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Item 2. Management’s Discussion and Analysis

2025-07-24 compared with 2025-04-24 · 150 added, 86 removed, 463 unchanged (34% of the section changed)

1 unchanged sentence

The following discussion and analysis of the financial position and operating results of Gaming and Leisure Properties, Inc.

for the three months ended March 31, 2025 should be read in conjunction with the Financial Statements and related notes thereto and other financial information contained elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes for the year ended December 31, 2024.

for the three and six months ended June 30, 2025 should be read in conjunction with the Financial Statements and related notes thereto and other financial information contained elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes for the year ended December 31, 2024.

All defined terms included herein have the same meaning as those set forth in the Notes to the Consolidated Financial Statements contained within this Quarterly Report on Form 10-Q.

6 unchanged sentences

You should understand that the following important factors could affect future results and could cause actual results to differ materially from those expressed in such forward-looking statements:

• our or our partner’s ability to successfully complete construction of various casino projects currently under development for which we have agreed to provide construction development funding, including Bally’s Chicago (as defined below), and the ability and willingness of our partners to meet and/or perform their respective obligations under the applicable construction financing and/or development documents;

• our or our partner’s ability to successfully complete construction of various casino projects currently under development for which we have agreed to provide construction development funding, including Bally’s Chicago, and the ability and willingness of our partners to meet and/or perform their respective obligations under the applicable construction financing and/or development documents;

• the impact that higher inflation rates and interest rates and uncertainty with respect to the future state of the economy could have on discretionary consumer spending, including the casino operations of our tenants;

32 unchanged sentences

GLPI issues equity from time to time and is obligated to contribute the net proceeds from those offerings to GLP Capital.

As of March 31, 2025, GLPI holds a 97.0% controlling financial interest in the operating partnership.

As of June 30, 2025, GLPI holds a 97.0% controlling financial interest in the operating partnership.

Business Strategy

4 unchanged sentences

Property and lease information

The Company has disclosed the following key terms of its Master Leases and Single Property Leases in the tables below, along with the properties within each lease at March 31, 2025.

The Company has disclosed the following key terms of its Master Leases and Single Property Leases in the tables below, along with the properties within each lease at June 30, 2025.

We believe the following key terms are important for users of our financial statements to understand.

34 unchanged sentences

Yearly Base Rent Escalator Maximum 1.5% (1) 2 %

Coverage ratio at December 31, 2024 1.91 2.17

Coverage ratio at March 31, 2025 1.89 2.14

Minimum Escalator Coverage Governor N/A 1.8

28 unchanged sentences

Yearly Base Rent Escalator Maximum 2 % (2)

Coverage ratio at December 31, 2024 1.73 (2) 2.01

Coverage ratio at March 31, 2025 1.69 (3) 2.01

Minimum Escalator Coverage Governor 1.8 N/A

3 unchanged sentences

Next Reset May-26 N/A

(1) Effective July 1, 2025, this ratio has been revised so that if the tenant's parent's net leverage is greater than 5.5 to 1, then the adjusted revenue to rent coverage for the last two consecutive test periods must be at least 1.35.

If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2.

(2) If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%.

5 unchanged sentences

Properties Bally's Kansas City Kansas City, MO DraftKings at Casino Queen East St.

Louis, IL (4)

Bally's Shreveport Shreveport, LA The Queen Baton Rouge Baton Rouge, LA (4)

11 unchanged sentences

Yearly Base Rent Escalator Maximum (2) (3)

Coverage ratio at December 31, 2024 N/A 2.34

Coverage ratio at March 31, 2025 2.72 2.26

Minimum Escalator Coverage Governor N/A N/A

3 unchanged sentences

Next Reset N/A N/A

(1) The default adjusted revenue to rent coverage declines to 1.2 if the annual rent equals or exceeds $60 million on an annual basis.

If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2.

2 unchanged sentences

Beginning in the seventh lease year through the remainder of the lease term, if the CPI increases by at least 0.25% for any lease year then annual rent shall be increased by 1.25%, and if the CPI is less than 0.25% then rent will remain unchanged for such lease year.

(4) Effective July 1, 2025, these properties were transferred to Bally's Master Lease II and the associated annual rental income of $28.9 million was reallocated from the Casino Queen Master Lease to Bally's Master Lease II.

Additionally, the corporate guarantee for this lease was removed and was replaced by a guarantee from several Bally's entities.

