v3.26.3
Real Estate Portfolio
 9 Months Ended
Sep. 30, 2026
Real Estate [Abstract]  
Real Estate Portfolio Real Estate Portfolio
As of September 30, 2026, our real estate portfolio consisted of the following:
•Investments in leases - sales-type, representing our investment in 29 casino assets leased on a triple-net basis to our tenants under eleven separate lease agreements;
•Investments in leases - financing receivables, representing our investment in 34 casino assets and 39 other experiential properties leased on a triple-net basis to our tenants under eleven separate lease agreements;
•Investments in loans, representing our 20 debt investments in senior secured and mezzanine loans, and preferred equity;
•Real estate under development, representing our construction in progress in connection with the Club Med St. Croix Transaction; and
•Land, representing our investment in certain underdeveloped or undeveloped land adjacent to the Las Vegas Strip and non-operating, vacant land parcels.
The following is a summary of the balances of our real estate portfolio as of September 30, 2026 and December 31, 2025:
(In thousands)September 30, 2026December 31, 2025
Investments in leases - sales-type, net (1)
$24,370,572 $23,706,563 
Investments in leases - financing receivables, net (1)
19,235,774 18,697,133 
Total investments in leases, net43,606,346 42,403,696 
Investments in loans and securities, net2,984,010 2,525,457 
Real estate under development25,499 — 
Land148,002 148,002 
Total real estate portfolio$46,763,857 $45,077,155 
____________________
(1) At lease inception (or upon modification), we determine the estimated residual values of the leased property (not guaranteed) under the respective lease agreements, which has a material impact on the determination of the rate implicit in the lease and the lease classification.
Investments in Leases
The following table details the components of our income from sales-type leases and lease financing receivables:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In thousands)2026202520262025
Income from sales-type leases – fixed rent$528,004 $503,040 $1,556,716 $1,505,431 
Income from sales-type leases – contingent rent (1)
28,745 28,725 85,952 85,286 
Income from lease financing receivables – fixed rent400,937 385,112 1,193,115 1,150,865 
Income from lease financing receivables – contingent rent (1)
2,567 1,898 7,674 5,693 
Total leasing revenue960,253 918,775 2,843,457 2,747,275 
Non-cash adjustment (2)
(131,964)(131,247)(401,209)(393,370)
     Total contractual leasing revenue$828,289 $787,528 $2,442,248 $2,353,905 
____________________
(1) At lease inception (or upon modification), we determine the minimum lease payments under ASC 842, which exclude amounts determined to be contingent rent. Contingent rent is generally amounts in excess of specified floors or the variable rent portion of our leases. The minimum lease payments are recognized on an effective interest basis at a constant rate of return over the life of the lease and the contingent rent portion of the lease payments is recognized as earned, both in accordance with ASC 842.
(2) Amounts represent the non-cash adjustment to the minimum lease payments from sales-type leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases.
At September 30, 2026, minimum lease payments owed to us for each of the five succeeding years and thereafter under sales-type leases and our leases accounted for as financing receivables, are as follows:
Minimum Lease Payments (1) (2)
Investments in Leases
(In thousands)Sales-TypeFinancing Receivables
Total
2026 (remaining)$470,333 $329,434 $799,767 
20271,900,129 1,333,755 3,233,884 
20281,930,021 1,358,364 3,288,385 
20291,960,954 1,384,033 3,344,987 
20301,992,601 1,410,204 3,402,805 
Thereafter80,429,518 90,377,716 170,807,234 
Total minimum lease payments88,683,556 96,193,506 184,877,062 
Unamortized initial direct costs44,828 48,319 93,147 
Less: Present value of lease payments (3)
(63,075,416)(76,121,157)(139,196,573)
Less: Allowance for credit losses(1,282,396)(884,894)(2,167,290)
Investments in leases, net$24,370,572 $19,235,774 $43,606,346 
____________________
(1) Minimum lease payments do not include contingent rent, as discussed above, that may be received under the lease agreements.
