Gaming & Leisure Properties, Inc.

Previous wording

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 June 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.

Current wording

The following discussion and analysis of the financial position and operating results of Gaming and Leisure Properties, Inc. for the three and nine months ended September 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.

Previous wording

•additional factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), in this Quarterly Report on Form 10-Q and Current Reports on Form 8-K as filed with the United States Securities and Exchange Commission.

Current wording

•additional factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 ("the Annual Report"), in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (the "Q2 Form 10-Q") in this Quarterly Report on Form 10-Q and Current Reports on Form 8-K as filed with the United States Securities and Exchange Commission.

Previous wording

You should consider the areas of risk described above, as well as those set forth in the "Risk Factors" section in the Company’s Annual Report and this Quarterly Report on Form 10-Q, in connection with considering any forward-looking statements that may be made by the Company generally. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements. Most of these factors are difficult to anticipate and are generally beyond the control of the Company. Except for the ongoing obligations of the Company to disclose material information under the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless required to do so by law.

Current wording

You should consider the areas of risk described above, as well as those set forth in the "Risk Factors" section in the Company’s Annual Report, the Q2 Form 10-Q and this Quarterly Report on Form 10-Q, in connection with considering any forward-looking statements that may be made by the Company generally. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements. Most of these factors are difficult to anticipate and are generally beyond the control of the Company. Except for the ongoing obligations of the Company to disclose material information under the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless required to do so by law.

Previous wording

(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 pro forma basis.

Current wording

(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.

Previous wording

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 June 30, 2026.

Current wording

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 nine months ended September 30, 2026.

Previous wording

We reported total revenues and income from operations of $430.5 million and $332.4 million, respectively, for the three months ended June 30, 2026, compared to $394.9 million and $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.

Current wording

We reported total revenues and income from operations of $435.4 million and $309.9 million, respectively, for the three months ended September 30, 2026, compared to $397.6 million and $337.2 million, respectively, for the corresponding period in the prior year. The Company reported total revenues and income from operations of $1,286.0 million and $975.7 million, respectively for the nine months ended September 30, 2026 compared to $1,187.7 million and $838.1 million for the corresponding period in the prior year.

Previous wording

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

Current wording

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

Previous wording

•Total income from real estate increased by $35.6 million to $430.5 million for the three months ended June 30, 2026 compared to $394.9 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $38.7 million for the three months ended June 30, 2026. Additionally, the three months ended June 30, 2026 benefited by $4.5 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.2 million and higher accretion of $0.5 million on our investment in leases partially offset by unfavorable straight-line rent adjustments of $7.9 million and lower percentage rents of $0.4 million compared to the corresponding period in the prior year.

Current wording

•Total income from real estate increased by $37.8 million to $435.4 million for the three months ended September 30, 2026 compared to $397.6 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $43.2 million for the three months ended September 30, 2026. Additionally, the three months ended September 30, 2026 benefited by $4.6 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.2 million and higher accretion of $0.4 million on our investment in leases partially offset by unfavorable straight-line rent adjustments of $9.7 million and lower percentage rents of $0.8 million compared to the corresponding period in the prior year.

Previous wording

•Total income from real estate increased by $60.4 million to $850.5 million for the six months ended June 30, 2026 compared to $790.1 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $67.0 million for the six months ended June 30, 2026. Additionally, the six months ended June 30, 2026 benefited by $8.9 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.5 million and higher accretion of $1.0 million on our investment in leases. These items were partially offset by unfavorable straight-line rent adjustments of $16.8 million and lower percentage rents of $0.2 million compared to the corresponding period in the prior year.

Current wording

•Total income from real estate increased by $98.2 million to $1,286.0 million for the nine months ended September 30, 2026 compared to $1,187.7 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $110.1 million for the nine months ended September 30, 2026. Additionally, the nine months ended September 30, 2026 benefited by $13.5 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.8 million and higher accretion of $1.4 million on our investment in leases. These items were partially offset by unfavorable straight-line rent adjustments of $26.5 million and lower percentage rents of $1.0 million compared to the corresponding period in the prior year.

Previous wording

•Total operating expenses decreased by $54.7 million for the three months ended June 30, 2026 as compared to the corresponding period in the prior year. The primary reason for the decrease was due to a decrease in the provision for credit losses of $50.7 million during the three months ended June 30, 2026 compared to the corresponding period in the prior year. The provision decrease was due to the significant provision recorded in the prior year. This was due to a more pessimistic forward-looking economic forecast utilized at June 30, 2025 compared to March 31, 2025. Additionally, general and administrative expenses decreased by $2.7 million due primarily from lower stock-based compensation costs and deal costs. The Company also incurred lower depreciation expense of $2.7 million due to accelerated depreciation in the corresponding period in the prior year 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.

Current wording

•Total operating expenses decreased by $39.4 million for the nine months ended September 30, 2026 as compared to the corresponding period in the prior year. The primary reason was due to a decrease in the provision for credit losses of $26.5 million during the nine months ended September 30, 2026. This decline was due to the significant provision recorded in the prior year from a more pessimistic forward-looking economic forecast at September 30, 2025 compared to what was utilized at December 31, 2024. Additionally, general and administrative expenses decreased by $7.1 million due primarily to a $6.3 million executive severance charge in the prior period partially offset by higher stock based compensation expense and deal costs. The Company also incurred lower depreciation expense of $0.8 million due to accelerated depreciation in the prior year 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 and accelerated depreciation on certain assets. Finally, the Company had gains on the dispositions of property of $5.6 million compared to a gain of $0.1 million for the corresponding period in the prior year.

Previous wording

•Other expenses increased by $11.5 million and $17.0 million for the three and six months ended June 30, 2026, primarily due to higher interest expense of $10.8 million and $9.4 million associated with the Company's increased borrowings to fund our recent acquisitions and lower interest income of $0.7 million and $7.3 million, respectively from lower cash on hand and investments.

Current wording

•Other expenses increased by $7.5 million and $24.4 million for the three and nine months ended September 30, 2026, primarily due to higher interest expense of $4.8 million and $14.2 million associated with the Company's increased borrowings to fund our recent acquisitions and lower interest income of $6.4 million and $13.8 million, respectively from lower cash on hand and investments. Additionally, losses on debt extinguishment and other financing costs totaled $0.3 million for the nine months ended September 30, 2026, whereas the three and nine months ended September 30, 2025, included charges of $3.8 million due to the redemption of the April 2026 Notes which consisted of a make whole premium and the write-off of unamortized debt issuance costs and discounts.

Previous wording

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

Current wording

•Net income decreased by $34.7 million for the three month period ended September 30, 2026 and increased by $113.2 million for the nine months ended September 30, 2026, as compared to the corresponding periods in the prior year, primarily due to the variances explained above.

Previous wording

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

Current wording

The consolidated results of operations for the three and nine months ended September 30, 2026 and 2025 are summarized below:

Previous wording

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-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-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.

Current wording

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-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

Previous wording

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

Current wording

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

Previous wording

Net income, FFO, AFFO and Adjusted EBITDA were $474.3 million, $606.3 million, $601.1 million, and $798.5 million for the six months ended June 30, 2026, respectively. This compares to net income, FFO, AFFO and Adjusted EBITDA of $326.5 million, $459.7 million, $548.1 million and $721.6 million for the corresponding period in the prior year. The increase in net income of $147.8 million was primarily attributable to lower operating expenses of $104.5 million (which was driven by a decline in the provision for credit losses of $100.1 million) and an increase in total revenues of $60.4 million. This was partially offset by higher other expenses of $17.0 million (driven by higher interest expense to partially finance our acquisitions and lower interest income earned on cash and investments)

Current wording

Net income, FFO, AFFO and Adjusted EBITDA were $213.8 million, $275.9 million, $311.7 million, and $413.9 million for the three months ended September 30, 2026, respectively. This compares to net income, FFO, AFFO and Adjusted EBITDA of $248.5 million, $315.5 million, $282.0 million and $366.4 million for the corresponding period in the prior year. The decrease in net income of $34.7 million was primarily attributable to higher operating expenses of $65.1 million (which was driven primarily by the increase in provision for credit losses of $73.6 million) partially offset by an increase in total revenues of $37.8 million. Additionally, the Company incurred higher other expenses of $7.5 million.

