A Business at a Glance
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Item 1. Business. General Development of Business Net Lease Office Properties (“NLOP” or the “Company”) is a Maryland real estate investment trust that, together with our consolidated subsidiaries, owns a diversified portfolio of office properties that are primarily leased to corporate tenants on a single-tenant, net-lease basis. Our net leases generally specify a base rent with rent increases and require the tenant to pay substantially all costs associated with operating and maintaining the property. We elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (the “Code”) effective as of November 1, 2023. The vast majority of our revenues originate from lease revenue provided by our real estate portfolio, which comprises single-tenant office facilities that are critical to our tenants’ operations.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue | 119M | 119M | 142M | 175M | 156M |
| Net Income | -145M | -145M | -91M | -132M | 16M |
| EPS | $-9.81 | $-9.81 | $-6.18 | $-9.00 | $1.08 |
| Free Cash Flow | 60M | 60M | 60M | 60M | 80M |
| ROIC | -17.8% | -11.4% | -12.2% | -10.8% | 1.1% |
| Gross Margin | - | - | - | - | - |
| Debt/Equity | 0.07 | 0.07 | 0.29 | 0.80 | 0.25 |
| Dividends/Share | $0.00 | - | - | $0.00 | - |
| Operating Income | -44M | -44M | -50M | -46M | -27M |
| Operating Margin | -37.3% | -37.3% | -35.1% | -26.2% | -17.2% |
| ROE | -49.4% | -33.2% | -15.7% | -19.5% | 1.4% |
| Shares Outstanding | 15M | 15M | 15M | 15M | 15M |
| Metric | 2022 | 2023 | |||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 156M | 175M | 142M | 119M | 119M |
| Gross Margin | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A |
| SG&A | 12M | 14M | 7.5M | 7.3M | 7.3M |
| EBIT | -27M | -46M | -50M | -44M | -44M |
| Op. Margin | -17.2% | -26.2% | -35.1% | -37.3% | -37.3% |
| Net Income | 16M | -132M | -91M | -145M | -145M |
| Net Margin | 10.1% | -75.3% | -64.3% | -122.2% | -122.2% |
| Non-Recurring | 0 | 62M | 0 | 0 | 0 |
| Returns on Capital | |||||
| ROIC | 1.1% | -10.8% | -12.2% | -11.4% | -17.8% |
| ROE | 1.4% | -19.5% | -15.7% | -33.2% | -49.4% |
| ROA | 1.1% | -10.1% | -11.4% | -23.1% | -32.0% |
| Cash Flow | |||||
| Op. Cash Flow | 84M | 71M | 72M | 64M | 64M |
| Free Cash Flow | 80M | 60M | 60M | 60M | 60M |
| Owner Earnings | 17M | -13M | -14M | 24M | 24M |
| CapEx | 4.7M | 11M | 12M | 4.0M | 4.0M |
| Maint. CapEx | 64M | 81M | 85M | 40M | 40M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 |
| D&A | 64M | 81M | 85M | 40M | 40M |
| CapEx/OCF | N/A | 15.7% | 16.7% | 6.3% | 6.3% |
| Capital Allocation | |||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 3.2M | 2.9M | 250K | 0 | 0 |
| Debt Repayment | 0 | 64M | 367M | 111M | 111M |
| Balance Sheet | |||||
| Net Debt | 267M | 509M | 119M | -217M | -98M |
| Cash & Equiv. | 4.7M | 16M | 25M | 120M | 120M |
| Long-Term Debt | 276M | 542M | 169M | 22M | 22M |
| Debt/Equity | 0.25 | 0.80 | 0.29 | 0.07 | 0.07 |
| Interest Coverage | -1.0 | -1.1 | -0.7 | -3.5 | -3.5 |
| Equity | 1.1B | 677M | 581M | 294M | 294M |
| Total Assets | 1.5B | 1.3B | 805M | 453M | 453M |
| Total Liabilities | 353M | 624M | 220M | 156M | 156M |
| Intangibles | 64M | 166M | 98M | 16M | 16M |
| Retained Earnings | N/A | N/A | N/A | N/A | N/A |
| Working Capital | -49M | -8.0M | -840K | -53M | -53M |
| Current Assets | 1.3M | 52M | 43M | 3.0M | 3.0M |
| Current Liabilities | 50M | 60M | 44M | 56M | 56M |
| Per Share Data | |||||
| EPS | 1.08 | -9.00 | -6.18 | -9.81 | -9.81 |
| Owner EPS | 1.15 | -0.90 | -0.92 | 1.64 | 1.64 |
| Book Value | 75.82 | 46.25 | 39.27 | 19.85 | 19.85 |
| Cash Flow/Share | 5.77 | 4.85 | 4.85 | 4.33 | -7.13 |
| Dividends/Share | N/A | 0.00 | N/A | N/A | 0.00 |
| Shares Out. | 14.6M | 14.6M | 14.8M | 14.8M | 14.8M |
| Valuation | |||||
| P/E Ratio | N/A | N/A | N/A | N/A | -1.2 |
| P/FCF | N/A | 1.9 | 3.2 | 3.4 | 3.0 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | 0.2 | 0.3 | 0.7 | 0.6 |
| Price/Sales | N/A | 0.6 | 1.2 | 1.6 | 1.5 |
| FCF Yield | N/A | 53.0% | 31.6% | 29.5% | 33.4% |
| Market Cap | N/A | 113M | 189M | 204M | 180M |
| Avg. Price | N/A | 6.87 | 11.10 | 13.21 | 12.13 |
| Year-End Price | N/A | 7.71 | 12.78 | 13.74 | 12.13 |
Net Lease Office Properties passes 0 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 3.0x vs a median of 3.2x. At current prices, the estimated annualized return to fair value is -4.1%.
Net Lease Office Properties (NLOP) has a 5-year average return on invested capital (ROIC) of -8.3%. This is below average and may indicate limited pricing power.
Net Lease Office Properties (NLOP) has a market capitalization of $180M. It is classified as a small-cap stock.
Net Lease Office Properties (NLOP) does not currently pay a regular dividend.
Net Lease Office Properties (NLOP) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
Net Lease Office Properties (NLOP) reported annual revenue of $119 million in its most recent fiscal year, based on SEC EDGAR filings.
Net Lease Office Properties (NLOP) has a net profit margin of -122.2%. The company is currently unprofitable.
Net Lease Office Properties (NLOP) generated $60 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Net Lease Office Properties (NLOP) has a debt-to-equity ratio of 0.07. This indicates a conservatively financed balance sheet.
Net Lease Office Properties (NLOP) reported earnings per share (EPS) of $-9.81 in its most recent fiscal year.
Net Lease Office Properties (NLOP) has a return on equity (ROE) of -33.2%. A negative ROE may indicate losses or negative equity.
The Ledger Terminal provides 4 years of financial data for Net Lease Office Properties (NLOP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Net Lease Office Properties (NLOP) has a book value per share of $19.85, based on its most recent annual SEC filing.