Net Lease Office Properties (NLOP) investor relations material

Executive summary

• Sold six properties in the first half of 2026 for $128.0 million in net proceeds, continuing a strategic disposition program that has reduced the portfolio to 18 properties and 10 tenants as of June 30, 2026.

• Declared and paid special cash distributions totaling $159.7 million during the first half of 2026, reflecting significant capital returns to shareholders.

• Portfolio occupancy declined to 68.4% from 79.0% at year-end 2025, with a weighted-average lease term of 2.7 years and 1.9 million leasable square feet remaining.

Financial highlights

• Total revenues for Q2 2026 were $6.4 million, down from $29.2 million in Q2 2025, primarily due to property sales.

• Net loss attributable to shareholders for Q2 2026 was $6.2 million, a significant improvement from a net loss of $81.5 million in Q2 2025, mainly due to lower impairment charges.

• For the first half of 2026, net income attributable to shareholders was $18.8 million, compared to a net loss of $81.0 million in the prior year period, driven by lower impairments and higher gains on sales.

• FFO for Q2 2026 was $3.1 million (down from $13.2 million in Q2 2025); AFFO was $3.3 million (down from $16.9 million in Q2 2025).

• Cash and cash equivalents at June 30, 2026 were $23.7 million.

Outlook and guidance

• Future special distributions will depend on operating results, liquidity, rental income, asset sales, and other factors.

• Liquidity needs are expected to be met through property sales and operating cash flow, but real estate market conditions and rent collections could impact this.