1. NLOP sold five properties for $43.3 million in late 2024. 2. Sales helped repay J.P. Morgan's senior secured mortgage in full. 3. Total proceeds for 2024 office sales reached $364 million. 4. NLOP owns 39 properties, mainly in the U.S. and two in Europe. 5. Occupied sales achieved a 10.5% weighted-average cap rate in 2024.
The repayment of a major mortgage improves NLOP's financial health, similar to past debt reductions driving stock prices up.
The article highlights crucial financial maneuvers involving asset sales and mortgage repayment, directly related to NLOP's market perception.
The recent property sales impact immediate financial stability, likely influencing shares soon after.
NEW YORK, Jan. 10, 2025 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of the following five office properties in November and December for gross proceeds totaling $43.3 million.
| Primary Tenant | Primary Tenant Industry | Location | ABR (at Time of Sale)* ($000s) | Gross Sale Proceeds ($000s) | Square Feet | NLOP Collateral Pool |
|---|---|---|---|---|---|---|
| Caremark RX, L.L.C. | Health Care Services | Chandler, AZ | $1,645 | $15,000 | 183,000 | Included |
| Vacant (formerly BCBSM, Inc.) | N/A | Eagan, MN | $-- | $11,650 | 227,666 | Included |
| Charter Communications Operating, LLC | Cable & Satellite | Bridgeton, MO | $820 | $7,350 | 78,080 | Included |
| Merative L.P. | IT Consulting & Other Services | Hartland, WI | $669 | $6,750 | 81,082 | Cofinity, Inc./Aetna Life Insurance Co. |
| Cofinity, Inc./Aetna Life Insurance Co. | Multi-line Insurance | Southfield, MI | $1,833 | $2,500 | 94,453 | Included |
| Total | $4,967 | $43,250 | 664,281 | |||
* Pro forma for any agreed to and signed future rent restructurings.
Net proceeds after closing costs for the collateral pool assets were used to repay approximately $30 million on J.P. Morgan's senior secured mortgage and approximately $5 million on its mezzanine loan, in accordance with terms of those facilities. In conjunction with approximately $23 million of funds from other sources, this resulted in the full repayment of J.P. Morgan's senior secured mortgage and an outstanding balance of approximately $61 million on its mezzanine loan as of December 31, 2024.
Office property sales during the fourth quarter brought total gross proceeds from dispositions completed during 2024 to approximately $364 million, including occupied sales of $319 million at a weighted-average disposition cap rate of approximately 10.5%**.
As of December 31, 2024, NLOP owned 39 office properties, comprising 37 properties in the U.S. and two in Europe.
** Excludes two assets transferred to the mortgagee and the sale of one vacant asset.
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust that owns a portfolio of high-quality office properties primarily leased to corporate tenants on a single-tenant net lease basis. Tenants operate across a variety of industries and the vast majority of properties are located in the U.S., with two located in Europe.
Website: www.nloproperties.com
Institutional Investors: 1-212-492-1140 ir@nloproperties.com
Individual Investors: 1-844-NLO REIT (656-7348) info@nloproperties.com
Press Contact: Anna McGrath 1-212-492-1166
SOURCE Net Lease Office Properties