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NLOP (Net Lease Office Properties) Degree of Operating Leverage : 3.18 (As of Mar. 2025)


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What is Net Lease Office Properties Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Net Lease Office Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 3.18. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Net Lease Office Properties's Degree of Operating Leverage or its related term are showing as below:

NLOP's Degree of Operating Leverage is ranked worse than
68.51% of 743 companies
in the REITs industry
Industry Median: 1.19 vs NLOP: 3.18

Net Lease Office Properties Degree of Operating Leverage Historical Data

The historical data trend for Net Lease Office Properties's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Net Lease Office Properties Degree of Operating Leverage Chart

Net Lease Office Properties Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.79 -16.24 6.40 -5.02 3.79

Net Lease Office Properties Quarterly Data
Dec20 Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.94 -113.92 59.73 3.79 3.18

Competitive Comparison of Net Lease Office Properties's Degree of Operating Leverage

For the REIT - Office subindustry, Net Lease Office Properties's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Net Lease Office Properties's Degree of Operating Leverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Net Lease Office Properties's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Net Lease Office Properties's Degree of Operating Leverage falls into.


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Net Lease Office Properties Degree of Operating Leverage Calculation

Net Lease Office Properties's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -12.668 (Mar. 2025) / -107.499 (Mar. 2024) - 1 )/( 127.453 (Mar. 2025) / 176.31 (Mar. 2024) - 1 )
=-0.8822/-0.2771
=3.18***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Net Lease Office Properties  (NYSE:NLOP) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Net Lease Office Properties Degree of Operating Leverage Related Terms

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Net Lease Office Properties Business Description

Traded in Other Exchanges
N/A
Address
395 9th Avenue, 58th Floor, One Manhattan West, New York, NY, USA, 10001
Net Lease Office Properties is a Maryland real estate investment trust that, together with its consolidated subsidiaries, owns a diversified portfolio of office properties that are primarily leased to corporate tenants on a single-tenant, net-lease basis. Its net leases generally specify a base rent with rent increases and require the tenant to pay substantially all costs associated with operating and maintaining the property. Its portfolio includes approximately 1.2 million square feet of Green-Certified Buildings, 2 LEED-certified buildings, and 1 BREEAM-certified building.
Executives
Richard J Pinola director BANKRATE, INC., 11760 US HIGHWAY 1 SUITE 200, NORTH PALM BEACH FL 33408
Hansing Axel K.a. director C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE. 58TH FL, NEW YORK NY 10001
Jean Hoysradt director C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE., 58 FL, NEW YORK NY 10001
John J Park director C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE. 58TH FL, NEW YORK NY 10001
Jason E. Fox officer: CHIEF EXECUTIVE OFFICER C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE., 58 FL, NEW YORK NY 10001
Toniann Sanzone officer: CHIEF FINANCIAL OFFICER C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE., 58 FL, NEW YORK, NEW YORK NY 10001
Brian H Zander officer: CHIEF ACCOUNTING OFFICER C/O W. P. CAREY INC., ONE MANHATTAN WEST, 395 9TH AVE., 58 FL, NEW YORK NY 10001
W. P. Carey Inc. 10 percent owner ONE MANHATTAN WEST, 395 9TH AVENUE, 58TH FLOOR, NEW YORK NY 10001