Master Leases

17 unchanged sentences

Yearly Base Rent Escalator Maximum 2 % 1.75 % (1)

Coverage ratio at December 31, 2024 2.51 1.87

Coverage ratio at March 31, 2025 2.48 1.87

Minimum Escalator Coverage Governor 1.8 N/A

22 unchanged sentences

Yearly Base Rent Escalator Maximum 1.75 % 2% (2)

Coverage ratio at December 31, 2024 2.39 N/A

Coverage ratio at March 31, 2025 2.48 N/A

Minimum Escalator Coverage Governor N/A N/A

23 unchanged sentences

Yearly Base Rent Escalator Maximum 2% 1.25% (1)

Coverage ratio at December 31, 2024 3.36 1.97 N/A 3.56

Coverage ratio at March 31, 2025 3.31 1.95 N/A 3.60

Minimum Escalator Coverage Governor 1.8 N/A N/A N/A

4 unchanged sentences

(1) For the second through fifth lease years, after which time the annual escalation becomes 1.75% for the 6th and 7th lease years and then 2% for the remaining term of the lease.

(2) Increases by 1.5% on the opening date (which occurred on December 22, 2021) and for the first three lease years.

Commencing on the fourth anniversary of the opening date and for each anniversary thereafter, if the CPI increase is at least 0.5% for any lease year, the rent for such lease year shall increase by 1.25% of rent as of the immediately preceding lease year, and if the CPI increase is less than 0.5% for such lease year, then the rent shall not increase for such lease year.

(2) If the CPI increase is at least 0.5% for any lease year, the rent for such lease year shall increase by 1.25% of rent as of the immediately preceding lease year, and if the CPI increase is less than 0.5% for such lease year, then the rent shall not increase for such lease year.

Single Property Leases

12 unchanged sentences

Yearly Base Rent Escalator Maximum (2) 1.75% (3)

Coverage ratio at December 31, 2024 N/A N/A N/A N/A

Coverage ratio at March 31, 2025 N/A 2.03 N/A N/A

Minimum Escalator Coverage Governor N/A N/A N/A N/A

3 unchanged sentences

Next Reset N/A N/A N/A N/A

If the tenant's parent's net leverage is equal to or less than 5.5 to 1, then the ratio shall be reduced to 1.2.

1 unchanged sentence

(3) Increases by 1.75% beginning with the first anniversary and increases to 2% beginning in year fifteen of the lease through the remainder of the initial lease term.

(3) The Company is currently in the process of amending and restating the lease to have an initial lease term of 15 years followed by multiple renewal extensions to be agreed upon between Bally's and the Company.

The lease is also anticipated to have lease terms generally consistent with the terms of the Bally's Master Lease except as modified by the binding term sheet.

(4) In July 2025, the Company completed the Chicago Lease.

The lease has an initial term of 15 years followed by four 5-year renewals, exercisable at the tenant's option.

If the CPI increase is at least 0.5% for any lease year, then the rent shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%.

If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year.

Finally, the default adjusted revenue to rent coverage ratio shall be 1.35, subject to various conditions that could lower such ratio to 1.20.

The Chicago Lease is not subject to a corporate guarantee.

Funding commitments

As of March 31, 2025, we have entered into various commitments or call rights to finance/acquire future investments in gaming and related facilities for our tenants.

As of June 30, 2025, we have entered into various commitments or call rights to finance/acquire future investments in gaming and related facilities for our tenants.

These are detailed in the table below.

2 unchanged sentences

See Note 1 in the Notes to the Condensed Consolidated Financial Statements for further details.

Description Maximum Commitment amount Amount funded at March 31, 2025

Description Maximum Commitment amount Amount funded at June 30, 2025

Relocation of Hollywood Casino Aurora $225 million None

Relocation of Hollywood Casino Joliet, construction of a hotel at Hollywood Casino Columbus and a hotel tower at the M Resort $350 million None

Construction improvements at Ameristar Casino Council Bluffs (1) None

Relocation of Hollywood Casino Joliet (1) $130 million None

Construction of a hotel at Hollywood Casino Columbus and a hotel tower at the M Resort $220 million None

Funding associated with a landside move at Ameristar Casino Council Bluffs (2) None

Potential transaction at the former Tropicana Las Vegas site with Bally's $175 million $48.5 million

4 unchanged sentences

Call right to acquire Bally's Lincoln $735 million None

(1) On June 6, 2025, PENN gave notice to the Company that it intended to utilize the $130 million commitment for the project.

GLPI expects to fund this amount on August 1, 2025 and will receive a 7.75% cap rate on the funding.

(2) The Company has agreed to fund, if requested by PENN at their sole discretion, on or before March 1, 2029, construction improvements in an amount not to exceed the greater of (i) the hard costs associated with the project and (ii) $150.0 million.

