Company: GLPI
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001575965-25-000017
Chunk: 72

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 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 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