ONL

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - The ongoing strategic review process has been slowed by macroeconomic headwinds, specifically the significant rise in treasury rates which has made exploring viable options more challenging. - Management is executing a three-pillar strategy focused on stabilizing the portfolio through aggressive leasing, disposing of non-core assets, and maintaining prudent leverage. - The portfolio is being strategically shifted toward Dedicated Use Assets (DUA), which now represent 40.6% of annualized base rent, with a long-term target of exceeding 50%. - Leasing momentum remains robust, with the company on track to lease over 1 million square feet for the third consecutive year despite managing a materially smaller portfolio. - Operational improvements are evidenced by the weighted average lease term (WALT) increasing to 6.1 years and consolidated occupancy rising to 78.3% from 72.1% year-over-year. - Prudent balance sheet management has reduced net debt to adjusted EBITDA to 5.6x and lowered interest expenses by 2.4 million year-to-date through debt reduction. - Management emphasized that while occupancy may show quarter-to-quarter volatility due to the single-tenant nature of the portfolio, the overall trend is expected to keep improving. - Core FFO guidance for 2026 was raised to a range of $0.75 to $0.78 per share, primarily driven by stronger-than-anticipated leasing activity throughout the year. - The transition toward Dedicated Use Assets is expected to continue opportunistically, though management noted the pace could accelerate significantly if access to cost-effective outside capital improves. - Management expects to finalize a 93,000 square foot lease in Buffalo during the fourth quarter, which would bring that property to 64% leased from zero just over a year ago. - The company remains well-insulated from interest rate volatility, with 76.6% of debt fixed and no maturities until February 2028. - Future core FFO growth is expected to be sustained by ongoing return-to-office trends and the conversion of the current 1 million square foot leasing pipeline into signed contracts. - The strategic review process has incurred approximately $454,000 in year-to-date G&A expenses, though management offers no assurance it will result in a transaction. - G&A expenses were impacted by the loss of emerging growth company status, which necessitated increased spending for SOX 404 compliance. - Headcount has been reduced by five individuals so far this year as part of ongoing expense management efforts. - Cash rent spreads on third-quarter renewals were up 25% when comparing ending rents in the current term to starting rents in the new term. - Management explained that the perceived deceleration in Q4 guidance reflects the absence of one-time tax savings and lease termination income that occurred in the first three quarters. - Future growth acceleration will depend heavily on the timing and volume of new lease executions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - While management values the renovated Buffalo property, they view it as an opportunistic sale candidate once stabilized to recycle capital into Dedicated Use Assets. - This follows a successful precedent set by the recent sale of the NetJets property at a favorable cap rate. - The process remains active as management continues to engage with outside parties in a meaningful way, though no specific timeline for a conclusion was provided. - Management clarified that evaluating strategic opportunities is a core component of running the public company, regardless of whether a formal process is officially open. - The Lakeside properties are currently being marketed for sale, with AT&T expected to vacate the premises. - Buyer interest includes value-add office investors and those exploring redevelopment into multifamily or other uses, with a target disposition in the first half of 2027. - Management expects total CapEx for the year to reach the mid-40s million range, with additional costs for leasing commissions. - The timing of these expenditures remains dependent on when specific leases are executed and property work is completed.

Image source: The Motley Fool. Friday, Nov. 6, 2026 - General Counsel - Paul C. Hughes - Chief Executive Officer - Paul H. McDowell - Chief Financial Officer - Gavin Brandon - Chief Operating Officer - Christopher Haviland Day Operator: Greetings. Welcome to Orion Properties, Inc. Third Quarter 26 Financial Results. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul C. Hughes, general counsel. Paul C. Hughes: Thank you. Operator: You may begin. Paul C. Hughes: Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended September 30, 2026, filed its Form 10 Q with the Securities and Exchange Commission and posted its earnings supplement to its website at onlreit.com. During the call today, we will be discussing Orion's guidance for calendar year 2026 and other forward-looking statements, Which are based on management's current expectations and are subject to certain risks that could cause actual results to differ materially from our estimates. These risks are discussed in our earnings release as well as in our Form 10 Q and other SEC filings. And Orion undertakes no duty to update any forward-looking statements made during this call. We will also be discussing non GAAP financial measures such as funds from operations or FFO, and core funds from operations or core FFO. These non GAAP financial measures are not a substitute for financial information presented in accordance with GAAP and Orion's earnings release and supplement include a reconciliation of our non GAAP financial measures to the most directly comparable GAAP measure. Hosting the call today are Orion's Chief Executive Officer, Paul H. McDowell and Chief Financial Officer, Gavin Brandon. Joining us for the Q and A session will be Christopher Haviland Day, our Chief Operating Officer. With that, I will turn the call over to Paul H. McDowell. Paul H. McDowell: Good morning, everyone. And thank you for joining us on Orion's third quarter earnings call. I will start with an update on our strategic options process. Process is ongoing. And despite the length of time of the review to date, we continue to believe it is in shareholders' interest to see that work through to its reasonable conclusion. In addition to the ongoing challenges surrounding our asset class, macro events, including a significant rise in treasury rates, have made that work more challenging and have further slowed the process. We are moving as expeditiously as possible to ensure we have explored all potentially viable options available to the company However, we can offer no assurance that this process will result in Orion concluding any particular transaction. Beyond the strategic review, our team is focused on driving improvement in our key financial and operating metrics. Nearly all of which are improved year-over-year. Our strategy remains centered on the same priorities we have discussed all year. Stabilizing the portfolio through increased leasing activity, the timely disposition of noncore assets, and prudent leverage management. We continue to expect these efforts to drive core FFO per share growth in 2026 and beyond. From a leasing perspective, we are on track to lease over 1 million square feet for the third consecutive year despite materially smaller portfolio and have increased the weighted average lease term of the portfolio in the process. Contributing to these results we completed approximately 143 thousand square feet of leasing in the third quarter. And an additional 222 thousand square feet subsequent to quarter end bringing our year to date total to approximately 922 thousand square feet. Our leasing pipeline stood at