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"Management’s Discussion and Analysis of Financial Condition and Results of Operations" and the Notes to our audited consolidated financial statements included in our most recent Annual Report.

There has been no material change to these estimates for the three months ended March 31, 2025.

There has been no material change to these estimates for the three and six months ended June 30, 2025.

Executive Summary

Financial Highlights

We reported total revenues and income from operations of $395.2 million and $258.8 million, respectively, for the three months ended March 31, 2025, compared to $376.0 million and $257.6 million, respectively, for the corresponding period in the prior year.

The major factors affecting our results for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:

• Total income from real estate increased by $19.3 million to $395.2 million for the three months ended March 31, 2025 compared to $376.0 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $20.2 million for the three months ended March 31, 2025.

Additionally, the three months ended March 31, 2025 benefited by $5.2 million compared to the corresponding period in the prior year from escalations on our leases, favorable variable rents of $1.5 million and higher ground rent revenue of $0.8 million.

We reported total revenues and income from operations of $394.9 million and $242.1 million, respectively, for the three months ended June 30, 2025, compared to $380.6 million and $293.4 million, respectively, for the corresponding period in the prior year.

The Company reported total revenues and income from operations of $790.1 million and $500.9 million, respectively for the six months ended June 30, 2025 compared to $756.6 million and $551.0 million for the corresponding period in the prior year.

The major factors affecting our results for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, were as follows:

• Total income from real estate increased by $14.3 million to $394.9 million for the three months ended June 30, 2025 compared to $380.6 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $17.5 million for the three months ended June 30, 2025.

Additionally, the three months ended June 30, 2025 benefited by $4.4 million compared to the corresponding period in the prior year from escalations on our leases, favorable variable rents of $0.5 million, higher ground rent revenue of $1.1 million and higher accretion of $0.1 million on its Investment in leases and the Company also recognized unfavorable straight-line rent adjustments of $9.3 million compared to the corresponding period in the prior year.

• Total income from real estate increased by $33.5 million to $790.1 million for the six months ended June 30, 2025 compared to $756.6 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $37.7 million for the six months ended June 30, 2025.

Additionally, the six months ended June 30, 2025 benefited by $9.6 million compared to the corresponding period in the prior year from escalations on our leases, favorable variable rents of $2.0 million and higher ground rent revenue of $1.9 million.

The Company also recognized lower accretion of $0.9 million on its Investment in leases and unfavorable straight-line rent adjustments of $16.7 million compared to the corresponding period in the prior year.

• Total operating expenses increased by $18.0 million for the three months ended March 31, 2025 as compared to the corresponding period in the prior year.

The primary reason for the increase was due to an increase in the provision for credit losses of $16.0 million during the three months ended March 31, 2025.

The provision increase was due primarily from a more pessimistic forward looking economic forecast at March 31, 2025.

• Total operating expenses increased by $65.6 million for the three months ended June 30, 2025 as compared to the corresponding period in the prior year.

The primary reason for the increase was due to an increase in the provision for credit losses of $57.5 million during the three months ended June 30, 2025 compared to the corresponding period in the prior year.

The provision increase was due primarily from a more pessimistic forward looking economic forecast at June 30, 2025 compared to what was utilized at March 31, 2025.

The Company incurred higher land rights and ground lease expense of $2.1 million due to the acquisition of the assets in Bally's Master Lease II.

Additionally, general and administrative expenses increased by $0.8 million due primarily from higher stock based compensation expense of $0.7 million.

Partially offsetting these increases was a decline in depreciation expense of $0.3 million.

• Other expenses increased by $10.5 million for the three months ended March 31, 2025, primarily due to higher interest expense of $10.6 million associated with the Company's increased borrowings to fund our recent acquisitions and prefunding the redemption of our $850 million, 5.25% senior unsecured note that occurred in March 2025.

• Net income decreased by $9.2 million for the three months ended March 31, 2025, as compared to the corresponding periods in the prior year, primarily due to the variances explained above.

Additionally, general and administrative expenses increased by $2.1 million due primarily from higher stock based compensation costs, payroll expenses and deal costs The Company also incurred higher depreciation expense of $4.0 million due to its recent acquisitions.

• Total operating expenses increased by $83.7 million for the six months ended June 30, 2025 as compared to the corresponding period in the prior year.

The primary reason for the increase was due to an increase in the provision for credit losses of $73.5 million during the six months ended June 30, 2025.

The provision increase was due primarily from a more pessimistic forward looking economic forecast at June 30, 2025 compared to what was utilized at December 31, 2024.

