Fundamentals snapshot

Net Lease Office Properties

NLOP · NYQ · Real Estate · REIT - Office

Current price

$9.57

52-week range

$8.80 - $30.26

Market cap

$141.77M

One-glance verdict

Undervalued

$90.74 our estimate vs market $9.57

Balance sheet

Healthy

2.77x Stretched

Net cash $30.64M. Interest coverage shows how many times profit covers the interest bill.

What stands out

3 Rewards 2 Risks

3 rewards · 2 risks

Reward Returns 6.1% on equity, ahead of 83% of its peers.
Reward Free cash flow was positive in 4/10 years.
Risk Operating margin compressed from 27.6% to 19.6% over 3 years.
Risk Insider ownership is only 0.7% (peer median: 5.8%).

View 1 more in details ↓

What this company does

Net Lease Office Properties

Net Lease Office Properties (NLOP) owns large office buildings that it rents out to single companies, like a landlord for businesses. The money mainly comes from rent payments from these companies, which is a predictable stream of income. This matters because reliable rent checks mean NLOP can pay its bills and potentially return money to its investors.

How the company got here

Net Lease Office Properties (NLOP) was formed to own and manage a specific type of real estate: buildings leased to a single company. This structure, known as a "net lease," means the tenant is responsible for most of the property's operating expenses, like taxes and maintenance. The company's strategy focuses on acquiring these types of properties, aiming for stable income from long-term leases with creditworthy tenants. This approach provides predictable revenue streams for investors.

What it actually does

NLOP is a real estate investment trust (REIT) that owns office buildings. Think of it like a landlord, but instead of renting out individual offices to many small businesses, it rents entire buildings to one large company. These leases are typically long-term, and the tenant company pays for most of the building's upkeep and operating costs. This model is designed to generate steady rental income for NLOP and its shareholders.

Office Properties

This is the core business of Net Lease Office Properties. The company owns office buildings that are leased out to a single corporate tenant. These tenants are responsible for paying not only rent but also most of the property's operating expenses, such as property taxes, insurance, and maintenance. This "net lease" structure helps to create a predictable income stream for NLOP, as the tenant bears many of the variable costs associated with owning the property. The size of this segment represents the entirety of NLOP's operations, as it is the company's sole business line.

What management is betting on now

Management is focused on maintaining and growing its portfolio of high-quality, single-tenant office properties. The strategy involves securing long-term leases with financially strong tenants to ensure consistent rental income. By concentrating on properties where tenants cover most operating costs, NLOP aims to provide stable returns to its investors. The company's success hinges on its ability to attract and retain reliable corporate tenants in desirable locations.

Price history

How the share price has moved

—

Loading price history…

Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Revenue $5.90M

Net income $-649.00K

Diluted EPS -0.04

Operating cash flow $750.00K

Free cash flow —

Revenue $6.36M

Net income $-6.19M

Diluted EPS -0.42

Operating cash flow $1.80M

Free cash flow —

Revenue $9.03M

Net income $25.00M

Diluted EPS 1.69

Operating cash flow $8.13M

Free cash flow —

Revenue $30.74M

Net income $-53.00K

Diluted EPS -0.01

Operating cash flow $21.95M

Free cash flow —

Revenue $29.78M

Net income $-64.16M

Diluted EPS -4.33

Operating cash flow $16.33M

Free cash flow —

Revenue $29.17M

Net income $-81.54M

Diluted EPS -5.50

Operating cash flow $11.71M

Free cash flow —

Revenue $29.21M

Net income $492.00K

Diluted EPS 0.03

Operating cash flow $14.12M

Free cash flow —

Revenue $27.73M

Net income $-35.78M

Diluted EPS -2.41

Operating cash flow $10.48M

Free cash flow —

Is it cheap or expensive?

Fair value $90.74 vs current price $9.57

Our most-likely fair value is $90.74 a share — about 848.2% above today's price of $9.57, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 2.5% · Discount 8.1% · Terminal 2.5%

$90.74

Bear

Growth 2.5% · Discount 8.1% · Terminal 2.5%

$90.74

Bull

Growth 5.5% · Discount 8.1% · Terminal 2.5%

$107.57

Is it drowning in debt?

Healthy

Net cash $30.6M - more cash than debt. Interest coverage 2.8x.

Net debt $-30.64M

Interest coverage 2.77x

Net Lease Office Properties's profit covers its interest bill about 2.8 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.

Healthy

Worse cushion Baseline Better cushion

NLOP BASELINE Net Lease Office Properties

Total debt $0.00 Interest coverage 2.77x This is the baseline the peer rows are being compared against.

ONL Orion Properties Inc.

Total debt $444.60M Interest coverage -0.07x -100% vs NLOP This peer has almost no interest-payment cushion compared with NLOP.

FSP Franklin Street Properties Corp.

Total debt $248.14M Interest coverage -0.33x -100% vs NLOP This peer has almost no interest-payment cushion compared with NLOP.

BDN Brandywine Realty Trust

Total debt $2.43B Interest coverage 0.58x -79% vs NLOP Carries about 4.8x less debt cushion than NLOP.

DEA Easterly Government Properties, Inc.

Total debt $1.68B Interest coverage 1.14x -59% vs NLOP Carries about 2.4x less debt cushion than NLOP.

What you should know

The case for and against NLOP

3 Rewards 2 Risks

Rewards

Returns 6.1% on equity, ahead of 83% of its peers.
Free cash flow was positive in 4/10 years.
Trades at 7.8x P/E vs peer median 77.7x (89.9% cheaper).

Risks

Operating margin compressed from 27.6% to 19.6% over 3 years.
Insider ownership is only 0.7% (peer median: 5.8%).

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)

7.84x

Forward P/E

—

P/B

0.87x

P/S

3.01x

EV/EBITDA

3.58x

PEG ratio

—

Profitability

How much profit each dollar creates

Gross margin

86.9%

Operating margin

19.6%

Net margin

38.4%

ROE

6.1%

ROA

2.0%

Health

Liquidity and balance-sheet strength

Debt / equity

—

Current ratio

2.96x

Quick ratio

2.40x

Total debt

$0.00

Total cash

$30.64M

Growth

How the business has been compounding

Revenue TTM

$52.03M

Revenue 5Y CAGR

-5.3%

EPS TTM

1.22

EPS 5Y CAGR

—

Cash flow

How much cash the business throws off

Operating CF TTM

$32.63M

Free CF TTM

$64.11M

FCF margin

123.2%

Dividend

Shareholder payout

Yield

0.0%

Payout ratio

0.0%

Last ex-div date

2026-11-16

Net Lease Office Properties

$90.74 our estimate vs market $9.57

2.77x Stretched

3 rewards · 2 risks

Net Lease Office Properties

How the company got here

What it actually does

Office Properties

What management is betting on now

How the share price has moved

Last 8 quarters — what happened

Fair value ? $90.74 vs current price $9.57

Healthy

The case for and against NLOP

Rewards

Risks

All the key metrics, grouped by purpose

How expensive the stock looks

How much profit each dollar creates

Liquidity and balance-sheet strength

How the business has been compounding

How much cash the business throws off

Shareholder payout

Fair value $90.74 vs current price $9.57