BWS Financial Starts Net Lease Office Products (NLOP) at Buy

BWS Financial analyst Hamed Khorsand initiates coverage on Net Lease Office Products (NYSE: NLOP) with a Buy rating and a price target of $60.00.

The analyst comments "We are initiating coverage of Net Lease Office Products (NLOP) with a Buy Rating and $60 target. NLOP is trading at a fraction of its book value as the Company gets lumped into the negative investor sentiment towards office buildings. NLOP was created and spun out of W. P. Carey (WPC) to oversee the liquidation of 59 office properties. The properties are mostly single tenant occupied spread throughout the USA with five properties in Europe. The 59 properties NLOP initially owned have now been reduced to 55 after the Company announced the sale of four properties for the price of $43.1 million. NLOP used the proceeds along with cash on its balance sheet to reduce its debt balance by $52 million. On a cap rate valuation basis, NLOP’s equity value should be considerably more than the current market price. Cap rates for single tenant occupied properties are less than 8 percent. We are using a cap rate closer to 10 percent to reach our price target of $60."

For an analyst ratings summary and ratings history on Net Lease Office Products click here. For more ratings news on Net Lease Office Products click here.

Shares of Net Lease Office Products closed at $23.81 yesterday.

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