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NLOP

Net Lease Office Properties

NLOP

Net Lease Office Properties • NYSE
$29.49 ▼ -0.84% (-0.25)
Market Cap $436.87 M
52w High $34.53
52w Low $26.10
Dividend Yield 3.10%
P/E -2.42
Volume 116.99K
Outstanding Shares 14.81M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $29.784M ▲ $10.636M ▼ $-64.161M ▲ -215.421% ▲ $-4.33 ▲ $-53.399M ▼
Q2-2025 $29.174M ▼ $11.831M ▲ $-81.54M ▼ -279.495% ▼ $-5.5 ▼ $19.085M ▲
Q1-2025 $29.213M ▲ $11.532M ▼ $492K ▲ 1.684% ▲ $0.033 ▲ $16.492M ▲
Q4-2024 $27.73M ▼ $13.127M ▼ $-35.785M ▲ -129.048% ▼ $-2.42 ▲ $-18.069M ▼
Q3-2024 $31.481M $14.198M $-40.295M -127.998% $-2.73 $-11.323M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $38.689M ▼ $522.551M ▼ $88.331M ▼ $430.252M ▼
Q2-2025 $54.146M ▲ $668.655M ▼ $164.604M ▼ $500.014M ▼
Q1-2025 $28.154M ▲ $784.105M ▼ $197.876M ▼ $582.123M ▲
Q4-2024 $25.131M ▼ $805.069M ▼ $219.666M ▼ $581.228M ▼
Q3-2024 $36.102M $919.915M $293.812M $621.859M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-64.119M ▲ $16.329M ▲ $39.494M ▲ $-70.901M ▼ $-15.058M ▼ $16.329M ▲
Q2-2025 $-81.518M ▼ $11.706M ▼ $14.05M ▲ $-35.727M ▼ $-9.561M ▼ $11.706M ▼
Q1-2025 $492K ▲ $14.122M ▲ $8.656M ▼ $-25.769M ▲ $-2.676M ▲ $14.122M ▲
Q4-2024 $-35.764M ▲ $10.481M ▼ $43.054M ▼ $-69.876M ▲ $-17.046M ▼ $10.481M ▼
Q3-2024 $-40.274M $20.294M $77.152M $-92.929M $4.765M $27.606M

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly steady over the past few years, and core property-level profitability has generally been positive. However, reported net income has recently swung to sizable losses, likely reflecting write-downs and restructuring effects tied to the planned wind‑down rather than simple rent weakness alone. Operating performance before these charges still looks modestly profitable, but the gap between operating results and bottom‑line earnings has widened. This is typical of a REIT that is repositioning or liquidating assets: accounting hits can mask underlying cash generation.

Balance Sheet

Balance Sheet The asset base has been gradually shrinking, consistent with a business that is selling properties rather than acquiring more. Equity has come down from earlier levels, reflecting both the recent losses and capital returned to shareholders, while debt rose at one point and has since been reduced. Cash on hand is quite limited, so liquidity depends heavily on ongoing rent receipts and property sale proceeds. Overall, the balance sheet shows a controlled run‑off of assets with an emphasis on paying down debt over time, but less of a cushion than a growth‑oriented REIT might keep.

Cash Flow

Cash Flow Despite the accounting losses, cash generation from operations has been consistently positive and relatively stable. Capital spending has been light, which is expected for an entity not trying to grow its portfolio, so free cash flow closely tracks operating cash flow. This pattern is supportive of the strategy of using cash and sale proceeds to reduce leverage and fund special distributions. The key sensitivity is the continued reliability of rent collections and the timing of asset sales, since there isn’t a large cash buffer.

Competitive Edge

Competitive Edge NLOP operates in one of the tougher corners of real estate: single‑tenant office properties at a time when demand for office space is under pressure. Its main offsetting strength is the quality of its portfolio, with a meaningful share of rent from stronger corporate tenants and leases that often include built‑in rent increases. The external management by an experienced sponsor with a long track record in net lease real estate adds execution know‑how in both asset management and dispositions. That said, the company is shrinking by design, so its competitive position is about maximizing value from a finite set of properties rather than building long‑term scale or market share.

Innovation and R&D

Innovation and R&D This is not a traditional innovation story with technology or product R&D. Instead, the “innovation” is in the strategic design: NLOP was created specifically to isolate a pool of office assets and methodically sell them, returning capital to shareholders instead of reinvesting for growth. The company uses long‑term net leases and established tenant relationships to keep cash flows relatively predictable while it unwinds the portfolio. Its main areas of creativity are in structuring sales, managing debt paydown, and timing special distributions, rather than developing new offerings or platforms.

Summary

NLOP is essentially a planned wind‑down vehicle for a legacy office portfolio, not a typical growth REIT. The financials show modest underlying profitability and steady cash flow from leases, offset by sizable accounting charges and a gradual reduction in total assets and equity. Debt has been actively managed downward, funded by both operating cash flow and property sales, with much of the remaining value expected to be returned through special distributions over time. The main opportunities lie in executing property sales at attractive values and further deleveraging; the main risks stem from ongoing weakness in the office market, potential pressure on sale prices, and the limited diversification and finite life inherent in a liquidation‑focused strategy.