Net Lease Office Properties

Previous wording

During the six months ended June 30, 2026 and through the date of this Report, we completed the following (as further described in the consolidated financial statements):

Current wording

During the nine months ended September 30, 2026 and through the date of this Report, we completed the following (as further described in the consolidated financial statements):

Previous wording

•During the six months ended June 30, 2026, we sold six properties for total proceeds, net of selling costs, of $128.0 million (Note 12). These proceeds exclude a $20.0 million deposit received during the fourth of quarter of 2025 related to the disposition of a property in January 2026 located in Houston, Texas, and leased to KBR, our largest tenant by ABR as of December 31, 2025.

Current wording

•During the nine months ended September 30, 2026, we sold eight properties for total proceeds, net of selling costs, of $154.4 million (Note 12). These proceeds exclude a $20.0 million deposit received during the fourth of quarter of 2025 related to the disposition of a property in January 2026 located in Houston, Texas, and leased to KBR, our largest tenant by ABR as of December 31, 2025.

Previous wording

At both June 30, 2026 and December 31, 2025, our non-recourse mortgage is a mortgage note payable (which is collateralized by the assignment of a real estate property that was leased to Intuit as of June 30, 2026 but is vacant as of the date of this Report), with a fixed interest rate of 7.0% and maturity date of July 2026. This non-recourse mortgage loan was not repaid on its maturity date of July 6, 2026, and the lender has the right to commence foreclosure proceedings. As of the date of this Report, the lender has not exercised such a right. This loan has accrued default interest at an annual rate of 5.0% since the original maturity date, in addition to the base interest rate of 7.0% (Note 8, Note 13).

Current wording

•On August 31, 2026, we repaid our final non-recourse mortgage loan, which had $21.9 million of outstanding principal as of December 31, 2025, and which (i) had a fixed base interest rate of 7.0% and (ii) accrued default interest at an annual rate of 5.0% since the original maturity date of July 6, 2026 (Note 8).

Previous wording

(b)In July 2026, we entered into lease amendments with this tenant to (i) extend the leases at four of the five properties it occupies and (ii) terminate the lease early at the fifth property, as described in Note 13.

Current wording

•In July 2026, we entered into lease amendments with Grande Communications for four of the five properties it occupies in Texas to (i) extend the lease expiration from August 31, 2028 to June 30, 2041 and (ii) reduce ABR from $2.2 million to $1.8 million (commencing July 1, 2026). In addition, we entered into a lease termination for the fifth property occupied by Grande Communications to terminate the lease effective January 31, 2027 (ABR is $0.2 million and the previous lease expiration was August 31, 2028).

Previous wording

(a)Amount for the six months ended June 30, 2026 includes $8.0 million of proceeds from the sale of a net investment in sales-type lease (Note 5). Such proceeds are included within Net cash provided by operating activities in accordance with ASC 842, Leases.

Current wording

(a)Amount for the nine months ended September 30, 2026 includes $8.0 million of proceeds from the sale of a net investment in sales-type lease (Note 5). Such proceeds are included within Net cash provided by operating activities in accordance with ASC 842, Leases.

Previous wording

Since January 1, 2025 and through June 30, 2026, we have disposed of 21 properties for total proceeds, net of selling costs, of $340.3 million, which has resulted in significant declines in our revenues, expenses, net cash provided by operating activities, FFO, and AFFO.

Current wording

Since January 1, 2025 and through September 30, 2026, we have disposed of 23 properties for total proceeds, net of selling costs, of $366.7 million, which has resulted in significant declines in our revenues, expenses, net cash provided by operating activities, FFO, and AFFO.

Previous wording

Total revenues decreased for the three and six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity.

Current wording

Total revenues decreased for the three and nine months ended September 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity and lower other lease-related income (Note 4).

Previous wording

Net loss attributable to NLOP decreased for the three months ended June 30, 2026 as compared to the same period in 2025, primarily due to lower impairment charges and lower interest expense, partially offset by the impact of disposition activity. See Note 7 for information on impairment charges recorded during the reporting period.