Previous wording

Net income, FFO, AFFO and Adjusted EBITDA were $234.9 million, $302.3 million, $304.0 million, and $405.5 million for the three months ended June 30, 2026, respectively. This compares to net income, FFO, AFFO and Adjusted EBITDA of $156.2 million, $224.9 million, $276.1 million and $361.5 million for the corresponding period in the prior year. The increase in net income of $78.8 million was primarily attributable to lower operating expenses of $54.7 million (which was driven by the decrease in provision for credit losses of $50.7 million) and an increase in total revenues of $35.6 million. This was partially offset by higher other expenses of $11.5 million driven by higher interest expense to partially finance our acquisitions.

Current wording

Net income, FFO, AFFO and Adjusted EBITDA were $688.2 million, $882.1 million, $912.8 million, and $1,212.4 million for the nine months ended September 30, 2026, respectively. This compares to net income, FFO, AFFO and Adjusted EBITDA of $575.0 million, $775.1 million, $830.1 million and $1,088.0 million for the corresponding period in the prior year. The increase in net income of $113.2 million was primarily attributable to lower operating expenses of $39.4 million (which was driven primarily by a decline in the provision for credit losses of $26.5 million) and an increase in total revenues of $98.2 million. This was partially offset by higher other expenses of $24.4 million.

Previous wording

The increases in FFO for the three and six months ended June 30, 2026 were due to the items described above, excluding gains from dispositions of property and real estate depreciation. The increases in AFFO and Adjusted EBITDA were due to the items described above, as well as the adjustments mentioned in the tables above.

Current wording

The variances in FFO for the three and nine months ended September 30, 2026 were due to the items described above, excluding gains from dispositions of property and real estate depreciation. The variances in AFFO and Adjusted EBITDA were due to the items described above, as well as the adjustments mentioned in the tables above.

Previous wording

•Total income from real estate increased by $35.6 million to $430.5 million for the three months ended June 30, 2026 compared to $394.9 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $38.7 million for the three months ended June 30, 2026. Additionally, the three months ended June 30, 2026 benefited by $4.5 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.2 million and higher accretion of $0.5 million on its Investment in leases partially offset by unfavorable straight-line rent adjustments of $7.9 million and lower percentage rents of $0.4 million compared to the corresponding period in the prior year.

Current wording

•Total income from real estate increased by $37.8 million to $435.4 million for the three months ended September 30, 2026 compared to $397.6 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $43.2 million for the three months ended September 30, 2026. Additionally, the three months ended September 30, 2026 benefited by $4.6 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.2 million and higher accretion of $0.4 million on our investment in leases partially offset by unfavorable straight-line rent adjustments of $9.7 million and lower percentage rents of $0.8 million compared to the corresponding period in the prior year.

Previous wording

•Total income from real estate increased by $60.4 million to $850.5 million for the six months ended June 30, 2026 compared to $790.1 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $67.0 million for the six months ended June 30, 2026. Additionally, the six months ended June 30, 2026 benefited by $8.9 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.5 million and higher accretion of $1.0 million on its Investment in leases. These items were partially offset by unfavorable straight-line rent adjustments of $16.8 million and lower percentage rents of $0.2 million compared to the corresponding period in the prior year.

Current wording

•Total income from real estate increased by $98.2 million to $1,286.0 million for the nine months ended September 30, 2026 compared to $1,187.7 million for the corresponding period in the prior year. The reason for the increase was primarily due to our recent acquisitions which in the aggregate increased cash rental income by $110.1 million for the nine months ended September 30, 2026. Additionally, the nine months ended September 30, 2026 benefited by $13.5 million compared to the corresponding period in the prior year from escalations on our leases, higher ground rent revenue of $0.8 million and higher accretion of $1.4 million on our investment in leases. These items were partially offset by unfavorable straight-line rent adjustments of $26.5 million and lower percentage rents of $1.0 million compared to the corresponding period in the prior year.

