Net Lease Office Properties (NLOP) AI Stock Analysis
NLOP AI stock analysis summary
AI ResearchNet Lease Office Properties (NLOP) is a publicly traded real estate investment trust focused on single-tenant office buildings. Revenue declined 16.4% in FY2025 to $118.9M, with trailing twelve month revenue dropping further to $65.4M amid property dispositions. The trust maintains a net cash position of $1.8M as of June 30, 2026.
- Market cap
- $144.4M
- Revenue (TTM)
- $65.4M
- P/E
- —
- 1Y return
- -4.6% S&P 500 16.8%
- Avg. target
- $46.00 371.8% vs last close
Bull case
- The trust held net cash of $1.8M as of June 30, 2026, keeping total debt modest at $21.9M with a debt-to-equity ratio of 0.13.
- Free cash flow generation remained positive at $60.1M in FY2025 despite lower revenues.
- The stock trades at a price-to-book ratio of 0.9x and a price-to-sales multiple of 2.2x.
Bear case
- Quarterly revenue dropped 76.9% year-over-year in the period ended June 30, 2026, lowering trailing twelve month revenue to $65.4M.
- Net income remained deeply negative at -$145.3M in FY2025 and -$3.07 EPS over the trailing twelve months.
- NLOP shares dropped 4.6% over the past year, lagging the S&P 500 return of 16.8%.
What Net Lease Office Properties does
Net Lease Office Properties is an office real estate investment trust that owns 59 office buildings comprising approximately 8.7 million square feet of leasable space. Its properties are predominantly leased to 62 corporate tenants across various industries under single-tenant net lease agreements, generating approximately $145 million in annualized base rent. While most assets are in the United States, the trust also maintains a footprint in Europe. NLOP is managed by wholly owned affiliates of WPC, focusing on asset management and systematic dispositions over time.
Growth and profitability
Revenue reached $175.0M in FY2023 before contracting to $142.2M in FY2024 and $118.9M in FY2025, reflecting a 5-year revenue CAGR of -3.9% from FY2020 to FY2025. Operating margin rose to 29.7% in FY2025, up from 24.2% in FY2024, but net losses persisted at -$145.3M with an EPS of -$9.81. For the trailing twelve months ended June 30, 2026, revenue stood at $65.4M with a net profit margin of -69.5%. In the latest quarter ended June 30, 2026, quarterly revenue fell 76.9% year-over-year, while quarterly earnings grew 4981.0%.
Balance sheet and cash flow
As of June 30, 2026, the trust held $23.7M in cash and short-term investments against $21.9M in total debt, resulting in net cash of $1.8M. Total assets stood at $200.9M and shareholders' equity was $163.8M, supported by a current ratio of 2.37 and a debt-to-equity ratio of 0.13. In FY2025, operating cash flow generated $64.1M and free cash flow was $60.1M after capital expenditures of $4.0M. During FY2025, the trust distributed $106.7M in dividends, while its 5-year share count changed by -1.2%.
Valuation and performance
NLOP trades at a price-to-sales multiple of 2.2x, below the 3.7x median of its US-listed Real Estate peers. Its EV-to-EBITDA ratio of 59.1x stands well above the peer median of 14.7x, while its price-to-book ratio is 0.9x. Over the past year, NLOP posted a return of -4.6%, underperforming the 16.8% return of the S&P 500 (SPY). The stock closed at $9.75 on October 16, 2026, which is 12.6% below its 200-day moving average.
What analysts expect
Analysts have set a mean price target of $46.00 for NLOP, representing upside of 371.8% over its last close of $9.75 on October 16, 2026. The company is scheduled to report its next earnings on November 6, 2026.
Key risks and what to watch
- Continued revenue contraction, illustrated by the 5-year revenue CAGR of -3.9% and FY2025 decline of 16.4%, reduces operational scale.
- Significant net losses, such as -$131.7M in FY2023 and -$145.3M in FY2025, weaken cumulative bottom-line performance.
- The high EV-to-EBITDA multiple of 59.1x significantly exceeds the peer median of 14.7x.
- A 52-week trading range spanning $9.48 to $30.26 reflects substantial price volatility.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this NLOP AI stock analysis
This page is an AI-written research summary of Net Lease Office Properties (NLOP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: NLOP income statement, NLOP balance sheet, NLOP key metrics, NLOP chart. See the NLOP stock overview for the latest quote and news.
NLOP AI stock analysis FAQ
What is Net Lease Office Properties' primary business strategy?
NLOP owns 59 office properties totaling 8.7 million square feet leased to 62 corporate tenants. Managed by affiliates of WPC, its strategy centers on asset management and systematic property dispositions.
How did NLOP perform financially in FY2025?
NLOP generated $118.9M in revenue, down 16.4% year-over-year, and recorded a net loss of -$145.3M. However, operating cash flow was positive at $64.1M and free cash flow totaled $60.1M.
What is NLOP's balance sheet position?
As of June 30, 2026, NLOP held $23.7M in cash and short-term investments against $21.9M in debt, providing net cash of $1.8M and a low debt-to-equity ratio of 0.13.
When does NLOP report its next quarterly results?
The company's next earnings report date is scheduled for November 6, 2026.