Part I [Business](index=4&type=section&id=Item%201.%20Business) NLOP, a Maryland REIT spun off from W. P. Carey Inc. in November 2023, manages and disposes of its 39-property office portfolio to realize shareholder value and repay debt - NLOP was formed by WPC via a spin-off on November 1, 2023, to hold a portfolio of **59 office assets** and is externally managed by a WPC affiliate[17](index=17&type=chunk) - The company's primary business plan is to realize shareholder value by strategically managing and disposing of its property portfolio, with proceeds used for debt repayment and distributions[18](index=18&type=chunk) Portfolio Metrics | Metric | Value as of Dec 31, 2024 | | :--- | :--- | | Number of Properties | 39 | | Number of Tenants | 43 | | Annualized Base Rent (ABR) | $88.1 million | | Total Net-Leased Square Footage | ~5.6 million | | Occupancy Rate | ~85.2% | | Weighted-Average Lease Term (WALT) | 4.3 years | - In connection with the spin-off, NLOP secured **$455.0 million** in financing, including a **$335.0 million** mortgage loan fully repaid in 2024, with **$61.1 million** of the **$120.0 million** mezzanine loan outstanding as of December 31, 2024[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Risk Factors](index=6&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from market volatility, remote work, tenant and geographic concentration, debt covenants limiting dividends, and the potential loss of REIT status - The business is vulnerable to market and economic volatility, including inflation and interest rate changes, which can decrease property values, affect tenant solvency, and limit capital access[29](index=29&type=chunk)[30](index=30&type=chunk) - Ongoing remote and hybrid work trends have negatively impacted office space demand, potentially affecting property values, occupancy rates, and asset disposition prices[31](index=31&type=chunk)[32](index=32&type=chunk) - The company faces significant tenant concentration risk, with the top tenant accounting for **22.9%** of ABR and the top ten for **64.6%** as of December 31, 2024, where a major tenant default could severely impact financial results[39](index=39&type=chunk) - High geographic concentration exists, with **39.4%** of the portfolio's ABR in Texas and **10.1%** in Minnesota, making the company susceptible to adverse regional economic developments[40](index=40&type=chunk) - The NLOP Financing Arrangements contain covenants limiting dividend payments, requiring distributions over **$1.0 million** to be paid in a combination of cash and common shares[59](index=59&type=chunk)[91](index=91&type=chunk) - Failure to maintain REIT qualification would result in significant adverse tax consequences, including corporate income tax and inability to deduct shareholder dividends[80](index=80&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[111](index=111&type=chunk) [Cybersecurity](index=21&type=section&id=Item%201C.%20Cybersecurity) NLOP relies on its Advisor for cybersecurity risk management, overseen by the Board and Audit Committee, with no material incidents reported as of December 31, 2024 - As an externally managed company, NLOP relies on its Advisor to assess, identify, and manage cybersecurity threats, with oversight from the Board of Trustees and Audit Committee[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The Advisor's cybersecurity program focuses on prevention, detection, and response, including multi-factor authentication, automated monitoring, and incident recovery[117](index=117&type=chunk)[118](index=118&type=chunk)[123](index=123&type=chunk) - As of December 31, 2024, the company is not aware of any material cybersecurity incidents impacting it in the last three years[127](index=127&type=chunk) [Properties](index=22&type=section&id=Item%202.%20Properties) The company's principal corporate offices are located at its Advisor's offices in New York, with detailed property information in Item 7 and Schedule III - The company's principal corporate offices are located at its Advisor's offices in New York, NY[128](index=128&type=chunk) [Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various claims and lawsuits in the normal course of business, not expecting a material adverse effect on its financial position or results of operations - Various pending claims and lawsuits are not expected to have a material adverse effect on the company's consolidated financial position or results of operations[130](index=130&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[131](index=131&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NLOP common shares trade on the NYSE, demonstrating significant outperformance against market indices since November 2023, with dividends subject to Board discretion and debt agreement limitations - The company's common shares are listed on the NYSE under the ticker symbol **NLOP**[134](index=134&type=chunk) Performance Graph | Index | Value at Nov 2, 2023 | Value at Dec 31, 2024 | | :--- | :--- | :--- | | Net Lease Office Properties | $100.00 | $303.34 | | S&P 500 Index | $100.00 | $138.53 | | MSCI US REIT Index | $100.00 | $127.06 | - Dividend payments are at the Board's discretion, influenced by REIT status requirements and covenants in NLOP Financing Arrangements that may limit distributions[137](index=137&type=chunk) [Reserved](index=24&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, NLOP