Net Lease Office Properties (NLOP) Stayed Flat Amid Improved Sentiments

Core Insights - Alluvial Capital Management's fund achieved a 15.5% increase in Q3 2025, resulting in a year-to-date return of 33.6%, marking its third-best quarterly performance in nine years [1] - The fund's investor letter highlighted Net Lease Office Properties (NYSE:NLOP), which has seen a one-month return of -0.88% and a 52-week decline of 3.56% [2] - The fund holds an 11% allocation to real estate investment trusts in out-of-favor sectors, with Net Lease Office Properties not responding positively to improved sentiment around office properties [3] Company Performance - Net Lease Office Properties (NYSE:NLOP) closed at $29.27 per share on October 28, 2025, with a market capitalization of $433.608 million [2] - The trust is currently marketing its largest asset, a one million plus square feet office building in central Houston, and has multiple vacant properties for sale [3] - The trust trades at a cap rate of nearly 18% and $87 per square foot of real estate, excluding properties encumbered by mortgages [3] Hedge Fund Interest - Net Lease Office Properties (NYSE:NLOP) was held by 11 hedge fund portfolios at the end of Q2 2025, down from 15 in the previous quarter [4] - While the potential of Net Lease Office Properties is acknowledged, certain AI stocks are considered to offer greater upside potential with less downside risk [4]