Company: GLPI
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001575965-25-000017
Chunk: 134

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 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 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

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.  

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