Third Quarter 2024 Supplemental Report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 6, 2024

Net Lease Office Properties

(Exact Name of Registrant as Specified in its Charter)

Registrant's telephone number, including area code: (844)656-7348

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
• Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
• Pre-commencementcommunications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
• Pre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☑

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

On November 6, 2024, Net Lease Office Properties (the "Company") made available certain unaudited supplemental financial information at September 30, 2024. A copy of this supplemental information is attached as Exhibit 99.1.

The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

99.1Supplemental financial information of the Company at September 30, 2024.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Net Lease Office Properties

Exhibit 99.1

Net Lease Office Properties

Supplemental Financial Information

Third Quarter 2024

Terms and Definitions

As used in this supplemental package, the terms "Net Lease Office Properties," "NLOP," "we," "us" and "our" include Net Lease Office Properties, its consolidated subsidiaries and its predecessors, unless otherwise indicated. Other terms and definitions are as follows:

Important Note Regarding Non-GAAP Financial Measures

This supplemental package includes certain "non-GAAP" supplemental measures that are not defined by generally accepted accounting principles ("GAAP"), including funds from operations ("FFO"); adjusted funds from operations ("AFFO"); pro rata cash net operating income ("pro rata cash NOI"); and normalized pro rata cash NOI. FFO is a non-GAAP measure defined by NAREIT. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures are provided within this supplemental package. In addition, refer to the Disclosures RegardingNon-GAAPand Other Metricssection in the Appendix for a description of these non-GAAP financial measures and other metrics.

Amounts may not sum to totals due to rounding.

Net Lease Office Properties

Supplemental Information - Third Quarter 2024

Table of Contents

Net Lease Office Properties

Third Quarter 2024

Components of Net Asset Value

In thousands.

________

1. Normalized pro rata cash NOI is a non-GAAP measure. See the Disclosures RegardingNon-GAAPand Other Metricssection in the Appendix for a description of our non-GAAP measures and for details on how they are calculated.
2. Presented on a pro rata basis. See theDisclosures RegardingNon-GAAPand Other Metricssection in the Appendix for a description of pro rata.
3. Represents the value of real estate not appropriately captured in normalized pro rata cash NOI, such as vacant assets.
4. Comprised of approximately $48.1 million related to certain reserve requirements for debt service, capital improvements, and real estate taxes pursuant to the NLOP Mortgage Loan and NLOP Mezzanine Loan. Approximately $1.3 million is related to certain reserve requirements for other loan agreements.
5. Excludes unamortized discount, net totaling $0.9 million and unamortized deferred financing costs totaling $0.4 million as of September 30, 2024.
6. Excludes unamortized discount, net totaling $2.7 million and unamortized deferred financing costs totaling $1.2 million as of September 30, 2024.
7. Excludes unamortized premium, net totaling $0.2 million as of September 30, 2024.

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Net Lease Office Properties

Third Quarter 2024

Consolidated Statement of Operations

In thousands, except share and per share amounts.

________

1. Includes $1.0 million of administrative reimbursements to our Advisor.
2. Amount is comprised of fees paid to Advisor for strategic management services, including asset management, property disposition support, and various related services.
3. Includes $4.8 million of non-cash amortization of deferred financing costs.

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Net Lease Office Properties

Third Quarter 2024

FFO and AFFO, Consolidated

In thousands, except share and per share amounts.

________

1. Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.
2. FFO and AFFO are non-GAAP measures. See the Disclosures RegardingNon-GAAPand Other Metricssection in the Appendix for a description of our non-GAAP measures.

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