Financial Data and Key Metrics Changes - For Q2 2025, total revenues were $62.9 million, a 12% decrease from Q1 2025, primarily due to tenant defaults [18] - Adjusted funds from operations (AFFO) for Q2 was $48.4 million or $1.71 per share, also a 12% decrease compared to Q1 2025 [18] - The company maintains a strong balance sheet with $2.6 billion in primarily unencumbered gross assets and a low debt to gross assets ratio of 11% [19] Business Line Data and Key Metrics Changes - The company is focused on optimizing occupancy across its cannabis portfolio while facing challenges from tenant defaults [7][8] - The investment in IQHQ, a life science REIT, is expected to be highly accretive to AFFO with a blended yield exceeding 14% [5][6] Market Data and Key Metrics Changes - The cannabis industry is forecasted to grow at a compounded annual growth rate of approximately 7% from 2024 to 2029, reaching $44 billion by 2029 [7] - The life science fundraising in 2025 is on track to be the highest since 2021, indicating strong investor confidence in the sector [5] Company Strategy and Development Direction - The company is diversifying its portfolio by investing in the life science sector through IQHQ, while continuing to evaluate opportunities in the cannabis industry [4][5] - The management team emphasizes the importance of maintaining a conservative financial profile and pursuing high-quality investments with attractive risk-adjusted returns [19][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the persistent macroeconomic uncertainty and regulatory challenges in the cannabis industry but remains optimistic about long-term growth [7][12] - The company is actively pursuing legal remedies to enhance the performance of its real estate portfolio amid tenant defaults [8][10] Other Important Information - The company has closed on a $7.8 million acquisition in Maryland and completed two dispositions totaling $10.8 million in Michigan and California [15] - The company repurchased 367,000 shares of common stock at a weighted average price of $53.98 per share for a total cost of $19.8 million [19] Q&A Session Summary Question: Can you walk us through the real estate investment case specifically for IQHQ? - Management clarified that the investment is in an operating company within the life science sector, not directly in real estate, and highlighted the potential recovery in the life science industry [22][23] Question: What attracted you to IQHQ specifically? - The management noted that IQHQ's portfolio is well-positioned to capitalize on AI demand and the future growth of the life science industry [27][28] Question: How does the investment in IQHQ compare to share buybacks? - Management stated that the investment is expected to provide a higher return than the current dividend yield, emphasizing the importance of overall cost of capital [33][34] Question: How does the decision to diversify capital away from cannabis relate to dividends? - Management indicated that the investment in IQHQ was strategically evaluated to provide current income and yield while addressing underlying issues in the cannabis sector [41][44] Question: What is the current cash yield on the revolver investment? - The current cash yield on the investment is stated to be north of 10% [64]

Transaction Overview - GLPI is acquiring real property assets from Bally's for $1585 billion[5] - The initial cash rent is $1321 million, representing an 83% blended cap rate[5] - The lease term is 15 years with CPI-based rent escalations (10% floor, 20% ceiling)[5] - GLPI has a call option for Bally's Lincoln for $7350 million, with initial cash rent of $588 million[5] Bally's Chicago Investment - GLPI's total investment in Bally's Chicago is $1190 billion, with an 84% blended cap rate[15] - This includes $9400 million in construction financing and $2500 million for land acquisition[15] - The ground lease has a 15-year initial term with an 80% initial cash yield[15] Bally's Kansas City & Shreveport - GLPI is purchasing the real property assets of Bally's Kansas City and Shreveport for $3950 million[31] - The initial cash rent is $322 million, representing an 82% initial capitalization rate[31] - Pro forma rent coverage is projected to be 22x[31] Bally's Lincoln Option - GLPI has an option/call right to acquire Bally's Lincoln for $7350 million, based on an 80% cap rate[37] - The initial annual rent is $588 million, over 20x covered[37]