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Real Estate Portfolio
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
Real Estate Portfolio Real Estate Portfolio
As of December 31, 2024, our real estate portfolio consisted of the following:
•Investments in leases - sales-type, representing our investment in 26 casino assets leased on a triple-net basis to our tenants under ten separate lease agreements;
•Investments in leases - financing receivables, representing our investment in 28 casino assets and 39 other experiential properties leased on a triple-net basis to our tenants under ten separate lease agreements;
•Investments in loans and securities, representing our 16 debt investments in senior secured and mezzanine loans, preferred equity and senior secured notes; 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 December 31, 2024 and 2023:
(In thousands)December 31, 2024December 31, 2023
Investments in leases - sales-type, net (1)
$23,581,101 $23,015,931 
Investments in leases - financing receivables, net (1)
18,430,320 18,211,102 
Total investments in leases, net42,011,421 41,227,033 
Investments in loans and securities, net1,651,533 1,144,177 
Land150,727 150,727 
Total real estate portfolio$43,813,681 $42,521,937 
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(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. As of December 31, 2024 and 2023, the estimated residual values of the leased properties under our lease agreements were $16.4 billion and $15.9 billion, respectively.
Investments in Leases
The following table details the components of our income from sales-type leases and lease financing receivables:
Year Ended December 31,
(In thousands)202420232022
Income from sales-type leases - fixed rent$1,965,965 $1,892,534 $1,436,945 
Income from sales-type leases - contingent rent (1)
102,478 87,644 27,300 
Income from lease financing receivables - fixed rent1,516,484 1,430,246 995,383 
Income from lease financing receivables - contingent rent (1)
11,957 10,509 1,673 
Total lease revenue3,596,884 3,420,933 2,461,301 
Non-cash adjustment (2)
(537,927)(515,556)(337,631)
Total contractual lease revenue$3,058,957 $2,905,377 $2,123,670 
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(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 are 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 December 31, 2024, 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
2025$1,767,792 $1,253,993 $3,021,785 
20261,794,488 1,277,247 3,071,735 
20271,821,969 1,301,068 3,123,037 
20281,850,663 1,325,605 3,176,268 
20291,880,313 1,350,622 3,230,935 
Thereafter79,935,052 88,397,312 168,332,364 
Total$89,050,277 $94,905,847 $183,956,124 
Weighted Average Lease Term (2)
37.6 years47.8 years42.1 years
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(1) Minimum lease payments do not include contingent rent, as discussed below, that may be received under our lease agreements.
(2) The minimum lease payments and weighted average remaining lease term includes the non-cancelable lease term and any tenant renewal options that we determined were reasonably assured, consistent with our conclusions under ASC 842 and ASC 310.
Lease Provisions
As of December 31, 2024 we owned 93 assets leased under 18 separate lease agreements with our tenants, certain of which are master lease agreements governing multiple properties and certain of which are for single assets. Our lease agreements are generally long-term in nature with initial terms ranging from 15 to 32 years and are structured with several tenant renewal options extending the term of the lease for another 5 to 30 years. All of our lease agreements provide for annual base rent escalations, which may be fixed or variable over the life of the lease. The rent escalation provisions range from providing for a flat annual increase of 1% to 2% to an annual increase of 1% in the earlier years and the greater of 2% or CPI in the later years, which may be subject to a maximum CPI-based cap with respect to each annual rent increase. Additionally, certain of our lease agreements provide for a variable rent component in which a portion of the annual rent, generally ranging from 20% to 30%, is subject to adjustment based on the revenues of the underlying asset in specified periods.
