Net Lease Office Properties (NLOP) & Its Rivals Critical Contrast

Net Lease Office Properties (NYSE:NLOP) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it weigh in compared to its competitors? We will compare Net Lease Office Properties to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 3.7%. Net Lease Office Properties pays out -11.1% of its earnings in the form of a dividend. As a group, “Diversified REITs” companies pay a dividend yield of 7.0% and pay out -813.7% of their earnings in the form of a dividend. Net Lease Office Properties lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Net Lease Office Properties and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	-59.82%	-16.92%	-12.66%
Net Lease Office Properties Competitors	-34.88%	-4.42%	0.57%

Earnings & Valuation

This table compares Net Lease Office Properties and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Net Lease Office Properties	$75.91 million	-$145.26 million	-3.01
Net Lease Office Properties Competitors	$197.28 million	$18.17 million	7.27

Net Lease Office Properties’ competitors have higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Net Lease Office Properties has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Net Lease Office Properties’ competitors have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Net Lease Office Properties and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	1	0	0	0	1.00
Net Lease Office Properties Competitors	493	2469	1965	23	2.31

As a group, “Diversified REITs” companies have a potential upside of 11.87%. Given Net Lease Office Properties’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Net Lease Office Properties has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

58.3% of Net Lease Office Properties shares are held by institutional investors. Comparatively, 39.1% of shares of all “Diversified REITs” companies are held by institutional investors. 0.7% of Net Lease Office Properties shares are held by insiders. Comparatively, 11.9% of shares of all “Diversified REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Net Lease Office Properties competitors beat Net Lease Office Properties on 14 of the 15 factors compared.

Net Lease Office Properties Company Profile

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.