The Company incurred higher land rights and ground lease expense of $3.8 million due to the acquisition of the assets in Bally's Master Lease II.

Additionally, general and administrative expenses increased by $2.9 million due primarily from higher stock based compensation costs and payroll expenses.

The Company also incurred higher depreciation of $3.6 million due to its recent acquisitions.

• Other expenses increased by $6.7 million and $17.2 million for the three and six months ended June 30, 2025, primarily due to higher interest expense of $3.3 million and $13.9 million associated with the Company's increased borrowings to fund our recent acquisitions and less interest income from lower cash on hand and investments.

• Net income decreased by $58.2 million and $67.4 million for the three and six months ended June 30, 2025, as compared to the corresponding periods in the prior year, primarily due to the variances explained above.

Results of Operations

8 unchanged sentences

Changes to the tax laws or interpretations thereof, with or without retroactive application, could materially and adversely affect GLPI's investors or GLPI.

The consolidated results of operations for the three months ended March 31, 2025 and 2024 are summarized below:

Three Months Ended March 31,

The consolidated results of operations for the three and six months ended June 30, 2025 and 2024 are summarized below:

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(in thousands)

47 unchanged sentences

Our presentation of these measures does not replace the presentation of our financial results in accordance with GAAP.

The reconciliation of the Company’s net income per GAAP to FFO, AFFO, and Adjusted EBITDA for the three months ended March 31, 2025 and 2024 is as follows:

The reconciliation of the Company’s net income per GAAP to FFO, AFFO, and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 is as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

(in thousands)

8 unchanged sentences

Amortization of debt issuance costs, bond premiums and original issuance discounts

3,227 2,685 6,459 5,369

Stock based compensation 6,156 5,425 15,014 13,547

11 unchanged sentences

Adjusted EBITDA $ 361,483 $ 340,446 $ 721,601 $ 673,872

Net income, FFO, AFFO and Adjusted EBITDA were $170.4 million, $234.8 million, $272.0 million, and $360.1 million for the three months ended March 31, 2025, respectively.

Net income, FFO, AFFO and Adjusted EBITDA were $156.2 million, $224.9 million, $276.1 million, and $361.5 million for the three months ended June 30, 2025, respectively.

This compares to net income, FFO, AFFO and Adjusted EBITDA of $214.4 million, $279.2 million, $264.4 million and $340.4 million for the corresponding period in the prior year.

The decrease in net income of $58.2 million was primarily attributable to increased operating expenses of $65.6 million (which was driven by the increase in provision for credit losses of $57.5 million) and higher other expenses of $6.7 million (driven by higher interest expense to partially finance our acquisitions) partially offset by an increase in total revenues of $14.3 million.

The decrease in FFO for the three months ended March 31, 2025 was due to the items described above, excluding gains from dispositions of property and real estate depreciation.

Net income, FFO, AFFO and Adjusted EBITDA were $326.5 million, $459.7 million, $548.1 million, and $721.6 million for the six months ended June 30, 2025, respectively.

This compares to net income, FFO, AFFO and Adjusted EBITDA of $393.9 million, $523.6 million, $523.0 million and $673.9 million for the corresponding period in the prior year.

The decrease in net income of $67.4 million was primarily attributable to increased operating expenses of $83.7 million (which was driven by the increase in provision for credit losses of $73.5 million) and higher other expenses of $17.2 million (driven by higher interest expense to partially finance our acquisitions and lower interest income earned on cash and investments) partially offset by an increase in total revenues of $33.5 million.

The decrease in FFO for the six months ended June 30, 2025 was due to the items described above, excluding gains from dispositions of property and real estate depreciation.

The increases in AFFO and Adjusted EBITDA were due to the items described above, as well as the adjustments mentioned in the tables above.

Revenues for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

Three Months Ended March 31, Percentage

Revenues for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

Three Months Ended June 30, Percentage

2025 2024 Variance Variance

2 unchanged sentences

Income from sales type leases 3,762 — 3,762 N/A

Interest income from real estate loans 3,459 1,077 2,382 N/A

Interest income from real estate loans 3,661 1,837 1,824 99.3 %

Total income from real estate

$ 394,876 $ 380,626 $ 14,250 3.7 %

Six Months Ended June 30, Percentage

2025 2024 Variance Variance

Rental income $ 679,779 $ 663,397 $ 16,382 2.5 %

Income from investment in leases, financing receivables 95,690 90,279 5,411 6.0 %

Income from sales type leases 7,522 — 7,522 N/A

Interest income from real estate loans 7,120 2,914 4,206 144.3 %

Total income from real estate 790,111 $ 756,590 33,521 4.4 %

• Total income from real estate increased by $19.3 million to $395.2 million for the three months ended March 31, 2025 compared to $376.0 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $20.2 million for the three months ended March 31, 2025.

