get tenant- and borrower-level financials. Our focus is on reviewing every single loan and lease in the portfolio, not individual investments.
Got it. Thanks so much.
Thank you. And our next question comes from the line of Todd Thomas from KeyBanc Capital Markets. Your question, please.
Hi. Thanks. Following up on the credit profile of the portfolio and the loan, can you provide more detail around the loan modification in the quarter? I think it was $90 million. Can you clarify whether this is separate from the golf course development loan that was placed on nonaccrual last quarter?
Sure. We have a $90 million senior secured loan collateralized by a leisure and hospitality asset. It is about 3% of our loan portfolio. During the quarter, we extended the maturity date and reduced the interest rate on that loan to right-size the yield as the asset continues to ramp. The interest on the loan is being paid monthly in cash. In return, we received additional collateral, and the borrower will be making amortization payments to reduce our loan balance. This is an example of our active asset management approach with borrowers and tenants. If there is an issue, we work constructively with them to identify a solution that provides value to both parties. This is separate from the loan disclosed in Q4 2025 that is on nonaccrual status.
Okay. That is helpful. I wanted to follow up on a prior question around Caesars. You have previously indicated both parties would prefer a resolution rather than allowing it to remain a distraction. With the annual rent escalator approaching and CPI still running above the contractual floor, does that create greater urgency around reaching a broader portfolio solution? Should we think about resolution occurring over the next several quarters rather than years? Any update?
We cannot give a precise timetable. I would not say it is a major factor. Caesars is undergoing a significant M&A transaction with many moving pieces and stakeholders, including regulatory. How any conversations fit into that process—which is somewhat prolonged—I believe Caesars indicated about a 12-month timeframe for completion of that transaction. There are many moving pieces, and it is difficult to predict a precise timetable for any conversations we might have.
Okay. Thank you.
Thank you. This does conclude the question-and-answer session of today’s program. I would like to hand the program back to Edward for any further remarks.
Well, again, we will just thank everybody for their time today, both from the sell side and the buy side. We realize it is a very busy time of year. We wish you a good rest of the summer, and we will see you again in late October.
Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.