Net Lease Office Properties Announces Repayment of J.P. Morgan Mezzanine Loan

Rhea-AI Summary

Net Lease Office Properties (NYSE: NLOP) has announced the full repayment of its J.P. Morgan mezzanine loan, with an outstanding balance of approximately $36 million. The repayment was funded through asset sales proceeds and other sources, including loan reserves. This follows the December 2024 repayment of J.P. Morgan's senior secured mortgage, completing all outstanding debt obligations under the J.P. Morgan financing arrangements.

The company has also reported the sale of two office properties in March for gross proceeds of $9.8 million. These properties, located in Houston, TX and Krakow, Poland, were leased to Emerson Electric Co. and Nokia respectively. Following these transactions, NLOP's portfolio now consists of 37 office properties, with 36 in the U.S. and one in Europe.

NLOP's board will evaluate potential special distributions to shareholders from future sales proceeds, though timing and amounts remain uncertain.

Positive

• Full repayment of J.P. Morgan mezzanine loan ($36 million)
• Complete elimination of all J.P. Morgan debt obligations
• Successful sale of two properties generating $9.8 million in gross proceeds
• Potential special distributions to shareholders from future sales

Negative

• Reduction in property portfolio and rental income stream through asset sales
• Uncertainty regarding future shareholder distributions

News Market Reaction

+3.71%

1 alert

+3.71% News Effect

On the day this news was published, NLOP gained 3.71%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Two Office Properties Sold Totaling $10 Million

NEW YORK, April 23, 2025 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) today announced the repayment in full of the J.P. Morgan mezzanine loan and the sale of two office properties.

On April 18, NLOP repaid the outstanding balance on the J.P. Morgan mezzanine loan totaling approximately $36 million, using net proceeds after closing costs from asset sales and funds from other sources, including the application of loan reserves. Together with the repayment of J.P. Morgan's senior secured mortgage in December 2024, NLOP has now repaid all outstanding debt associated with the J.P. Morgan financing arrangements.

In accordance with its business plan, NLOP will evaluate making special distributions to its shareholders using excess proceeds from future sales or other sources of cash. Any distribution or policy around distributions will be authorized and determined by the NLOP Board of Directors, in its sole discretion, and there can be no assurance as to the manner, amount or timing in which future distributions may be made.

During March, two office properties were sold for gross proceeds totaling $9.8 million. The properties were located in Houston, TX and Krakow, Poland, and leased to Emerson Electric Co. and Nokia Corporation, respectively. Following the sales, NLOP owned 37 office properties, comprising 36 properties in the U.S. and one property 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 one property 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

How much debt did NLOP repay to J.P. Morgan in April 2025?

NLOP repaid approximately $36 million in mezzanine loan debt to J.P. Morgan on April 18, 2025.

What properties did NLOP sell in March 2025?

NLOP sold two office properties: one in Houston, TX leased to Emerson Electric Co. and another in Krakow, Poland leased to Nokia , for total gross proceeds of $9.8 million.

How many properties does NLOP currently own after the recent sales?

NLOP currently owns 37 office properties, consisting of 36 properties in the U.S. and one property in Europe.

Will NLOP shareholders receive special distributions from the property sales?

The NLOP Board of Directors will evaluate making special distributions from future sales proceeds, but there is no guarantee regarding the timing, manner, or amount of any distributions.