executed its disposition strategy, selling 14 properties for **$320.1 million** and fully repaying its **$335.0 million** mortgage loan, resulting in decreased revenues, a narrowed net loss, and reduced AFFO, with future liquidity reliant on operating cash flow and further dispositions [Financial Highlights](index=26&type=section&id=Financial%20Highlights) In 2024, the company executed its disposition strategy by selling 14 properties for **$320.1 million** and transferring two properties to lenders, enabling full repayment of the NLOP Mortgage Loan and significant paydown of the Mezzanine Loan - Sold **14 properties** for total net proceeds of **$320.1 million** during the year ended December 31, 2024[150](index=150&type=chunk) - Fully repaid the NLOP Mortgage Loan, which had **$288.9 million** outstanding at the end of 2023[150](index=150&type=chunk) - Repaid **$53.2 million** of principal on the NLOP Mezzanine Loan during 2024, with an additional **$3.3 million** repaid in February 2025[150](index=150&type=chunk) [Summary Results](index=26&type=section&id=Summary%20Results) For 2024, total revenues decreased to **$142.2 million** from **$175.0 million** in 2023 due to dispositions, while net loss improved to **$(91.5) million** from **$(131.7) million**, and AFFO declined to **$62.0 million** from **$93.9 million** Financial Performance Summary | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total revenues | $142,247 | $174,965 | | Net loss attributable to NLOP | $(91,471) | $(131,746) | | FFO attributable to NLOP | $23,039 | $72,253 | | AFFO attributable to NLOP | $62,048 | $93,928 | [Portfolio Overview](index=27&type=section&id=Portfolio%20Overview) As of December 31, 2024, NLOP's portfolio comprised **39 properties** with **85.2%** occupancy and a **4.3-year** weighted-average lease term, with **64.6%** of ABR from the top ten tenants and **22.6%** from leases expiring in 2025-2026 Portfolio Summary | Portfolio Summary | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | ABR (in thousands) | $88,124 | $142,438 | | Number of properties | 39 | 55 | | Occupancy | 85.2% | 97.0% | | Weighted-average lease term (years) | 4.3 | 5.8 | Top Tenants by ABR | Top Tenant | % of ABR | | :--- | :--- | | KBR, Inc. | 22.9% | | JPMorgan Chase Bank, N.A. | 10.3% | | Siemens AS | 4.8% | | **Total Top 10** | **64.6%** | Lease Expiration Schedule | Year of Lease Expiration | ABR Percent | | :--- | :--- | | 2025 | 15.8% | | 2026 | 6.8% | | **Total 2025-2026** | **22.6%** | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) In 2024, lease revenues decreased by **$37.2 million** due to dispositions, operating expenses fell to **$186.1 million** (from **$260.5 million** in 2023), real estate impairment charges increased to **$78.2 million**, interest expense rose by **$25.3 million**, and a net gain of **$20.2 million** on property sales was recognized Revenues | (in thousands) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Lease revenues | $128,857 | $166,034 | $(37,177) | | **Total revenues** | **$142,247** | **$174,965** | **$(32,718)** | Operating Expenses | (in thousands) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Impairment charges — real estate | $78,237 | $63,143 | $15,094 | | Depreciation and amortization | $56,696 | $74,998 | $(18,302) | | General and administrative | $7,502 | $13,610 | $(6,108) | | Impairment charges — goodwill | $— | $62,456 | $(62,456) | | **Total Operating Expenses** | **$186,115** | **$260,497** | **$(74,382)** | Other Income and Expenses | (in thousands) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Interest expense | $(67,962) | $(42,613) | $(25,349) | | Gain (loss) on sale of real estate, net | $20,216 | $(3,608) | $23,824 | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is driven by operating cash flow and property dispositions, with **$71.9 million** from operations and **$297.7 million** from investing activities in 2024, used to repay **$368.0 million** in debt, reducing total debt to **$169.2 million** by year-end, with **$105.0 million** in debt payments due in 2025 Cash Flow Summary | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,859 | $70,966 | | Net cash provided by investing activities | $297,749 | $27,693 | | Net cash used in financing activities | $(367,984) | $(36,778) | Debt Summary | Debt Summary (Carrying Value, in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Fixed rate | $129,445 | $231,337 | | Variable rate | $39,771 | $310,642 | | **Total Debt, net** | **$169,216** | **$541,979** | - Significant cash requirements over the next 12 months include **$105.0 million** in scheduled debt principal payments, **$5.1 million** in non-recourse mortgage interest, and **$9.0 million** in NLOP Mezzanine Loan interest[192](index=192&type=chunk)[197](index=197&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) The company's most critical accounting estimate is real estate impairment, involving a two-step process of comparing carrying value to undiscounted cash flows and then to fair value, requiring significant judgment on market rents, residual values, and holding periods - Real estate impairment assessment is a critical accounting estimate involving a two-step process: a recoverability test using undiscounted cash flows, followed by a fair value measurement if the