(2) The minimum lease payments include the non-cancelable lease term and any tenant renewal options that we determined were reasonably assured, consistent with our conclusions under ASC 842 and ASC 310.
(3) The present value of lease payments includes the unguaranteed residual value of $16.9 billion.
Lease Provisions
As of September 30, 2026, we owned 103 assets leased under 20 separate lease agreements with our tenants, certain of which are master lease agreements governing multiple properties and certain of which are for single assets. Our lease agreements are generally long-term in nature with initial terms ranging from 15 to 32 years and are structured with several tenant renewal options extending the term of the lease for another 5 to 30 years. As of September 30, 2026, our lease agreements had a weighted average lease term based on contractual rent, including extension options, of approximately 39.4 years.
All of our lease agreements provide for annual base rent escalations, which may be fixed or variable over the life of the lease. The rent escalation provisions range from providing for a flat annual increase of 1% to 2% to an annual increase of 1% in the earlier years and the greater of 2% or CPI in later years, which may be subject to a maximum CPI-based cap with respect to each annual rent increase. Additionally, certain of our lease agreements provide for a variable rent component in which a portion of the annual rent, generally ranging from 20% to 30%, is subject to adjustment based on the revenues of the underlying asset in specified periods.
The following is a summary of the material lease provisions of our leases with Caesars and MGM, our two most significant tenants (each, as may be amended from time to time, and each individually, as defined in the respective header):
($ In thousands)Caesars Regional Master Lease and Joliet LeaseMGM Master LeaseCaesars Las Vegas
Master Lease		MGM Grand/
Mandalay Bay Lease
Lease Provision
Initial term18 years25 years18 years30 years
Initial term maturity7/31/20354/30/20477/31/20352/28/2050
Renewal terms
Four, five-year terms
Three, ten-year terms
Four, five-year terms
Two, ten-year terms
Current lease year11/1/25 - 10/31/26
(Lease Year 9)		5/1/26 - 4/30/27
(Lease Year 5)		11/1/25 - 10/31/26
(Lease Year 9)		3/1/26 - 2/28/27 (Lease Year 7)
Current annual rent
$740,548 (1)
$736,158 (2)
$505,678
$328,839
Annual escalator (3)
> 2% / change in CPI
Lease years 2-10 - 2%
Lease years 11-end of term - > 2% / change in CPI (capped at 3%)
> 2% / change in CPI
Lease years 2-15 - 2%
Lease years 16-end of term – >2% / change in CPI (capped at 3%)
Variable rent adjustment (4)
Years 11 & 16: 80% base rent / 20% variable rent
None
Years 11 & 16: 80% base rent / 20% variable rent
None
Variable rent adjustment calculation
4% of revenue increase/decrease:
Year 11: Avg. of years 8-10 less avg. of years 5-7
Year 16: Avg. of years 13-15 less avg. of years 8-10
None
4% of revenue increase/decrease:
Year 11: Avg. of years 8-10 less avg. of years 5-7
Year 16: Avg. of years 13-15 less avg. of years 8-10
None
____________________
(1) Current annual rent with respect to the Joliet Lease is presented prior to accounting for the non-controlling interest, or rent payable, to the 20% third-party ownership of Harrah’s Joliet LandCo LLC. After adjusting for the 20% non-controlling interest, combined current annual rent under the Caesars Regional Master Lease and Joliet Lease is $730.9 million.
(2) On April 21, 2026, we entered into an amendment to the existing MGM Master Lease in order to account for MGM’s divestiture of the operations of Northfield Park and to reduce the annual base rent under the MGM Master Lease by the initial base rent under the Northfield Park Lease of $53.0 million.
(3) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP.
(4) Variable rent is not subject to the annual escalator.
