GLPI 10-K & 10-Q changes, risk factors and insider trading

The majority of our revenues are dependent on PENN and its subsidiaries until we further diversify our portfolio.subsidiaries. Any event that has a material adverse effect on PENN’s business, financial position or results of operations may have a material adverse effect on our business, financial position or results of operations.

The majority of our revenue is based on the revenue derived under our master leases with subsidiaries of PENN. Because these master leases are triple-net leases, we depend on PENN to operate the properties that we own in a manner that generategenerates revenues sufficient to allow PENN to meet its obligations to us, including payment of rent and all insurance, taxes, utilities and maintenance and repair expenses, and to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities arising in connection with its business. There can be no assurance that PENN will have sufficient assets, income or access to financing to enable it to satisfy its payment obligations to us under the master leases. The ability of PENN to fulfill its obligations depends, in part, upon the overall profitability of its gaming operations and, other than limited contractual protections afforded to us as a landlord, we have no control over PENN or its operations. The inability or unwillingness of PENN to meet its subsidiaries’ rent obligations and other obligations under the master leases may materially and adversely affect our business, financial position or results of operations, including our ability to pay dividends to our shareholders.

The bankruptcy or insolvency of any of our tenants could diminish the income we receive from that tenant’s lease or leases. If a tenant becomes bankrupt or insolvent, federal law may prohibit us from evicting such tenant based solely upon such bankruptcy or insolvency. In addition, a bankrupt or insolvent tenant may be authorized to reject and terminate its lease or leases with us. Any claims against such bankrupt tenant for unpaid future rent would be subject to statutory limitations that would likely result in our receipt of rental revenues that are substantially less than the contractually specified rent we are owed under the lease or leases. In addition, any claim we have for unpaid past rent, if any,rent may not be paid in full. We may also be unable to re-lease a terminated or rejected space or to re-lease it on comparable or more favorable terms. Moreover, tenants who are considering filing for bankruptcy protection may request amendments of their master leases to remove certain of the properties they lease from us under such master leases. We cannot guarantee that we will be able to sell or re-lease such properties or that lease termination fees, if any, received in exchange for such releases will be sufficient to make up for the rental revenues lost as a result of such lease amendments.

We operate in a highly competitive industry and face competition from other REITs (including other gaming-focused REITs), investment companies, private equity and hedge fund investors, sovereign funds, lenders, gaming companies and other investors, some of whom are significantly larger and have greater resources and lower costs of capital. Increased competition may make it more challenging to identify and successfully capitalize on acquisition opportunities that meet our investment objectives. If we cannot identify and purchaseacquire a sufficient number of investment properties at favorable prices or if we are unable to finance acquisitions on commercially favorable terms, our business, financial position or results of operations could be materially adversely affected. Additionally, the fact that we must distribute 90% of our net taxable income in order to maintain our qualification as a REIT may limit our ability to rely upon rental payments from our leased properties or subsequently acquired properties in order to finance acquisitions. As a result, if debt or equity financing is not available on acceptable terms, further acquisitions might be limited or curtailed and completing proposed acquisitions may be adversely impacted. Furthermore, fluctuations in the price of our common stock may impact our ability to finance additional acquisitions through the issuance of common stock and/or cause significant dilution.

As the landlord of gaming facilities, we are impacted by the risks associated with the gaming industry. Therefore, our success is to some degree dependent on the strength of the gaming industry, which could be adversely affected by economic conditions in general, changes in consumer trends and preferences and other factors over which our tenants have no control. As we are subject to risks inherent in substantial investments in a single industry, aA decrease in the gaming business may have a greater adverse effect on our revenues than if we owned a more diversified real estate portfolio, particularly because a component of the rent under our leases is based, over time, on the revenue of the gaming facilities operated by our tenants. Decreases in discretionary consumer spending brought about by weakened general economic conditions such as, but not limited to, high unemployment levels, higher income taxes, low levels of consumer confidence, weakness in the housing market, cultural and demographic changes, and increased stock market volatility may negatively impact our revenues and operating cash flow.