Total income from real estate

• Total income from real estate increased by $14.3 million to $394.9 million for the three months ended June 30, 2025 compared to $380.6 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $17.5 million for the three months ended June 30, 2025.

The Company also had unfavorable straight-line rent adjustments of $9.4 million compared to the corresponding period in the prior year.

• Total income from real estate increased by $33.5 million to $790.1 million for the six months ended June 30, 2025 compared to $756.6 million for the corresponding period in the prior year.

The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $37.7 million for the six months ended June 30, 2025.

Details of the Company's income from real estate for the three months ended March 31, 2025 was as follows (in thousands)

Three Months Ended March 31, 2025 Building base rent Land base rent Percentage rent and other rental revenue Interest income on real estate loans Total cash income Straight-line rent and deferred rent adjustments (1) Ground rent in revenue Accretion on financing leases Total income from real estate

Details of the Company's income from real estate for the three and six months ended June 30, 2025 was as follows (in thousands)

Three Months Ended June 30, 2025 Building base rent Land base rent Percentage rent and other rental revenue Interest income on real estate loans Total cash income Straight-line rent and deferred rent adjustments (1) Ground rent in revenue Accretion on financing leases Total income from real estate

Amended PENN Master Lease $ 54,151 $ 10,759 $ 6,495 $ — $ 71,405 $ 4,952 $ 637 $ — $ 76,994

19 unchanged sentences

Strategic Gaming Leases 2,300 — — — 2,300 — 105 310 2,715

Bally's Chicago — 5,000 — 5,000 (5,000) — — —

Ione Loan — — — 628 628 — — — 628

Bally's Chicago Lease — 5,000 — — 5,000 (5,000) — — —

Total $ 300,590 $ 49,524 $ 18,079 $ 3,661 $ 371,854 $ 6,433 $ 9,723 $ 6,866 $ 394,876

(1) Current year amount includes $0.1 million of tenant improvement allowance amortization.

Three Months Ended March 31, 2024 Building base rent Land base rent Percentage rent and other rental revenue Interest income on real estate loans Total cash income Straight-line rent adjustments Ground rent in revenue Accretion on financing leases Total income from real estate

(1) Amount includes $0.1 million of tenant improvement allowance amortization.

Six Months Ended June 30, 2025 Building base rent Land base rent Percentage rent and other rental revenue Interest income on real estate loans Total cash income Straight-line rent and deferred rent adjustments (2) Ground rent in revenue Accretion on financing leases Total income from real estate

Amended PENN Master Lease $ 108,303 $ 21,518 $ 13,056 $ — $ 142,877 $ 9,904 $ 1,110 $ — $ 153,891

8 unchanged sentences

Bally's Master Lease 52,985 — — — 52,985 — 5,204 — 58,189

Bally's Master Lease II 16,096 — — — 16,096 — 1,888 — 17,984

Maryland Live!

6 unchanged sentences

Rockford Loan — — — 6,033 6,033 — — — 6,033

Tioga Lease 2,212 — — — 2,212 — 1 584 2,797

Tioga Downs Lease 7,348 — — — 7,348 — 3 1,132 8,483

Strategic Gaming Leases 4,599 — — — 4,599 — 211 604 5,414

Ione Loan — — — 1,087 1,087 — — — 1,087

Bally's Chicago Lease — 10,000 — — 10,000 (10,000) — — —

Total $ 600,097 $ 99,047 $ 36,188 $ 7,120 $ 742,452 $ 14,845 $ 19,052 $ 13,762 $ 790,111

(2) Amount includes $0.2 million of tenant improvement allowance amortization.

In accordance with ASC 842, the Company records revenue for the ground lease rent paid by its tenants with an offsetting expense in land rights and ground lease expense within the condensed consolidated statements of income as the Company has concluded that as the lessee it is the primary obligor under the ground leases.

