Net Lease Office Properties (NLOP) announced a special cash distribution of $5.10 per common share, totaling approximately $75.6 million. The payment will be made on January 20, 2026 to shareholders of record as of January 2, 2026, following the sale of six single‑tenant office properties that generated gross proceeds of $75.8 million.
The properties sold are located in Plymouth, MN; Tampa, FL; Oak Creek, WI; Roseville, MN; Moorestown, NJ; and Fort Worth, TX. Tenants include Securitas Electronic Security, JPMorgan Chase Bank, Cohesity Inc., and Pioneer Credit Recovery, Inc. The sales are part of NLOP’s ongoing liquidation strategy, which has reduced the portfolio from 59 assets at the time of the November 2023 spin‑off to 32 assets as of September 30, 2025.
NLOP’s financials for the nine months ended September 30, 2025, show a revenue decline to $88.2 million from $114.5 million year‑over‑year, reflecting a contraction in the office market and the company’s focus on asset disposition. The company recorded a net loss of $145.2 million versus a $55.7 million loss in the prior year, but funds from operations (FFO) rose to $44.6 million from $14.8 million, and adjusted funds from operations (AFFO) increased to $51.8 million from $50.5 million. The improvement in cash‑flow metrics is driven by the proceeds from property sales and disciplined debt management, which has kept the debt‑to‑capital ratio at 0.11.
Management emphasized that the special distribution is a continuation of the company’s strategy to return capital to shareholders while completing the liquidation of its remaining portfolio. The company has been actively repaying a J.P. Morgan mezzanine loan and other debt using proceeds from dispositions and excess cash flow, maintaining a moderate debt level. The board’s decision to declare the distribution signals confidence that the remaining assets can be sold at attractive prices and that the company can sustain liquidity for future dispositions.
Market reaction to the announcement has been modest, with analysts noting the consistent pattern of special distributions in August and November 2025. The small positive reaction reflects investor approval of the company’s disciplined approach to asset disposition and capital return, while the broader office market remains challenging.
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