The gaming industry is characterized by an increasing number of gaming facilities with an increasingly high degree of competition among a large number of participants, including riverboat casinos, dockside casinos, land-based casinos, video lottery, sweepstakes and poker machines not located in casinos, Native American gaming and other forms of gaming in the U.S. Furthermore, competition from alternative wagering products, such as internet lotteries, sweepstakes, social gaming products, daily fantasy sports and other internet wagering gaming services, online sports wagering or games of skill, which allow their customers a wagering alternative to the casino-style, such as remote home gaming or in non-casino settings, could divert customers from our properties and thus adversely affect our tenants and, indirectly, our business. Present state or federal laws that restrict the forms of gaming authorized or the number of competitors that offer gaming in the applicable jurisdiction are subject to change and may increase the competition affecting the business of our tenants and, indirectly, our business. Currently, there are proposals that would legalize several forms of internet gaming and other alternative wagering products in a number of states. Further, several states have already approved intrastate internet gaming and sports betting. ExpansionIn addition, prediction markets currently operate as federally regulated exchanges and, therefore, may operate in states that otherwise prohibit internet gaming. Prediction markets and the expansion of internet gaming and sports betting in other jurisdictions may compete with our traditional operations, which could have an adverse impact on our business and result of operations.

Many jurisdictions also require any person who acquires beneficial ownership of more than a certain percentage of securities of a company licensed in such jurisdiction, typically 5%, to report the acquisition to gaming authorities, and gaming authorities may require such holders to apply for qualification or a finding of suitability, subject to limited exceptions for "institutional investors" that hold a company's voting securities for passive investment purposes only. Some jurisdictions may also limit the number of gaming licenses or gaming facilities in which a person or entity may hold an ownership or a controlling interest. Subject to certain regulations and administrative proceeding requirements, the gaming regulators have the authority to deny any application or limit, condition, restrict, revoke or suspend any license, registration, finding of suitability or approval, or fine any person licensed, registered or found suitable or approved, for any cause deemed reasonable by the gaming authorities.

•Up to $940 million of construction hard costs for Bally’s Chicago, none$201.6 million of which hadhas been advanced as of December 31, 2024;2025. The permanent casino and entertainment destination remains under construction.

•Up to $225 million for the relocation of PENN’s riverboat casino in Aurora, Illinois, none of which hadhas been advanced as of December 31, 2024;2025. The new facility is expected to open in the first half of 2026.

•$111Development million for the developmentfunding of aup landsideto casino$175 at The Belle,million of which $35.1$48.5 million hadhas been advanced as of December 31, 2024;2025, for a potential transaction at the former Tropicana Las Vegas site with Bally's.

•$16.5 million for the landside development of a landside casinoproject at the Queen Casino Marquette, none$9.6 million of which hadhas been advanced as of December 31, 2024;2025.

•UpFor tothe $150 millionrelocation of construction hard costs for PENN's Ameristar Casino Council Bluffs, an amount not to exceed the greater of (i) the construction hard costs associated with the project and (ii) $150 million, none of which hadhas been advanced as of December 31, 2024.2025.

If a developer fails to fund its portion of the development project or experiences cost overruns that impair its ability to complete the construction of a project, there could be adverse consequences associated with the funding, including a loss of the value of the property improvements, a developer claim against us for failure to perform under the funding documents if we choose to stop funding, increased costs to the developer that the developer is unable to pay, and a bankruptcy filing by the developer. Furthermore, construction projects have faced delays, including as a result of disruptions in supply chains, cost increases associated with building materials and construction services necessary for construction, and delays and costs associated with obtaining construction permits and complying with local regulations, all of which can result in cost overruns to complete such projects. During periods of capital market disruptions, replacement financing may not be available to the developer which in turn, may result in the developer’s inability to complete the project or, in the case of a construction loan, repay our loan in full. The failure of a developer to complete construction, these cost overruns or other related impacts, and the lack of availability of replacement financing, could materially and adversely effectaffect us.

