NEW ROYAL HOLDCO I INC.GDEN
NEW ROYAL HOLDCO I INC. Leases Disclosure
Leases
Company as Lessee
The Company is a lessee under non-cancelable operating and finance leases for offices, taverns, land, vehicles, slot machines and equipment. In addition, prior to the sale of the Company’s distributed gaming operations, slot placement contracts in the form of space lease agreements at chain stores were accounted for as operating leases. The Company’s slot machine lease agreements with gaming equipment manufacturers were short-term in nature with the majority of such leases being under variable rent structure, with amounts determined based on the performance of the leased machines. Certain other short-term slot machine lease agreements were under fixed fee payment structure.
The leases have remaining lease terms of less than 1 year and up to 30 years, some of which include options to extend the leases for an additional 1 to 25 years. The Company’s equipment leases include options to terminate the lease with 30 day notice. The Company assesses the options to extend or terminate the lease using a threshold of reasonably certain. For leases the Company is reasonably certain to renew, those option periods are included within the lease term and, therefore, the measurement of the ROU asset and lease liability.
The Company’s lease agreements for land, buildings and taverns with lease and non-lease components are accounted for separately. The lease and non-lease components of certain vehicle and equipment leases are accounted for as a single lease component. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants.
Lease expense for arrangements with a fixed fee payment structure is recognized on a straight-line basis over the lease term. Lease expense for arrangements under a variable rent structure is recognized in the period in which the obligation for the payment is incurred.
The current and non-current obligations under finance leases are included in “” and “” in the Company’s consolidated balance sheets, respectively. The finance leases relate to equipment for the Company’s casino properties and buildings for certain casino and branded tavern locations.
The components of lease expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| (In thousands) | Classification | 2025 | 2024 | ||||||||||||||
| Operating lease cost | |||||||||||||||||
| Operating lease cost | Operating and SG&A expenses | $ | 20,235 | $ | 20,486 | ||||||||||||
| Variable lease cost | Operating and SG&A expenses | 14,970 | 14,861 | ||||||||||||||
| Short-term lease cost | Operating and SG&A expenses | 4,644 | 5,473 | ||||||||||||||
| Total operating lease cost | $ | 39,849 | $ | 40,820 | |||||||||||||
| Finance lease cost | |||||||||||||||||
| Amortization of leased assets | Depreciation and amortization | $ | 1,562 | $ | 1,562 | ||||||||||||
| Interest on lease liabilities | Interest expense, net | 112 | 287 | ||||||||||||||
| Total finance lease cost | $ | 1,674 | $ | 1,849 | |||||||||||||
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows used under operating lease agreements | $ | 21,006 | $ | 22,507 | |||||||
| Operating cash flows used under finance lease agreements | 112 | 191 | |||||||||
| Financing cash flows used under finance lease agreements | 1,310 | 1,283 | |||||||||
Supplemental balance sheet information related to leases was as follows:
| December 31, | ||||||||||||||
| (In thousands) | 2025 | 2024 | ||||||||||||
| Operating leases | ||||||||||||||
Operating lease right-of-use assets, gross (1) | $ | 85,459 | $ | 92,784 | ||||||||||
Accumulated amortization (1) | (14,689) | (14,317) | ||||||||||||
| Operating lease right-of-use assets, net | $ | 70,770 | $ | 78,467 | ||||||||||
Current portion of operating leases (1) | $ | 15,596 | $ | 15,128 | ||||||||||
Non-current operating leases(1) | 69,403 | 78,328 | ||||||||||||
| Total operating lease liabilities | $ | 84,999 | $ | 93,456 | ||||||||||
| Finance leases | ||||||||||||||
| Property and equipment, gross | $ | 8,954 | $ | 8,954 | ||||||||||
| Accumulated depreciation | (6,494) | (4,932) | ||||||||||||
| Property and equipment, net | $ | 2,460 | $ | 4,022 | ||||||||||
| Current portion of finance leases | $ | 1,363 | $ | 1,308 | ||||||||||
| Non-current finance leases | 972 | 2,335 | ||||||||||||
| Total finance lease liabilities | $ | 2,335 | $ | 3,643 | ||||||||||
(1)The Company made a short-term lease accounting policy election and does not recognize ROU assets or liabilities for operating leases with terms of 12 months or less.
The following presents additional information related to the Company’s leases as of December 31, 2025:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted average remaining lease term | |||||||||||
| Operating leases | 8.5 years | 8.9 years | |||||||||
| Finance leases | 3.2 years | 3.6 years | |||||||||
| Weighted average discount rate | |||||||||||
| Operating leases | 6.3 | % | 6.4 | % | |||||||
| Finance leases | 3.7 | % | 3.9 | % | |||||||
Maturities of Lease Liabilities
As of December 31, 2025, maturities of lease liabilities were as follows:
| (In thousands) | Operating Leases | Finance Leases | Total | ||||||||||||||
| 2026 | $ | 21,193 | $ | 1,420 | $ | 22,613 | |||||||||||
| 2027 | 18,821 | 283 | 19,104 | ||||||||||||||
| 2028 | 16,188 | 182 | 16,370 | ||||||||||||||
| 2029 | 12,331 | 182 | 12,513 | ||||||||||||||
| 2030 | 10,766 | 182 | 10,948 | ||||||||||||||
| Thereafter | 40,049 | 213 | 40,262 | ||||||||||||||
| Total lease payments | 119,348 | 2,462 | 121,810 | ||||||||||||||
| Amount of interest | (34,349) | (127) | (34,476) | ||||||||||||||
| Present value of lease liabilities | $ | 84,999 | $ | 2,335 | $ | 87,334 | |||||||||||
Company as Lessor
The Company leases space to third-party tenants under operating leases primarily for retail and food and beverage outlets within its casino properties. The Company also enters into operating lease agreements with certain equipment providers for placement of amusement devices, gaming machines and automated teller machines within its casino properties and branded taverns. The leases have remaining lease terms of to ten years, some of which include options to extend the leases for an additional 1 to 15 years.
Lease payments from tenants generally include minimum base rent, adjusted for contractual escalations as applicable, and/or contingent rental clauses based on a percentage of net sales exceeding minimum base rent. The Company records revenue on a straight-line basis over the term of the lease and recognizes revenue for contingent rentals when the contingency has been resolved. The Company combines lease and non-lease components for the purpose of measuring lease revenue, which is recorded in “Other revenue” in the Company’s consolidated statements of operations.
Minimum and contingent operating lease income was as follows:
| Year Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Minimum rental income | $ | 8,303 | $ | 8,014 | $ | 8,234 | |||||||||||
| Contingent rental income | 3,165 | 2,810 | 3,298 | ||||||||||||||
| Total rental income | $ | 11,468 | $ | 10,824 | $ | 11,532 | |||||||||||
Future minimum rent payments to be received under operating leases are as follows (in thousands):
| Year Ending December 31, | Amount | ||||
| 2026 | $ | 7,589 | |||
| 2027 | 5,005 | ||||
| 2028 | 3,896 | ||||
| 2029 | 2,263 | ||||
| 2030 | 1,765 | ||||
| Thereafter | 1,014 | ||||
| Total future minimum rent payments | $ | 21,532 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2017 | Mar 16, 2018 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.