3 unchanged sentences

Operating expenses

Operating expenses for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

Three Months Ended March 31, Percentage

Operating expenses for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

Three Months Ended June 30, Percentage

2025 2024 Variance Variance

1 unchanged sentence

General and administrative 15,907 13,851 2,056 14.8 %

Depreciation 69,235 65,262 3,973 6.1 %

Provision for credit losses 53,728 (3,786) 57,514 (1,519.1) %

Total operating expenses $ 152,812 $ 87,197 $ 65,615 75.2 %

Six Months Ended June 30, Percentage

2025 2024 Variance Variance

Land rights and ground lease expense 27,497 23,688 3,809 16.1 %

General and administrative 34,620 31,737 2,883 9.1 %

Gains from dispositions (125) — (125) N/A

4 unchanged sentences

Land rights and ground lease expense includes the amortization of land rights and rent expense related to the Company's long-term ground leases.

Land rights and ground lease expense increased by $1.7 million for the three months ended March 31, 2025, as compared to the corresponding period in the prior year due to the acquisition of the real estate assets in Bally's Master Lease II.

Land rights and ground lease expense increased by $2.1 million and $3.8 million for the three and six months ended June 30, 2025, as compared to the corresponding period in the prior year due to the acquisition of the real estate assets in Bally's Master Lease II.

General and Administrative Expense

General and administrative expenses include items such as compensation costs (including stock based compensation), professional services and costs associated with development activities.

General and administrative expenses increased by $0.8 million for the three months ended March 31, 2025 as compared to the corresponding period in the prior year.

This was due primarily to higher stock based compensation expense of $0.7 million.

Depreciation expense decreased by $0.3 million for the three months ended March 31, 2025 as compared to the corresponding period in the prior year.

General and administrative expenses increased by $2.1 million and $2.9 million for the three and six months ended June 30, 2025 as compared to the corresponding period in the prior year.

This was due to higher stock based compensation costs, payroll expenses and acquisition costs.

Depreciation expense increased by $4.0 million and $3.6 million for the three and six months ended June 30, 2025 as compared to the corresponding period in the prior year due to our recent acquisition activity.

Provision for credit losses

The Company recorded a provision for credit losses of $39.2 million for the three months ended March 31, 2025 compared to a provision of $23.3 million for the corresponding period in the prior year.

As described in Note 3, the Company follows ASC 326 “Credit Losses”, which requires that the Company measure and record current expected credit losses, the scope of which includes our Investments in leases, financing receivables, net as well as the Company's real estate loans and related loan commitment.

The reason for the increased provision during the three months ended March 31, 2025 was due to a more pessimistic forward looking economic forecast utilized in our CECL reserve calculation.

Future changes in economic projections, probability factors, changes in the estimated value of our real estate property and earnings assumptions at the underlying facilities may result in non-cash provisions or recoveries in future periods that could materially impact our results of operations.

The Company recorded a provision for credit losses of $53.7 million and $93.0 million for the three and six months ended June 30, 2025 compared to a benefit of $3.8 million and a provision of $19.5 million for the corresponding periods in the prior year.

The increased provisions during the three and six months ended June 30, 2025 were primarily driven by a sequential deterioration in the third-party forward-looking economic outlook used in the Company's CECL reserve calculations.

The macroeconomic forecast as of March 31, 2025, was more pessimistic than the forecast used as of December 31, 2024, resulting in a provision during the three months ended March 31, 2025.

The outlook further deteriorated as of June 30, 2025, leading to an additional provision during the three months ended June 30, 2025.

Future changes in economic projections, probability factors,

changes in the estimated value of our real estate property and earnings assumptions at the underlying facilities may result in non-cash provisions or recoveries in future periods that could materially impact our results of operations.

Other income (expenses)

Other income (expenses) for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

Three Months Ended March 31, Percentage

Other income (expenses) for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

Three Months Ended June 30, Percentage

2025 2024 Variance Variance

2 unchanged sentences

Total other expenses $ (85,354) $ (78,605) $ (6,749) 8.6 %

Six Months Ended June 30, Percentage

2025 2024 Variance Variance

Interest expense (187,206) (173,345) $ (13,861) 8.0 %

Interest expense increased by $10.6 million for the three months ended March 31, 2025, as compared to the corresponding period in the prior year.

Interest income 13,936 17,297 (3,361) (19.4) %

Total other expenses $ (173,270) $ (156,048) $ (17,222) 11.0 %

Interest expense

Interest expense increased by $3.3 million and $13.9 million for the three and six months ended June 30, 2025, as compared to the corresponding period in the prior year.

The increase was due to increased borrowings that partially funded our recent acquisitions and prefunding the redemption for our $850 million, 5.25% senior unsecured note that occurred in March 2025.

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Our primary sources of liquidity and capital resources are cash flow from operations, borrowings from banks, and proceeds from the issuance of debt and equity securities.

Net cash provided by operating activities was $252.5 million and $257.9 million during the three months ended March 31, 2025 and 2024, respectively.