We might not be able to exercise customary enforcement rights as the lender under theour Ionetribal Loan.loans.

The Ione Loan and loans extended under our agreements with the Dry Creek exposes us to several additional risks related to our ability to realize repayment of amounts lent in the event of a default by Ione,these parties, including risks that:

•The limited waiver by Ione and Dry Creek and its development subsidiary of sovereign immunity granted under the loan documents may not be deemed enforceable, which could preclude us from exercising remedies or enforcing our rights under the loan documents;

•We are not permitted to exercise customary foreclosure remedies on the fee simple ownership of the land or buildings that are intended to be constructed with proceeds of the Ione Loan,Loan or financing provided to Dry Creek, or replace the tribe or its operating subsidiary as the operator of the casino once it opens; and The assets of the tribe and its economic development subsidiaries may be insufficient to result in payment in full to us of the amounts lent to the tribe under the Ione Loan.

Although we require our operators and tenants to undertake to indemnify us for certain environmental liabilities, including environmental liabilities they cause, the amount of such liabilities could exceed the financial ability of the tenant or operator to indemnify us. The presence of contamination or the failure to remediate contamination may adversely affect our ability to sell or lease the real estate or to borrow using the real estate as collateral.

The maximum U.S. federal income tax rate applicable to income from "qualified dividends" payable by U.S. corporations to U.S. shareholders that are individuals, trusts and estates is currently 20%. Ordinary dividends payable by REITs, however, generally are not eligible for the reduced rates. However, for taxable years that begin after December 31, 2017, and before January 1, 20262017: (i) the U.S. federal income tax brackets generally applicable to ordinary income of individuals, trusts and estates have been modified (with the rates generally reduced) and (ii) shareholders that are individuals, trusts or estates are generally entitled to a deduction equal to 20% of the aggregate amount of ordinary income dividends received from a REIT (not including dividends that are eligible for the reduced rates applicable to "qualified dividend income" or treated as capital gain dividends), subject to certain limitations.

The more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals, trusts or estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the stock of REITs, including our stock, even taking into account the lower 37% maximum rate for ordinary income and the 20% deduction for ordinary REIT dividends received in taxable years beginning after December 31, 2017 and before January 1, 2026.2017.

The Tax Cuts and Jobs Act made significant changes to the federal income taxation of individuals and corporations under the Code, generally effective for taxable years beginning after December 31, 2017.2017 many of which were extended by the OBBBA Act signed into law on July 4, 2025. In addition to reducing corporate and individual income tax rates, the Tax Cuts and Jobs Act eliminates or restricts various deductions that, along with other provisions, may change the way that we calculate our REIT taxable income and our TRS’s taxable income. Significant provisions of the Tax Cuts and Jobs Act that investors should be aware of include provisions that: (i) lower the corporate income tax rate to 21%, (ii) provide noncorporate taxpayers with a deduction of up to 20% of certain income earned through partnerships and REITs, (iii) limit the net operating loss deduction to 80% of taxable income, where taxable income is determined without regard to the net operating loss deduction itself, generally eliminate net operating loss carry backs and allow unused net operating losses to be carried forward indefinitely, (iv) expand the ability of businesses to deduct the cost of certain property investments in the year in which the property is purchased, (v) generally lower tax rates for individuals and other noncorporate taxpayers, while limiting deductions such as miscellaneous itemized deductions and state and local tax deductions, and (vi) limit the deduction for net interest expense incurred by a business to 30% of the "adjusted taxable income" of the taxpayer, but do not apply to certain small-business taxpayers or electing real property trades or businesses, including REITs. The effect of these, and the many other, changes made is highly uncertain, both in terms of their direct effect on the taxation of holders of our common stock and their indirect effect on the value of our assets or market conditions generally.

