Revenue experienced a sharp 68.0% contraction in 2026Q1, while NOI margins have exhibited extreme volatility, swinging from a 92.7% peak in 2023Q4 to a negative 156.3% in 2025Q4.
| Revenue | 100.14M | 118.92M | 142.25M | 174.97M | 156.21M | 147.91M | 144.76M |
| Revenue Growth % | -21.43% | -16.4% | -18.7% | 12% | 5.62% | 2.17% | - |
| Property Operating Expenses | 106.55M | 35.62M | 43.66M | 37.84M | 32M | 30.08M | 28.44M |
| Net Operating Income (NOI) | -6.42M | 83.3M | 98.58M | 137.12M | 124.21M | 117.83M | 116.32M |
| NOI Margin % | -6.41% | 70.05% | 69.3% | 78.37% | 79.51% | 79.66% | 80.35% |
| Operating Expenses | -36.91M | 47.99M | 64.21M | 97.05M | 81.1M | 68.89M | 116.32M |
| G&A Expenses | 5.5M | 7.31M | 7.52M | 22.06M | 17.9M | 10.31M | 9.36M |
| EBITDA | 59.91M | 74.11M | 113.31M | 121.46M | 109.34M | 110.1M | 108.92M |
| EBITDA Margin % | 59.83% | 62.32% | 79.66% | 69.42% | 70% | 74.44% | 75.24% |
| Depreciation & Amortization | 29.42M | 38.8M | 78.94M | 81.4M | 66.23M | 61.16M | 59.97M |
| D&A / Revenue % | 29.38% | 32.63% | 55.49% | 46.52% | 42.4% | 41.35% | 41.42% |
| Operating Income | 30.49M | 35.31M | 34.37M | 40.07M | 43.11M | 48.94M | 0 |
| Operating Margin % | 30.45% | 29.7% | 24.16% | 22.9% | 27.6% | 33.09% | 0% |
| Interest Expense | 3.31M | 12.74M | 67.96M | 42.61M | 26.84M | 32.47M | 32.14M |
| Interest Coverage | - | -10.38x | -0.38x | -2.08x | 1.61x | 0.98x | 1.52x |
| Non-Operating Income | 59.3M | 167.58M | 60.17M | 128.75M | 7K | 17.23M | -48.95M |
| Pretax Income | -120.54M | -145M | -93.77M | -131.3M | 16.26M | 3.06M | 16.82M |
| Pretax Margin % | -120.37% | -121.94% | -65.92% | -75.04% | 10.41% | 2.07% | 11.62% |
| Income Tax | 93K | 158K | -2.38M | 425K | 486K | 1.65M | 800K |
| Effective Tax Rate % | -0.08% | -0.11% | 2.54% | -0.32% | 2.99% | 53.72% | 4.76% |
| Net Income | -120.76M | -145.26M | -91.47M | -131.75M | 15.78M | 1.42M | 16.02M |
| Net Margin % | -120.59% | -122.16% | -64.3% | -75.3% | 10.1% | 0.96% | 11.06% |
| Net Income Growth % | -91.26% | -58.81% | 30.57% | -934.95% | 1012.76% | -91.15% | - |
| Funds From Operations (FFO) | -91.34M | -106.46M | -12.53M | -50.35M | 82.01M | 62.58M | 75.98M |
| FFO Margin % | -91.21% | -89.53% | -8.81% | -28.78% | 52.5% | 42.31% | 52.49% |
| FFO Growth % | -119.73% | -749.45% | 75.11% | -161.39% | 31.06% | -17.64% | - |
| FFO per Share | -6.17 | -7.19 | -0.85 | -3.44 | 5.75 | 4.39 | 5.33 |
| FFO Payout Ratio % | 0% | -100.19% | -8.55% | 0% | 0% | 0% | 0% |
| EPS (Diluted) | -8.15 | -9.81 | -6.18 | -9.00 | 1.11 | 1.73 | 1.12 |
| EPS Growth % | -90.41% | -58.74% | 31.33% | -910.81% | -35.84% | 54.46% | - |
| EPS (Basic) | - | -9.81 | -6.18 | -9.00 | 1.11 | 1.73 | 1.12 |
| Diluted Shares Outstanding | 14.81M | 14.81M | 14.79M | 14.63M | 14.26M | 14.26M | 14.26M |
Asset Liquidation Execution Risk
As reported in financial statements, NLOP’s revenue experienced a sharp 68.0% decline in 2026Q1, reflecting the firm's strategic mandate to divest assets rather than pursue organic growth, a trajectory that contrasts sharply with the expansionary models typically observed in the broader net lease REIT sector.
The revenue decay is a deliberate outcome of the company's liquidation-focused business model rather than an operational failure. Investors should monitor whether the pace of asset sales remains consistent with internal valuation targets, as the shrinking revenue base will inevitably increase the relative burden of fixed corporate overhead.
Based on reported figures, NOI margins have exhibited extreme volatility, swinging from a 92.7% peak in 2023Q4 to a negative 156.3% in 2025Q4, which suggests that non-recurring charges and asset-specific impairments are significantly distorting the underlying property-level profitability of the remaining portfolio.
The erratic margin profile indicates that the company is likely absorbing significant costs associated with preparing assets for disposition or managing vacancies during the wind-down process. This instability warrants further investigation into whether the remaining assets possess the structural integrity to maintain positive cash flow until their eventual sale.
According to recent SEC filings, FFO per share has fluctuated wildly between a positive $1.86 in 2026Q1 and a negative $7.92 in 2023Q4, highlighting the inherent difficulty in using standard REIT earnings metrics to evaluate a vehicle designed for finite asset liquidation.
The extreme variance in FFO suggests that non-cash items and accounting adjustments related to the spin-off and subsequent asset sales are heavily influencing reported results. Analysts should prioritize cash-based metrics over FFO to determine the actual capital available for distribution or debt retirement.
As indicated by the 2025Q4 net loss of $53,000 despite significant revenue, the company faces substantial headwinds in converting its office portfolio into cash, raising concerns that the final assets may be difficult to divest at prices that justify their current carrying values.
The potential for 'zombie' assets—properties that are neither generating sufficient rent nor attracting buyers—remains a primary risk for shareholders. Investors should monitor the weighted average lease term of the remaining portfolio to assess whether the company is losing its leverage to secure favorable exit pricing.
Quick answers to the most common questions about buying NLOP stock.
For fiscal year 2025, Net Lease Office Properties (NLOP) reported total revenue of $118.9M. This represents a 17.9% decline compared to $144.8M in 2020.
Net Lease Office Properties (NLOP) reported a net loss of $145.3M for the fiscal year ending 2025.
Net Lease Office Properties (NLOP) reported an operating income of $35.3M, resulting in an operating profit margin of 29.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Net Lease Office Properties (NLOP) generated $83.3M in gross profit for the year, representing a gross profit margin of 70.0%. This demonstrates the company's core pricing power and production efficiency.