June 2025
NLOP Overview
Net Lease Office Properties (NYSE: NLOP) is a publicly-traded real estate investment trust (REIT) focused on realizing value through the strategic asset management and disposition of its portfolio over time
NLOP is externally managed by W. P. Carey, an advisor with significant expertise and a proven track record of repositioning, leasing and disposing of net lease office assets
Initially spun out of W. P. Carey in 2023, NLOP's portfolio consisted of 59 net lease office
properties, with ABR of ~$145 million, almost all of which were located in the U.S.
Since inception, NLOP has successfully disposed of 22 properties with $42 million of ABR and today has a portfolio of 37 properties with $88 million of ABR
Excess proceeds from dispositions completed to date have primarily been used to pay down $455 million of debt originated at spin, which has now been fully repaid
Consistent with its strategic plan, NLOP expects to distribute proceeds from sales to its shareholders efficiently (1)
2
(1) Dividends paid by NLOP will be authorized and determined by NLOP's Board of Trustees, in its sole discretion, and will be dependent upon a number of factors.
Continued Execution of Stated Plan
218.8%
Nov. 2023
NLOP
begins trading regular way on NYSE.
Jan. 2024
Sales of four properties totaling
$43 million announced.
May 2024
Sales of three properties totaling
$132 million announced.
Jun. 2024
Sales of two properties totaling
$61 million announced.
Jan. 2025
Repayment in full of J.P. Morgan senior secured mortgage and sales of five properties totaling
$43 million announced.
Aug. 2024
Sale of one property for
$72 million announced.
Apr. 2025
Repayment in full of J.P. Morgan mezzanine loan and sales of two properties totaling
$10 million announced.
0.0%
Nov-23 Feb-24 May-24 Aug-24 Dec-24 Mar-25 Jun-25
NLOP Price Performance
3
Note: Market data as of June 20, 2025.
NLOP Business Plan Progression
CORALVILLE, IA
Portfolio
At Spin | |
# of Properties | 59 |
Total Square Footage | 9 MM |
Number of Tenants | 62 |
ABR ($MM) | $145 |
WALT (1) | 5.7 years |
Geography (US / Europe) (1) | 89% / 11% |
JPM Senior Loan | $335 MM |
JPM Mezzanine Loan | $120 MM |
Existing Mortgage Debt | $168 MM |
Wtd. Avg. Interest Rate | 9.6% |
Today |
37 |
6 MM |
41 |
$88 |
4.1 years |
95% / 5% |
$ -- |
$ -- |
$115 MM |
6.4% |
Through efficient asset sale execution and prudent capital management, NLOP was able to fully repay both the senior and mezzanine loans 10 months and 3.5 years ahead of their initial maturities, respectively
4
ST. PETERSBURG, FL
Balance Sheet
(1) Figures are based on September 30, 2023 and March 31, 2025 annualized base rent ("ABR"), respectively.
Leasing Activity
Lease Renewals and ExtensionsDollars in thousands. Pro rata. As of March 31, 2025.
Tenant / Lease Guarantor | Property Location | Square Footage | Prior ABR | New ABR (1) | Rent Recapture | Expected TIs | LCs | Incremental Term |
BCBSM (2 properties) | Eagan, MN | 347,472 | $5,041 | $4,663 | 92.5% | $1,624 | $ -- | 10.0 years |
Nokia | Krakow, Poland | 53,400 | 1,096 | 829 | 75.6% | 995 | -- | 5.0 years |
Merative | Hartland, WI | 81,082 | 909 | 669 | 73.6% | 1,650 | 559 | 10.0 years |
Northrop Grumman | Plymouth, MN | 191,336 | 3,821 | 2,679 | 70.1% | -- | -- | 5.0 years |
Caremark (2) | Chandler, AZ | 65,860 | 1,839 | 1,645 | 89.5% | -- | 415 | 5.4 years |
Charter | Bridgeton, MO | 78,080 | 820 | 859 | 104.8% | -- | -- | 5.0 years |
S&ME | Raleigh, NC | 31,120 | 430 | 545 | 126.7% | 1,556 | 305 | 12.4 years |
Pioneer Credit (3) | Moorestown, NJ | 30,000 | 527 | 540 | 102.5% | -- | -- | 1.5 years |
Lincoln Technical (3) | Moorestown, NJ | 35,567 | 397 | 391 | 98.5% | -- | -- | 5.0 years |
Google (4) | Venice, CA | 67,681 | 3,018 | 3,108 | 103.0% | --- | 357 | 5.0 years |
JPMorgan | Tampa, FL | 104,565 | 1,321 | 1,864 | 141.1% | -- | 576 | 3.0 years |
Total / Wtd. Avg. (5) | 1,086,163 | $19,219 | $17,792 | 92.6% | $5,825 | $2,212 | 6.4 years |
Dollars in thousands. Pro rata. As of March 31, 2025.