about 1 million square feet at quarter end. To give some additional color to our continued leasing subsequent to quarter end, we entered into a 57 thousand square foot 10 year lease and a 17 thousand square foot 10.8-year lease at our 209 thousand square foot Plano, Texas property. Bringing the lease rate to 85%. Significantly driving value. We also completed a 10.3-year lease extension for 65 thousand square feet at our 156 thousand square foot property in Milwaukee, Wisconsin. And a 2-year full building renewal at our 83 thousand square foot Indianapolis, Indiana property. We are also close to finalizing another large lease in our approximately 405 thousand square foot renovated class a property in Downtown Buffalo, New York. With 1 large tenant already, as a 161 thousand square foot anchor, we expect to finalize a 93 thousand square foot lease for 15 years in the fourth quarter which will bring this property to 64% leased from 0 just over a year ago. We are confident that this lease will be completed So as always, we will not count it until it is signed. Our weighted average lease term for the consolidated portfolio was 6.1 years, continuing to build on the progress we have made this year, and up from 5.8 years at the end of the third quarter in 2025. Cash rent spreads on third quarter renewals were up 25% when comparing ending rents in the current term to starting rents in the new term. Year-to-date, rent spreads are up 1.8% when comparing ending rents in the current term to starting rents in the new term, and up 8.6% when comparing ending rents in the previous term to ending rents in the new term. As always, we caution that rent spreads can be volatile from quarter to quarter though we remain encouraged by the overall trend. It is also worth noting that we have seen tenant retention rates continuing to improve reflecting both a healthier leasing environment and our strengthening portfolio quality. Our consolidated portfolio occupancy rate was 78.3% at the end of the third quarter, compared to 72.1% at the end of the third quarter of last year. As we have said many times, occupancy will continue to show some volatility quarter to quarter, given our largely single tenant portfolio. Though we expect the overall trend to keep improving as our leasing efforts including the aforementioned opportunity in Buffalo, continue to play out. Turning to dispositions. Year-to-date, we have generated gross proceeds of almost 84 million on the sale of 4 properties, plus the 37 acre Deerfield, Illinois campus. Additionally, we have 2 properties under contract to be sold for total gross sales price of $9.5 million. Since our spin, we have sold 39 properties totaling more than 4.2 million square feet. At quarter end, dedicated use assets or DUA represented 40.6% of annualized base rent of our consolidated portfolio, compared to 33.9% at the end of the third quarter of 2025. We expect this percentage to continue increasing over time through disposition of traditional office and potential targeted acquisitions of DUA properties. As we discussed last quarter, our longer term target remains to have more than a majority of the portfolio in dedicated use assets. Within our existing portfolio, and absent broader access to outside capital, we expect that progress to continue albeit in an opportunistic manner. To the extent our access to outside cost effective capital improves, we would expect that transition to occur significantly more rapidly. As we communicated to start the year, we have a stabilized portfolio that will continue to benefit from ongoing return to office and our strong leasing efforts. Through the first 3 quarters of the year, nearly all of our key financial and operational metrics show meaningful and sustained improvement. Including our critical per share metrics supported by a balance sheet marked by prudent leverage. for the rest of 2026 and into 2027, our focus remains consistent. Continue to grow core FFO, improve portfolio quality, lengthened WALT, renew tenants, fill or sell vacant space, and continue to manage expenses and leverage as we work to maximize Orion's value for investors and potential strategic partners. We believe that consistent ongoing execution will allow the market to start to recognize and appreciate the intrinsic value of this company. With that, I will turn the call over to Gavin. Gavin Brandon: Thanks, Paul. For the third quarter of 2026 compared to the third quarter of 2025, Orion had total revenues of $35.4 million compared to $37.1 million. Net loss attributable to common stockholders was $3.3 million or $0.06 per share compared to $6.9 million or $1.23 per share in the same quarter of 2025. Core FFO was $11.4 million or $0.20 per share, compared to $11 million or $0.19 per share in the same quarter of 2025. Adjusted EBITDA was $16.5 million versus $17.4 million in the same quarter of 2025 primarily related to having fewer assets. G&A in the third quarter came in at a relatively flat $4.7 million compared to $4.6 million in the same quarter of 2025. G&A expense in 2026 includes the ongoing costs associated with the strategic review. Which equate to approximately $266 thousand in the third quarter and $454 thousand year-to-date The G&A expense in the 2026 period also reflects Orion's loss of emerging growth company status during 2026 which drove increased expenses related to SOX 404 compliance. We have reduced headcount so far this year by 5. CapEx and leasing costs in the third quarter were $6.9 million compared to $18.3 million in the same quarter of 2025. CapEx and leasing costs for the 9 months ended September 30 were $34.4 million compared to $42.2 million in the same 2025 period. As we have previously discussed, CapEx timing is dependent on when leases are executed and work is completed on properties. Property operating expenses in the third quarter materially improved to $14.3 million as compared to $17.3 million in the same quarter of 2025. Turning to the balance sheet. Our net debt to annualized adjusted EBITDA showed meaningful improvement at 5.6x at quarter end, compared to 6.4x at the end of the third quarter of 2025. We ended the quarter with $437 million of outstanding debt excluding our proportionate share of the unconsolidated joint venture debt. Which is a meaningful improvement when compared to 483 million of debt we had a year ago. Our debt reduction efforts have significantly reduced interest expense, which has totaled 21.7 million this year, down 2.4 million from 24.1 million in the same period a year ago. We remain well insulated from rising rates with 76.6% of our debt being fixed rate and 49% of the debt outstanding under our floating rate revolver is currently hedged. Our net debt to gross real estate assets was 27.8% at the end of the quarter compared to 31.2% a year ago. We have also been very successful this year managing and extending our maturities. Our next debt maturity is not until February 2028, which we have an option to extend until February 2029. As of September 30, we had total liquidity of $177 million comprised of 64.2 million of cash and cash equivalents, and restricted cash and $113 million of available capacity under our credit facility revolver. On November 4, 2000, Orion's board of directors, declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2026, unchanged from the fourth quarter of 2025. We are also announcing an improved outlook for 2026 primarily driven by the strong 2026 leasing activity we have discussed core FFO for the year is now expected to range from $0.75 to $0.78 per diluted share up from our previous range of $0.72 to $0.77 per diluted share. Our net debt to adjusted EBITDA is now expected to range from 5.8x to 6.4x an improvement from our previous range of 6.0x to 6.8x. Our G&A range of 19.8 million to 20.8 million is unchanged. With that, we will open the line for questions. Operator? Operator: Thank you. Will now be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question from the queue. 