asset is not recoverable[198](index=198&type=chunk)[199](index=199&type=chunk) - The analysis requires significant management estimates regarding market rents, residual values, and strategic holding periods for each asset, often utilizing third-party market data and broker quotes[198](index=198&type=chunk)[271](index=271&type=chunk) [Supplemental Financial Measures](index=35&type=section&id=Supplemental%20Financial%20Measures) The company uses non-GAAP measures FFO and AFFO to evaluate operating performance, with 2024 FFO at **$23.0 million** and AFFO at **$62.0 million**, both decreasing from 2023 primarily due to higher interest expense and property dispositions FFO and AFFO Reconciliation | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net loss attributable to NLOP | $(91,471) | $(131,746) | | **FFO (as defined by NAREIT) attributable to NLOP** | **$23,039** | **$72,253** | | **AFFO attributable to NLOP** | **$62,048** | **$93,928** | - AFFO is calculated by adjusting FFO for certain non-cash items such as amortization of deferred financing costs, straight-line rent adjustments, stock-based compensation, and non-core expenses like separation costs[203](index=203&type=chunk)[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate risk, with **76%** fixed-rate debt, foreign currency risk from European properties, and significant credit concentration risk from tenants and geographic areas like Texas (**36%** of domestic revenues) - The company is exposed to interest rate risk, with **76%** fixed-rate and **24%** variable-rate debt as of December 31, 2024; a **1%** change in rates would alter annual interest expense on variable-rate debt by **$0.4 million**[215](index=215&type=chunk)[216](index=216&type=chunk) - Foreign currency exchange risk from two European investments means a **1%** change in euro or Norwegian krone exchange rates against the U.S. dollar would alter projected net cash flow by approximately **$0.1 million**[218](index=218&type=chunk) - The company has significant credit risk concentration, with **94%** of 2024 consolidated revenues from domestic operations, geographically concentrated with **36%** in Texas and **19%** in Minnesota[219](index=219&type=chunk)[221](index=221&type=chunk) [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The 2024 consolidated financial statements, audited by PricewaterhouseCoopers LLP, report total assets of **$805.1 million**, total liabilities of **$219.7 million**, a net loss of **$91.5 million**, and detail property dispositions, debt repayment, impairment charges, and related-party transactions [Report of Independent Registered Public Accounting Firm](index=41&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on the consolidated financial statements, affirming their fair presentation of NLOP's financial position, operations, and cash flows in conformity with U.S. GAAP - The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements[225](index=225&type=chunk) - The audit was conducted in accordance with PCAOB standards, and as an emerging growth company, an audit of internal control over financial reporting was neither required nor performed[227](index=227&type=chunk) [Consolidated Financial Statements](index=42&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect a significant reduction in assets and liabilities from 2023 to 2024 due to dispositions, with total assets decreasing to **$805.1 million** and total debt to **$169.2 million**, while the net loss improved to **$91.5 million** in 2024 Consolidated Balance Sheet | Consolidated Balance Sheet (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net investments in real estate | $707,443 | $1,171,825 | | **Total assets** | **$805,069** | **$1,305,089** | | Debt, net | $169,216 | $541,979 | | **Total liabilities** | **$219,666** | **$623,659** | | **Total shareholders' equity** | **$581,228** | **$677,009** | Consolidated Statement of Operations | Consolidated Statement of Operations (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenues | $142,247 | $174,965 | | Total Operating Expenses | $186,115 | $260,497 | | **Net (Loss) Income Attributable to NLOP** | **$(91,471)** | **$(131,746)** | | **Basic and Diluted (Loss) Per Share** | **$(6.18)** | **$(9.00)** | [Notes to Consolidated Financial Statements](index=47&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail NLOP's formation via the WPC spin-off, accounting policies, **$455 million** in financing and repayments, the disposition of **14 properties** for **$320.1 million**, **$78.2 million** in real estate impairment charges, and **$10.2 million** in advisory fees paid in 2024 - The company was formed via a spin-off from W. P. Carey Inc. on November 1, 2023, acquiring a portfolio of **59 office properties**, operating as a single segment focused on owning, operating, and financing office buildings[248](index=248&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk) - The company pays its Advisor an asset management fee (initially **$7.5 million** annually, reduced with dispositions) and reimburses administrative costs (**~$4.0 million** annually), totaling **$10.2 million** in fees and reimbursements in 2024[324](index=324&type=chunk)[327](index=327&type=chunk) - In 2024, the company sold **14 properties** for net proceeds of **$320.1 million**, recognizing a net gain of **$22.5 million**, and