Company: GLPI
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001575965-25-000008
Chunk: 18

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 18
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 terms of 39 years, with a maximum term of 60 years inclusive of tenant renewal 

8

Table of Contents

options.  The annual rent for both leases has a 1.75% fixed yearly escalator on the entirety of rent commencing on the leases' second anniversary.  

Rockford Lease and Rockford Loan

On August 29, 2023, the Company acquired the land associated with a casino development project in Rockford, Illinois from an affiliate of 815 Entertainment, LLC ("815 Entertainment") for $100.0 million.  The casino opened in August 2024 and is managed by a subsidiary of Hard Rock.  Simultaneously with the land acquisition, an affiliate of GLPI entered into a ground lease with 815 Entertainment for a 99-year term (the "Rockford Lease").  The initial annual rent for the ground lease is $8.0 million, subject to fixed 2% annual escalation beginning with the lease's first anniversary and for the entirety of its term. 

In addition to the Rockford Lease, the Company also committed to provide up to $150 million of development funding via a senior secured delayed draw term loan (the "Rockford Loan").  Borrowings under the Rockford Loan are subject to an interest rate of 10%.  The Rockford Loan has a maximum outstanding period of up to 6 years (5-year initial term with a 1-year extension).  The Rockford Loan is prepayable without penalty following the opening of the Hard Rock Casino in Rockford, IL ("Hard Rock Casino Rockford") which occurred in late August 2024.  As of December 31, 2024, $150 million was advanced and outstanding under the Rockford Loan.  Additionally, the Company also received a right of first refusal on the building improvements of the Hard Rock Casino Rockford if there is a future decision to sell them.  On January 1, 2025, the Company amended the terms of the Rockford Loan to reduce the interest rate to 8% with a maturity date of June 30, 2026, subject to a 6-month extension.  The Company has a right of first refusal on the building improvements of the Hard Rock Casino Rockford if there is a future decision to sell them. 

Tioga Downs Lease

On February 6, 2024, the Company acquired the real estate assets of Tioga Downs in Nichols, NY from American Racing for $175.0 million.