1 moment, please, while we poll for questions. Our first question comes from Mitch Germain with Citizens Bank. Please go ahead. Mitch Germain: Congrats on the quarter. Pretty significant deceleration being contemplated in your guidance even at the high end of the range. Why not put forth the number, given leasing and momentum in the business? Paul H. McDowell: Why not put forth a number that is a little bit more maybe realistic And what am I missing with regards to, you know, how the fourth quarter could play out I think there is a couple things there, Mitch. First, the guidance we put out today is where we expect, you know, where we expect we will come out for the course of the year. Looking forward into the fourth quarter, we see-- well, I-- Let me say it this way. Looking back for the first 3 quarters, we have gotten some income that we get from onetime tax savings and sometimes from 1-time lease termination income and so on and so forth. We have had that year over year, as you might recall. So that has an impact on the first 3 quarters of the year. We do not expect to have a significant impact to that in the fourth quarter. Looking into 2027, I think the dynamics still exist. We continue to think that we will be able to grow core FFO over time. But, the rate of that acceleration is. You know, will be dependent upon where we come out on leasing. Mitch Germain: Okay. You guys seem to have great momentum on the leasing front, and I appreciate all that commentary in the Buffalo asset. Is that the kind of situation where you lease it and sell it I am trying to gain some insight. I think you have got, like, 50 something properties now. Like, 40% of your portfolio is dedicated use. The thought is to grow that to a higher percentage, obviously. or a portion of your cash flows. So is that asset, like, an example of something where you lease and then look to sell? Or is that considered a core asset for you? Paul H. McDowell: You know, I would start by saying we like the asset a lot. We have renovated the building. it is a Class A asset. So we like the building a lot, but I think your point is well taken. I think we are opportunistic sellers. I think if you take a look, we sold the NetJets property at a 5 something cap rate out of the CMBS portfolio recently. So that gave us. You know, that was very opportunistic. And I think we would look at the buffer property much the same way. If we got a very good price for that asset from a potentially a local buyer or something like that once we have leased it up. You know, we would be delighted to sell it and recycle that capital into dedicated use assets. Mitch Germain: Great. Last 1 for me. it is-- When does there come a point in time in which the strategic alternatives are no longer relevant? And I ask it only because I know that firm strategic alternatives is kind of broad. Right? I mean, there could be things in there including, investments from, you know, institutional partners to an outright sale to maybe a portfolio acquisition from that regard. So it is pretty broad. But when? I mean, I guess that could always be something that is part of the everyday of running public companies. So when does this process become kind of elongated? and maybe we should at least kind of get rid of that terminology to expect that this should always be part of your thinking as a public CEO. Paul H. McDowell: that is a very good question, Mitch. And, you know, I will answer the last part first. That is you are right. It always is a component of our running a public company. We have said so many times before we announced strategic options. So that. You are right. You know, looking strategically is something we will do whether or not we have a process up and running. The reason the process is still continuing is we continue to engage with outside parties in sort of a quiet a meaningful way. And so we will see how that comes out. We are not sure what the result of that will be. If the result of that is a strategic transaction, we will announce that in due time. If the result of that is not a strategic announcement, we would announce that and close down the process. But, like you. Like I said at the beginning, we will whether or not we have a process open, we will always consider-- we will always consider strategic opportunities, but we are trying to wait to get through the process with respect to sort of the specific items we are working on Once we decide, once we figure out whether those work or not, we will make an announcement. Mitch Germain: Thank you. Operator: Our next question comes from Matthew Gardner with Jones Trading. Please go ahead. Analyst: Hey, good morning, guys. Thanks for taking the question and appreciate the comments on the prior questions. that is really helpful. As we look into kind of some of these leases rolling off and in particular, Richardson, Texas, how are you guys thinking about, 1, the vacant building there and then that AT&T and T lease that. that is got about 0.5 WALT left. Paul H. McDowell: I will let Christopher Haviland Day answer that for us. Christopher Haviland Day: Good to talk to you this morning, Matthew. For that property, you know, we know AT&T will be vacating that asset That 1, Lakeside 1 and the adjacent Lakeside 2 it is actually out in the market right now for disposition. So we are-- it is going through the process. Some offers are coming in. We are evaluating everything. So I would expect for that to be a disposition in the first half of next year. Got it, that is helpful. And then could you just give a little more color on the market? Like who are some of the buyers that are out there? What are they looking for? You know, obviously, it is dependent asset to asset, but you know, I guess, just kind of how are transactions moving right now just given the rise in rates? Well, for the. For that specific asset, there is actually multiple different types of buyers looking at it. You have got people looking at it for value add office. You have people looking at it from a redeveloped standpoint and to potentially multifamily. Or another use. So that property itself has various different outcomes. But just overall on the entire portfolio, yeah, we are-- we are-- We still have a lot of people, good interest in some of these properties that we have out on the market for sale. You know, there is a little bit of uncertainty over the last month or so, but, we are-- we are-- still positive we are going to be able to transact on these dispositions at numbers that we think are good numbers for those assets. Analyst: Got it. that is helpful there. And then looking into CapEx, you guys kind of guided to $30 million to $40 million on last quarter's call, and there was about 7 million call it this quarter, which leaves 23 million to 33 million Is that still the expectation for the fourth quarter? Gavin Brandon: Yes. I think that is right. I think we have got-- we expect for the year to come out probably on just CapEx probably about 40-something in the mid-40s, million, and then leasing commissions on top of that. Analyst: Okay. Got it. that is helpful. Thank you, guys. Operator: We have reached the end of the question and answer session. I would like to turn the floor back over to Paul H. McDowell for closing comments. Paul H. McDowell: Thank you, everyone, for participating in our call, and we look forward to updating you on the fourth quarter in the New Year. Operator: And this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Orion Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Orion Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $353,560!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,850!* Now, it's worth noting Stock Advisor's total average return is 852% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of November 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Orion Properties (ONL) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Total Revenues: $35.4 million in Q3 2026, down from $37.1 million in Q3 2025. - Net Loss Attributable to Common Stockholders: $3.3 million, or $0.06 per share, versus $69 million, or $1.23 per share, in Q3 2025. - Core FFO: $11.4 million, or $0.20 per share, compared to $11 million, or $0.19 per share, in Q3 2025. - Adjusted EBITDA: $16.5 million versus $17.4 million in Q3 2025, primarily due to fewer assets. - G&A Expense: $4.7 million, relatively flat versus $4.6 million in Q3 2025; includes ~$266,000 of strategic review costs in Q3 and $454,000 year-to-date. - CapEx and Leasing Costs: $6.9 million in Q3 2026 versus $18.3 million in Q3 2025; $34.4 million for the nine months ended September 30 versus $42.2 million in the prior-year period. - Property Operating Expenses: Improved to $14.3 million from $17.3 million in Q3 2025. - Interest Expense: $21.7 million year-to-date, down $2.4 million from $24.1 million in the same period a year ago. - Net Debt to Annualized Adjusted EBITDA: 5.6 times at quarter end versus 6.4 times at the end of Q3 2025. - Outstanding Debt: $436.5 million, excluding proportionate share of unconsolidated JV debt, versus $483 million a year ago. - Net Debt to Gross Real Estate Assets: 27.8% at quarter end versus 31.2% a year ago. - Liquidity: $177.2 million total, comprising $64.2 million of cash and cash equivalents and restricted cash and $113 million of available revolver capacity. - Portfolio Occupancy: 78.3% at the end of Q3 2026 versus 72.1% at the end of Q3 2025. - Leasing Activity: ~143,000 square feet leased in Q3 plus ~222,000 square feet subsequent to quarter end; year-to-date total ~922,000 square feet; pipeline of ~1 million square feet at quarter end. - Weighted Average Lease Term: 6.1 years for the consolidated portfolio, up from 5.8 years at the end of Q3 2025. - Cash Rent Spreads: Up 25% on Q3 renewals; year-to-date up 1.8% (ending current term vs. starting new term) and up 8.6% (ending previous term vs. ending new term). - Dispositions: ~$84 million gross proceeds year-to-date from four properties plus the Deerfield, Illinois campus; two properties under contract for $9.5 million total gross sales price; 39 properties totaling over 4.2 million square feet sold since spin. - Dedicated Use Assets (DUA): 40.6% of annualized base rent of the consolidated portfolio versus 33.9% at the end of Q3 2025. - Dividend: Quarterly cash dividend of $0.02 per share declared for Q4 2026, unchanged from Q4 2025. - 2026 Core FFO Guidance: Raised to $0.75$0.78 per diluted share from $0.72$0.77. - 2026 Net Debt to Adjusted EBITDA Guidance: Improved to 5.86.4 times from 6.06.8 times. - 2026 G&A Guidance: Unchanged at $19.8 million$20.8 million. - Warning! GuruFocus has detected 4 Warning Signs with ONL. - Is ONL fairly valued? Test your thesis with our free DCF calculator. Release Date: November 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Orion Properties Inc (NYSE:ONL) is on track to lease over 1 million square feet for the third consecutive year, with year-to-date leasing of approximately 922,000 square feet and a pipeline of about 1 million square feet. - Portfolio occupancy improved to 78.3% from 72.1% year-over-year, and weighted average lease term increased to 6.1 years from 5.8 years. - Core FFO per share increased to $0.20 from $0.19 year-over-year, and 2026 core FFO guidance was raised to $0.75-$0.78 per share from $0.72-$0.77. - Balance sheet strengthened with net debt to annualized adjusted EBITDA improving to 5.6x from 6.4x, and debt reduced to $436.5 million from $483 million. - Orion Properties Inc (NYSE:ONL) has no debt maturities until February 2028 (with an option to extend to 2029) and total liquidity of $177.2 million. - Total revenues decreased to $35.4 million from $37.1 million year-over-year, and adjusted EBITDA declined to $16.5 million from $17.4 million. - The strategic options process is taking longer than expected due to challenges in the asset class and a significant rise in treasury rates, with no assurance of a transaction. - Orion Properties Inc (NYSE:ONL) expects a significant deceleration in core FFO in the fourth quarter, as prior quarters benefited from one-time tax savings and lease termination income. - The AT&T lease at the Richardson, Texas property is expiring, and the related Lakeside I and II assets are being marketed for sale, with disposition expected in the first half of next year. - G&A expenses increased due to costs associated with the strategic review ($454,000 year-to-date) and loss of emerging growth company status, which drove higher SOX 404 compliance expenses. Q: Why did Orion raise the low end of its 2026 core FFO guidance to $0.75$0.78 per share, and why does the implied fourth-quarter run rate look like a deceleration? A: CEO Paul McDowell explained that the first three quarters benefited from one-time items such as tax savings and lease termination income that are not expected to recur meaningfully in the fourth quarter. He added that the company still expects to grow core FFO over time, but the pace of acceleration will depend on leasing outcomes. Q: Is the Buffalo asset, which is close to a 93,000-square-foot, 15-year lease, a lease-and-sell candidate or a core holding? A: CEO Paul McDowell said Orion likes the renovated Class A building but is an opportunistic seller. He noted the recent sale of the NetJets property at a 5%-plus cap rate as an example and said Orion would be delighted to sell Buffalo at a strong price to a local buyer once leased, recycling capital into dedicated use assets. Q: When does the strategic alternatives process stop being relevant, and how long will it run? A: CEO Paul McDowell said strategic review is always part of running a public company, but the formal process continues because Orion is still engaged in meaningful discussions with outside parties. He said Orion will announce a strategic transaction if one results, or announce that the process is closing if not. Q: How is Orion handling the Richardson, Texas property, including the vacant building and the AT&T lease that is rolling off? A: COO Chris Day said AT&T will vacate Lakeside I and the adjacent Lakeside II, and both are now in the market for disposition. Offers are coming in and being evaluated, and he expects a disposition in the first half of next year. Q: Who are the buyers for the Richardson asset, and how is the transaction market holding up amid higher rates? A: COO Chris Day said the Richardson property is drawing multiple buyer types, including value-add office investors and redevelopment buyers considering multifamily or other uses. More broadly, he said interest in Orion's marketed properties remains good despite some uncertainty over the past month, and Orion remains confident it can transact at attractive numbers. Q: What is the latest outlook for 2026 capital expenditures and leasing costs? A: CEO Paul McDowell said the prior $30 million$40 million CapEx guidance still holds directionally, with full-year CapEx likely in the mid-$40 million range, plus leasing commissions on top of that. Q: What drove the year-over-year improvement in net loss and core FFO in the third quarter? A: CFO Gavin Brandon reported a net loss attributable to common stockholders of $3.3 million, or $0.06 per share, versus $69 million, or $1.23 per share, a year earlier. Core FFO rose to $11.4 million, or $0.20 per share, from $11 million, or $0.19 per share, despite lower revenue of $35.4 million versus $37.1 million. Q: How is Orion's balance sheet and leverage positioned given rising treasury rates? A: CFO Gavin Brandon said net debt to annualized adjusted EBITDA improved to 5.6 times from 6.4 times a year earlier, with outstanding debt down to $436.5 million from $483 million. He noted 76.6% of debt is fixed rate, 49% of the floating-rate revolver is hedged, and the next maturity is not until February 2028, with an option to extend to February 2029. Q: What is the status of Orion's leasing momentum and portfolio occupancy? A: CEO Paul McDowell said Orion completed about 143,000 square feet of leasing in the third quarter and another 222,000 square feet after quarter end, bringing year-to-date leasing to roughly 922,000 square feet, on track for a third straight year above 1 million square feet. Consolidated occupancy rose to 78.3% from 72.1% a year earlier, and the weighted average lease term increased to 6.1 years from 5.8 years. Q: How are dispositions and the shift toward dedicated use assets progressing? A: CEO Paul McDowell said Orion has generated almost $84 million of gross proceeds year-to-date from four properties plus the Deerfield, Illinois campus, with two more properties under contract for $9.5 million. Dedicated use assets now represent 40.6% of annualized base rent, up from 33.9% a year earlier, and Orion's longer-term target is for a majority of the portfolio, with progress expected to be opportunistic absent broader access to cost-effective outside capital. Q: What is the dividend and liquidity position? A: CFO Gavin Brandon said the board declared a fourth-quarter cash dividend of $0.02 per share, unchanged from a year earlier. Total liquidity was $177.2 million at quarter end, comprising $64.2 million of cash and restricted cash and $113 million of available revolver capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Completed 922,000 Square Feet of Leasing Year-to-Date, Including 143,000 Square Feet in the Third Quarter and 222,000 Square Feet Subsequent to Quarter End - - Raises 2026 Core FFO Guidance Range and Improves 2026 Net Debt to Adjusted EBITDA Range - - Declares Dividend for Fourth Quarter 2026 - PHOENIX, November 05, 2026--(BUSINESS WIRE)--Orion Properties Inc. (NYSE: ONL) ("Orion" or the "Company"), a fully-integrated real estate investment trust ("REIT") which owns a diversified portfolio of single-tenant net lease office properties including dedicated use assets located across the United States, announced today its operating results for the third quarter ended September 30, 2026. Paul McDowell, Orion's Chief Executive Officer, commented, "We continue to build on the progress from earlier in the year, and remain on pace to lease over one million square feet with approximately 922,000 square feet already completed so far this year. Strongly positive cash rent spreads on third quarter renewals coupled with positive rent spreads overall for the year so far reflect our ability to capture meaningful rent growth as our leases roll. We also further strengthened our balance sheet this year, reducing Net Debt to Annualized Most Recent Quarter Adjusted EBITDA to 5.6x. These results reflect the sustained execution of our strategy and give us confidence in our ability to drive Core FFO per share growth over time. We remain committed to maximizing stockholder value while our strategic options review process continues." Third Quarter 2026 Financial Overview - Total revenues of $35.4 million - Net loss attributable to common stockholders of $(3.3) million, or $(0.06) per basic and diluted share - Funds from Operations ("FFO") of $9.2 million, or $0.16 per diluted share - Core FFO of $11.4 million, or $0.20 per diluted share - EBITDA and EBITDAre of $16.4 million and Adjusted EBITDA of $16.5 million - Net Debt to Annualized Most Recent Quarter Adjusted EBITDA of 5.6x Financial Results During the third quarter of 2026, the Company generated total revenues of $35.4 million, as compared to $37.1 million in the same quarter of 2025. The Company's net loss attributable to common stockholders was $(3.3) million, or $(0.06) per basic and diluted share during the third quarter of 2026, as compared to a net loss attributable to common stockholders of $(69.0) million, or $(1.23) per basic and diluted share in the same quarter of 2025. Core FFO for the third quarter of 2026 was $11.4 million, or $0.20 per diluted share, as compared to $11.0 million, or $0.19 per diluted share in the same quarter of 2025. Leasing Activity During the third quarter of 2026, the Company entered into the following lease transactions (square feet in thousands): Location | Lease Type | Square Feet | Term (Years) | Expected Commencement or Previous Expiration | New Expected Expiration Salem, Oregon | Renewal | 69 | 3.0 | April 2027 | April 2030 Tulsa, Oklahoma | New Lease | 28 | 10.6 | April 2027 | October 2037 Knoxville, Tennessee | Renewal | 26 | 3.0 | July 2026 | July 2029 Plano, Texas | New Lease | 19 | 10.5 | March 2027 | September 2037 Covington, Kentucky | New Lease | 1 | 5.0 | November 2026 | November 2031 Subsequent to quarter end, the Company completed leasing activity of approximately 222,000 square feet, including two new leases for a total of 74,000 square feet with a weighted average lease term of 10.2 years at its property in Plano, Texas, a 10.3-year lease extension for approximately 65,000 square feet at its approximately 156,000 square foot property in Milwaukee, Wisconsin and a 2.0-year lease renewal with the existing single tenant at its approximately 83,000 square foot property in Indianapolis, Indiana. Disposition Activity Although no property dispositions were closed during the third quarter of 2026, year-to-date the Company has sold four properties and the 37.4-acre Deerfield, Illinois campus for an aggregate gross sales price of $83.7 million. As of November 5, 2026, the Company has agreements in place to sell three properties for a total gross sales price of $14.4 million, including our proportionate share of the gross sales price of one Unconsolidated Joint Venture property of $4.9 million with proceeds expected to be used to paydown outstanding principal on the Unconsolidated Joint Venture mortgage notes. The Company's pending sale agreements are subject to a variety of conditions outside of our control, such as the buyer's satisfactory completion of its due diligence and therefore, it cannot provide any assurance the transactions will close on the agreed upon price or other terms, or at all. Real Estate Portfolio As of September 30, 2026, the Company's real estate portfolio consisted of 57 Operating Properties. Annualized Base Rent was $107.0 million, with 67.8% of Annualized Base Rent derived from Investment-Grade Tenants and 40.6% derived from properties deemed to be Dedicated Use Assets, or DUAs. The Company's Occupancy Rate was 78.3% and the Weighted Average Remaining Lease Term was 6.1 years. Balance Sheet and Liquidity As of September 30, 2026, the Company had principal outstanding of $436.5 million, comprised of: - $316.5 million securitized mortgage loan (the "CMBS Loan") - $102.0 million under the Company's credit facility revolver - $18.0 million mortgage loan secured by the Company's San Ramon, California property (the "San Ramon Loan") The credit facility revolver maturity date is February 18, 2028, subject to two six-month borrower extension options until February 18, 2029 if we satisfy certain conditions. The Company's maximum borrowing capacity under the credit facility revolver is $215.0 million and amounts borrowed by the Company may be prepaid and re-borrowed from time to time. The Company's outstanding borrowings under the credit facility revolver bear interest at a floating rate of SOFR plus a margin of 2.75%. During August 2026, the Company entered into