10-K · February 25, 2026
NLOP is a recently spun-off REIT focused on single-tenant, net-leased office properties and is pursuing a strategy of strategic asset management and staged dispositions to realize shareholder value. As of December 31,…
Earnings analysis · 10-Q
NLOP earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
NLOP's Q1 2026 report shows a significant decline in revenues and a positive shift in net income, largely driven by asset dispositions. The company generated a net income of $25M, boosted by gains from real estate sales…
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NLOP's Q1 2026 report shows a significant decline in revenues and a positive shift in net income, largely driven by asset dispositions. The company generated a net income of $25M, boosted by gains from real estate sales despite lower lease revenues, indicating ongoing challenges from its strategy of divestiture.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.69
- Operating margin
- 11.5%
What stood out
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Revenue Drops Significantly
Total revenues for Q1 2026 were $9.025M, down from $29.213M in Q1 2025, mainly due to property dispositions.
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Strong Increase in Net Income
Net income attributable to NLOP reached $24.998M for Q1 2026, compared to $492K in Q1 2025, aided by a $32.620M gain on real estate sales.
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Cash Flow from Investing Increases
Net cash provided by investing activities surged to $118.825M in Q1 2026, up from $8.656M in Q1 2025, reflecting high proceeds from asset sales.
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Improvement in Operating Margin
Operating margin improved significantly to positive 11.5% in Q1 2026 compared to prior losses, primarily due to reduced operating expenses.
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Gains from Sale of Properties
NLOP recognized a gain of $32.620M on the sale of real estate, significantly affecting overall performance.
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Cash Position Still Strong
Cash and cash equivalents stood at $70.609M as of March 31, 2026, reflecting healthy liquidity despite asset sales.
What to watch
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Severe Revenue Decline
Lease revenues plummeted 74% to $7.341M compared to $27.392M in Q1 2025, indicating challenges in generating income from remaining properties.
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High Tenant and Geographic Concentration
Tenant concentration risk remains high with KBR accounting for 12% of revenues prior to its property sale, posing operational vulnerabilities.
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Short WALT and Lease Expirations
Average remaining lease term dropped to 2.9 years, heightening risks related to upcoming lease expirations, potentially impacting future cash flows.
Management's outlook
Management anticipates continued challenges from asset dispositions but expects improved liquidity management going forward.
Earlier filings 3
10-Q · August 8, 2024
NLOP reported Q2 2024 total revenues of $39,029,000 (39,029 in filing thousands), down from $42,803,000 in Q2 2023, but delivered GAAP diluted EPS of $0.84 versus $0.26 a year ago driven by a $37,723,000 gain on sale of…
10-Q · November 17, 2023
NLOP completed its spin-off and related financing, receiving 59 properties (≈9.3 million leasable sq ft) contributed on November 1, 2023. For the three months ended September 30, 2023 the NLOP Predecessor reported total…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.