Current wording

Net loss attributable to NLOP decreased for the three months ended September 30, 2026 as compared to the same period in 2025, primarily due to lower impairment charges and higher gain on sale of real estate, partially offset by the impact of disposition activity. See Note 7 for information on impairment charges recorded during the reporting period.

Previous wording

We recognized net income attributable to NLOP for the six months ended June 30, 2026 as compared to net loss attributable to NLOP for the six months ended June 30, 2025, primarily due to lower impairment charges, higher gain on sale of real estate, and lower interest expense, partially offset by the impact of disposition activity and a non-cash allowance for credit loss recorded on a net investment in a sales-type lease during the six months ended June 30, 2026 (Note 5).

Current wording

We recognized net income attributable to NLOP for the nine months ended September 30, 2026 as compared to net loss attributable to NLOP for the nine months ended September 30, 2025, primarily due to lower impairment charges, higher gain on sale of real estate, and lower interest expense, partially offset by the impact of disposition activity and a non-cash allowance for credit loss recorded on a net investment in a sales-type lease during the nine months ended September 30, 2026 (Note 5).

Previous wording

FFO decreased for the three and six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity and a non-cash allowance for credit loss recorded on a net investment in a sales-type lease during the six months ended June 30, 2026 (Note 5), partially offset by lower interest expense.

Current wording

FFO decreased for the three and nine months ended September 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity and a non-cash allowance for credit loss recorded on a net investment in a sales-type lease during the nine months ended September 30, 2026 (Note 5), partially offset by lower interest expense.

Previous wording

AFFO decreased for the three and six months ended June 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity, partially offset by lower interest expense.

Current wording

AFFO decreased for the three and nine months ended September 30, 2026 as compared to the same periods in 2025, primarily due to the impact of disposition activity, partially offset by lower interest expense.

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, lease revenues decreased by $21.2 million and $41.2 million, respectively, primarily due to disposition activity.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, lease revenues decreased by $18.2 million and $59.4 million, respectively, primarily due to the impact of disposition activity.

Previous wording

For the six months ended June 30, 2026 as compared to the same period in 2025, income from direct finance leases increased by $0.6 million, primarily due to the reclassification of two net-lease assets to net investments in sales-type leases during the fourth quarter of 2025. During the first quarter of 2026, one of these assets was sold and one was reclassified as a net-lease property (Note 5).

Current wording

For the nine months ended September 30, 2026 as compared to the same period in 2025, income from direct finance leases increased by $0.6 million, primarily due to the reclassification of two net-lease assets to net investments in sales-type leases during the fourth quarter of 2025. During the first quarter of 2026, one of these assets was sold and one was reclassified as a net-lease property (Note 5).

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, depreciation and amortization expense decreased by $6.9 million and $14.4 million, respectively, primarily due to the impact of disposition activity.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, depreciation and amortization expense decreased by $6.9 million and $21.3 million, respectively, primarily due to the impact of disposition activity.

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, general and administrative expenses decreased by $0.3 million and $0.1 million, respectively, primarily due to lower professional fees.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, general and administrative expenses decreased by $0.6 million and $0.7 million, respectively, primarily due to the lower administrative reimbursement described above.

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, property expenses, excluding reimbursable tenant costs, decreased by $1.8 million and $3.5 million, respectively, primarily due to the impact of disposition activity.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, property expenses, excluding reimbursable tenant costs, decreased by $1.1 million and $4.7 million, respectively, primarily due to the impact of disposition activity.

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, reimbursable tenant costs decreased by $6.3 million and $11.9 million, respectively, primarily due to the impact of disposition activity.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, reimbursable tenant costs decreased by $4.5 million and $16.3 million, respectively, primarily due to the impact of disposition activity.

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, asset management fees decreased by $0.8 million and $1.6 million, respectively, due to the impact of disposition activity.

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, asset management fees decreased by $0.7 million and $2.3 million, respectively, due to the impact of disposition activity.

Previous wording

Gain (loss) gain on sale of real estate, net, consists of gain or loss on (i) the sale of properties that were disposed of, net of taxes, (ii) properties included in assets held for sale and subject to a revised estimated purchase price, or (iii) the reclassification of foreign currency translation adjustments from accumulated other comprehensive income to net loss since we exited all investments denominated in a currency (which totaled losses of $1.1 million for the six months ended June 30, 2025), as more fully described in Note 4 and Note 12.

