Company: GLPI
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001575965-25-000017
Chunk: 100

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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able at lease commencement, while short-term lease costs are costs for those operating leases with a term of 12 months or less. The components of lease expense were as follows (in thousands):Three Months Ended March 31,20252024Operating lease cost$4,315 $3,629 Variable lease cost 4,970 4,913 Amortization of land right assets4,270 3,276 Total lease cost$13,555 $11,818 

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Amortization expense related to the land right intangibles, as well as variable lease costs and the Company's operating lease costs are recorded within land rights and ground lease expense in the condensed consolidated statements of income.  Supplemental Disclosures Related to LeasesSupplemental balance sheet information related to the Company's operating leases was as follows:March 31, 2025Weighted average remaining lease term - operating leases52.96 yearsWeighted average discount rate - operating leases6.26%Supplemental cash flow information related to the Company's operating leases was as follows:Three Months Ended March 31,20252024(in thousands)Cash paid for amounts included in the measurement of lease liabilities:  Operating cash flows from operating leases (1)$415 $414 (1)  The Company's cash paid for operating leases is significantly less than the lease cost for the same period due to the majority of the Company's ground lease rent being paid directly to the landlords by the Company's tenants. Although GLPI expends no cash related to these leases, they are required to be grossed up in the Company's condensed consolidated financial statements under ASC 842.Financing Lease LiabilitiesIn connection with the acquisition of certain real property assets included in the Maryland Live! Lease and the Strategic Gaming Leases, the Company acquired the rights to land subject to long-term ground leases which expire in June  2111 and April 2062, respectively.  As these leases were accounted for as Investment in leases, financing receivables, the underlying ground leases were accounted for as Financing lease liabilities on the Condensed Consolidated Balance Sheets.  In accordance with ASC 842, the Company records revenue for the ground lease rent paid by its tenant with an offsetting expense in interest expense as the Company has concluded that as the lessee it is the primary obligor under the ground leases. The Company's weighted average discount rate on the fixed minimum annual payments was 5.07% to arrive at the initial lease