Catching up on NLOP 2026 Q1 earnings. Stock traded down materially but mostly looks due to lack of good news as opposed to bad news.

Very limited activity during the quarter with no new dispositions or leasing activity since the previous update and distribution announcement (paid in April).

A couple interesting tidbits from the supplemental and 10-Q:

• They received a $1m lease termination payment in Q1. I think this was for a property they sold - so doesn’t affect the value of the remaining assets (as the remaining lease term didn’t materially shift on any of the remaining assets.

• It looks like they had their Intuit property under contract to the tenant at a price that would have reflected a small premium to their loan balance but that deal fell apart “as a result of unresolved maintenance work” - hard to judge how real that transaction was and whether it was an unforced error but the property is now for sale and Intuit vacate in June.

• They are lowering the cap on reimbursable administrative expenses to WPC under the management contract from $4m p.a. to $2m p.a., which is positive.

My valuation estimate is up marginally - primarily due to retained AFFO and lower than expected transaction costs - but value of the remaining assets remains the same. Omnicom and Coralville, IA are still the remaining needle-movers, representing ~40% of the remaining value.

Discount to NAV has widened out somewhat from ~10% to ~15%. The current portfolio cash NOI (following the Arcfield & Intuit moveouts) continues to cover G&A and CAPEX so not yet a shrinking ice cube.

Thinking about the end-game, I have assumed the WPC asset management termination fee. This implies the remaining entity is sold rather than dissolved after the assets are sold and proceeds distributed. However, I also haven’t explicitly assumed a figure for wind-down costs, which would offset the AM termination fee (and then some). My current rule of thumb for costs around a REIT liquidation and wind-down is on the order of $10m - $20m excluding management bonuses and severance. This is loosely based on estimate for Equity Commonwealth a few years ago and ongoing processes at $AIV and $ELME. Net of the WPC termination fee, this would would offset a good chunk of the current discount to NAV to the tune of $0.35 - $1.00 per share