showing the working

← Net Lease Office Properties

The business behind the dividend

MeasureNLOPMedianFormula
Return on equity-49.4%10.6%Net income ÷ shareholders’ equity
Return on capital employed-45.9%10.0%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flowOperating cash flow − capital expenditure
Operating margin-121.9%14.3%Operating income ÷ revenue
Net margin-122.2%10.1%Net income ÷ revenue
Debt to equity0.07x0.73xTotal debt ÷ shareholders’ equity
Interest cover-11.38x4.22xOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-46.2%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Free cash flow, Owner earnings — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure20252024202320222021Median
Return on equity-49.4%-15.7%-19.5%1.4%0.1%-15.7%
Return on capital employed-45.9%-12.5%-10.8%1.2%-10.8%
Operating margin-121.9%-65.9%-75.0%10.4%2.1%-65.9%
Net margin-122.2%-64.3%-75.3%10.1%1.0%-64.3%
Debt to equity0.07x0.29x0.80x0.25x0.29x
Cash conversion5.34x5.34x

How it compares in real estate

Among the 20 real estate companies here measured on operating cash flow, Net Lease Office Properties pays out less than 1 of them. The median for that group is 152.3%, against this company’s 284.2%.

Closest on operating cash flow

Same sector and same denominator, so the figures are comparable. All 130 in real estate →