To qualify to be taxed as a REIT for U.S. federal income tax purposes, we must ensure that, at the end of each calendar quarter, at least 75% of the value of our assets consist of cash, cash items, government securities and "real estate assets" (as defined in the Code), including certain mortgage loans and securities. The remainder of our investments (other than government securities, qualified real estate assets and securities issued by a TRS) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our total assets (other than government securities, qualified real estate assets and securities issued by a TRS) can consist of the securities of any one issuer, and no more than 20% (25% for years beginning after December 31, 2025) of the value of our total assets can be represented by securities of one or more TRSs. Lastly, no more than 25% of the value of our total assets can be represented by unsecured debt of publicly traded REITs. If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate or forego otherwise attractive investments. These actions could have the effect of reducing our income and amounts available for distribution to our shareholders.

As is customary for a public company target in a merger and acquisition transaction, Tropicana has no obligation to indemnify us or Caesars for any breaches of its representations and warranties or covenants included in the Tropicana Merger Agreement and the Amended Real Estate Purchase Agreement, or for any pre-closing liabilities or claims. While we have certain arrangements in place with Caesars in connection with certain limited pre-closing liabilities, if any issues arise post-closing (other than as provided for in the Third Amended and Restated Caesars Master Lease), we may not be entitled to sufficient, or any, indemnification or recourse from Tropicana or Caesars, which could have a materially adverse impact on our business and results of operations.

OurOperating OperationsResults

The following discussion and analysis of the financial position and operating results of Gaming and Leisure Properties, Inc. for the three and six months ended MarchJune 31,30, 2026 should be read in conjunction with the Financial Statements and related notes thereto and other financial information contained elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes for the year ended December 31, 2025. All defined terms included herein have the same meaning as those set forth in the Notes to the Consolidated Financial Statements contained within this Quarterly Report on Form 10-Q.

•our or our partner’s ability to successfully complete construction of various casino projects currently under development for which we have agreed to provide construction development funding, including Bally’s Chicago (as defined below),Chicago, and the ability and willingness of our partners to meet and/or perform their respective obligations under the applicable construction financing and/or development documents;

Since 2021, the Company has been structured as an umbrella partnership REIT under which substantially all of our business is conducted through GLP Capital, the day-to-day management of which is exclusively controlled by GLPI. GLPI has no material assets other than its investment in GLP Capital. GLPI issues equity from time to time and is obligated to contribute the net proceeds from those offerings to GLP Capital. As of MarchJune 31,30, 2026, GLPI holds a 96.8%96.9% controlling financial interest in the operating partnership.

The Company has disclosed the following key terms of its Mastermaster Leasesleases and Singlesingle-property Property Leasesleases in the tables below, along with the properties within each lease at MarchJune 31,30, 2026. We believe the following key terms are important for users of our financial statements to understand.

•The Coverage ratio is a defined term in each respective lease agreement with our tenants and represents the ratio of Adjusted EBITDAR to rent expense for the properties contained within each lease. Adjusted EBITDAR is defined in each respective lease but is generally consistent with the Company's definition of Adjusted EBITDA as described in the Results of Operations section of this ManagementManagement's Discussion and Analysis, plus rent expense paid to GLPI.

•The reported coverage ratios below with respect to our tenants' rent coverage over the trailing twelve months were provided by our tenants for the most recently available time period. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to its accuracy. Rent coverage ratios are not reported for ground leases, leases withand development projects,projects ornor on leases that have been in effect for less than twelve months.

(4) Effective July 1, 2025, these properties were transferred to Bally's Master Lease II and the associated annual rental income of $28.9 million was reallocated from the Casino Queen Master Lease to Bally's Master Lease II. The Bally's Master Lease II rent coverage ratio has been restated on a proformapro forma basis.

(6) Coverage ratio above is proformapro forma for the acquisition of the real estate assets of Bally's Twin River Lincoln Casino Resort which closed on February 11, 2026.

(3) Coverage ratio above is proformapro forma for the acquisition of the real estate assets of Sunland Park which closed on October 15, 2025.

