Net Lease Office Properties (NLOP) Stayed Flat Amid Improved Sentiments

Alluvial Capital Management, an investment advisory firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 15.5% in the quarter, bringing the year-to-date returns to 33.6%, strongly outperforming the relevant benchmark indexes. This marks the fund’s third-best quarterly result in its 9-year history. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Alluvial Capital Management highlighted stocks such as Net Lease Office Properties (NYSE:NLOP). Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. The one-month return of Net Lease Office Properties (NYSE:NLOP) was -0.88%, and its shares lost 3.56% of their value over the last 52 weeks. On October 28, 2025, Net Lease Office Properties (NYSE:NLOP) stock closed at $29.27 per share, with a market capitalization of $433.608 million.

Alluvial Capital Management stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its third quarter 2025 investor letter:

“Of course, not everything in the Alluvial portfolio has performed well this year. The fund has an 11% allocation to real estate investment trusts in out-of-favor sectors. But while sentiment around offices has improved, shares of Net Lease Office Properties (NYSE:NLOP) have not responded. The pace of property sales has been slower than I expected, but there is reason to believe we will see some significant property sales soon. The trust is now marketing its single largest asset, a one million plus square feet office building in central Houston. At $29 per share and excluding all properties encumbered by mortgages, Net Lease trades at a cap rate of nearly 18% and $87 per square foot of real estate. The trust also has multiple vacant properties it is working to sell that represent additional sources of value.”

Net Lease Office Properties (NYSE:NLOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the second quarter, compared to 15 in the previous quarter. While we acknowledge the risk and potential of Net Lease Office Properties (NYSE:NLOP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Net Lease Office Properties (NYSE:NLOP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Net Lease Office Properties (NYSE:NLOP) and shared Kingdom Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.