Real Estate Loans, net |
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| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Loans, net | 5. Real estate loans, net The Company entered into the Rockford Loan to fund the construction of the Hard Rock Casino Rockford in Rockford, Illinois. As of June 30, 2026 and December 31, 2025, $134 million and $150 million, respectively, were outstanding under the Rockford Loan. In June 2026, $16 million of the Rockford Loan was repaid and the maturity date was extended to December 31, 2029. The contractual interest rate remained unchanged at 8%. The amendment also requires a principal payment of $12 million on or before March 31, 2028 and an additional principal payment of $10 million on or before March 31, 2029. The Company also entered into the Ione Loan for up to $110 million, of which $98.7 million and $56.6 million were outstanding as of June 30, 2026 and December 31, 2025, respectively. The Ione Loan has an 11% annual interest rate and matures in September 2029. The Company also entered into the Dry Creek Loan on December 4, 2025, and $45.3 million was drawn as of June 30, 2026 and December 31, 2025. The term loan B was issued at an original issue discount of 3% and bears interest at SOFR plus 900 basis points, subject to a SOFR floor of 1%. Each term loan has a maturity of 6 years. As discussed in Note 1, the Company concluded that amounts funded and the commitment to fund the development of Virginia Live! should be accounted for as a loan and a loan commitment, respectively. Accordingly, approximately $27.0 million funded on January 15, 2026 to acquire the land for the project has been classified as a real estate loan, and interest income is recognized at an annual rate of 8.0%. Upon completion of construction and commencement of operations, the Company expects the arrangement to be evaluated under the sale-leaseback guidance in ASC 842 to determine the appropriate lease classification. The following is a summary of the balances of the Company's real estate loans, net.
(1) Includes an unearned discount of $1.2 million and $1.4 million at June 30, 2026 and December 31, 2025, respectively. The change in the allowance for credit losses for the Company's real estate loans is shown below (in thousands):
The amortized cost basis of the Company's real estate loans, financing receivables by year of origination is shown below as of June 30, 2026 (in thousands):
The real estate loans are subject to CECL, which is described in Note 3. The Company recorded a provision for credit losses of $2.6 million and $5.0 million for the three month and six month periods ended June 30, 2026 on the Company's real estate loans, respectively. The Company recorded a provision for credit losses of $7.1 million and $10.1 million for the three months and six months ended June 30, 2025. Additionally, the Company recorded a benefit of $1.6 million and $14.1 million during the three month and six month periods ended June 30, 2026 on unfunded loan commitments compared to a provision of $0.4 million and $0.6 million during the three month and six month periods ended June 30, 2025. The benefit for the six month period ended June 30, 2026 was primarily due to an improvement in the estimated real estate values that will comprise the Company's real estate portfolio for the Virginia Live! development project. The reserves for the unfunded loan commitment are recorded in other liabilities on the Condensed Consolidated Balance Sheets and totaled $2.7 million and $16.8 million at June 30, 2026 and December 31, 2025, respectively. The Company's borrowers were current on their loan obligations as of June 30, 2026 and December 31, 2025.
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