2023 Q4 Form 10-Q Financial Statement
#000162828023039494 Filed on November 17, 2023
Income Statement
| Concept | 2023 Q4 | 2023 Q3 | 2022 Q4 |
|---|---|---|---|
| Revenue | $46.39M | $43.11M | $42.60M |
| YoY Change | 8.91% | 6.97% | |
| Cost Of Revenue | $10.53M | $9.440M | $9.070M |
| YoY Change | 16.14% | 18.0% | |
| Gross Profit | $35.86M | $33.66M | $33.53M |
| YoY Change | 6.95% | 4.21% | |
| Gross Profit Margin | 77.29% | 78.08% | 78.71% |
| Selling, General & Admin | $3.576M | $3.440M | $3.130M |
| YoY Change | 14.25% | 3.3% | |
| % of Gross Profit | 9.97% | 10.22% | 9.33% |
| Research & Development | |||
| YoY Change | |||
| % of Gross Profit | |||
| Depreciation & Amortization | $26.50M | $18.30M | $18.26M |
| YoY Change | 45.1% | 8.28% | |
| % of Gross Profit | 73.89% | 54.37% | 54.46% |
| Operating Expenses | $30.91M | $22.57M | $22.86M |
| YoY Change | 35.22% | -0.97% | |
| Operating Profit | $4.948M | $11.09M | $10.67M |
| YoY Change | -53.63% | 16.61% | |
| Interest Expense | -$18.18M | -$8.050M | -$8.610M |
| YoY Change | 111.15% | 5.37% | |
| % of Operating Profit | -367.42% | -72.59% | -80.69% |
| Other Income/Expense, Net | $430.0K | -$30.00K | $10.00K |
| YoY Change | 4200.0% | ||
| Pretax Income | -$142.0M | $3.020M | $2.060M |
| YoY Change | -6993.64% | 182.24% | |
| Income Tax | $122.0K | $230.0K | $10.00K |
| % Of Pretax Income | 7.62% | 0.49% | |
| Net Earnings | -$142.1M | $2.760M | $2.050M |
| YoY Change | -7030.63% | 155.56% | |
| Net Earnings / Revenue | -306.24% | 6.4% | 4.81% |
| Basic Earnings Per Share | $0.19 | ||
| Diluted Earnings Per Share | -$9.69 | $0.19 | $0.14 |
| COMMON SHARES | |||
| Basic Shares Outstanding | 14.62M shares | 14.62M shares | |
| Diluted Shares Outstanding | 14.62M shares |
Balance Sheet
| Concept | 2023 Q4 | 2023 Q3 | 2022 Q4 |
|---|---|---|---|
| SHORT-TERM ASSETS | |||
| Cash & Short-Term Investments | $16.27M | $5.100M | |
| YoY Change | |||
| Cash & Equivalents | $16.27M | $1.00 | $1.00 |
| Short-Term Investments | |||
| Other Short-Term Assets | |||
| YoY Change | |||
| Inventory | |||
| Prepaid Expenses | |||
| Receivables | |||
| Other Receivables | |||
| Total Short-Term Assets | $16.27M | $5.100M | |
| YoY Change | |||
| LONG-TERM ASSETS | |||
| Property, Plant & Equipment | $1.172B | $1.285B | |
| YoY Change | |||
| Goodwill | $0.00 | $63.58M | |
| YoY Change | -100.0% | 22.37% | |
| Intangibles | |||
| YoY Change | |||
| Long-Term Investments | |||
| YoY Change | |||
| Other Assets | $51.56M | ||
| YoY Change | |||
| Total Long-Term Assets | $1.289B | -$5.100M | |
| YoY Change | |||
| TOTAL ASSETS | |||
| Total Short-Term Assets | $16.27M | $5.100M | |
| Total Long-Term Assets | $1.289B | -$5.100M | |
| Total Assets | $1.305B | $65.00 | $1.00 |
| YoY Change | 130508899900.0% | ||
| SHORT-TERM LIABILITIES | |||
| YoY Change | |||
| Accounts Payable | $59.53M | $47.30M | |
| YoY Change | |||
| Accrued Expenses | |||
| YoY Change | |||
| Deferred Revenue | |||
| YoY Change | |||
| Short-Term Debt | $0.00 | $0.00 | |
| YoY Change | |||
| Long-Term Debt Due | |||
| YoY Change | |||
| Total Short-Term Liabilities | $60.59M | $47.30M | |
| YoY Change | |||
| LONG-TERM LIABILITIES | |||
| Long-Term Debt | $542.0M | $261.0M | |
| YoY Change | |||
| Other Long-Term Liabilities | $10.64M | $12.20M | |
| YoY Change | |||
| Total Long-Term Liabilities | $552.6M | $273.2M | |
| YoY Change | |||
| TOTAL LIABILITIES | |||
| Total Short-Term Liabilities | $60.59M | $47.30M | |
| Total Long-Term Liabilities | $552.6M | $273.2M | |
| Total Liabilities | $623.7M | $335.4M | $352.7M |
| YoY Change | 76.83% | ||
| SHAREHOLDERS EQUITY | |||
| Retained Earnings | -$239.00 | $0.00 | |
| YoY Change | |||
| Common Stock | $15.00K | $1.00 | $1.00 |
| YoY Change | 1499900.0% | ||
| Preferred Stock | |||
| YoY Change | |||
| Treasury Stock (at cost) | |||
| YoY Change | |||
| Treasury Stock Shares | |||
| Shareholders Equity | $677.0M | $65.00 | $1.00 |
