Net Lease Office Properties (NLOP)
Real Estate
A contrarian deep value asset story - NLOP is trading at a fraction of its book value as the company gets lumped into the negative investor sentiment towards office buildings. It was created and spun out of WP Carey to oversee the liquidation of 59 office properties, but the timing could not have been any worse. News headlines of commercial real estate being sold at materially less than the prior purchase are a regular occurrence. However, NLOP is not in a rush to liquidate its portfolio and nearly every property has a single tenant tied to a long-term lease agreement. Investors can enjoy a dividend of >5% while waiting for additional asset sales. TP $60 (130% upside).
Edition: 180
- 23 February, 2024