Company: GLPI
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001575965-25-000008
Chunk: 181

Company: Gaming & Leisure Properties, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 181
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Investment in leases, financing receivablesAllowance for credit lossesAmortized cost basis at December 31, 2024Allowance as a percentage of outstanding financing receivable2024$295,674 $(3,785)$291,889 (1.28)%2023102,861 (3,077)99,784 (2.99)%2022713,698 (18,471)695,227 (2.59)%20211,254,946 (8,732)1,246,214 (0.70)%Total$2,367,179 $(34,065)$2,333,114 (1.44)%The amortized cost basis of the Company's investment in leases, sales type by year of origination is shown below as of December 31, 2024 (in thousands):Origination yearInvestment in leases, sales type leaseAllowance for credit lossesAmortized cost basis at  December 31, 2024Allowance as a percentage of outstanding sales type lease2024$278,502 $(23,681)$254,821 (8.50)%During the year ended December 31, 2024, the Company recorded a provision for credit losses, net of $37.3 million.  This was primarily due to the initial establishment of reserves on the Tropicana Las Vegas Lease which was determined based on the underlying credit quality of the tenant, a decline in the estimated real estate values underlying the Company's Investment in leases, financing receivables and, to a lesser extent, the Company's real estate loans and loan commitments.  The real estate values are estimated based on the actual and long term projections of the Commercial Real Estate Price Index which, as of December 31, 2024 have declined relative to December 31, 2023.During the year ended December 31, 2023, the Company recorded a provision for credit losses, net of $6.5 million.The primary reason for the current year provision was related to the Rockford Lease and the Rockford Loan and related loan commitment (See Note 5 for further discussion).  

The reason for differences in the allowance as a percentage of outstanding financing receivable for leases originated in each calendar year in the table above depends on various factors for the leases such as expected rent coverage ratios and loan to value ratios.  Future changes in economic probability factors, changes in the estimated value of our real estate property and