Net Lease Office Properties Announces Sales of Three Office Properties Totaling $132 Million

Rhea-AI Summary

Net Lease Office Properties (NYSE: NLOP) announced the sale of three office properties totaling $131.6 million, with proceeds used to repay loans and improve financial position. The company disposed of two properties with mortgage loans and currently owns 49 office properties in the U.S. and Europe.

Positive

• Proceeds from property sales used to repay loans and improve financial position

Negative

• Outstanding balances on senior secured mortgage and mezzanine loan increased to $199 million and $100 million, respectively

NEW YORK, May 2, 2024 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the sale of the following three office properties in March and April for gross proceeds totaling approximately $131.6 million.

Primary Tenant	Primary Tenant Industry	Location	ABR (at time of sale)	Gross Sale Proceeds	Square Feet	NLOP Collateral Pool
Total E&P Norge AS	Oil & Gas Exploration & Production	Stavanger, Norway	$5.2 million	$33.1 million	275,725
FedEx Corporation	Air Freight & Logistics	Collierville, TN	$5.5 million	$62.5 million	390,380	X
DMG MORI SEIKI U.S.A., INC.	Industrial Machinery	Hoffman Estates, IL	$2.5 million	$36.0 million	104,598	X
Total			$13.2 million	$131.6 million	770,703
X  Indicates asset was included in the NLOP Financing Arrangements collateral pool at the time of sale

Net proceeds after closing costs for the collateral pool assets, together with funds from other sources (including operating cash flow), were used to repay approximately $90 million on J.P. Morgan's senior secured mortgage and approximately $14 million on its mezzanine loan year to date through May 2, 2024, in accordance with terms of those facilities. This resulted in outstanding balances of approximately $199 million and $100 million, respectively, as of May 2, 2024.

Separately, in April, NLOP disposed of two office properties encumbered by individual non-recourse mortgage loans through transfers to the lender, one of which was leased to Exelon Generation Company, LLC and the other was formerly leased to AVT Technology Solutions LLC.

As of May 2, 2024, NLOP owned 49 office properties, comprising 46 properties in the U.S. and three in Europe.

Net Lease Office Properties

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 the balance located in Europe.

www.nloproperties.com

Institutional Investors:
1-212-492-1140
institutionalir@nloproperties.com

Individual Investors:
1-844-NLO REIT (656-7348)
ir@nloproperties.com

Press Contact:
Anna McGrath
1-212-492-1166

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SOURCE Net Lease Office Properties

FAQ

What did Net Lease Office Properties announce?

Net Lease Office Properties announced the sale of three office properties totaling $131.6 million.

How were the proceeds from the property sales utilized?

The proceeds were used to repay approximately $90 million on J.P. Morgan's senior secured mortgage and approximately $14 million on its mezzanine loan.

How many office properties does NLOP currently own?

As of May 2, 2024, NLOP owns 49 office properties, with 46 in the U.S. and three in Europe.