As of MarchJune 31,30, 2026, we have entered into various commitments or call rights to finance/acquire future investments in gaming and related facilities for our tenants. These are detailed in the table below. Our tenants retain the option to decline our financing for certain projects and may seek alternative financing solutions. The inclusion of a commitment in this disclosure does not guarantee that the financing will be utilized by the tenant in circumstances where a tenant has the option. See Note 1 in the Notes to the Condensed Consolidated Financial Statements for further details.

For further information on our critical accounting estimates, see Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and the Notes to our audited consolidated financial statements included in our most recent Annual Report. There has been no material change to these estimates for the three and six months ended MarchJune 31,30, 2026.

We reported total revenues and income from operations of $420.0$430.5 million and $333.3$332.4 million, respectively, for the three months ended MarchJune 31,30, 2026, compared to $395.2$394.9 million and $258.8$242.1 million, respectively, for the corresponding period in the prior year. The Company reported total revenues and income from operations of $850.5 million and $665.7 million, respectively for the six months ended June 30, 2026 compared to $790.1 million and $500.9 million for the corresponding period in the prior year.

The major factors affecting our results for the three and six months ended MarchJune 31,30, 2026, as compared to the three and six months ended MarchJune 31,30, 2025, were as follows:

•Total income from real estate increased by $24.8$35.6 million to $420.0$430.5 million for the three months ended MarchJune 31,30, 2026 compared to $395.2$394.9 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions and development activities which in the aggregate increased cash rental income by $28.2$38.7 million for the three months ended MarchJune 31,30, 2026. Additionally, the three months ended MarchJune 31,30, 2026 benefited by $4.4$4.5 million compared to the corresponding period in the prior year from escalations on our leases, higher accretionground onrent its investment in leases of $0.5 million, favorable variable rentsrevenue of $0.2 million and higher ground rent revenueaccretion of $0.3$0.5 million.million Partiallyon offsettingour theseinvestment increasesin wereleases partially offset by unfavorable straight-line rent adjustments of $8.9$7.9 million and lower percentage rents of $0.4 million compared to the corresponding period in the prior year.

•Total operating expenses decreased by $49.8$54.7 million for the three months ended MarchJune 31,30, 2026 as compared to the corresponding period in the prior yearyear. The primary reason for the decrease was due to a decrease in the provision for credit losses of $49.4$50.7 million during the three months ended MarchJune 31,30, 2026.2026 compared to the corresponding period in the prior year. The provision decrease was due to the significant provision recorded in the threeprior monthyear. periodThis endedwas Marchdue 31, 2025 that resulted fromto a more pessimistic forward lookingforward-looking economic forecast and higher weighting to such forecastutilized at MarchJune 31,30, 2025 compared to December 31, 2024. Additionally, the benefit recorded during the three month period ended March 31, 20262025. resulted from an improvement in the estimated real estate values that will comprise the Company's real estate portfolio for the Virginia Live! development project. Finally,Additionally, general and administrative expenses decreased by $0.8$2.7 million due primarily from lower stock basedstock-based compensation costs and deal costs. The Company also incurred lower depreciation expense comparedof $2.7 million due to accelerated depreciation in the corresponding period in the prior year awards.related to the historical Hollywood Casino Joliet and Hollywood Casino Aurora properties being redeveloped by PENN, partially offset by depreciation on recently acquired and developed assets. Partially offsetting these decreases was a $1.2 million writedown on land associated with the former Hollywood Casino Aurora property during the three months ended June 30, 2026.

•Net income increased by $69.0$78.8 million and $147.8 million for the three and six months ended MarchJune 31,30, 2026, as compared to the corresponding periods in the prior year, primarily due to the variances explained above.

