Certain of the Company's leases are recorded as an Investment in leases, financing receivables, net, as the sale-leaseback transactions were accounted for as failed sale leasebacks as control of the real estate did not transfer to the Company. Additionally, as described in Note 1, the Company reassessed the Tropicana Las Vegas Lease in 2024 which resulted in the lease being classified as a sales-type lease. The following is a summary of the balances of the Company's Investment in leases, financing receivables and investment in leases, sales-type (in thousands).


	September 30, 2026		September 30, 2026		December 31, 2025		December 31, 2025
	Investment in leases, sales-type		Investment in leases, financing receivables		Investment in leases, sales-type		Investment in leases, financing receivables
Minimum lease payments receivable	$	682,491	$	9,954,033	$	693,619	$	10,090,473
Estimated residual values of lease property (unguaranteed)	278,500		1,444,690		278,500		1,444,690
Total	960,991		11,398,723		972,119		11,535,163
Less: Unearned income	(682,494)		(8,796,972)		(693,622)		(8,955,526)
Less: Allowance for credit losses	(33,376)		(50,836)		(30,076)		(22,133)
Investment in leases, net	$	245,121	$	2,550,915	$	248,421	$	2,557,504

The present value of the net investment in the lease payment receivable and unguaranteed residual value at September 30, 2026 for the Company's Investment in leases, financing receivables was $2,492.8 million and $109.0 million compared to $2,477.1 million and $102.6 million at December 31, 2025. The present value of the net investment in the lease payment receivable and unguaranteed residual value at September 30, 2026 for the Company's Investment in leases, sales-type was $254.3 million and $24.2 million compared to $255.3 million and $23.2 million at December 31, 2025.


Year ending December 31,	Future Minimum Lease Payments - Sales-Type		Future Minimum Lease Payments - Financing Receivables
2026 (remainder of year)	$	3,709	$	45,652
2027	14,837		185,336
2028	14,837		188,639
2029	14,837		192,000
2030	14,837		195,423
Thereafter	619,434		9,146,983
Total	$	682,491	$	9,954,033

The Company follows ASC 326 “Credit Losses”, which requires that the Company measure and record current expected credit losses (“CECL”), the scope of which includes the Company's Investment in leases, financing receivables, net, the Company's Investment in leases, sales-type, net, and the Company's Real estate loans, net, which are discussed in Note 5. The Company has elected to use an econometric default and loss rate model to estimate the allowance for credit losses, or CECL allowance. This model requires us to calculate and input lease and property-specific credit and performance metrics which in conjunction with forward-looking economic forecasts, project estimated credit losses over the life of the lease or loan. The Company then records a CECL allowance based on the expected loss rate multiplied by the outstanding investment.

Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and loss given default (“LGD”) of our instruments subject to CECL. We have engaged a nationally recognized data analytics firm to assist us with estimating both the PD and LGD. The PD and LGD are estimated during the initial term of the instruments subject to CECL. The PD and LGD estimates were developed using current financial condition forecasts. The PD and LGD predictive model was developed using the average historical default rates and historical loss rates, respectively, of over 100,000 commercial real estate loans dating back to 1998 that have similar credit profiles or characteristics to the real estate underlying the Company's instruments subject to CECL. Management will monitor the credit risk related to its instruments subject to CECL by obtaining the applicable rent and interest coverage on a periodic basis. The Company also monitors legislative changes to assess whether it would have an impact on the underlying performance of its tenants. We are unable to use our historical data to estimate losses as the Company has no loss history to date on its lease portfolio. Our tenants were current on all of their rental obligations as of September 30, 2026 and December 31, 2025.


	Balance at December 31, 2025		Change in Allowance		Balance at March 31, 2026		Change in Allowance		Balance at June 30, 2026		Change in Allowance		Balance at September 30, 2026
Maryland Live Lease	$	2,589	$	591	$	3,180	$	(273)	$	2,907	$	4,861	$	7,768
PA Live Master Lease	11,935		(1,167)		10,768		2,344		13,112		12,862		25,974
Rockford Lease	894		1,140		2,034		2,774		4,808		828		5,636
Tioga Downs Lease	3,573		644		4,217		(1,273)		2,944		2,191		5,135
Strategic Lease	3,142		838		3,980		(299)		3,681		2,642		6,323
Tropicana LV Lease	30,076		(2,091)		27,985		(1,308)		26,677		6,699		33,376
Total	$	52,209	$	(45)	$	52,164	$	1,965	$	54,129	$	30,083	$	84,212


	Balance at December 31, 2024		Change in Allowance		Balance at March 31, 2025		Change in Allowance		Balance at June 30, 2025		Change in Allowance		Balance at September 30, 2025
Maryland Live Lease	$	8,732	$	5,696	$	14,428	$	14,143	$	28,571	$	(14,466)	$	14,105
PA Live Master Lease	18,471		12,286		30,757		20,223		50,980		(11,424)		39,556
Rockford Lease	$	3,077	2,041		5,118		4,788		9,906		(1,304)		8,602
Tioga Downs Lease	2,651		3,767		6,418		3,105		9,523		(2,567)		6,956
Strategic Lease	1,134		3,067		4,201		1,696		5,897		179		6,076
Tropicana LV Lease	23,681		9,157		32,838		2,268		35,106		(4,933)		30,173
Total	$	57,746	$	36,014	$	93,760	$	46,223	$	139,983	$	(34,515)	$	105,468


Origination year	Investment in leases, financing receivables		Allowance for credit losses		Amortized cost basis at September 30, 2026		Allowance as a percentage of outstanding financing receivable
2025	$	186,323	$	(4,188)	$	182,135	(2.25)	%
2024	301,871		(7,269)		294,602		(2.41)	%
2023	106,493		(5,636)		100,857		(5.29)	%
2022	728,925		(25,975)		702,950		(3.56)	%
2021	1,278,139		(7,768)		1,270,371		(0.61)	%
Total	$	2,601,751	$	(50,836)	$	2,550,915	(1.95)	%

During the three and nine months ended September 30, 2026, the Company recorded a net provision for credit losses of $30.1 million and $32.0 million, respectively, related to investments in leases, financing receivables, and sales-type leases. The provision for credit losses during the three months ended September 30, 2026 was primarily attributable to lower projected commercial real estate price growth compared to the prior quarter, largely reflecting the sharp increase in long-term interest rates during the third quarter.

During the three and nine months ended September 30, 2025, the Company recorded a benefit for credit losses of $34.5 million and a provision for credit losses of $47.7 million, respectively, related to investments in leases, financing receivables, and sales-type leases. The benefit for 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 calculations 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.

Differences in the allowance as a percentage of outstanding financing receivables for leases originated in different calendar years, as shown in the table, reflect various factors, including but not limited to, expected rent coverage ratios and loan-to-value ratios. 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.