Tenant / Lease Guarantor | Property Location | Square Footage | Number of Leases | New ABR (1) | Expected TIs | LCs | New Term | |
Phoenix Data Systems (6) | Southfield, MI | 6,431 | 1 | $72 | $ -- | $ -- | 5.0 years | |
CT Logic (6) | Southfield, MI | 1,668 | 1 | 24 | -- | -- | 3.0 years | |
Total / Wtd. Avg. (5) | 8,099 | 2 | $96 | $ -- | $ -- | 4.5 years |
Note: Excludes lease extensions for a period of one year or less.
New lease amounts are based on in-place rents at time of lease commencement and exclude any free rent periods.
5
Reflects a reduction in square footage leased by the tenant.
Pioneer Credit Recovery, Inc. and Lincoln Technical Institute, Inc. are tenants at our multi-tenant property in Moorestown, New Jersey.
Lease renewal period commences on November 1, 2025.
Weighted average refers to the incremental and new lease terms.
Phoenix Data Systems and CT Logic were tenants at our multi-tenant property in Southfield, Michigan, prior to that property's disposition in December 2024.
Asset Sale Summary
Dollars in thousands. Pro rata. As of March 31, 2025.
Tenant / Lease Guarantor | Primary Tenant Industry | Property Location | ABR (1) | Gross Sales Proceeds | Square Footage | Closing Date | |
1 | Raytheon | Aerospace & Defense | Tucson, AZ | $1,978 | $24,575 | 143,650 | Dec-23 |
2 | Carhartt | Apparel, Accessories & Luxury | Dearborn, MI | 748 | 9,806 | 58,722 | Dec-23 |
3 | BCBSM | Managed Health Care | Eagan, MN | 298 | 2,500 | 29,916 | Dec-23 |
4 | AVL | Auto Parts & Equipment | Plymouth, MI | 575 | 6,200 | 70,000 | Dec-23 |
5 | Undisclosed (2) | Property & Casualty Insurance | Newport, United Kingdom | 1,761 | 10,497 | 80,664 | Jan-24 |
6 | Total E&P Norge (2) | Oil & Gas Exploration & Production | Stavanger, Norway | 5,185 | 33,072 | 275,725 | Mar-24 |
7 | Exelon (3) | Electric Utilities | Warrenville, IL | 2,935 | 19,830 | 146,745 | Apr-24 |
8 | Vacant (formerly AVT) (3) | N/A | Tempe, AZ | -- | 13,160 | 132,070 | Apr-24 |
9 | FedEx | Air Freight & Logistics | Collierville, TN | 5,491 | 62,500 | 390,380 | Apr-24 |
10 | DMG MORI SEIKI U.S.A. | Industrial Machinery | Hoffman Estates, IL | 2,458 | 35,984 | 104,598 | Apr-24 |
11/12 | BCBSM (2 properties) | Managed Health Care | Eagan, MN | 4,663 | 60,700 | 347,472 | Jun-24 |
13 | CVS | Healthcare Services | Scottsdale, AZ | 4,252 | 71,500 | 354,888 | Aug-24 |
14 | Xileh | Multi-Sector Holdings | Auburn Hills, MI | 711 | 9,000 | 55,490 | Sep-24 |
15 | E. On UK (2) | Internet Retail | Houghton le Spring, United Kingdom | 3,819 | 3,924 | 217,339 | Oct-24 |
16 | Vacant (formerly BCBSM) | N/A | Eagan, MN | -- | 11,650 | 227,666 | Nov-24 |
17 | Merative | IT Consulting & Other Services | Hartland, WI | 669 | 6,750 | 81,082 | Dec-24 |
18 | Charter | Cable & Satellite | Bridgeton, MO | 820 | 7,350 | 78,080 | Dec-24 |
19 | Caremark | Health Care Services | Chandler, AZ | 1,645 | 15,000 | 183,000 | Dec-24 |
20 | Cofinity / Aetna | Multi-line Insurance | Southfield, MI | 1,833 | 2,500 | 94,453 | Dec-24 |
21 | Emerson | Industrial Machinery | Houston, TX | 1,108 | 4,180 | 52,144 | Mar-25 |
22 | Nokia (2) | Communications Equipment | Krakow, Poland | 779 | 5,595 | 53,400 | Mar-25 |
Total | $41,728 | $416,273 | 3,177,484 |
U.S.
Properties
4European Properties
$416 MMGross Sales Proceeds
6
ABR is pro forma for any agreed to and signed future rent restructurings.
Amount reflects the applicable exchange rate on the date of the transaction.