| YoY Change | |||
| Total Liabilities & Shareholders Equity | $1.305B | $1.419B | $1.462B |
| YoY Change | -10.74% |
Cashflow Statement
| Concept | 2023 Q4 | 2023 Q3 | 2022 Q4 |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | -$142.1M | $2.760M | $2.050M |
| YoY Change | -7030.63% | 155.56% | |
| Depreciation, Depletion And Amortization | $26.50M | $18.30M | $18.26M |
| YoY Change | 45.1% | 8.28% | |
| Cash From Operating Activities | $7.096M | $20.65M | $16.96M |
| YoY Change | -58.16% | -28.52% | |
| INVESTING ACTIVITIES | |||
| Capital Expenditures | $6.542M | $2.080M | $22.78M |
| YoY Change | -71.28% | 84.07% | |
| Acquisitions | |||
| YoY Change | |||
| Other Investing Activities | $38.86M | $0.00 | $20.97M |
| YoY Change | 85.29% | -100.0% | |
| Cash From Investing Activities | $32.31M | -$2.080M | -$1.810M |
| YoY Change | -1885.25% | -89.24% | |
| FINANCING ACTIVITIES | |||
| Cash Dividend Paid | $1.100M | ||
| YoY Change | |||
| Common Stock Issuance & Retirement, Net | |||
| YoY Change | |||
| Debt Paid & Issued, Net | |||
| YoY Change | |||
| Cash From Financing Activities | 22.24M | -18.57M | -16.98M |
| YoY Change | -230.99% | 227.51% | |
| NET CHANGE | |||
| Cash From Operating Activities | 7.096M | 20.65M | 16.96M |
| Cash From Investing Activities | 32.31M | -2.080M | -1.810M |
| Cash From Financing Activities | 22.24M | -18.57M | -16.98M |
| Net Change In Cash | 61.65M | 0.000 | -1.830M |
| YoY Change | -3468.91% | -100.0% | |
| FREE CASH FLOW | |||
| Cash From Operating Activities | $7.096M | $20.65M | $16.96M |
| Capital Expenditures | $6.542M | $2.080M | $22.78M |
| Free Cash Flow | $554.0K | $18.57M | -$5.820M |
| YoY Change | -109.52% | -33.11% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2023Q3 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
1 | usd |
| CY2022Q4 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
1 | usd |
| CY2023Q3 | us-gaap |
Other Assets
OtherAssets
|
64 | usd |
| CY2022Q4 | us-gaap |
Other Assets
OtherAssets
|
0 | usd |
| CY2023Q3 | us-gaap |
Assets
Assets
|
65 | usd |
| CY2022Q4 | us-gaap |
Assets
Assets
|
1 | usd |
| CY2023Q3 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2022Q4 | us-gaap |
Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
|
0.001 | |
| CY2022Q4 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
1000 | shares |
| CY2023Q3 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
1000 | shares |
| CY2022Q4 | us-gaap |
Common Stock Shares Issued
CommonStockSharesIssued
|
1000 | shares |
| CY2023Q3 | us-gaap |
Common Stock Shares Outstanding
CommonStockSharesOutstanding
|
1000 | shares |
| CY2023Q3 | us-gaap |
Common Stock Shares Issued
CommonStockSharesIssued
|
1000 | shares |
| CY2022Q4 | us-gaap |
Common Stock Shares Outstanding
CommonStockSharesOutstanding
|
1000 | shares |
| CY2023Q3 | us-gaap |
Common Stock Value
CommonStockValue
|
1 | usd |
| CY2022Q4 | us-gaap |
Common Stock Value
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1 | usd |
| CY2023Q3 | us-gaap |
Additional Paid In Capital
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303 | usd |
| CY2022Q4 | us-gaap |
Additional Paid In Capital
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|
0 | usd |
| CY2023Q3 | us-gaap |
Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
|
-239 | usd |
| CY2022Q4 | us-gaap |
Retained Earnings Accumulated Deficit
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|
0 | usd |
| CY2023Q3 | us-gaap |
Stockholders Equity
StockholdersEquity
|
65 | usd |
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Stockholders Equity
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|
1 | usd |
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Revenues
Revenues
|
0 | usd | |
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Other Expenses
OtherExpenses
|
239 | usd | |
| us-gaap |
Net Income Loss
NetIncomeLoss
|
-239 | usd | |
| us-gaap |
Earnings Per Share Basic
