Net Lease Office Properties (NYSE:NLOP) filed its Form 10-Q for the quarterly period ended September 30, 2026, with the SEC on November 4, 2026, reporting total assets of $180.7 million, down sharply from $453.4 million at December 31, 2025.

Key Highlights

  • Total assets: $180,673 thousand at September 30, 2026, compared to $453,371 thousand at December 31, 2025.
  • Net investments in real estate: $139,500 thousand at quarter-end, down from $309,940 thousand at year-end 2025.
  • Lease revenues: $5,902 thousand for the three months ended September 30, 2026, versus $24,099 thousand in the same period of 2025.
  • Impairment charges: $6,468 thousand recorded for the three months ended September 30, 2026; $13,561 thousand for the nine months ended September 30, 2026.
  • Total shareholders' equity: $163,184 thousand at September 30, 2026, down from $293,911 thousand at December 31, 2025.
  • Shares outstanding: 14,814,075 common shares of beneficial interest as of October 30, 2026.
  • Cash and cash equivalents: $30,635 thousand at September 30, 2026, compared to $119,621 thousand at December 31, 2025.

NLOP Reports Significant Balance Sheet Contraction Through Third Quarter 2026

According to the filing, Net Lease Office Properties reported total assets of $180,673 thousand as of September 30, 2026, a reduction from $453,371 thousand recorded at December 31, 2025. The company disclosed that net investments in real estate declined to $139,500 thousand from $309,940 thousand over the same period, reflecting property dispositions and impairment charges. Assets held for sale, net, stood at $5,717 thousand at quarter-end, compared to $96,269 thousand at December 31, 2025.

The registrant reported lease revenues of $5,902 thousand for the three months ended September 30, 2026, compared to $29,784 thousand in total revenues for the same quarter of 2025. For the nine months ended September 30, 2026, total revenues were $21,285 thousand versus $88,171 thousand in the prior-year period. The company disclosed impairment charges on real estate of $6,468 thousand for the third quarter of 2026, bringing the nine-month total to $13,561 thousand, compared to $133,629 thousand for the nine months ended September 30, 2025.

On the liabilities side, the filing disclosed that the non-recourse mortgage balance was zero at September 30, 2026, down from $21,900 thousand at December 31, 2025. Total liabilities fell to $13,663 thousand from $155,546 thousand, with the reduction partly reflecting a $75,552 thousand dividends payable balance that appeared at year-end 2025 but was absent at quarter-end 2026. Distributions in excess of accumulated earnings widened to $692,644 thousand from $561,917 thousand. The company is classified as an accelerated filer and an emerging growth company, and has elected not to use the extended transition period for new accounting standards, according to the filing.

What Was Disclosed

Net Lease Office Properties filed its unaudited quarterly report covering the three and nine months ended September 30, 2026, disclosing a material contraction in total assets, real estate investments, revenues, and cash, alongside ongoing impairment charges and a reduction in total liabilities.