Company: GLPI
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001575965-25-000031
Chunk: 36

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 in leases, financing receivables was $2,300.4 million and $80.5 million compared to $2,290.0 million and $77.1 million at December 31, 2024.  The present value of the net investment in the lease payment receivable and unguaranteed residual value at June 30, 2025 for the Company's Investment in leases, sales type was $255.9 million and $22.6 million compared to $256.7 million and $21.8 million at December 31, 2024.At June 30, 2025, minimum lease payments owed to us for each of the five succeeding years under the Company's investment in leases were as follows (in thousands):Year ending December 31,Future Minimum Lease Payments  - Sales TypeFuture Minimum Lease Payments  - Financing Receivables2025 (remainder of year)$7,418 $82,178 202614,837 166,917 202714,837 169,858 202814,837 172,851 202914,837 175,897 Thereafter634,271 8,957,373 Total$701,037 $9,725,074 The Company follows ASC 326 “Credit Losses”, which requires that the Company measure and record current expected credit losses (“CECL”), the scope of which includes our Investment in leases, financing receivables, net, as well as the  Company's Real estate loans which are discussed in Note 5.  The Company has elected to use an econometric default and loss rate model to estimate the allowance for credit losses, or CECL allowance. This model requires us to calculate and input lease and property-specific credit and performance metrics which in conjunction with forward-looking economic forecasts, project estimated credit losses over the life of the lease or loan.  The Company then records a CECL allowance based on the expected loss rate multiplied by the outstanding investment.

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Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and loss given default (“LGD”) of our instruments subject to CECL. We have engaged a nationally recognized data analytics firm to assist us with estimating both the PD and LGD. The PD and LGD are estimated during the initial term of the instruments subject to CECL. The PD and LGD estimates were developed using current financial condition forecasts. The PD and LGD predictive model was developed using the average historical default rates and historical loss rates,