EarningsPerShareBasic
|
-0.24 | ||
| us-gaap |
Earnings Per Share Diluted
EarningsPerShareDiluted
|
-0.24 | ||
| us-gaap |
Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
|
1000 | shares | |
| us-gaap |
Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
|
1000 | shares | |
| CY2022Q4 | us-gaap |
Stockholders Equity
StockholdersEquity
|
1 | usd |
| nlop |
Stockholders Equity Capital Contribution
StockholdersEquityCapitalContribution
|
303 | usd | |
| us-gaap |
Net Income Loss
NetIncomeLoss
|
-239 | usd | |
| CY2023Q3 | us-gaap |
Stockholders Equity
StockholdersEquity
|
65 | usd |
| us-gaap |
Net Income Loss
NetIncomeLoss
|
-239 | usd | |
| us-gaap |
Increase Decrease In Other Operating Capital Net
IncreaseDecreaseInOtherOperatingCapitalNet
|
64 | usd | |
| us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-303 | usd | |
| us-gaap |
Proceeds From Contributed Capital
ProceedsFromContributedCapital
|
303 | usd | |
| us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
303 | usd | |
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Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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1 | usd |
| CY2023Q3 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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1 | usd |
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Nature Of Operations
NatureOfOperations
|
Organization and Description of Business<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Net Lease Office Properties (“NLOP” or the “Company”) was formed in the state of Maryland on October 21, 2022. As of September 30, 2023, the Company was a wholly-owned subsidiary of W. P. Carey Inc. (“WPC”).</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In September 2023, WPC announced a plan to spin off 59 of its office properties into NLOP, so that it would become a separate publicly-traded REIT (the “Spin-Off”).</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On November 1, 2023, WPC completed the Spin-Off, contributing 59 office properties to NLOP. Following the closing of the Spin-Off, NLOP operates as a separate publicly-traded REIT, which WPC externally manages pursuant to certain advisory agreements (the “NLOP Advisory Agreements”) (</span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#iaad1b3f4315b4f87beaee27a17c5723d_1297" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Note 4</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">).</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company intends to qualify and elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code, commencing with the Company’s initial taxable year ending December 31, 2023. As a REIT, NLOP will not be subject to federal income taxes on income and gains that NLOP distributes to its shareholders as long as it satisfies certain requirements, principally relating to the nature of the Company’s income and the level of its distributions, as well as other factors. NLOP also owns real property in jurisdictions outside the United States through foreign subsidiaries and will be subject to income taxes on the Company’s pre-tax income earned from properties in such countries.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">WPC is considered the accounting predecessor of the Company. Through September 30, 2023, NLOP had not conducted any business as a separate company other than start-up related activities.</span></div> | ||
| CY2022Q4 | us-gaap |
Common Stock Par Or Stated Value Per Share
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0.001 | |
| us-gaap |
Proceeds From Contributed Capital
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303 | usd | |
| us-gaap |
Number Of Operating Segments
NumberOfOperatingSegments
|
1 | segment | |
| CY2023Q3 | us-gaap |
Area Of Real Estate Property
AreaOfRealEstateProperty
|
9300000 | sqft |
| us-gaap |
Number Of Reporting Units
NumberOfReportingUnits
|
1 | reporting_unit |
