Gaming & Leisure Properties Inc.’s third-quarter earnings call was largely devoted to an explanation of the company’s sale/leaseback transaction with the Ione Band of Miwok, in California. This is the first-ever such deal between a Native American tribe and a real estate investment trust (REIT).

GLPI leadership was cautiously optimistic about the potential for further arrangements. “It’s still unknown,” CEO Peter Carlino said of the tribal future. “The value has yet to be proven.”

CFO Brandon Moore emphasized that the Ione pact was the culmination of a multi-year process to develop such business models. The most important part, he said, is the lease, which has received National Indian Gaming Commission approval.

He hopes that other tribes will opt for a similar development deal, but this one might be a one-off, rather than “a repeatable revenue stream. We have all the protections” that a commercial lender would enjoy, including the option to foreclose on the property and operate everything except the aboriginal casino itself. After 45 years, the Ione tribe keeps the land “and we all go our separate ways.”

Executives were noncommittal about the size of future such deals. “It’s probably to be determined,” Moore said. “How much of that market we will be interested in … somewhat toward the upper end.” GLPI was, he said, in an exploratory mode now.

“We have spent multiple years working on this,” Moore continued. “Other people will take a look, but their ability to do it with the same clarity is probably not going to be as fruitful.”

Why the Ione Band and why now? “The financing was going to be difficult for the tribe,” the CFO elaborated, praising the “really strong leadership that was willing to embrace our structure. We’re confident in their location [near Sacramento] and their ability to get this done.”

Queried as to whether the REIT’s current priority was to develop properties rather than maximize cash flow by focusing on existing assets, Carlino displayed some impatience. “Look,” he replied, “we’re still in business to buy existing assets where available.”

Referencing his years at then-Penn National, he continued, “We’ve built a significant number of casino properties over the years. There is a measure of risk there.” But Carlino insisted GLPI’s team has a record of bringing in projects on time and budget. “If we can’t find opportunity, we’ll make it, with caution and care always.”

That led to the Tropicana Las Vegas acreage, which Moore said was “a major focus for the company,” but mainly with regard to preserving the value of the site. Bally’s Corp., the nominal operator, is still evolving its design for the site “and we’re awaiting the outcome of that, and waiting to find out how many dollars we’ll be asked to provide—and willing to provide,” Moore concluded with a laugh.

Asked about existing and potential collaborations with Cordish Gaming, Chief Development Officer Steven Ladany said that Cordish is presently going it alone on its Bossier City, Louisiana, casino project. As for a Petersburg, Virginia, casino and other prospects, “We do have the 20 percent equity right to co-invest.”