Net Lease Office Properties Announces Tax Treatment of 2025 Distributions

Rhea-AI Summary

Net Lease Office Properties (NYSE: NLOP) announced the income tax treatment of its 2025 distributions (CUSIP 64110Y108). For 2025, two distributions were paid: $3.10 per share on 9/3/2025 and $4.10 per share on 12/19/2025, each reported as nondividend distributions with $0.00 ordinary and capital gain dividends.

Shareholders should consult personal tax advisors about individual tax treatment; qualified dividends, Section 1250, Section 897, Section 199A, and Section 1061 amounts were all reported as $0.00 for these payments.

Positive

• Distribution amounts clearly disclosed: $3.10 (9/3/2025) and $4.10 (12/19/2025)
• Both distributions reported as nondividend distributions, with ordinary and capital gain boxes at $0.00

Negative

• No ordinary dividends or capital gain distributions reported for 2025 payments ($0.00 in boxes 1a and 2a)
• Qualified dividends and other subcategory tax items reported as $0.00, limiting dividend-tax credits for 2025

News Market Reaction – NLOP

+1.24%

+1.24% Session close to close

In the Feb 6 session, NLOP gained 1.24%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement explains how Net Lease Office Properties’ 2025 distributions are classified for ta...

Analysis

This announcement explains how Net Lease Office Properties’ 2025 distributions are classified for tax reporting, detailing the split among ordinary income, nondividend distributions, and other categories on Form 1099-DIV. It follows multiple special cash distributions tied to property sales over the past year. Investors monitoring the story may focus on how future filings and updates describe portfolio sales, distribution policy, and ongoing repositioning of the office REIT portfolio.

Key Figures

Distribution per share: $3.10 Distribution per share: $4.10

2 metrics

Distribution per share $3.10 Paid 9/3/2025 to shareholders of record on 8/18/2025

Distribution per share $4.10 Paid 12/19/2025 to shareholders of record on 12/4/2025

Historical Context

4 past events · Latest: Jan 20 (Positive)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Jan 20	Special distribution	Positive	-4.7%	Announced $6.75 special cash distribution and three office property sales.
Dec 22	Special distribution	Positive	-2.5%	Declared $5.10 special cash distribution and sale of six office properties.
Nov 24	Special distribution	Positive	+0.2%	Announced $4.10 special cash distribution and Thermo Fisher property sale.
Aug 06	Special distribution	Positive	+1.1%	Declared $3.10 special cash distribution tied to portfolio repositioning.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent special cash distribution announcements were generally positive in tone but often saw flat to negative next-day price reactions.

Recent Company History

Over the past six months, Net Lease Office Properties has repeatedly announced special cash distributions tied to portfolio sales. Events on Aug 6, 2025, Nov 24, 2025, and Dec 22, 2025 detailed sizable per-share payouts and asset dispositions, followed by mixed price reactions, including declines of 4.69% and 2.47%. The latest Jan 20, 2026 update again combined a large special distribution with major asset sales. Today’s tax-treatment notice clarifies how 2025 distributions are classified without changing those underlying actions.

Key Terms

form 1099-div, qualified dividends, unrecaptured section 1250 gain, section 897 capital gain, +3 more

7 terms

form 1099-div financial

"announced the income tax treatment of distributions reported on Form 1099-DIV for 2025."

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

qualified dividends financial

"Qualified Dividends is a subset of, and included in, the Taxable Ordinary Dividends amount."

Dividends that meet tax rules allowing them to be taxed at the lower long-term capital gains rates instead of higher ordinary income rates. For investors, that means more of the payment stays in your pocket; it influences which dividend-paying stocks you buy and how long you hold them, similar to getting a discount for meeting a store’s membership conditions.

unrecaptured section 1250 gain financial

"Unrecaptured Section 1250 Gain is a subset of, and included in, the Taxable Capital Gain"

A portion of the taxable profit realized when selling depreciable real estate that represents previously claimed depreciation deductions and is taxed at a special, generally higher capital-gains-related rate (capped at 25% under U.S. tax rules). Think of it as paying back part of the tax benefit you took earlier; it matters to investors because it reduces the after-tax proceeds from a sale and can change the economics and timing of selling property or property-related investments.

section 897 capital gain financial

"Section 897 Capital Gain is a subset of, and included in, the Taxable Capital Gain"

A Section 897 capital gain is the profit a non-U.S. person realizes when selling an interest in U.S. real estate that U.S. tax law treats like U.S.-source income. Think of it as a home sale for a foreign seller: the U.S. requires tax be collected on the gain and may require the buyer to withhold part of the sale price, so investors need to plan for potential tax bills, withholding cash needs, and impacts on net proceeds and deal value.

section 199a dividends financial

"Section 199A Dividends is a subset of, and included in, the Taxable Ordinary Dividends amount."

