VICI Properties Inc. (VICI) Q2 2026 Earnings Report, Transcript and Summary

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](http://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 believe me, 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, sort of, 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—excuse me—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.

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. I mean, 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—I think you are referring 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. And 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—we forgot how to phrase it. But 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, I do not know, 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. And, you know, they are obviously in very intense operational business day by day, hour by hour. And 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. And 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 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, as you hear, 16, which then 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. So that is just 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.

Well, 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, as you can hear, it is becoming the number-one entertainment epicenter in the—I will describe it—in the world. Someone can argue with me about that. But 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. And we really like what the operators are doing, especially event-driven, and creating these unique events that only can 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.

You know, I will just build on what John is saying, Caitlin, by pointing out what MGM disclosed yesterday with its Q2 2026 results, and that was 93% occupancy for its Strip assets in the second quarter, which is really an outstanding amount of occupancy given the amount of inventory that MGM has on the Strip. And 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, I think, as energetically and creatively as any hospitality and leisure operators I have ever 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. I mean, 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, you know, 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. And just, you know, the buyback for a REIT, especially a net lease REIT that is dependent—you know, growth is dependent on deploying capital—is just not something that makes a lot of sense, especially where we are now and with the investment prospects that we have in front of us.

Okay. Thanks. And then we have seen the news that there are a lot of cities basically pouring billions of dollars of capital into convention facilities. And I am curious what impact you might think this may have on Las Vegas and also whether this represents an investment opportunity for you.

Yeah, Greg. 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. And part of that—a large part of that—has to do with the ecosystem that Las Vegas represents when it comes to appealing to and serving the needs, both convention needs and leisure and hospitality needs, of conventiongoers. The entire ecosystem, including airlift, infrastructure, lodging quality and abundance, entertainment quality and abundance, F&B quality and abundance—there is really no city in America that can come close. And I think that probably also has a lot to do with, unfortunately, the somewhat beat-up condition of full-service lodging inventory across so many American city centers. So, again, I really 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 in it accretively, and we would also have to have very high confidence that the destination can be competitive in what is 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 kind of the shift to private markets for your tenants. I think, you know, VICI kind of had a unique exposure to public tenants relative to other REIT asset classes. But Edward, John, or David, 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. I think the last couple of years, we have just seen public markets kind of undervalue casino operators. And so, you know, I am curious if the shift we are seeing to private markets is changing the outlook for, you know, M&A and refinancing in the casino space.

Yeah. I think it could, and I will turn it over to John and David in just a moment. John, good to talk to you. You know, it is somewhat understandable, given what I think a lot of operators have felt has been that somewhat lack of love that they have gotten in the public markets over the last few years. And I think a number of them that we talk to—and John can give you more specifics here in a moment—appreciate the fact that in the private markets, they truly can do what they believe are the right things to grow their business over the longer term. And, you know, an example of that is that once they go private, they tend to be not focused on what the earnings are going to be in a given quarter and more focused on, if we make any incremental investments, what the IRR on those investments is going to be. And we have found, for example, 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, very attractive to them. And I will turn it over to John now, but I think we can confidently say that recent privatizations have left the now-private operators feeling quite good about where they are.

Yeah. I think from the operations side—you were talking about the financing side—but just from an operations side, being in a private setting, I think, is quite beneficial for this industry. These are very intensive businesses, and there are times—and John, I think you know I am a recovering operator or a former operator—when I knew something needed to be refurbished, but it was going to be detrimental to a quarter or two quarters. And that is really not the way to think about it—to think about these businesses long term and when capital needs to be invested. And although it may disrupt the business for 60 days, 90 days, 100 days, 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. You need to do it. And in a private setting, you do not really worry about those 30 or 90 days. In a public setting, you might. So I think we are enthusiastic about what we are seeing. We will see how this all plays out over the coming months or years, but that is my take on how it is affecting the operators’ view of their business.

Thanks, guys. That, I think, kind of covered my follow-up there as well. So 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? And then, you know, is there anything structural or maybe related to pricing that is top of mind for these institutions? Just anything specific that may have possibly prevented deals from closing to date?

Yeah. Hey, Chris. It is John, and then I will let any of my colleagues who want to jump in here. Yeah, we have been very active in this space, and I would describe it as really educational. We opened my remarks by talking about being patient and relationship building. I would describe the university space as just that, in 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. So I do not think it is—you asked if there is a pricing or a cost gap—I would say that is not the reason why we have not announced anything yet. I would say it is a little bit of us. We are at a point where we are trying to understand if this is the right place for us to be. And I think many universities are deciding: Is capital-light VICI the right way to grow their sports business?

Yeah, Chris. It is Gabe here. And just to answer the second half of the question with any kind of 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. So we have kind of made sure that 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 all 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, you know, what we have seen is operators investing internally, as they are finding some of those to be their best opportunities, and adjusting to some of the dynamics that have been going on across the United States. And, frankly, what we are seeing, including, you know, from your largest regional tenant, is some pretty good numbers. And my question is: Is that a function of, you know, them just dialing in their strategies? Is it a function of internal investments? Or do you think that it is just an external demand moment that we are seeing show up, you know, in those numbers? And specifically as it relates to your tenants, where I am most interested.

Well, David, I am not sure there has been a person on the phone who has been around gaming longer than myself. I was going to say you, but you have been around a long time—a little less. Okay. So you have watched this. You have watched how resilient these, you know, these local casinos, these regional casinos, are. I tell people this is the people’s country club. And what I have noticed over the past couple of years, as the competition has come, whether that is through iGaming or sports betting, is watching these operators reinvigorate their offerings. I have also watched the manufacturers get even more creative with the products that they have to offer. And I think those combinations are paying off this year, and I think they will pay off in years to come. I think 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 what everyone describes as the regional or local market. So I am quite excited about what I am hearing from our operators, and I am quite excited, from a technology standpoint, about what I am seeing myself.

You know, I will just add on to what John says, David, by also pointing out the amount of live entertainment in America now that takes place in regional casinos, both commercial and tribal, to an extent that certainly did not exist 30 or 40 years ago. And I think it is part of the very powerful relevance that regional gaming operators really work hard to achieve in relation to their geographic and demographic markets. And then, finally, I will just say that maybe not on this call, but I would actually love to hear your thoughts on this and what you think are the key drivers of what really appears to be fundamental, foundational strength in regional gaming.

I am going to ask my follow-up question, and I am going to just very quickly answer yours, which is, you know, I think that there is some dialing in of strategies on value propositions and recognizing, you know, where the competition is coming from and how to beat them. And to that end, you know, we have been able to discuss on this call, in particular, the Caesars regional lease. And I am just wondering if there is any appropriate comment we can make today about whether some of this improvement that we have seen, and the backdrop, given that so much else has changed, alleviate the need to sort of pursue that conversation in the near term.

I would not say it alleviates or eliminates it, but obviously, that is a conversation that will take place at some point as, you know, Caesars continues to develop its new ownership structure in due course. But we will remind everybody that we obviously collect every dollar of rent in the meantime. And, again, I think that, you know, we are very appreciative of the hard work that Caesars has been putting into the regional assets and the kind of results they were able to produce in Q2. Thank you.

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 question about public versus private gaming operators, I think there is an impression out there that maybe private gaming operators are kind of, like, more like a black box for property owners around information, which I do not think is the case. So can you just talk through some of the information that you all 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 there is, you know, across the traditional net lease landscape because of the monthly reporting that goes on at the state level. Sometimes it is by region, but oftentimes by asset. And then a lot of these private operators have public debt, and, you know, they report either to the term loan market or to the high-yield market. There are trading desks on the fixed-income side, and often a lot of your colleagues or other folks across research report on those private companies. So there is improved transparency, whether they are public or private, versus the broader triple-net lease space.