transferred two properties to lenders to satisfy mortgage debt[423](index=423&type=chunk)[424](index=424&type=chunk)[425](index=425&type=chunk) - The company fully repaid its **$335.0 million** NLOP Mortgage Loan during 2024, with the NLOP Mezzanine Loan having an outstanding principal of **$61.1 million** at year-end 2024, bearing **14.5%** interest[386](index=386&type=chunk)[388](index=388&type=chunk)[390](index=390&type=chunk) - In 2024, the company recognized real estate impairment charges of **$78.2 million** on **twelve properties**, following a **$62.5 million** goodwill impairment charge in 2023 that wrote the balance down to zero[364](index=364&type=chunk)[366](index=366&type=chunk)[372](index=372&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=81&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles, practices, or financial statement disclosure - None[447](index=447&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes identified in the most recent quarter - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[449](index=449&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2024[453](index=453&type=chunk) - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[454](index=454&type=chunk) [Other Information](index=82&type=section&id=Item%209B.%20Other%20Information) During the fourth quarter of 2024, no trustee, officer, or the company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No trustee or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the fourth quarter of 2024[456](index=456&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=82&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[457](index=457&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=83&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement - Information regarding directors, executive officers, and corporate governance will be contained in the definitive proxy statement for the 2025 Annual Meeting of Shareholders and is incorporated by reference[460](index=460&type=chunk) [Executive and Trustee Compensation](index=83&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and trustee compensation is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement - Information regarding executive and trustee compensation will be contained in the definitive proxy statement for the 2025 Annual Meeting of Shareholders and is incorporated by reference[461](index=461&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=83&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement - Information regarding security ownership will be contained in the definitive proxy statement for the 2025 Annual Meeting of Shareholders and is incorporated by reference[462](index=462&type=chunk) [Certain Relationships and Related Transactions, and Trustee Independence](index=83&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and trustee independence is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement - Information regarding certain relationships, related transactions, and director independence will be contained in the definitive proxy statement for the 2025 Annual Meeting of Shareholders and is incorporated by reference[463](index=463&type=chunk) [Principal Accounting Fees and Services](index=83&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2025 Annual Meeting of Shareholders proxy statement - Information regarding principal accounting fees and services will be contained in the definitive proxy statement for the 2025 Annual Meeting of Shareholders and is incorporated by reference[464](index=464&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=84&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-K, including key agreements related to the spin-off, financing, and corporate governance, and references financial statements and schedules in Item 8 - This section provides an index of all exhibits filed with the report, including key agreements related to the spin-off, financing, and corporate governance[467](index=467&type=chunk)[468](index=468&type=chunk)[469](index=469&type=chunk) [Form 10-K Summary](index=87&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable, and no summary is provided - None[472](index=472&type=chunk)

Core Viewpoint - Net Lease Office Properties (NYSE: NLOP) has announced the income tax treatment of dividends for the year 2024, advising shareholders to consult their tax advisors for specific tax implications [1]. Summary by Relevant Sections - **Dividend Information**: The dividend per share for the record date of December 18, 2023, is reported as $0.34, with no capital gain distributions or non-dividend distributions [2][4]. - **Tax Treatment**: The dividends are categorized as qualified dividends, which are included in the taxable ordinary dividends amount. Additionally, unrecaptured Section 1250 gain and Section 897 capital gain are subsets of the taxable capital gain distributions [3][4]. - **Shareholder Options**: Shareholders had the option to receive dividends in cash or additional NLOP shares, with cash distributions limited to a maximum of 20% of the total dividend [4]. - **Company Overview**: Net Lease Office Properties is a publicly traded real estate investment trust that primarily owns high-quality office properties leased to corporate tenants on a single-tenant net lease basis, with most properties located in the U.S. and a few in Europe [5].