The following is a summary of the material lease provisions of our leases with Caesars and MGM, our two most significant tenants (each, as may be amended from time to time, and each individually, as defined in the respective header):
($ In thousands)MGM Master LeaseCaesars Regional Master Lease and Caesars Joliet LeaseCaesars Las Vegas
Master Lease		MGM Grand/Mandalay Bay Lease
Lease Provision
Initial term25 years18 years18 years30 years
Initial term maturity4/30/20477/31/20357/31/20352/28/2050
Renewal terms
Three, 10-year terms
Four, 5-year terms
Four, 5-year terms
Two, 10-year terms
Current lease year5/1/24-4/30/25
(Lease Year 3)		11/1/24 - 10/31/25 (Lease Year 8)11/1/24 - 10/31/25 (Lease Year 8)3/1/24 – 2/28/25 (Lease Year 5)
Current annual rent
$759,492
$725,489 (1)
$495,418
$316,070
Annual escalator (2)
Lease years 2-10 - 2%
Lease years 11-end of term - >2% / change in CPI (capped at 3%)
Lease years 2-5 - 1.5%
Lease years 6-end of term - >2.0% / change in CPI
> 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 (3)
None
Year 8: 70% base rent / 30% variable rent
Years 11 & 16: 80% base rent / 20% variable rent
Years 8, 11 & 16: 80% base rent / 20% variable rent
None
Variable rent adjustment calculationNone
4% of revenue increase/decrease:
Year 8: Avg. of years 5-7 less avg. of years 0-2
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
4% of revenue increase/decrease:
Year 8: Avg. of years 5-7 less avg. of years 0-2
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
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(1) Current annual rent with respect to the Caesars 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 Caesars Joliet Lease is $716.0 million.
(2) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP.
(3) Variable rent is not subject to the 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 gaming tenants under their respective lease agreements:
ProvisionCaesars Regional Master Lease and Caesars 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 (3)
$286 million$84 millionN/AN/AN/A
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(1) Represents the tenants under our other gaming lease agreements not specifically outlined in the table, as specified in their respective lease agreements.
(2) The leases with Caesars require a $107.5 million floor on annual capital expenditures for Caesars Palace Las Vegas, 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 Caesars Joliet Lease are required to expend a minimum of $531.9 million on capital expenditures (including gaming equipment) across certain of its affiliates and other assets, together with the $380.3 million requirement.
Investments in Loans and Securities
The following is a summary of our investments in loans and securities as of December 31, 2024 and 2023:
($ In thousands)December 31, 2024
InvestmentPrincipal Balance
Carrying Value (1)
Future Funding Commitments (2)
Weighted Average Interest Rate (3)
Weighted Average Term (4)
Senior Secured Notes (5)
$85,000 $81,857 $— 11.0 %6.3 years
Senior Secured Loans684,686 674,200 308,776 8.0 %4.7 years
Mezzanine Loans and Preferred Equity908,461 895,476 239,748 9.2 %4.1 years
Total$1,678,147 $1,651,533 $548,524 8.8 %4.4 years
($ In thousands)December 31, 2023
InvestmentPrincipal Balance
Carrying Value (1)
Future Funding Commitments (2)
Weighted Average Interest Rate (3)
Weighted Average Term (4)
Senior Secured Notes (5)
$85,000 $73,818 $— 11.0 %7.3 years
Senior Secured Loans392,250 386,274 476,395 7.3 %5.4 years
Mezzanine Loans and Preferred Equity698,861 684,085 278,848 9.8 %4.6 years
Total$1,176,111 $1,144,177 $755,243 9.0 %5.1 years
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(1) Carrying value includes unamortized loan origination 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 December 31, 2024 and 2023.
(4) Assumes all extension options are exercised; however, our loans may be repaid, subject to certain conditions, prior to such date.
(5) Represents our investment in the Hard Rock Ottawa Notes, which are accounted for as held-to-maturity securities.
The following summarizes the activity of our investments in loans and securities for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
(In thousands)202420232022
Beginning Balance January 1, $1,144,177 $685,793 $498,002 
Principal fundings578,558 959,020 193,607 
Repayments(79,500)(479,609)— 
Change in CECL Allowance4,770 (22,907)(6,092)
Other3,528 1,880 276 
Ending Balance December 31, $1,651,533 $1,144,177 $685,793