The decrease in net cash provided by operating activities of $5.4 million for the three months ended March 31, 2025, as compared to the corresponding period in the prior year, was primarily comprised of an increase in cash receipts from customers of $26.9 million along with decreases in cash paid for operating expenses of $2.6 million and an increase in interest income of $13.2 million.

This was offset by increases in cash paid for employees and cash paid for interest of $1.3 million and $46.8 million respectively.

The increase in cash receipts collected from our customers for the three months ended March 31, 2025, as compared to the corresponding period in the prior year, was due to increased rental income from the Company's recent acquisitions and lease escalations and the increase in interest expense was due to increased borrowings that partially funded our recent acquisitions and prefunding the redemption for our $850 million, 5.25% senior unsecured note that occurred in March 2025.

Investing activities provided cash of $534.0 million and used cash of $448.4 million during the three months ended March 31, 2025 and 2024, respectively.

Net cash provided by investing activities during the three months ended March 31, 2025 primarily consisted of the maturity of zero coupon U.S.

Treasury Bills totaling $550.0 million, partially offset by Ione Loan fundings of $3.2 million, and capital expenditures of $12.9 million.

The net cash used in investing activities for the three months ended March 31, 2024 consisted primarily of $93.3 million for the acquisition of the real estate assets which were added to the Bally's Master Lease, the purchase of zero coupon U.S.

Treasury Bills totaling $341.0 million and Ione Loan fundings of $14.0 million.

Financing activities used cash of $1,080.3 million and $281.9 million during the three months ended March 31, 2025 and 2024, respectively.

Net cash used in financing activities during the three months ended March 31, 2025 was driven by the repayment of long term debt of $850.1 million, dividend payments of $209.1 million, non-controlling interest distributions of $6.3 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.8 million.

Cash used in financing activities during the three months ended March 31, 2024 was driven by the repayment of long term debt of $63.5 million, dividend payments of $206.6 million, noncontrolling interest distributions of $6.1 million and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.7 million, partially offset by proceeds from the issuance of common stock, net of costs of $9.0 million.

Net cash provided by operating activities was $545.9 million and $510.0 million during the six months ended June 30, 2025 and 2024, respectively.

The increase in net cash provided by operating activities of $35.9 million for the six months ended June 30, 2025, as compared to the corresponding period in the prior year, was primarily comprised of an increase in cash receipts from customers of $49.3 million along with decreases in cash paid for taxes of $0.6 million and an increase in interest income of $14.3 million.

This was offset by increases in cash paid for employees, cash paid for interest and cash paid for operating expenses of $0.1 million, $23.7 million and $4.6 million respectively.

The increase in cash receipts collected from our customers for the six months ended June 30, 2025, as compared to the corresponding period in the prior year, was due to increased rental income from the Company's recent acquisitions and lease escalations and the increase in interest expense was due to increased borrowings that partially funded our recent acquisitions and prefunding the redemption for our $850 million, 5.25% senior unsecured note that occurred in March 2025.

Investing activities provided cash of $500.4 million and used cash of $604.8 million during the six months ended June 30, 2025 and 2024, respectively.

Net cash provided by investing activities during the six months ended June 30, 2025 primarily consisted of the maturity of zero coupon U.S.

Treasury Bills totaling $550.0 million, partially offset by Ione Loan fundings of $10.7 million, the acquisition of land related to the Joliet landside development of $5.0 million and capital expenditures of $34.1 million.

The net cash used in investing activities for the six months ended June 30, 2024 consisted primarily of $205.0 million for the acquisition of the real estate assets which were added to the Bally's Master Lease, the purchase of zero coupon U.S.

Treasury Bills totaling $341.0 million, capital expenditures of $7.6 million and Rockford Loan fundings of $53.0 million partially offset by the proceeds from a tax refund related to a previous acquisition of $1.8 million.

Financing activities used cash of $904.7 million and $494.7 million during the six months ended June 30, 2025 and 2024, respectively.

Net cash used in financing activities during the six months ended June 30, 2025 was driven by the repayment of long term debt of $850.1 million, dividend payments of $430.0 million, non-controlling interest distributions of $12.8 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.8 million, partially offset by the proceeds from the issuance of common stock, net of costs of $403.0 million.

Cash used in financing activities during the six months ended June 30, 2024 was driven by the repayment of long term debt of $63.5 million, dividend payments of $413.2 million, noncontrolling interest distributions of $12.3 million and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.7 million, partially offset by proceeds from the issuance of common stock, net of costs of $9.0 million.

