NLOPHIGH SIGNALFINANCIAL10-K

NLOP underwent a major portfolio restructuring, reducing its property count from 39 to 24 properties while fully repaying its $61.1M mezzanine loan and dramatically reducing total debt by 87%.

This represents a significant downsizing and deleveraging strategy that substantially reduced the company's asset base and rental income capacity. The debt reduction eliminates financial leverage risk but comes at the cost of meaningful revenue decline and expanded net losses, suggesting either financial distress or a strategic pivot to a smaller operational footprint.

Comparing 2026-02-25 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

NLOP's financials reflect a major restructuring with total debt falling 87% to $21.9M through full repayment of the mezzanine loan, while total assets declined 44% to $453.4M and stockholders' equity dropped 49% to $293.9M. Revenue declined 16% to $118.9M consistent with the portfolio reduction from 39 to 24 properties, but net losses expanded substantially while interest expense grew meaningfully despite the debt reduction. The overall picture signals a company that has undergone significant downsizing while facing operational challenges that have worsened profitability despite deleveraging efforts.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
-87.1%
$169.2M→$21.9M

Debt reduced 87.1% — deleveraging strengthens balance sheet and reduces financial risk.

Net Income
P&L
-58.8%
-$91.5M→-$145.3M

Net income declined 58.8% — review whether driven by operations, interest costs, or non-recurring items.

Interest Expense
P&L
+58.8%
$26.8M→$42.6M

Interest expense surged 58.8% — significant debt increase or rising rates materially impacting earnings.

Stockholders Equity
Balance Sheet
-49.4%
$581.2M→$293.9M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Total Assets
Balance Sheet
-43.7%
$805.1M→$453.4M

Total assets contracted 43.7% — asset sales, write-downs, or balance sheet optimization underway.

Total Liabilities
Balance Sheet
-29.2%
$219.7M→$155.5M

Liabilities reduced 29.2% — deleveraging improves balance sheet strength and financial flexibility.

Revenue
P&L
-16.4%
$142.2M→$118.9M

Revenue softened 16.4% — monitor whether this is cyclical or structural.

Operating Cash Flow
Cash Flow
-10.8%
$71.9M→$64.1M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-27
ADDED
As of February 20, 2026, there were 14,814,075 shares of Common Stock of registrant outstanding.
As of December 31, 2025, our portfolio comprised 24 properties, net-leased to 26 corporate tenants operating in a variety of industries, generating annualized base rent ( ABR ) of approximately $54.1 million.
As of December 31, 2025, all of our properties were located in the United States.
In January and February 2026, we sold four properties, including a property leased to our largest tenant (based on ABR as of December 31, 2025) ( Note 17 ).
The NLOP Mortgage Loan was repaid during 2024 and the NLOP Mezzanine Loan was repaid during 2025 (as discussed below).
We fully repaid the NLOP Mezzanine Loan during 2025, using net proceeds from such dispositions, as well as excess cash flow from operations and other sources, including the application of loan reserves.
As of December 31, 2025, one additional property was encumbered by an outstanding individual mortgage of $21.9 million.
Our Portfolio At December 31, 2025, our portfolio had the following characteristics: Number of properties full or partial ownership interests in 24 net-leased properties; Total net-leased square footage approximately 3.4 million; and Occupancy rate approximately 79.0%.
Tenant/Lease Information At December 31, 2025, our tenants/leases had the following characteristics: Number of tenants 26; Investment grade tenants as a percentage of total ABR 20%; Implied investment grade tenants as a percentage of total ABR 11%; Weighted-average lease term ( WALT ) 3.9 years; 91.6% of our leases as a percentage of total ABR provide rent adjustments as follows: Fixed 76.0% Consumer Price Index ( CPI ) and similar 15.3% Other 0.3% Human Capital We have no employees.
Such adverse economic and geopolitical conditions may be due to, among other issues, inflation and interest rates, volatility in the public equity and debt markets, and international economic and other conditions, including pandemics, geopolitical instability, tariffs, sanctions and other conditions beyond our control.
REMOVED
As of February 21, 2025, there were 14,814,075 shares of Common Stock of registrant outstanding.
As of December 31, 2024, our portfolio was comprised of 39 properties, net-leased to 43 corporate tenants operating in a variety of industries, generating annualized base rent ( ABR ) of approximately $88.1 million.
As of December 31, 2024, almost all of our properties were located in the United States, except for two properties located in Europe.
Following the repayment of the NLOP Mortgage Loan during 2024 (as discussed below), only the NLOP Mezzanine Loan is collateralized by the assignment of such properties.
We intend to pay down the NLOP Mezzanine Loan with proceeds from dispositions and cash flow from rent on our properties, in accordance with the terms of the NLOP Mezzanine Loan.
At December 31, 2024, we had $61.1 million total principal outstanding on the NLOP Mezzanine Loan.
As of December 31, 2024, six additional properties were encumbered by outstanding individual mortgages totaling approximately $111.3 million.
Our Portfolio At December 31, 2024, our portfolio had the following characteristics: Number of properties full or partial ownership interests in 39 net-leased properties; Total net-leased square footage approximately 5.6 million; and Occupancy rate approximately 85.2%.
Tenant/Lease Information At December 31, 2024, our tenants/leases had the following characteristics: Number of tenants 43; Investment grade tenants as a percentage of total ABR 25%; Implied investment grade tenants as a percentage of total ABR 20%; Weighted-average lease term ( WALT ) 4.3 years; 94.8% of our leases as a percentage of total ABR provide rent adjustments as follows: Fixed 70.3% Consumer Price Index ( CPI ) and similar 24.3% Other 0.2% Human Capital We have no employees.
Such adverse economic and geopolitical conditions may be due to, among other issues, inflation and interest rates, volatility in the public equity and debt markets, and international economic and other conditions, including pandemics, geopolitical instability (such as the war in Ukraine, rising tensions between China and Taiwan and the conflict in the Middle East), tariffs, sanctions and other conditions beyond our control.
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