Current wording

Gain (loss) gain on sale of real estate, net, consists of gain or loss on (i) the sale of properties that were disposed of, net of taxes, (ii) properties included in assets held for sale and subject to a revised estimated purchase price, (iii) funds from a tenant improvement allowance held in escrow by us, owed to a tenant related to a property that we sold, or (iv) the reclassification of foreign currency translation adjustments from accumulated other comprehensive income to net loss since we exited all investments denominated in a currency (which totaled losses of $40.5 million and $41.6 million for the three and nine months ended September 30, 2025, respectively), as more fully described in Note 4 and Note 12.

Previous wording

Interest expense comprises interest on our non-recourse mortgages and our NLOP Mezzanine Loan. Our NLOP Mezzanine Loan was fully repaid in April 2025 (Note 8).

Current wording

Interest expense comprises interest on our non-recourse mortgages and our NLOP Mezzanine Loan. Our NLOP Mezzanine Loan was fully repaid in April 2025 and our final non-recourse mortgage loan was repaid in August 2026 (Note 8).

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, interest expense decreased by $4.0 million and $9.4 million, respectively, primarily due to repayments of our debt since January 1, 2025 (Note 8).

Current wording

For the three and nine months ended September 30, 2026 as compared to the same periods in 2025, interest expense decreased by $1.2 million and $10.6 million, respectively, primarily due to repayments of our debt since January 1, 2025 (Note 8).

Previous wording

For the six months ended June 30, 2026, other gains and (losses) of $10.0 million primarily comprised (i) a non-cash allowance for credit loss on a sales-type lease of $(11.0) million (Note 5) and (ii) interest income on our cash deposits of $1.0 million.

Current wording

For the nine months ended September 30, 2026, other gains and (losses) of $(10.3) million primarily comprised (i) a non-cash allowance for credit loss on a sales-type lease of $(11.0) million (Note 5), (ii) loss on extinguishment of debt of $(0.5) million related to the repayment of our final non-recourse mortgage loan in August 2026 (Note 8), and (ii) interest income on our cash deposits of $1.2 million.

Previous wording

For the three months ended June 30, 2025, other gains and (losses) of $0.7 million primarily comprised (i) interest income on our cash deposits of $0.4 million, (ii) escrow refund related to facility improvements of $0.4 million, (iii) loss on extinguishment of debt of ($0.2) million related to the full repayment of the NLOP Mezzanine Loan in April 2025 (Note 8), and (iv) net realized and unrealized gains on foreign currency exchange rate movements of $0.1 million.

Current wording

For the nine months ended September 30, 2025, other gains and (losses) of $2.1 million primarily comprised (i) interest income on our cash deposits of $1.4 million, (ii) a gain of $0.4 million related to a forfeited deposit on a potential disposition, (iii) escrow refund related to facility improvements of $0.4 million, and (iv) loss on extinguishment of debt of $(0.2) million primarily related to the full repayment of the NLOP Mezzanine Loan in April 2025 (Note 8).

Previous wording

For the three and six months ended June 30, 2026 as compared to the same periods in 2025, provision for income taxes decreased by less than $0.1 million and $0.1 million, respectively, primarily due to the disposition of our remaining international properties during 2025.

Current wording

For the nine months ended September 30, 2026 as compared to the same period in 2025, provision for income taxes decreased by $0.1 million, primarily due to the disposition of our remaining international properties during 2025.

Previous wording

We use the cash flow generated from our investments primarily to meet our operating expenses, pay distributions to shareholders, make capital expenditures as necessary, and pay debt service. Our cash flows fluctuate periodically due to a number of factors, which may include, among other things: the timing of capital expenditures and sales of real estate; the timing of the repayment of debt and receipt of lease revenues; the timing and amount of other lease-related payments; and the timing of advisory fees and reimbursements paid to our Advisor. Despite these fluctuations, we believe that we will generate sufficient cash from operations to meet our normal recurring short-term and long-term liquidity needs. We may also use existing cash resources and proceeds from dispositions of properties in order to meet these needs. We assess our ability to access capital on an ongoing basis. The following table summarizes the changes in cash flows for the periods presented (in thousands):