Section 199A dividends are certain dividend payments from real estate investment trusts (REITs) and publicly traded partnerships that qualify for a special U.S. tax deduction allowing up to a 20% reduction of the income they create. For investors, that means these payouts are taxed differently than regular dividend income—they don’t get the lower capital gains rate but can lower taxable income through the deduction, similar to getting a partial tax rebate on that income.

section 1061 financial

"For the purposes of Section 1061 of the Internal Revenue Code, the "one-year amounts"

Section 1061 is a U.S. tax rule that changes how certain profit shares earned by investment managers—commonly called carried interest—are taxed: if the partnership interest is held less than three years, gains from that interest are treated like ordinary income rather than lower-taxed long-term capital gains. For investors this matters because it can reduce the after-tax returns of funds and influence manager behavior—think of it like a minimum holding period you must meet to qualify for a better tax rate.

applicable partnership interests financial

"generally applicable to direct and indirect holders of "applicable partnership interests"."

Applicable partnership interests are the specific ownership stakes in a partnership that are subject to a particular contract, transaction or regulatory rule; they represent the portions of profit, loss, cash flow and decision rights tied to those shares. Investors care because which interests are labeled “applicable” determines who receives distributions, bears liabilities and votes on key matters—like which slices of a pie are being sold or re‑allocated—so it directly affects value, control and expected returns.

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NEW YORK, Feb. 6, 2026 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) announced the income tax treatment of distributions reported on Form 1099-DIV for 2025. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Net Lease Office Properties distributions. 

CUSIP 64110Y108 

FORM 1099-DIV			Box 1a		Box 2a		Box 3		Box 1b		Box 2b		Box 2f		Box 5
Record  Date	Payment Date	Distribution Per Share	Ordinary Dividends		Capital Gain Distributions		Nondividend Distributions		Qualified Dividends(1)		Unrecaptured Section 1250 Gain(2)		Section 897 Capital Gain(3)		Section 199A Dividends(4)		Section 1061 One-Year Amounts Disclosure(5)		Section 1061 Three-Year Amounts Disclosure(5)
8/18/2025	9/3/2025	$3.1000000	$0.0000000		$0.0000000		$3.1000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000
12/4/2025	12/19/2025	$4.1000000	$0.0000000		$0.0000000		$4.1000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000		$0.0000000

1. Qualified Dividends is a subset of, and included in, the Taxable Ordinary Dividends amount.
2. Unrecaptured Section 1250 Gain is a subset of, and included in, the Taxable Capital Gain Distributions amount.
3. Section 897 Capital Gain is a subset of, and included in, the Taxable Capital Gain Distributions amount.
4. Section 199A Dividends is a subset of, and included in, the Taxable Ordinary Dividends amount.
5. For the purposes of Section 1061 of the Internal Revenue Code, the "one-year amounts disclosure" and "three-year amounts disclosure" related to the capital gain distributions reported in box 2a are generally applicable to direct and indirect holders of "applicable partnership interests".

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, primarily single-tenant office properties located in the U.S. and net leased to corporate tenants operating across a variety of industries.

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 amounts did NLOP distribute in 2025 and when were they paid?

NLOP paid $3.10 per share on 9/3/2025 and $4.10 per share on 12/19/2025. According to the company, those two payments are the reported 2025 distributions shown on Form 1099-DIV.

How were NLOP's 2025 distributions classified for tax purposes on Form 1099-DIV?

The 2025 distributions were reported as nondividend distributions with $0.00 ordinary and capital gain amounts. According to the company, boxes for qualified dividends and capital gains show zero.

Do NLOP's 2025 distributions include qualified dividends or capital gain distributions?

No, qualified dividends and capital gain distributions were reported as $0.00 for the 2025 payments. According to the company, the related subcategory fields on Form 1099-DIV are zero.

What should NLOP shareholders do about 2025 tax reporting for these distributions?

Shareholders should consult their personal tax advisors to determine tax treatment for these nondividend distributions. According to the company, individual circumstances determine the final tax impact.

What is the CUSIP for NLOP distributions and why does it matter for tax reporting?

The CUSIP for Net Lease Office Properties distributions is 64110Y108, used to identify securities on tax forms. According to the company, include the CUSIP when reconciling Form 1099-DIV entries.

Were any Section 199A or Section 1061 amounts reported for NLOP's 2025 distributions?

No, Section 199A dividends and Section 1061 one-year and three-year disclosures were reported as $0.00 for these distributions. According to the company, those boxes contain zero for 2025 payments.