Previous wording

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

Current wording

Details of the Company's income from real estate for the three and nine months ended September 30, 2026 were as follows (in thousands)

Previous wording

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

Current wording

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

Previous wording

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 June 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.

Current wording

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 $0.1 million and $0.5 million for the three and nine months ended September 30, 2026, as compared to the corresponding period in the prior year.

Previous wording

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 decreased by $2.7 million and $3.4 million for the three and six months ended June 30, 2026 as compared to the corresponding period in the prior year. This was due to lower stock-based compensation costs, deal and acquisition costs.

Current wording

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 decreased by $3.7 million and $7.1 million for the three and nine months ended September 30, 2026 as compared to the corresponding period in the prior year. This was due to an executive severance charge of $6.3 million in the prior year partially offset by higher stock-based compensation expense and deal costs.

Previous wording

The Company recorded a provision for credit losses of $3.0 million and a benefit of $7.2 million for the three and six months ended June 30, 2026 compared to a provision of $53.7 million and $93.0 million for the corresponding periods 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 loan commitments.

Current wording

The Company recorded a provision for credit losses of $36.2 million and $29.1 million for the three and nine months ended September 30, 2026 compared to a benefit of $37.4 million and a provision of $55.6 million for the corresponding periods 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 loan commitments.

Previous wording

The benefit recorded during the six months ended June 30, 2026 resulted primarily from an improvement in the estimated real estate values that will comprise the Company's real estate portfolio for the Virginia Live! development project partially offset by an increase in reserves associated with the Rockford Loan following the extension of its maturity date to December 31, 2029. The provisions during the three and six months ended June 30, 2025 were primarily driven by a sequential deterioration in the third-party forward-looking economic outlook used in the Company's CECL reserve calculations. The macroeconomic forecast as of March 31, 2025, was more pessimistic than the forecast used as of December 31, 2024, resulting in a provision during the three months ended March 31, 2025. The outlook further deteriorated as of June 30, 2025, leading to an additional provision during the three months ended June 30, 2025. Future changes in economic projections, probability factors, changes in the estimated value of our real estate property and earnings assumptions at the underlying facilities may result in non-cash provisions or recoveries in future periods that could materially impact our results of operations.

Current wording

The benefit during the three months ended September 30, 2025 was driven by an improvement in the third-party forward-looking economic outlook used in the Company's CECL reserve calculation compared to what was utilized at June 30, 2025. The provision for the nine months ended September 30, 2025, was primarily driven by the deterioration in the third-party forward-looking economic outlook used in the Company's CECL reserve calculations compared to what was utilized at December 31, 2024.

Previous wording

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

Current wording

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

Previous wording

Interest expense increased by $10.8 million and $9.4 million for the three and six months ended June 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.

Current wording

Interest expense increased by $4.8 million and $14.2 million for the three and nine months ended September 30, 2026, as compared to the corresponding periods in the prior year. The increase was due to increased borrowings that partially funded our recent acquisitions.

Previous wording

Net cash provided by operating activities was $619.8 million and $545.9 million during the six months ended June 30, 2026 and 2025, respectively. The increase in net cash provided by operating activities of $74.0 million for the six months ended June 30, 2026, as compared to the corresponding period in the prior year, was primarily comprised of an increase in cash receipts from customers of $75.6 million along with decreases in cash paid for operating expenses of $5.2 million and cash paid for interest of $13.9 million. This was offset by increases in cash paid for employees and cash paid for taxes of $2.2 million and $0.1 million, respectively, and a decrease in interest income of $18.3 million. The increase in cash receipts collected from our customers for the six months ended June 30, 2026, as compared to the corresponding period in the prior year, was due to the Company's recent acquisitions and lease escalations.