The consolidated results of operations for the three and six months ended MarchJune 31,30, 2026 and 2025 are summarized below:

Funds From Operations ("FFO"), Adjusted Funds From Operations ("AFFO") and Adjusted EBITDA are non-U.S. generally accepted accounting principles ("GAAP") financial measures used by the Company as performance measures for benchmarking against the Company’s peers and as internal measures of business operating performance, which is used as a bonus metric. These metrics are presented assuming full conversion of limited partnership units to common shares and therefore before the income statement impact of non-controllingnoncontrolling interests. The Company believes FFO, AFFO and Adjusted EBITDA provide a meaningful perspective of the underlying operating performance of the Company’s current business. This is especially true since these measures exclude real estate depreciation and we believe that real estate values fluctuate based on market conditions rather than depreciating in value ratably on a straight-line basis over time.

FFO, AFFO and Adjusted EBITDA are non-GAAP financial measures that are considered supplemental measures for the real estate industry and a supplement to GAAP measures. The National Association of Real Estate Investment Trusts defines FFO as net income (computed in accordance with GAAP), excluding (gains) or losses from dispositions of property and real estate depreciation. We define AFFO as FFO excluding, as applicable to the particular period, stock basedstock-based compensation expense; the amortization of debt issuance costs, bond premiums and original issuance discounts; other depreciation; amortization of land rights; accretion on investment in leases; non-cash adjustments to financing lease liabilities; straight-line rent and deferred rent adjustments; losses on debt extinguishment and other financing costs; severance charges; capitalized interest; and provision (benefit) for credit losses, net, reduced by capital maintenance expenditures. Finally, we define Adjusted EBITDA as net income excluding, as applicable to the particular period, interest, net; income tax expense; real estate depreciation; other depreciation; (gains) or losses from dispositions of property; stock basedstock-based compensation expense; straight-line rent and deferred rent adjustments; amortization of land rights; accretion on investment in leases; non-cash adjustments to financing lease liabilities; losses on debt extinguishment and other financing costs; severance charges; and provision (benefit) for credit losses, net.

The reconciliation of the Company’s net income per GAAP to FFO, AFFO, and Adjusted EBITDA for the three and six months ended MarchJune 31,30, 2026 and 2025 is as follows:

Net income, FFO, AFFO and Adjusted EBITDA were $239.4$234.9 million, $302.3 million, $304.0 million, $297.1 million, and $393.0$405.5 million for the three months ended MarchJune 31,30, 2026, respectively. This compares to net income, FFO, AFFO and Adjusted EBITDA of $170.4$156.2 million, $234.8$224.9 million, $272.0$276.1 million and $360.1$361.5 million for the corresponding period in the prior year. The increase in net income of $69.0$78.8 million was primarily attributable to an increase in total revenues of $24.8 million, lower operating expenses of $49.8$54.7 million (which was driven by the declinedecrease in the provision for credit losses of $49.4$50.7 million) and an increase in total revenues of $35.6 million. This was partially offset by higher other expenses of $5.5$11.5 million (driven by lower averagehigher interest earningsexpense assets).to partially finance our acquisitions.

Revenues for the three and six months ended MarchJune 31,30, 2026 and 2025 were as follows (in thousands):

•Total income from real estate increased by $24.8$35.6 million to $420.0$430.5 million for the three months ended MarchJune 31,30, 2026 compared to $395.2$394.9 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions and development activities which in the aggregate increased cash rental income by $28.2$38.7 million for the three months ended MarchJune 31,30, 2026. Additionally, the three months ended MarchJune 31,30, 2026 benefited by $4.4$4.5 million compared to the corresponding period in the prior year from escalations on our leases, higher accretionground onrent its investment in leases of $0.5 million, favorable variable rentsrevenue of $0.2 million and higher ground rent revenueaccretion of $0.3$0.5 million.million Partiallyon offsettingits theseInvestment increasesin wereleases partially offset by unfavorable straight-line rent adjustments of $8.9$7.9 million and lower percentage rents of $0.4 million compared to the corresponding period in the prior year.

