Net Lease Office Properties Sells Three Office Assets for $34.4 Million, Declares $1.50 Special Distribution

Net Lease Office Properties (NYSE: NLOP) announced Nov. 4 that it sold three office properties for gross proceeds of approximately $34.4 million and that its Board of Trustees declared a special cash distribution of $1.50 per common share, totaling approximately $22 million.

The sold properties, located in Plano, Texas; King of Prussia, Pennsylvania; and Quincy, Massachusetts, total 386,771 square feet. Two of the three were vacant at the time of sale.

Special Distribution Details

The special distribution is payable Dec. 1, 2026, to shareholders of record as of the close of business on Nov. 16, 2026. Including this payment, Net Lease Office Properties has declared distributions totaling $24.19 per share since it was spun off in November 2023.

Net Lease Office Properties Sells Three Office Assets

The three sales produced gross proceeds of $34.429 million, or roughly $89.02 per square foot on a weighted-average basis. Annualized base rent (ABR) remaining at the time of sale totaled $1.85 million, all from the Quincy property.

• Plano, Texas (former Intuit property): The 166,033-square-foot building at 5601 Headquarters Drive sold for $20 million, or about $120.46 per square foot. It was vacant at sale. The company said all gross proceeds were used to repay a non-recourse mortgage loan in connection with the disposition.
• King of Prussia, Pennsylvania (former Arcfield property): The 88,578-square-foot building sold for $7.85 million, or about $88.62 per square foot. It was vacant at sale.
• Quincy, Massachusetts (Arbella Insurance property): The 132,160-square-foot building, occupied by Arbella Insurance, a property and casualty insurer, sold for $6.579 million, or about $49.77 per square foot. ABR at the time of sale was $1.85 million.

Plano Sale and Mortgage Repayment

The Plano sale addressed a $21.9 million non-recourse mortgage secured by the former Intuit property. The loan matured July 6, 2026, carried a 7% base rate, and accrued 5% default interest after maturity, with the lender holding foreclosure rights. Because the $20 million in sale proceeds went to repaying the loan, they did not represent distributable equity proceeds from the asset.

Portfolio Context for Net Lease Office Properties

Net Lease Office Properties is a publicly traded real estate investment trust that owns single-tenant office properties in the U.S. net leased to corporate tenants across a variety of industries. As of Sept. 30, 2026, the company reported 16 properties, approximately $21.915 million of annualized base rent, 68.9% occupancy and a weighted-average lease term of 3.8 years.

The latest sales follow a series of dispositions this year. The company reported $154.4 million of proceeds from eight property sales during the first nine months of 2026 and repaid its final non-recourse mortgage in connection with the Intuit asset sale. Earlier 2026 announcements paired property sales with special distributions, including a $100 million distribution tied to three sales and a $49 million distribution tied to two sales.

Market Implications

The vacant Plano and King of Prussia buildings accounted for 254,611 square feet, about 65.8% of the area sold, and $27.85 million of the proceeds. The Quincy building, the only asset producing rent at closing, accounted for about 17.1% of the aggregate proceeds.

Sale prices ranged from about $49.77 per square foot for the occupied Quincy property to $120.46 per square foot for the vacant Plano building. At 68.9% occupancy and a 3.8-year weighted-average lease term, the company's remaining portfolio carries exposure to leasing and rollover risk, and the company continues to sell assets and distribute proceeds to shareholders.

Sources

• Net Lease Office Properties press release via PR Newswire: https://www.prnewswire.com/news-releases/net-lease-office-properties-declares-special-cash-distribution-of-1-50-per-share-302929713.html