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Net Lease Office Properties (NLOP) investor relations material
Net Lease Office Properties Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Completed three property sales for $25.4 million in the first half of 2025, plus a July sale for $25.2 million.
Fully repaid the $61.1 million NLOP Mezzanine Loan using proceeds from dispositions and operations.
Special cash distribution of $3.10 per share, totaling $45.9 million, declared in August 2025, payable in September.
Operates as a net lease office REIT with 36 properties and 39 tenants, 88.1% occupancy, and a weighted-average lease term of 4.0 years.
Report covers the second quarter ended June 30, 2025, with unaudited supplemental financial information disclosed.
Financial highlights
Total revenues for Q2 2025 were $29.2 million; normalized pro rata cash NOI was $20.4 million.
Net loss attributable to shareholders was $81.5 million, or $(5.50) per diluted share, primarily due to an $81.6 million impairment charge on a Houston property.
FFO for Q2 2025 was $13.2 million, or $0.89 per diluted share; AFFO was $16.9 million, or $1.14 per diluted share.
Operating cash flow for the first half of 2025 was $25.8 million, down from $41.1 million in 2024.
Equity market capitalization: $482.2 million; total enterprise value: $545.2 million.
Outlook and guidance
Future special distributions will depend on operating results, liquidity, rental income, asset sales, and other factors.
Management expects to meet cash requirements through operations and property sales but notes potential risks from higher refinancing rates or cash flow disruptions.
Portfolio remains focused on investment grade tenants (44% of ABR), with ongoing property dispositions and lease renewals.
Subsequent to quarter end, one property was sold for $25.2 million.
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