Details of the Company's income from real estate for the three and six months ended MarchJune 31,30, 2026 was as follows (in thousands)

The Company recognizes earnings on Investment in leases, financing receivables and Investment in leases, sales typesales-type based on the effective yield method using the discount rate implicit in the leases. The amounts in the table above labeled accretion on leases represent earnings recognized in excess of cash received during the period.

Operating expenses for the three and six months ended MarchJune 31,30, 2026 and 2025 were as follows (in thousands):

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 $0.2 million and $0.5 million for the three and six months ended MarchJune 31,30, 2026, 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.

General and administrative expenses include items such as compensation costs (including stock basedstock-based compensation), professional services and costs associated with development activities. General and administrative expenses decreased by $0.8$2.7 million and $3.4 million for the three and six months ended MarchJune 31,30, 2026,2026 as compared to the corresponding period in the prior year. The decreaseThis was primarily attributabledue to a $0.8 million reduction inlower stock-based compensation expensecosts, relativedeal toand theacquisition prior year.costs.

The Company recorded a benefitprovision for credit losses of $10.1$3.0 million and a benefit of $7.2 million for the three and six months ended MarchJune 31,30, 2026 compared to a provision of $39.2$53.7 million and $93.0 million for the corresponding periodperiods in the prior year. As described in Note 3, the Company follows ASC 326 “Credit Losses”, which requires that the Company measure and record current expected credit losses, the scope of which includes our Investments in leases, financing receivables, net as well as the Company's real estate loans and related loan commitment.commitments.

Other income (expenses) for the three and six months ended MarchJune 31,30, 2026 and 2025 were as follows (in thousands):

Interest expense decreasedincreased by $1.4$10.8 million and $9.4 million for the three and six months ended MarchJune 31,30, 2026, as compared to the corresponding period in the prior year. The increase was due to increased borrowings that partially funded our recent acquisitions.

The Company’s net income or loss is allocated to noncontrolling interests based on the respective ownershipeconomic or voting percentageinterests in the Operating Partnership associated with such noncontrolling interests and is removed from consolidated income or loss on the Condensed Consolidated Statements of OperationsIncome in order to derive net income or loss attributable to common stockholders. The noncontrolling ownership percentage is calculated by dividing the aggregateeconomically number ofparticipating LTIP Units and OP Units by the total numbereconomically ofparticipating units and shares outstanding.

Net cash provided by operating activities was $270.2$619.8 million and $252.5$545.9 million during the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The increase in net cash provided by operating activities of $17.7$74.0 million for the threesix months ended MarchJune 31,30, 2026, as compared to the corresponding period in the prior year, was primarily comprised of an increase in cash receipts from customers of $32.8$75.6 million along with a decreasedecreases in cash paid for interestoperating expenseexpenses of $9.4$5.2 million and cash paid for interest of $13.9 million. This was partially offset by increases in cash paid for operating expensesemployees and employeescash paid for taxes of $4.6$2.2 million and $2.1$0.1 million, respectively.respectively, Finally,and casha receiveddecrease onin interest income declinedof by $17.5$18.3 million. The increase in cash receipts collected from our customers for the threesix months ended MarchJune 31,30, 2026, as compared to the corresponding period in the prior year, was due to increased rental income from the Company's recent acquisitionacquisitions and development activity as well as lease escalations.

The decline in cash paid for interest expense relates to higher capitalized interest due to our continued development costs at Bally's Chicago, timing differences on bond interest payments due to our bond redemptions and issuances during the threesix months ended MarchJune 31,30, 2026, and lower market interest rates on our variable rate debt as well as higher capitalized interest due to our continued development costs at Bally's Chicago.debt. The increasedecrease in cash paid for operating expenses is primarily attributable to changes in working capital accounts and the increase in cash paid to employees is primarily attributable to a severance payment to a former executive.

