Company: GLPI
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001575965-25-000017
Chunk: 164

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 2
Chunk 164
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— — — 1,077 1,077 — — — 1,077 Tioga Lease2,212 — — — 2,212 — 1 584 2,797 Total$282,658 $43,386 $16,614 $1,077 $343,735 $15,790 $8,555 $7,884 $375,964 

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. The Company subleases these ground leases back to its tenants, who are responsible for payment directly to the landlord. 

The Company recognizes earnings on Investment in leases, financing receivables and Investment in leases, sales type based on the effective yield method using the discount rate implicit in the leases.  The amounts in the table above labeled accretion on financing leases represent earnings recognized in excess of cash received during the period.     

Operating expenses

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

Three Months Ended March 31,Percentage20252024VarianceVarianceLand rights and ground lease expense$13,555 $11,818 $1,737 14.7 %General and administrative18,713 17,886 827 4.6 %Gains from dispositions(125)— (125)N/ADepreciation65,012 65,360 (348)(0.5)%Provision for credit losses39,246 23,294 15,952 68.5 %Total operating expenses$136,401 $118,358 $18,043 15.2 %

Land rights and ground lease expense

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.  

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General and Administrative Expense

General and administrative expenses include items such as