Gaming & Leisure Properties, Inc.

Current report

Deterioration in the financial condition or liquidity of Bally’s Corporation could adversely affect its ability to satisfy its obligations to us and could adversely affect our investments in properties leased to Bally’s and its affiliates.

Current report

Bally’s Corporation and its affiliates are significant tenants of the Company. For the three months ended September 30, 2026, 19.4% of our total cash income was derived from our leases with Bally’s Corporation and its affiliates. As of September 30, 2026, our portfolio included the real property associated with 16 gaming and related facilities operated by Bally’s Corporation, and we had funded $640.7 million of our commitment to fund up to $940.0 million of real estate construction costs for Bally’s Chicago, which remains under development and on which rent is being paid to us monthly but the recognition of rental income is being deferred, for accounting purposes, until the project is completed.

Current report

In May 2026, the lenders under Bally’s Corporation’s revolving credit facility conditionally waived compliance with its consolidated net leverage ratio covenant through the delivery of its compliance certificate for the quarter ending March 31, 2027. The waiver remains subject to Bally’s Corporation’s ongoing satisfaction of certain liquidity maintenance requirements, among other conditions. In August 2026, Bally’s Corporation disclosed that, based on its then-current forecasts and excluding financings it was pursuing, it did not project that it would satisfy the liquidity maintenance requirement or the consolidated net leverage ratio covenant once reinstated, and that these conditions raise substantial doubt about its ability to continue as a going concern. If Bally’s Corporation fails to satisfy the waiver conditions or any applicable covenants, absent an additional waiver, its lenders could accelerate the indebtedness under its credit agreement, which could have a material adverse effect on its business, financial condition and results of operations and increase the risk that Bally’s Corporation could become insolvent or seek protection under applicable bankruptcy laws.

Current report

In that event, Bally’s Corporation may be unable to satisfy its rental and other obligations to us, we may be required to terminate leases with Bally's Corporation and reposition our properties with new tenants and/or complete ongoing development projects. In a bankruptcy proceeding, Bally’s Corporation could seek to reject one or more of its leases with us, in which case our claim for damages would be limited under the U.S. Bankruptcy Code and may not be fully recoverable. Because our properties are special-purpose gaming facilities and any replacement operator would be required to obtain applicable gaming licenses and approvals, we may be unable to re-lease affected properties in a timely manner, which could impact our collection of rent. Any of the foregoing could require us to record additional provisions for credit losses or impairment charges and could have a material adverse effect on our results of operations, cash flows and ability to make distributions to our shareholders.

Previous report

Geopolitical instability may drive interest rate and inflation volatility, increasing our cost of capital and adversely impacting tenant performance and rent growth

Previous report

Geopolitical events, including recent conflicts in the Middle East, have contributed to increased volatility in U.S. Treasury yields, including higher 10-year Treasury yields, which serve as a benchmark for our cost of capital and a key input in equity valuation for REITs. Sustained increases in interest rates could adversely affect our stock price, increase our borrowing costs, and reduce the attractiveness of real estate investments relative to other asset classes.

Previous report

In addition, such geopolitical events may contribute to higher inflation, including through increases in energy prices, supply chain disruptions, and higher input costs. Elevated inflation may adversely affect our tenants' operating costs and profitability, as well as discretionary consumer spending at their properties, thereby reducing tenant cash flows. This, in turn, may reduce rent coverage ratios and limit rent growth under escalation provisions or percentage rent components in certain of our leases, and could impair our tenants’ ability to satisfy their obligations to us.