Net Lease Office Properties Common Shares of Beneficial Interest (NLOP)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach NLOP as a balance-sheet investor. It owns single-tenant office properties net leased to corporate tenants. On 2026-10-13 the shares closed at $9.62, giving a market cap of $142.5M and FairStock's price-to-book calculation of 0.87, so the market values it below stated book. But reported results are ugly. Revenue fell from $175.0M in fiscal 2023, the year ended 2023-12-31, to $142.2M in fiscal 2024, the year ended 2024-12-31, and $118.9M in fiscal 2025, the year ended 2025-12-31. Net income was -$131.7M, -$91.5M, and -$145.3M in those same years; diluted EPS was -$9.00, -$6.18, and -$9.81. In fiscal Q1 2026, the quarter ended 2026-03-31, it reported net income of $25.0M and EPS of $1.69; in fiscal Q2 2026, the quarter ended 2026-06-30, it swung to -$6.2M and -$0.42 EPS on just $6.4M of revenue. That is not stable earning power. As a REIT, FFO/AFFO are the right measures, and they are not in this data; I therefore lean on price-to-book, leverage, revenue trend and dividend yield. No dividend yield is provided. FairStock's debt/equity figure is 0.13, and trailing free cash flow is $50.2M, a 35.2% FCF yield on the 2026-10-13 market cap—but FairStock's Altman Z of -2.12 and Piotroski score of 5/9 warn of distress. FairStock's computed Lynch category is TURNAROUND—loss in the latest year after earlier profits—though the filed annual record shows repeated losses. The office sector and single-tenant exposure make the moat uncertain. At 0.87x book it could be cheap if asset values hold and cash flow continues, but without FFO/AFFO and with shrinking revenue, this is speculative asset-value investing, not a clear bargain. I do not use the Graham Number or a margin-of-safety calculation here because depreciation distorts REIT EPS.

In plain English: Net Lease Office Properties is a real estate company that owns offices leased to single corporate tenants. It is losing money, and its rental revenue has shrunk sharply, including a very weak latest quarter. The stock price is below the value of its net assets, but because profits are negative, it looks more like a cheap-looking but troubled situation than a healthy bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer