Net Lease Office Properties (NLOP) vs Piedmont Realty Trust, Inc. (PDM)

Net Lease Office Properties and Piedmont Realty Trust, Inc. are both Reit Office companies. Piedmont Realty Trust, Inc. is the larger, with a market value of $1.2B against $133.6M — 9.1× the size. Piedmont Realty Trust, Inc. has negative trailing earnings, so its P/E is not meaningful; Net Lease Office Properties trades at 7.5×. Piedmont Realty Trust, Inc. grew revenue faster over the last twelve months: 2.85% against −55.1%. Net Lease Office Properties has the higher net margin (34.8% vs −15.2%) and the lower return on invested capital (−0.99% vs 1.33%). Only Net Lease Office Properties pays a dividend (44.3%). Across the 19 metrics below, Net Lease Office Properties leads on 14 and Piedmont Realty Trust, Inc. on 5.

Valuation

Metric NLOP PDM Reit Office median
P/E 7.53 n/m 28.35
P/S 2.64 2.14 2.77
P/B 0.82 0.86 0.82
Price to free cash flow 0.45 n/m 13.95
EV/EBITDA 9.63 10.94 12.41
EV/Sales 2.47 6.16 6.90
Earnings yield 13.27% (7.10%) (2.06%)
Free cash flow yield 221.94% (2.62%) 6.73%

Profitability

Metric NLOP PDM Reit Office median
Gross margin 88.14% 60.14% 60.87%
Operating margin (4.13%) 13.80% 17.78%
Net margin 34.79% (15.18%) (2.87%)
Free cash flow margin 585.16% (5.61%) 14.89%
Return on equity 6.02% (5.91%) (1.07%)
Return on assets 5.15% (2.18%) (0.34%)
Return on invested capital (0.99%) 1.33% 1.33%

Growth

Metric NLOP PDM Reit Office median
Revenue growth (TTM) (55.11%) 2.85% 2.67%
EPS growth (last fiscal year) (58.74%) (4.69%) 8.85%
Revenue growth, 5-year CAGR — 1.10% 3.91%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric NLOP PDM Reit Office median
Debt to equity 0.00 1.62 1.24
Current ratio 2.40 1.40 1.98
Net debt to EBITDA 1.63 7.13 6.86

Dividend

Metric NLOP PDM Reit Office median
Dividend yield 44.28% 0.00% 4.16%
Payout ratio 3.34 — 3.34

Size

Metric NLOP PDM Reit Office median
Market cap 133.63m 1.22b 1.22b

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