Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Credit Loss [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

Under ASC 326, we are required to estimate and record a non-cash allowance for current expected credit losses, or CECL allowance, related to our historical and any future investments in sales-type leases, lease financing receivables, loans and securities classified as held-to-maturity.

The following tables detail the allowance for credit losses as of June 30, 2026 and December 31, 2025:

	June 30, 2026
($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases – sales-type	$	25,592,117	$	(1,014,762)	$	24,577,355	3.97	%
Investments in leases – financing receivables	20,049,009		(768,952)		19,280,057		3.84	%
Investments in loans and securities	3,009,430		(92,119)		2,917,311		3.06	%
Other assets – sales-type sub-leases	862,458		(27,042)		835,416		3.14	%
Totals	$	49,513,014	$	(1,902,875)	$	47,610,139	3.84	%

	December 31, 2025
($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases – sales-type	$	24,625,749	$	(919,186)	$	23,706,563	3.73	%
Investments in leases – financing receivables	19,467,011		(769,878)		18,697,133		3.95	%
Investments in loans and securities	2,581,839		(56,382)		2,525,457		2.18	%
Other assets – sales-type sub-leases	862,845		(23,909)		838,936		2.77	%
Totals	$	47,537,444	$	(1,769,355)	$	45,768,089	3.72	%

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(1) The total allowance excludes the CECL allowance for unfunded commitments of our loans and for unfunded commitments made to our tenants to fund the development and construction of improvements at our properties. As of June 30, 2026 and December 31, 2025, such allowance is $22.9 million and $6.4 million, respectively, and is recorded in Other liabilities.

The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Beginning Balance	$	1,656,093	$	1,781,834	$	1,775,753	$	1,594,931
Initial allowance from current period investments	72,603		4,587		112,490		8,126
Current period change in credit allowance	197,127		(143,180)		37,580		40,184
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending Balance	$	1,925,823	$	1,643,241	$	1,925,823	$	1,643,241

During the three months ended June 30, 2026, we recognized a $271.1 million increase in our allowance for credit losses primarily driven by (i) the initial CECL allowance of $72.6 million upon completing the acquisitions of the Gamehost Portfolio and Golden Portfolio, (ii) an increase in the estimate for the Long-Term Period PD for one of our tenants as a result of the tenant issuing new senior secured debt with a lower credit rating than our prior estimate, and (iii) negative changes in the macroeconomic forecast during the current quarter. The increase was partially offset by the equity market performance of our tenants.

During the six months ended June 30, 2026, we recognized a $152.3 million increase in our allowance for credit losses primarily driven by the factors listed above and the initial allowance of $39.9 million on our net debt investment activity. The increase was partially offset by the equity market performance of our tenants and positive changes in the macroeconomic

forecast during the period, both of which impact the reasonable and supportable period, or R&S Period, probability of default, or PD.

During the three months ended June 30, 2025, we recognized a $142.0 million decrease in our allowance for credit losses primarily driven by the equity market performance of our tenants and positive changes in the macroeconomic forecast during the quarter. The decrease was partially offset by an initial CECL allowance of $4.6 million on our $660.0 million of debt investment activity during the period.

During the six months ended June 30, 2025, we recognized a $45.0 million increase in our allowance for credit losses primarily driven by the equity market performance of our tenants and negative changes in the macroeconomic forecast during the period. In addition, we recorded an initial CECL allowance of $8.1 million on our $960.0 million of debt investment activity during the period. The increase was partially offset by standard annual updates to the CECL model used and certain related inputs, which decreased the estimate used for the Long-Term Period PD.

During the six months ended June 30, 2026, we modified one loan by reducing the current interest rate and extending the initial maturity date in connection with the underlying asset experiencing operational challenges. In return, the borrower agreed to increase the required principal amortization and provided additional real estate collateral. As of June 30, 2026, the modified loan had an unpaid principal balance of $90.0 million, or 3.0% of our total loan portfolio and was performing in accordance with its modified terms. As of June 30, 2026, we have one fully funded senior secured loan collateralized by a luxury golf-resort development with an unpaid principal balance of $80.7 million on non-accrual status.

Credit Quality Indicators

We assess the credit quality of our investments through the credit ratings of the senior secured debt of the guarantors of our leases, as we believe that our lease agreements have a similar credit profile to a senior secured debt instrument. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the guarantor of one of our lease agreements does not have senior secured debt with a credit rating, we use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the Long-Term Period PD when estimating credit losses for each investment.

The following tables detail the amortized cost basis and year of origination of our Investments in leases - sales-type and financing receivables, Investments in loans and securities and Other assets by the credit quality indicator we assigned to each lease or loan guarantor as of June 30, 2026 and December 31, 2025:

	Amortized Cost Basis by Year of Origination as of June 30, 2026 (1)
(In thousands)	2026		2025		2024		2023		2022		Prior		Total
Ba3	$	—	$	—	$	—	$	—	$	12,505,437	$	20,734,138	$	33,239,575
B1	—		—		—		—		2,418,378		928,917		3,347,295
B2	1,151,715		—		—		—		4,913,388		—		6,065,103
B3	849,211		—		—		733,486		301,674		894,739		2,779,110
Caa1	—		—		—		393,757		—		345,342		739,099
N/A (2)	785,041		298,781		349,872		1,094,112		815,026		—		3,342,832
Total	$	2,785,967	$	298,781	$	349,872	$	2,221,355	$	20,953,903	$	22,903,136	$	49,513,014

	Amortized Cost Basis by Year of Origination as of December 31, 2025 (1)
(In thousands)	2025		2024		2023		2022		2021		Prior		Total
Ba2	$	—	$	—	$	—	$	4,873,999	$	—	$	—	$	4,873,999
Ba3	—		—		—		13,095,110		2,194,863		18,458,589		33,748,562
B1	—		—		—		2,398,728		—		927,427		3,326,155
B2	—		—		449,694		—		—		—		449,694
B3	—		—		290,139		301,167		—		892,567		1,483,873
Caa1	—		—		398,903		—		—		344,104		743,007
N/A (2)	671,696		350,183		1,089,558		800,717		—		—		2,912,154
Total	$	671,696	$	350,183	$	2,228,294	$	21,469,721	$	2,194,863	$	20,622,687	$	47,537,444

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(1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments.

(2)We estimate the CECL allowance for our loan investments, and certain of our lease investments with similar credit characteristics, using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.