Current wording

Net cash provided by operating activities was $899.5 million and $786.2 million during the nine months ended September 30, 2026 and 2025, respectively. The increase in net cash provided by operating activities of $113.4 million for the nine months ended September 30, 2026, as compared to the corresponding period in the prior year, was primarily comprised of an increase in cash receipts from customers of $122.6 million along with decreases in cash paid for operating expenses of $11.3 million, cash paid for interest of $5.1 million and cash paid for employees of $0.4 million. This was offset by increases in cash paid for taxes of $0.1 million, a decrease in interest income receipts of $24.8 million, and a decrease in cash received upon termination of a swap of $1.0 million. The increase in cash receipts collected from our customers for the nine months ended September 30, 2026, as compared to the corresponding period in the prior year, was due to the Company's recent acquisitions and lease escalations.

Previous wording

The $18.3 million decline in cash collected from interest income was driven by two factors: (i) the non-recurrence of a zero-coupon bond maturity in the prior year and (ii) lower average earning balances in the current year. Upon maturity, the zero-coupon bond generated a one-time cash inflow of $10.8 million, representing the cumulative accretion of discount recognized as interest income over the life of the instrument. As no comparable maturity occurred in the current period, this resulted in a period-over-period decline in cash collections. The remaining variance is attributable to lower average earning balances, which reduced ongoing interest income.

Current wording

The $24.8 million decline in cash collected from interest income was driven by two factors: (i) the non-recurrence of a zero-coupon bond maturity in the prior year and (ii) lower average earning balances in the current year. Upon maturity, the zero-coupon bond generated a one-time cash inflow of $10.8 million, representing the cumulative accretion of discount recognized as interest income over the life of the instrument. As no comparable maturity occurred in the current period, this resulted in a period-over-period decline in cash collections. The remaining variance is attributable to lower average earning balances, which reduced ongoing interest income.

Previous wording

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 six months ended June 30, 2026, and lower market interest rates on our variable rate debt. The decrease 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.

Current wording

The decline in cash paid for interest expense relates to higher capitalized interest due to our continued development costs at Bally's Chicago, partially offset by timing differences on bond interest payments due to our bond redemptions and issuances during the nine months ended September 30, 2025. The decrease in cash paid for operating expenses is primarily attributable to changes in working capital accounts.

Previous wording

Investing activities used cash of $1,262.8 million and provided cash of $500.4 million during the six months ended June 30, 2026 and 2025, respectively. Net cash used by investing activities during the six months ended June 30, 2026 primarily consisted of $904.3 million for the acquisition of the real estate assets of Bally's Lincoln and PENN's Hollywood Casino Aurora landside development, additional loan fundings of $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 expenditures. This was partially offset by the principal payments on real estate loans of $16.2 million. The net cash provided by investing activities for the six months ended June 30, 2025 primarily consisted of the maturity of zero coupon U.S. Treasury Bills totaling $550.0 million, partially offset by $5.0 million for the acquisition of the real estate assets which were added to the Bally's Master Lease, capital expenditures of $34.1 million and loan fundings of $10.7 million.

Current wording

Investing activities used cash of $1,448.9 million and provided cash of $333.5 million during the nine months ended September 30, 2026 and 2025, respectively. Net cash used by investing activities during the nine months ended September 30, 2026 primarily consisted of $904.3 million for the acquisition of the real estate assets of Bally's Lincoln and PENN's Hollywood Casino Aurora landside development, additional loan fundings of $91.0 million, $472.6 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 expenditures. This was partially offset by the principal payments on real estate loans of $16.5 million and proceeds from the sale of property and equipment of $11.6 million. The net cash provided by investing activities for the nine months ended September 30, 2025 primarily consisted of the maturity of zero coupon U.S. Treasury Bills totaling $550.0 million, partially offset by $135.0 million for the acquisition of the real estate assets which were added to the Bally's Master Lease, capital expenditures of $57.5 million and loan fundings of $24.2 million.