Capital Expenditure Requirements
We manage our residual asset risk through protective covenants in our lease agreements, which require the tenant to, among other things, hold specific insurance coverage, engage in ongoing maintenance of the property and invest in capital improvements. With respect to the capital improvements, the lease agreements specify certain minimum amounts that our tenants must spend on capital expenditures that constitute installation, restoration and repair or other improvements of items with respect to the leased properties. The following table summarizes the capital expenditure requirements of our tenants under their respective lease agreements:
ProvisionCaesars Regional Master Lease and Joliet LeaseCaesars Las Vegas Master LeaseMGM Grand/ Mandalay Bay LeaseVenetian Lease
All Other Gaming Leases (1)
Yearly minimum expenditure
1% of net revenues (2)
1% of net revenues (2)
3.5% of net revenues based on 5-year rolling test, 1.5% monthly reserves
2% of net revenues based on rolling three-year basis
1% of net revenues
Rolling three-year minimum
$286 million (3)
$84 million (3)
N/AN/AN/A
____________________
(1) Represents the tenants under our other gaming lease agreements not specifically outlined in the table, as specified in the respective lease agreements.
(2) The leases with Caesars require a $107.5 million floor on annual capital expenditures for Caesars Palace Las Vegas, Harrah’s Joliet and the Caesars Regional Master Lease properties in the aggregate. Additionally, annual building & improvement capital improvements must be equal to or greater than 1% of prior year net revenues.
(3) Certain tenants under our leases with Caesars, as applicable, are required to spend $380.3 million on capital expenditures (excluding gaming equipment) over a rolling three-year period, with $286.0 million allocated to the regional assets, $84.0 million allocated to Caesars Palace Las Vegas and the remaining balance of $10.3 million to facilities (other than the Harrah’s Las Vegas Facility) covered by any Caesars lease in such proportion as such tenants may elect. Additionally, the tenants under the Caesars Regional Master Lease and Joliet Lease are required to spend a minimum of $531.9 million on capital expenditures (including gaming equipment) across certain of its affiliates and other assets, together with the $380.3 million requirement.
Investments in Loans and Securities
The following is a summary of our investments in loans and securities as of September 30, 2026 and December 31, 2025:
($ In thousands)September 30, 2026
Investment TypePrincipal Balance
Carrying Value (1)
Future Funding Commitments (2)
Weighted Average Interest Rate (3)
Weighted Average Term (4)
Senior Secured Loans$1,347,567 $1,233,029 $162,452 8.6 %4.1 years
Mezzanine Loans and Preferred Equity1,814,898 1,750,981 803,111 10.4 %3.4 years
Total$3,162,465 $2,984,010 $965,563 9.6 %3.7 years
($ In thousands)December 31, 2025
Investment TypePrincipal Balance
Carrying Value (1)
Future Funding Commitments (2)
Weighted Average Interest Rate (3)
Weighted Average Term (4)
Senior Secured Notes (5)
$83,406 $81,033 $— 11.0 %5.2 years
Senior Secured Loans1,084,478 1,047,585 399,942 8.3 %4.4 years
Mezzanine Loans and Preferred Equity1,412,203 1,396,839 223,553 9.6 %2.5 years
Total$2,580,087 $2,525,457 $623,495 9.1 %3.4 years
_________________
(1) Carrying value includes unamortized loan origination fees and costs and are net of allowance for credit losses.
(2) Our future funding commitments are subject to our borrowers’ compliance with the financial covenants and other applicable provisions of each respective loan agreement.
(3) The weighted average interest rate is based on current outstanding principal balance and SOFR, as applicable for floating rate loans, as of September 30, 2026 and December 31, 2025.
(4) Assumes all extension options are exercised; however, our loans may be repaid, subject to certain conditions, prior to such date.
(5) The Senior Secured Notes were repaid in full during the three months ended September 30, 2026.

The following summarizes the activity of our investments in loans and securities for the nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30,
(In thousands)20262025
Beginning Balance January 1, $2,525,457 $1,651,533 
Principal fundings1,158,733 783,604 
Payment-in-kind interest13,543 23,831 
Repayments(589,501)(15,897)
Deferred fees(19,536)— 
Change in CECL allowance(102,681)(14,045)
Other(2,005)3,973 
Ending Balance September 30,
$2,984,010 $2,432,999