Current wording

We use the cash flow generated from our investments primarily to meet our operating expenses, pay distributions to shareholders, and make capital expenditures as necessary. Our cash flows fluctuate periodically due to a number of factors, which may include, among other things: the timing of capital expenditures and sales of real estate; the timing of the receipt of lease revenues; the timing and amount of other lease-related payments; and the timing of advisory fees and reimbursements paid to our Advisor. Despite these fluctuations, we believe that we will generate sufficient cash from operations to meet our normal recurring short-term and long-term liquidity needs. We may also use existing cash resources and proceeds from dispositions of properties in order to meet these needs. We assess our ability to access capital on an ongoing basis. The following table summarizes the changes in cash flows for the periods presented (in thousands):

Previous wording

Net Cash Provided by Operating Activities— Net cash provided by operating activities decreased by $15.9 million during the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to the impact of disposition activity, partially offset by $8.0 million of proceeds received from the sale of a net investment in sales-type lease during the current year period.

Current wording

Net Cash Provided by Operating Activities— Net cash provided by operating activities decreased by $31.5 million during the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to the impact of disposition activity, partially offset by $8.0 million of proceeds received from the sale of a net investment in sales-type lease during the current year period.

Previous wording

Net Cash Provided by Investing Activities— Net cash provided by investing activities increased by $96.6 million during the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to higher proceeds from dispositions during the current year period.

Current wording

Net Cash Provided by Investing Activities— Net cash provided by investing activities increased by $83.6 million during the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to higher proceeds from dispositions during the current year period.

Previous wording

Net Cash Used in Financing Activities— Net cash used in financing activities increased by $163.0 million during the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to $224.4 million of distributions paid during the current year period, partially offset by lower debt payments (following the full repayment of the NLOP Mezzanine Loan during 2025 (Note 8)).

Current wording

Net Cash Used in Financing Activities— Net cash used in financing activities increased by $114.6 million during the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to $224.4 million of distributions paid during the current year period, partially offset by lower debt payments (following (i) the full repayment of the NLOP Mezzanine Loan during 2025 and (ii) the repayment of our final non-recourse mortgage loan during 2026 (Note 8)).

Previous wording

•cash and cash equivalents totaling $23.7 million; and

Current wording

•cash and cash equivalents totaling $30.6 million; and

Previous wording

•unleveraged properties that had an aggregate asset carrying value of approximately $151.4 million at June 30, 2026, although there can be no assurance that we would be able to sell or obtain financing for these properties.

Current wording

•unleveraged properties that had an aggregate asset carrying value of approximately $139.5 million at September 30, 2026, although there can be no assurance that we would be able to sell or obtain financing for these properties.

Previous wording

We expect to fund these cash requirements through cash received from dispositions of properties and cash generated from operations.

Current wording

During the next 12 months following September 30, 2026 and thereafter, we expect that our significant cash requirements will comprise normal recurring operating expenses and distributions to shareholders. We expect to fund these cash requirements through cash received from dispositions of properties and cash generated from operations.

Previous wording

(a)Amounts for the three and six months ended June 30, 2025 include an impairment charge of $81.6 million recognized on the KBR property in Houston, Texas, which was sold in January 2026 (Note 7).

Current wording

(a)Amount for the nine months ended September 30, 2025 includes an impairment charge of $81.6 million recognized on the KBR property in Houston, Texas, which was sold in January 2026 (Note 7).

Previous wording

(b)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

Current wording

(c)Adjustments disclosed elsewhere in this reconciliation are on a consolidated basis. This adjustment reflects our FFO or AFFO on a pro rata basis.

Previous wording

(c)Amount for the six months ended June 30, 2026 includes a non-cash allowance for credit loss recorded on a net investment in a sales-type lease of $11.0 million (Note 5). These amounts also include gains and losses on extinguishment of debt and foreign currency transactions.

Current wording

(d)Amount for the nine months ended September 30, 2026 includes a non-cash allowance for credit loss recorded on a net investment in a sales-type lease of $11.0 million (Note 5). These amounts also include gains and losses on extinguishment of debt and foreign currency transactions.