Previous wording

Financing activities provided cash of $737.6 million and used cash of $904.7 million during the six months ended June 30, 2026 and 2025, respectively. Net cash provided by financing activities for the six months ended June 30, 2026 primarily consisted of $2,156.9 million in proceeds from the issuance of long-term debt and $350.8 million in net proceeds from the issuance of common stock. This was partially offset by the repayment of long term debt of $1,280.8 million, dividend payments of $459.7 million, noncontrolling interest distributions of $14.1 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $6.3 million, and new debt issuance costs of $9.1 million. Cash used in financing activities during the six months ended June 30, 2025 was driven by the repayment of long term debt of $850.1 million, dividend payments of $430.0 million, noncontrolling interest distributions of $12.8 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.8 million, partially offset by $403.0 million of net proceeds from the issuance of common stock.

Current wording

Financing activities provided cash of $490.8 million and used cash of $830.6 million during the nine months ended September 30, 2026 and 2025, respectively. Net cash provided by financing activities for the nine months ended September 30, 2026 primarily consisted of $2,156.9 million in proceeds from the issuance of long-term debt and $350.8 million in net proceeds from the issuance of common stock. This was partially offset by the repayment of long term debt of $1,281.6 million, dividend payments of $698.4 million, noncontrolling interest distributions of $21.2 million, and taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $6.4 million, and new debt issuance costs of $9.1 million. Cash used in financing activities during the nine months ended September 30, 2025 was driven by the repayment of long term debt of $1,825.2 million, dividend payments of $650.9 million, noncontrolling interest distributions of $19.3 million, taxes paid related to shares withheld for tax purposes on restricted stock award vestings of $14.8 million, debt issuance costs of $12.4 million and $2.9 million of premium and related costs paid on the retirement of certain Senior Notes, partially offset by $402.9 million of net proceeds from the issuance of common stock and $1,292.2 million in proceeds from the issuance of long term debt.

Previous wording

During the six months ended June 30, 2026 and 2025, we spent approximately $296.2 million and $34.1 million, respectively, for capital expenditures. The majority of the capital expenditures in 2026 are related to the Chicago development project. The expenditures in 2025 were related to a land side and hotel development project at The Belle.

Current wording

During the nine months ended September 30, 2026 and 2025, we spent approximately $472.6 million and $57.5 million, respectively, for capital expenditures. The majority of the capital expenditures in 2026 are related to the Chicago development project. The expenditures in 2025 were related to a land side and hotel development project at The Belle.

Previous wording

The Company has access to a $2.09 billion variable rate Revolver under its Credit Agreement, of which $330.0 million is outstanding as of June 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 $1,759.6 million of available borrowing capacity under the Credit Agreement as of June 30, 2026.

Current wording

The Company has access to a $2.09 billion variable rate Revolver under its Credit Agreement, of which $329.1 million is outstanding as of September 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 $1,760.5 million of available borrowing capacity under the Credit Agreement as of September 30, 2026.

Previous wording

The Company has $8.08 billion of debt outstanding with a weighted average maturity and interest rate of 6.9 years and 5.07%, respectively as of June 30, 2026. The majority of the Company's debt obligations have fixed interest rates from the issuance of its senior unsecured notes. During the six months ended June 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 Agreement and for working capital and general corporate purposes. During the six month period ended June 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.

Current wording

The Company has $8.08 billion of net debt outstanding with a weighted average maturity and interest rate of 6.6 years and 5.10%, respectively as of September 30, 2026. The majority of the Company's debt obligations have fixed interest rates from the issuance of its senior unsecured notes. During the nine months ended September 30, 2026, the Company issued $800 million of 5.625% Senior Notes that 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 Agreement and for working capital and general corporate purposes. See Note 7 for the future minimum repayments of the Company's debt obligations and additional discussion.

Previous wording

As of June 30, 2026, GLPI owns 96.9% of the outstanding 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".

Current wording

As of September 30, 2026, GLPI owns 96.9% of the outstanding 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, we note that since GLPI fully and unconditionally guarantees the debt securities of GLP Capital and GLP Financing II, Inc. ("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".