NLOP transferred ownership of these properties and the related non-recourse mortgage loans to the respective mortgage lenders. Gross proceeds from these dispositions represent the mortgage principal outstanding on the respective dates of transfer.
Remaining Portfolio
Tenant / Lease Guarantor | Primary Tenant Industry | Property Location | ABR | Square Footage (1) | Tenant / Lease Guarantor | Primary Tenant Industry | Property Location | ABR | Square Footage | ||
1 | KBR (2)(3) | Construction & Engineering | Houston, TX | $21,306 | 1,064,788 | 20 | Acosta | Advertising | Jacksonville, FL | $1,541 | 88,062 |
2 | JPMorgan | Diversified Banks | Fort Worth, TX | 4,850 | 386,154 | 21 | Safelite | Specialized Consumer Services | Rio Rancho, NM | 1,527 | 94,649 |
3 | Siemens (4) | Industrial Conglomerates | Oslo, Norway | 4,633 | 165,905 | 22 | Master Lock | Building Products | Oak Creek, WI | 1,437 | 120,883 |
4 | PPD | Pharmaceuticals | Morrisville, NC | 4,063 | 219,812 | 23 | MISO | Electric Utilities | Eagan, MN | 1,148 | 60,463 |
5 | Omnicom | Advertising | Playa Vista, CA | 3,961 | 120,000 | 24 | Radiate | Cable & Satellite | San Marcos, TX | 1,074 | 47,000 |
6 | R.R. Donnelley | Commercial Printing | Warrenville, IL | 3,393 | 167,215 | 25 | NA Lighting | Auto Parts & Equipment | Farmington Hills, MI | 1,058 | 75,286 |
7 | Iowa Board of Regents (5) | Government Related Services | Coralville, IA | 3,254 | 191,700 | 26 | Arcfield | Aerospace & Defense | King of Prussia, PA | 1,000 | 88,578 |
8 | Bankers Financial (2)(3) | Property & Casualty Insurance | St. Petersburg, FL | 3,228 | 167,581 | 27 | Pioneer Credit (2) | Diversified Support Services | Moorestown, NJ | 937 | 65,567 |
9 | JPMorgan | Diversified Banks | Tampa, FL | 3,053 | 176,150 | 28 | APCO | Property & Casualty Insurance | Norcross, GA | 631 | 50,600 |
10 | Internet Software & Services | Venice, CA | 3,018 | 67,681 | 29 | Undisclosed | Industrial Gases | Houston, TX | 629 | 49,821 | |
11 | ICU MEDICAL (2) | Health Care Supplies | Plymouth, MN | 2,890 | 182,250 | 30 | S&ME | Environmental & Facilities Services | Raleigh, NC | 545 | 31,120 |
12 | Northrop Grumman | Aerospace & Defense | Plymouth, MN | 2,679 | 191,336 | 31 | Radiate | Cable & Satellite | Waco, TX | 473 | 30,699 |
13 | Intuit | Internet Software & Services | Plano, TX | 2,577 | 166,033 | 32 | Radiate | Cable & Satellite | Corpus Christi, TX | 355 | 20,717 |
14 | Cohesity | Systems Software | Roseville, MN | 2,255 | 136,125 | 33 | Radiate | Cable & Satellite | Odessa, TX | 236 | 21,193 |
15 | Cenlar | Regional Banks | Yardley, PA | 2,105 | 105,584 | 34 | Radiate | Cable & Satellite | San Marcos, TX | 212 | 14,400 |
16 | iHeartCommunications | Broadcasting | San Antonio, TX | 2,050 | 120,147 | 35 | Vacant (fmr. BCBSM) (6) | N/A | Eagan, MN | - | 442,542 |
17 | JPMorgan (2)(3) | Diversified Banks | Tampa, FL | 1,932 | 135,733 | 36 | Vacant (fmr. McKesson) (6) | N/A | The Woodlands, TX | - | 204,063 |
18 | Arbella | Property & Casualty Insurance | Quincy, MA | 1,850 | 132,160 | 37 | Vacant (fmr. BCBSM) (6) | N/A | Eagan, MN | - | 12,286 |
19 | ICF | IT Consulting & Other Services | Martinsville, VA | 1,830 | 93,333 | . | Total | $87,730 | 5,507,616 | ||
Dollars in thousands. Pro rata. As of March 31, 2025.
Excludes 570,999 of operating square footage for a parking garage associated with the KBR, Inc. property in Houston, Texas
7
Denotes multi-tenant property. Primary tenant generating largest percentage of ABR shown. Industry is for primary tenant.
Denotes leased property that is not 100% occupied.
ABR reflects exchange rate as of March 31, 2025.
NLOP owns a 90% controlling interest in this consolidated property.
Denotes property that is vacant as of the date of this report.