Investing activities used cash of $853.5$1,262.8 million and provided cash of $534.0$500.4 million during the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. Net cash used by investing activities during the threesix months ended MarchJune 31,30, 2026 primarily consisted of $688.0$904.3 million for the acquisition of the Bally's Lincoln real estate assets which were added to theof Bally's IILincoln Masterand Lease,PENN's Hollywood Casino Aurora landside development, additional loan fundings of $54.1$69.4 million, $296.2 million for real estate construction costs for Bally's Chicago and to a lesser extent Bally's Marquette and $9.1 million for expenditures of property and equipment and capital expendituresexpenditures. This was partially offset by the principal payments on real estate loans of $111.5$16.2 million primarily related to Bally's Chicago.million. The net cash provided by investing activities for the threesix months ended MarchJune 31,30, 2025 primarily consisted primarily of the maturity of zero coupon U.S. Treasury Bills totaling $550.0 million, partially offset by Ione$5.0 Loanmillion fundingsfor the acquisition of $3.2the millionreal andestate assets which were added to the Bally's Master Lease, capital expenditures of $12.9$34.1 million and loan fundings of $10.7 million.

Financing activities provided cash of $633.5$737.6 million and used cash of $1,080.3$904.7 million during the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. Net cash provided by financing activities duringfor the threesix months ended MarchJune 31,30, 2026 wasprimarily drivenconsisted byof $2,156.9 million in proceeds from the issuance of long termlong-term debt and $350.8 million in net proceeds from the issuance of $2,156.9common million,stock. This was partially offset by the repayment of long term debt of $1,279.9$1,280.8 million, dividend payments of $221.1$459.7 million, non-controllingnoncontrolling interest distributions of $6.9$14.1 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $6.3 millionmillion, and new debt issuance costs of $9.1 million. Cash used in financing activities during the threesix months ended MarchJune 31,30, 2025 was driven by the repayment of long term debt of $850.1 million, dividend payments of $209.1$430.0 million, noncontrolling interest distributions of $6.3$12.8 millionmillion, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.8 million.million, partially offset by $403.0 million of net proceeds from the issuance of common stock.

During the threesix months ended MarchJune 31,30, 2026 and 2025, we spent approximately $111.5$296.2 million and $12.9$34.1 million, respectively, for capital expenditures. The majority of the capital expenditures in 2026 wereare related to the Bally's Chicago development projectproject. andThe expenditures in 2025 were related to a land side and hotel development project at Bally'sThe Marquette.Belle.

The Company has access to a $2.09 billion variable rate Revolver under its Credit Agreement, of which $330.8$330.0 million is outstanding as of MarchJune 31,30, 2026. Additionally, the Company was contingently obligated under letters of credit issued pursuant to the Credit Agreement with face amounts aggregating approximately $0.4 million, resulting in $1,758.8$1,759.6 million of available borrowing capacity under the Credit Agreement as of MarchJune 31,30, 2026.

The Company has $8.08 billion of debt outstanding with a weighted average maturity and interest rate of 7.16.9 years and 5.08%,5.07%, respectively as of MarchJune 31,30, 2026. The majority of the Company's debt obligations have fixed interest rates from the issuance of its senior unsecured notes. During the threesix months ended MarchJune 31,30, 2026, the Company issued $800 million of 5.625% Senior Notes that will mature on March 1, 2036 at an issue price of 99.857% of the principal amount. The proceeds of the offering were utilized to repay borrowings under the 2022 Term Loan Credit FacilityAgreement and for working capital and general corporate purposes. During the threesix month period ended MarchJune 31,30, 2025, the Company redeemed its $850 million 5.250% note that was due in June 2025. See Note 7 for the future minimum repayments of the Company's debt obligations and additional discussion.

As of June 30, 2026, GLPI owns 96.8%96.9% of the assetsoutstanding units of GLP Capital and conducts all of its operations substantially through the operating partnership. Based on the amendments to Rule 3-10 of Regulation S-X that the SEC released on January 4, 2021, we note that since GLPI fully and unconditionally guarantees the debt securities of the Issuers and consolidates both Issuers, we are not required to provide separate financial statements for the Issuers and GLPI since they are consolidated into GLPI and the GLPI guarantee is "full and unconditional".