Yeah, and this is Samantha. I will just add: We spend a lot of time with each of our private tenants, making sure that we are getting the necessary reporting through our leases. And Gabe is sitting here to my right, and he can talk about the focus on it from an asset management perspective. So we are always meeting with asset management to ask what we need from a reporting perspective so that we are able to get the information that we need to monitor tenants in the same way we would with a public tenant.

Yeah. We get property-level financials from all of our borrowers and tenants. And then, 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 a publicly traded tenant or borrower 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, maybe outside of the U.S. and Canada, become more interesting to you all?

Yeah. This is Aaron Furey. Daniel, it has been a geography that we have looked at over the last five years, really spending a lot of time mapping and trying to understand the tax and legal structuring, as well as the 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 still is a U.S. territory, but it is a geography that 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 just want to dig a little bit into the allowance for credit losses. So it seems that the 10-Q note says a tenant issued new senior secured debt at a lower credit rating. Maybe just talk a little bit more about that. Like, is it tenant-specific or macro-driven? Yeah. Just provide some—like, I just want to have a better understanding of that. Thank you.

Yeah. It is Gabe here, and I can answer this one. So, for our CECL allowance, we look at the senior secured credit rating of our tenants and their parent guarantors. To the extent that a parent guarantor does not have senior secured debt, we use a proxy company. So, for one of our private tenants, we had been using a proxy company historically to estimate the credit rating and their credit profile. Last quarter, they actually issued debt privately, and we used that updated credit rating to estimate the CECL allowance. So that is why we saw the big change quarter over quarter. The property is performing well. We have great insight into the property performance, as we just spoke about. We get the monthly financials, and this was just a function of additional information that was out there that we could put into our model.

That makes sense. As a follow-up on the watch list, is there anyone else who is kind of on your watch list right now, or do you feel pretty good about the rest of your tenants?

Sure. So we actually do not have a watch list. As we discussed, we go through every single lease and loan in our portfolio on a quarterly basis. So we have complete transparency into our borrowers’ and tenants’ performance. That is why it is really important that we get tenant- and borrower-level financials. So our ability to look at every single loan and lease in our portfolio is what we focus on, and 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.

Yeah. Hi. Thanks. I guess, just following up on, you know, the credit profile of the portfolio and the loan. So I was wondering if you could provide some additional detail around the loan modification in the quarter. I think it was $90 million. And can you clarify whether this is separate from the golf course development loan that, I think, last quarter was placed on nonaccrual status?

Sure. So 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 a great example of the active asset management approach that we take with our borrowers and tenants. If there is an issue, we work constructively with them to identify a solution that provides value to both parties. And then, on the second half of your question, this is a separate loan from the loan we disclosed in Q4 2025, which is on nonaccrual status.

Okay. All right. That is helpful. And then I wanted to follow up on a prior question around Caesars. And, you know, you have previously indicated that, you know, both parties would prefer a resolution to move forward rather than, you know, I think, allowing it to remain a little bit of an ongoing distraction. And I realize gaming operations have improved somewhat, but with the annual rent escalator approaching and CPI still running above the contractual floor, does that create a greater sense of urgency around reaching a broader portfolio solution? Should we think about, you know, resolution occurring over the next several quarters rather than years? Any update around that?

Yeah, Todd. We would not be able to give you any kind of precise timetable. I would not say that is necessarily a major factor. I think the thing to keep in mind is that, in the case of Caesars, they are obviously undergoing a very significant M&A transaction with many, many moving pieces and many stakeholders, including regulatory. So how any conversations will fit into that—which, again, is a fairly prolonged timescale—I believe Caesars recently, or it might have been Fertitta Entertainment, you know, was indicating about a 12-month time frame for completion of that transaction. So there are so many moving pieces. It would be very difficult for anybody to predict with precision a timetable for any conversations that 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, 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.