Core Insights - Net Lease Office Properties (NLOP) sold five office properties for gross proceeds of $43.3 million in November and December 2024 [1] - The total gross proceeds from office property sales in 2024 reached approximately $364 million, with occupied sales contributing $319 million at a weighted-average disposition cap rate of about 10.5% [3] Company Overview - NLOP is a publicly traded real estate investment trust (REIT) that owns high-quality office properties primarily leased to corporate tenants on a single-tenant net lease basis [4] - The majority of NLOP's properties are located in the U.S., with two properties in Europe [4] Financial Transactions - Net proceeds from the recent property sales were used to repay approximately $30 million on J.P. Morgan's senior secured mortgage and about $5 million on its mezzanine loan [2] - As of December 31, 2024, the full repayment of J.P. Morgan's senior secured mortgage was achieved, leaving an outstanding balance of approximately $61 million on its mezzanine loan [2]

Company Overview - Net Lease Office Properties (NLOP) is a spin-off from W P Carey (WPC) and has generated a 75 5% return for investors this year [1] - NLOP was spun off from W P Carey last year as the REIT aimed to focus on its core business [1] Investment Strategy - The portfolio focuses on high-risk, high-reward situations, primarily in the technology markets [1] - The portfolio includes early investments in Bitcoin and is concentrated on companies with asymmetric long-term upside [1] - Top holdings include Bitcoin, Tesla, Google, Amazon, and Nvidia [1] Analyst Position - The analyst holds a beneficial long position in WPC, O, and NLOP through stock ownership, options, or other derivatives [2]

Group 1 - The article discusses the author's long-term investment approach, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author has recently combined long stock positions with covered calls and cash secured puts, indicating a strategy that balances risk and return [1] - The primary focus of the author's coverage on Seeking Alpha includes REITs and financials, with occasional insights on ETFs and macro-driven stock ideas [1]

Core Viewpoint - The "office building apocalypse" has not hindered Net Lease Office Properties (NLOP) from achieving significant returns since its spin-off from W. P. Carey, with shares increasing from $9.50 to approximately $30, indicating strong market performance despite broader industry challenges [1][2]. Company Performance - NLOP has liquidated 10 properties since going public, generating proceeds of $308 million, which have been used to aggressively pay down debt, improving its financial position [2][4]. - The remaining portfolio consists of 46 properties with a total square footage of approximately 6.55 million, generating annual base rents of around $98.1 million [4][6]. Valuation Insights - Analysts have estimated NLOP's value using different cap rates; a 12% cap rate suggests a value of $46 per share, while a 10% cap rate indicates a valuation of $981 million for the remaining properties, translating to a per-share value between $50.47 and $67.30 after accounting for debt [6][7]. - The company’s diverse geographic portfolio includes properties in both prestigious and economically prosperous markets, which may enhance its valuation potential [4][5]. Market Outlook - The potential for lower interest rates could positively impact office property valuations, aiding NLOP in selling remaining properties at favorable multiples [9][10]. - Despite challenges in the office market, there are indications that companies are still attempting to bring employees back to the office, which could stabilize the market sooner than expected [10][11]. Strategic Considerations - NLOP may choose to halt further property sales after reducing its debt, transitioning to a model similar to other office REITs that focus on rent collection and distributions, which could lead to a re-rating of the stock [11].

NEW YORK, Aug. 8, 2024 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of an office property leased to CVS Health Corporation ("CVS") for gross proceeds of $71.5 million. Primary Tenant Industry Location ABR (at time of sale) NLOP Collateral Pool Primary Tenant Gross Sale Proceeds Square Feet 9501 Shea Boulevard, Scottsdale, AZ $4.25 million $71.5 million 354,888Included CVS Health Care Services Net proceeds after closing costs were used to repay approximately $55 million o ...

Core Viewpoint - Net Lease Office Properties (NLOP) has successfully sold two office properties leased to Blue Cross Blue Shield for gross proceeds of $60.7 million, indicating a strategic move to manage its portfolio and reduce debt obligations [1][6]. Group 1: Sale Details - The sale involved two office properties located at 1800 and 3400 Yankee Doodle Road, Eagan, MN, with a total gross sale proceeds of $60.7 million [3][1]. - The properties had an aggregate square footage of 347,472 [3]. Group 2: Financial Impact - Following the sale, NLOP utilized net proceeds after closing costs to repay approximately $48 million on J.P. Morgan's senior secured mortgage and about $8 million on its mezzanine loan, leading to outstanding balances of approximately $151 million and $92 million, respectively, as of June 10, 2024 [6]. Group 3: Portfolio Overview - Post-sale, NLOP owns a total of 47 office properties, which includes 44 properties in the U.S. and three in Europe, with three remaining properties still leased to Blue Cross Blue Shield [5][7].

Gary Yeowell Net Lease Office Properties (NYSE:NLOP) is a recent office spin-off from W.P. Carey (WPC) that has performed well since it was listed as a separate, public company. The office REIT reported decent first fiscal quarter results at the beginning of the month and Net Lease Office Properties also continues to make progress selling offices. I believe that Net Lease Office Properties is undervalued based off of book value and the office spin-off has considerable upside revaluation potential! Data by Y ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to __________ Commission File Number: 001-41812 Net Lease Office Properties (Exact name of registrant as specified in its charter) Maryland 92-0887849 (State o ...