Capital Expenditures

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Capital maintenance expenditures are expenditures to replace existing fixed assets with a useful life greater than one year that are obsolete, worn out or no longer cost effective to repair.

During the three months ended March 31, 2025 and 2024, we spent approximately $12.9 million and $0.1 million, respectively, for capital expenditures.

During the six months ended June 30, 2025 and 2024, we spent approximately $34.1 million and $7.6 million, respectively, for capital expenditures.

The majority of the capital expenditures in 2025 were related to a land side and hotel development project at The Belle.

The Company has access to a $2.09 billion variable rate revolving credit facility under its credit Agreement, as amended (the "Amended Credit Agreement") of which $332.5 million is outstanding as of March 31, 2025.

Additionally, the Company was contingently obligated under letters of credit issued pursuant to the Amended Credit Agreement with face amounts aggregating approximately $0.4 million, resulting in $1,757.2 million of available borrowing capacity under the Amended Credit Agreement as of March 31, 2025.

The Company has $6.89 billion of debt outstanding with a weighted average maturity and interest rate of 6.3 years and 5.06%, respectively as of March 31, 2025.

The majority of the Company's debt obligations have fixed interest rates from the issuance of its senior unsecured notes.

During the three month period ended March 31, 2025, the Company redeemed its $850 million 5.250% note that was due in June 2025.

The Company has access to a $2.09 billion variable rate revolving credit facility under its credit agreement, as amended (the "Amended Credit Agreement") of which $332.5 million is outstanding as of June 30, 2025.

The Company has $6.89 billion of debt outstanding with a weighted average maturity and interest rate of 6.1 years and 5.06%, respectively as of June 30, 2025.

The majority of the Company's debt obligations have fixed interest rates from the

issuance of its senior unsecured notes.

In the first quarter of 2025, the Company redeemed its $850 million 5.250% note that was due in June 2025 using cash on hand.

See Note 7 for the future minimum repayments of the Company's debt obligations.

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To the extent any of the Company's taxable income was not previously distributed, the Company will make a dividend declaration pursuant to Section 858(a)(1) of the Code, allowing the Company to treat certain dividends that are to be distributed after the close of a taxable year as having been paid during the taxable year.

Based on our current level of operations and anticipated earnings, we believe that cash generated from operations and cash on hand, together with amounts available under our Amended Credit Agreement and our ability to raise equity proceeds (including the Company's forward sale agreement that is anticipated to be settled in June of 2025), will be adequate to meet our anticipated debt service requirements, funding commitments, capital expenditures, working capital needs and dividend requirements for the next twelve months and beyond.

In late December 2022, the Company refreshed its ATM capacity to $1 billion (the "2022 ATM Program").

As of March 31, 2025, the Company had $34.2 million remaining for issuance under the 2022 ATM Program.

Once the 2022 ATM Program is exhausted, the Company would expect to enter into a new program.

Based on our current level of operations and anticipated earnings, we believe that cash generated from operations and cash on hand, together with amounts available under our Amended Credit Agreement and our ability to raise proceeds from equity offerings (including the Company's 2025 ATM Program) and debt offerings, will be adequate to meet our anticipated debt service requirements (including the maturity of the $975 million senior unsecured note due in April 2026), funding commitments, capital expenditures, working capital needs and dividend requirements for the next twelve months and beyond.

During the three months ended June 30, 2025, the Company entered into a new $1.25 billion ATM program (the "2025 ATM Program").

As of June 30, 2025, the Company had $1.25 b illion remaining for issuance under the 2025 ATM Program.

See Note 12 for further discussion.

During the three months ended June 30, 2025, pursuant to its $1 billion "at the market" equity offering program that commenced in December 2022 (the "2022 ATM Program"), the Company settled a forward sale agreement and issued 8,170,387 shares for a net sales price of $404.0 million inclusive of certain contractual adjustments.

In connection with the 2025 ATM Program, the 2022 ATM Program was terminated.

We expect the majority of our future growth to come from funding commitments to our tenants and acquisitions of gaming and other properties to lease to third parties.

If we consummate significant transactions in the future, our cash requirements may increase significantly and we would likely need to raise additional proceeds through a combination of either common equity (including under our 2022 ATM Program and future ATM programs that we would expect to enter into once the 2022 ATM Program is fully utilized), issuance of additional OP Units, and/or debt offerings.

If we consummate significant transactions in the future, our cash requirements may increase significantly and we would likely need to raise additional proceeds through a combination of either common equity (including under our 2025 ATM Program), issuance of additional OP Units, and/or debt offerings.

Our future operating performance and our ability to service or refinance our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis