Company: GLPI
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001575965-25-000008
Chunk: 125

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 125
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 The primary reason for the increase was due to the initial establishment of reserves of $23.7 million on the Tropicana Las Vegas Lease which was reclassified from an operating lease to a sales type lease during 2024 and on new leases entered into during 2024.  The additional increases in the provision for credit losses was due primarily from a decline in the estimated real estate values underlying the Company's Investment in leases, financing receivables.   These values are estimated based on long term projections of the Commercial Real Estate Price Index which, as of December 31, 2024, declined relative to the corresponding period in the prior year.   

Other income (expenses)

Other income (expenses) for the years ended December 31, 2024 and 2023 were as follows (in thousands): 

 Year Ended December 31, Percentage20242023VarianceVarianceInterest expense$(366,897)$(323,388)$(43,509)13.5 %Interest income45,989 12,607 33,382 264.8 %Losses on debt extinguishment— (556)556 (100.0)%Total other expenses$(320,908)$(311,337)$(9,571)3.1 %  

Interest expense

For the year ended December 31, 2024, the Company's interest expense increased by $43.5 million as compared to the corresponding period in the prior year.  The increase was due to higher borrowing levels that partially funded our recent acquisitions as well as borrowings to prefund the upcoming $850 million bond maturing in June 2025.  See Note 10 for additional information. 

Interest income

Interest income for the year ended December 31, 2024 increased by $33.4 million due to higher average interest earning balances in the current year.  

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Loss on debt extinguishment

The Company redeemed its $500 million, 5.375% Senior Notes that were scheduled to mature in November 2023 during the year ended December 31, 2023.  In connection with this transaction, the Company wrote-off deferred issuance costs of $0.6 million.

Net income attributable to noncontrolling interest in the Operating Partnership

As partial consideration for certain real estate acquisitions, the Company's operating partnership has issued OP Units.  OP Units are exchangeable for common shares of the Company on a one-for-one basis, subject to certain terms