an interest rate cap agreement for the credit facility revolver. Under the agreement, the Daily Simple SOFR is capped at 4.25% on a total notional amount of $50.0 million effective from August 7, 2026 to August 7, 2027. The credit facility revolver is a senior secured fully recourse borrowing facility. The interest rate on the CMBS Loan is fixed at 4.971% and the CMBS Loan is scheduled to mature on February 11, 2029, subject to two borrower extension options for a total of 18 months if certain conditions have been satisfied. Subject to customary exceptions, the CMBS Loan is a non-recourse loan and is secured by first-priority mortgages on 18 of the Company's owned properties. As of September 30, 2026, the Company had $177.2 million of liquidity, comprising $64.2 million of cash and cash equivalents and restricted cash as well as $113.0 million of available capacity on the Company's credit facility revolver. Dividend On November 4, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2026, payable on January 15, 2027 to stockholders of record as of December 31, 2026. Strategic Options Review Process On January 26, 2026, the Company announced a review of strategic options. The review of strategic options has included, among other things, the consideration of potential merger targets, the potential sale of the Company, and continuing to operate as an independent publicly traded entity. As of November 5, 2026, the strategic options review process remains ongoing and despite the length of time of the review to date, we continue to believe it is in stockholders' interest to see that work through to its reasonable conclusion. In addition to the ongoing challenges surrounding our asset class, macroeconomic events, including the significant rise in Treasury rates, have made that work more challenging and have further slowed the process. We are moving as expeditiously as possible to ensure we have explored all potentially viable options available to the Company, however, we can offer no assurance that the strategic options review process will result in Orion pursuing any particular transaction or other strategic outcome. 2026 Outlook The Company is providing the following updated guidance estimates for 2026. | | Prior 2026 Guidance | | Improved 2026 Guidance Core FFO per share | | $0.72 - $0.77 | | $0.75 - $0.78 Net Debt to Adjusted EBITDA | | 6.0x - 6.8x | | 5.8x - 6.4x The Company's 2026 General and Administrative Expense guidance range of $19.8 million to $20.8 million is unchanged from the previous quarter. The Company's 2026 General and Administrative Expense estimates include our normal budget for professional fees for the fourth quarter plus our expectations for incremental spend for the ongoing strategic review process. The Company's guidance is based on current plans and assumptions and subject to the risks and uncertainties more fully described in the Company's filings with the SEC. The Company reminds investors that its guidance estimates include assumptions with regard to its shift in portfolio concentration towards more dedicated use assets, rent receipts and property operating expense reimbursements, the amount and timing of acquisitions, dispositions, leasing transactions, capital expenditures, interest rate fluctuations and expected borrowings, the cost of the Company's ongoing strategic review process and other factors. These assumptions are uncertain and difficult to accurately predict and actual results may differ materially from our estimates. See "Forward-Looking Statements" below. Webcast and Conference Call Information Orion will host a webcast and conference call to review its results at 10:00 a.m. ET on Friday, November 6, 2026. The webcast and call will be hosted by Paul McDowell, Chief Executive Officer and President, and Gavin Brandon, Chief Financial Officer, Executive Vice President and Treasurer. To participate, the webcast can be accessed live by visiting the "Investors" section of Orion's website at onlreit.com/investors. To join the conference call, callers from the United States and Canada should dial 1-844-539-3703, and international callers should dial 1-412-652-1273, ten minutes prior to the scheduled call time. Replay Information A replay of the webcast may be accessed by visiting the "Investors" section of Orion's website at onlreit.com/investors. The conference call replay will be available after 1:00 p.m. ET on Friday, November 6, 2026 through 11:59 p.m. ET on Friday, November 20, 2026. To access the replay, callers may dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use passcode, 13762320. Non-GAAP Financial Measures To supplement the presentation of the Company's financial results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), this press release and the accompanying supplemental information as of and for the quarter ended September 30, 2026 (the "Supplemental Information Package") contain certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, Funds Available for Distribution ("FAD"), Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), and Adjusted EBITDA. Please see the attachments to this press release for how the Company defines these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure. About Orion Properties Inc. Orion Properties Inc. is an internally-managed real estate investment trust engaged in the ownership, acquisition and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. The Company's portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. As part of its investment strategy, the Company intends to shift its portfolio concentration over time away from traditional office properties, towards more Dedicated Use Assets. The Company was founded on July 1, 2021, spun-off from Realty Income (NYSE: O) on November 12, 2021 and began trading on the New York Stock Exchange on November 15, 2021. The Company is headquartered in Phoenix, Arizona and has an office in New York, New York. For additional information on the Company and its properties, please visit onlreit.com. About the Data This data and other information described herein are as of and for the three and nine months ended September 30, 2026, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the consolidated financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Orion Properties Inc.'s (the "Company," "Orion," "us," "our" and "we") Quarterly Reports on Form 10-Q for the periods ended September 30, 2026, June 30, 2026 and March 31, 2026 and Annual Report on Form 10-K for the year ended December 31, 2025. Unconsolidated Joint Venture The Company accounts for its investment in the Unconsolidated Joint Venture under the equity method of accounting and during the year ended December 31, 2025, its share of cumulative losses, including impairment losses, exceeded the carrying amount of its investment. Accordingly, the Company has suspended recognition of its share of additional losses from the Unconsolidated Joint Venture and no contingent liabilities have been recorded related to the Unconsolidated Joint Venture as of and for the three and nine months ended September 30, 2026. Additionally, since January 1, 2026, the Company has been recording management fees from the Unconsolidated Joint Venture and interest income on its member loan to the Unconsolidated Joint Venture (the "Member Loan") on a cash basis rather than an accrual basis. The Company recognized $0.2 million and $0.5 million of management fees from the Unconsolidated Joint Venture during the three and nine months ended September 30, 2026, respectively, and $0.2 million of interest on the Member Loan during the nine months ended September 30, 2026. No interest on the Member Loan was recognized during the three months ended September 30, 2026. The Company recognized $0.2 million and $0.6 million of management fees from the Unconsolidated Joint Venture during the three and nine months ended September 30, 2025, respectively, and $0.3 million and $0.8 million of interest on the Member Loan during the three and nine months ended September 30, 2025, respectively. Definitions Annualized Base Rent ("ABR") is the monthly aggregate cash amount charged to tenants under our leases (including monthly base rent receivables and certain fixed contractually obligated reimbursements by our tenants), as of the final date of the applicable period, multiplied by 12. Annualized Base Rent is not indicative of future performance. Dedicated Use Asset is a property that includes a substantial specialized use component such as government, medical, laboratory and research and development, and flex operations, where tenants perform work that cannot be replicated from home or relocated to a generic office setting, and would therefore not be considered a traditional office property. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") and Adjusted EBITDA Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income (loss) computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and gains or losses from disposition of real estate assets. For periods prior to January 1, 2026, we also adjust for our proportionate share of EBITDAre adjustments related to the Unconsolidated Joint Venture. We calculated EBITDAre in accordance with Nareit's definition described above. In addition to EBITDAre, we use Adjusted EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Adjusted EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as transaction related expenses. We also exclude certain non-cash items such as impairments of intangible and right-of-use assets, changes in fair value of derivatives not designated as hedging instruments, gains or losses on the extinguishment or forgiveness of debt, amortization of intangibles, above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities and, for periods prior to January 1, 2026, our proportionate share of Adjusted EBITDA adjustments related to the Unconsolidated Joint Venture. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Adjusted EBITDA should not be considered as an alternative to net income (loss), as determined under GAAP. The Company uses Adjusted EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Funds Available for Distribution ("FAD") Funds available for distribution, as defined by the Company, represents Core FFO, as defined below, modified to exclude capital expenditures and leasing costs, as well as certain non-cash items such as amortization of above-market leases, net of amortization of below-market lease liabilities, straight-line rental revenue, and, for periods prior to January 1, 2026, our proportionate share of FAD adjustments related to the Unconsolidated Joint Venture and amortization of the Unconsolidated Joint Venture basis difference. Management believes that adjusting these items from Core FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides useful information regarding the Company's ability to fund its dividend. However, not all REITs calculate FAD and those that do may not calculate FAD the same way, so comparisons with other REITs may not be meaningful. FAD should not be considered as an alternative to net income (loss) or cash flow provided by (used in) operating activities as determined under GAAP. Nareit Funds from Operations ("Nareit FFO" or "FFO") and Core Funds from Operations ("Core FFO") Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of the Company. FFO is not equivalent to our net income (loss) as determined under GAAP. Nareit defines FFO as net income (loss) computed in accordance with GAAP adjusted for gains or losses from disposition of real estate assets, depreciation and amortization of real estate assets, impairment write-downs on real estate and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. For periods prior to January 1, 2026, we also adjust for our proportionate share of FFO adjustments related to the Unconsolidated Joint Venture. We calculate FFO in accordance with Nareit's definition described above. In addition to FFO, we use Core FFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. Core FFO, as defined by the Company, excludes from FFO items that we believe do not reflect the ongoing operating performance of our business such as transaction related expenses, amortization of deferred financing costs, amortization of deferred lease incentives, net, equity-based compensation, amortization of premiums and discounts on debt, net, gains or losses on extinguishment of swaps and/or debt, changes in fair value of derivatives not designated as hedging instruments, and, for periods prior to January 1, 2026, our proportionate share of Core FFO adjustments related to the Unconsolidated Joint Venture. We believe that FFO and Core FFO allow for a comparison of the performance of our operations with other publicly-traded REITs, as FFO and Core FFO, or a substantially similar measure, are routinely reported by publicly-traded REITs, each adjust for items that we believe do not reflect the ongoing operating performance of our business and we believe are often used by analysts and investors for comparison purposes. For all of these reasons, we believe FFO and Core FFO, in addition to net income (loss), as determined under GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and Core FFO the same way, so comparisons with other REITs may not be meaningful. FFO and Core FFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate Core FFO and its use as a non-GAAP financial performance measure. Net Debt, Principal Outstanding and Adjusted Principal Outstanding Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. For periods prior to January 1, 2026, Adjusted Principal Outstanding includes the Company's proportionate share of the Unconsolidated Joint Venture's outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined under GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and, for periods prior to January 1, 2026, the Company's proportionate share of the Unconsolidated Joint Venture's cash and cash equivalents. Beginning January 1, 2026, the Company has revised its definition and calculation of Net Debt to also add restricted cash to the amounts that reduce the Company's Adjusted Principal Outstanding under debt obligations. This change in definition has also been applied retrospectively for comparison purposes and, for periods prior to January 1, 2026, also includes the Company's proportionate share of restricted cash from the Unconsolidated Joint Venture. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Operating Income ("NOI"), Cash NOI, Trailing NOI and Trailing Cash NOI NOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents total revenues less property operating expenses and excludes fee revenue earned for services to the Unconsolidated Joint Venture, impairment, depreciation and amortization, general and administrative expenses, and transaction related expenses. Cash NOI excludes the impact of certain GAAP adjustments included in rental revenue, such as straight-line rental revenue, amortization of above-market intangible lease assets and below-market lease intangible liabilities, and amortization of deferred lease incentives. For periods prior to January 1, 2026, Cash NOI includes the proportionate share of such amounts from properties owned by the Unconsolidated Joint Venture. Trailing NOI and Trailing Cash NOI represent trailing 12-month NOI and Cash NOI, calculated for the most recent 12-month period as of the applicable date. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income in accordance with GAAP. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies. Non-Operating Properties refers to all properties owned and consolidated by the Company as of the applicable date which have been excluded from Operating Properties due to the properties being vacant and repositioned, redeveloped, developed or held for sale. Unconsolidated Joint Venture means the Company's investment in an unconsolidated joint venture with an affiliate of Arch Street Capital Partners, LLC. Forward-Looking Statements Information set forth herein includes "forward-looking statements" which reflect the Company's expectations and projections regarding future events and plans, future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, expected borrowings and financing costs and the payment of future dividends. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," "guidance," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to the Company and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, 2026 financial outlook, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. These factors include, among other things, those discussed below. Information regarding historical rent collections should not serve as an indicator of future rent collections. We disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as may be required by law. The following are some, but not all, of the assumptions, risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those presented in the forward-looking statements: - the risk of increases in interest rates, including that the value of our assets may decline, our borrowing costs have increased and may continue to do so and we may be unable to extend or refinance our debt obligations on favorable terms and in a timely manner, or at all; - the risk of inflation, including that our operating costs, such as insurance premiums, utilities, real estate taxes, capital expenditures and repair and maintenance costs, may rise; - conditions associated with the global market, including an oversupply of office space, tenant credit risk and general economic conditions and geopolitical conditions; - our strategic review process is and will continue to be costly and time-consuming and may not result in a transaction, and any transaction that occurs may not increase stockholder value; - the risk that our strategic review process may disrupt our operations, divert management's attention and create uncertainty for tenants, employees and counterparties; - the risk that disruption in macroeconomic and general economic conditions could adversely impact our lenders, tenants and prospective tenants, and cause them to reduce or decline to do business with us or fail to meet their obligations to us; - the extent to which changes in workplace practices and office space utilization, including remote and hybrid work arrangements, and changes in government budgetary priorities, will continue and the impact that may have on demand for office space at our properties; - our ability to acquire new properties, convert certain vacant properties to multi-tenant use and sell non-core assets on favorable terms and in a timely manner, or at all; - risks associated with acquisitions, including the risk that we may not be in a position, or have the opportunity in the future, to make suitable property acquisitions on advantageous terms and/or that such acquisitions will fail to perform as expected; - our assumptions concerning tenant utilization and renewal probability of Dedicated Use Assets, and our ability to successfully execute on our strategy to shift our portfolio concentration over time away from traditional office properties, towards more Dedicated Use Assets; - our ability to comply with the terms of our credit agreements or to meet the debt obligations on our properties; - our ability to access the capital markets to raise additional equity or refinance maturing debt on favorable terms and in a timely manner, or at all; - changes in the real estate industry and in performance of the financial markets and interest rates and our ability to effectively hedge against interest rate changes; - the risk of tenants defaulting on their lease obligations, which is heightened due to our focus on single-tenant properties; - our ability to renew leases with existing tenants or re-let vacant space to new tenants on favorable terms and in a timely manner, or at all; - the cost of rent concessions, tenant improvement allowances and leasing commissions; - the potential for termination of existing leases pursuant to tenant termination rights; - the amount, growth and relative inelasticity of our expenses; - risks associated with the ownership and development of real property; - risks accompanying our investment in and the management of OAP/VER Venture, LLC (the "Unconsolidated Joint Venture"), our unconsolidated joint venture, in which we hold a non-controlling ownership interest, including that the Unconsolidated Joint Venture may be unable to repay all or any portion of its mortgage debt obligations which experienced a payment default at maturity during February 2026, or complete the disposition or refinancing of any of the six joint venture properties on favorable terms or in a timely manner, or at all, or that the lenders may seek to enforce their foreclosure or other remedies due to the debt being beyond its initially stated maturity, and we may be unable to recover our original investment in the Unconsolidated Joint Venture, which we have written down to zero or, in the case of the Member Loan, fully reserved accordingly; - our ability to close pending real estate transactions, which may be subject to conditions that are outside of our control; - we may change our dividend policy at any time, and therefore the amount, timing and continued payment of dividends are not assured; - our properties may be subject to impairment charges; - risks resulting from losses in excess of insured limits or uninsured losses; - risks associated with the potential volatility of our common stock; and - the risk that we may fail to maintain our income tax qualification as a real estate investment trust. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available on the SEC's website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law. ORION PROPERTIES INC.CONSOLIDATED BALANCE SHEETS(In thousands) | | | | | | (Unaudited) | | | | September 30, 2026 | | December 31, 2025 Assets | | | | Real estate investments, at cost: | | | | Land | | $ | 167,254 | | | $ | 176,532 | Buildings, fixtures and improvements | | | 962,663 | | | | 976,676 | Total real estate investments, at cost | | | 1,129,917 | | | | 1,153,208 | Less: accumulated depreciation | | | 204,111 | | | | 195,042 | Total real estate investments, net | | | 925,806 | | | | 958,166 | Accounts receivable, net | | | 44,553 | | | | 35,333 | Intangible lease assets, net | | | 74,054 | | | | 75,947 | Cash and cash equivalents | | | 13,731 | | | | 22,362 | Restricted cash | | | 50,450 | | | | 38,277 | Real estate assets held for sale, net | | | — | | | | 12,803 | Other assets, net | | | 27,956 | | | | 27,614 | Total assets | | $ | 1,136,550 | | | $ | 1,170,502 | | | | | Liabilities and Equity | | | | Mortgages payable, net | | $ | 331,955 | | | $ | 371,957 | Credit facility revolver | | | 102,000 | | | | 92,000 | Accounts payable and accrued expenses | | | 26,860 | | | | 40,219 | Below-market lease liabilities, net | | | 16,964 | | | | 18,449 | Distributions payable | | | 1,141 | | | | 1,208 | Other liabilities, net | | | 27,254 | | | | 22,154 | Total liabilities | | | 506,174 | | | | 545,987 | | | | | Common stock | | | 57 | | | | 56 | Additional paid-in capital | | | 1,153,510 | | | | 1,151,644 | Accumulated other comprehensive loss | | | — | | | | (5 | ) Accumulated deficit | | | (524,436 | ) | | | (528,482 | ) Total stockholders' equity | | | 629,131 | | | | 623,213 | Non-controlling interest | | | 1,245 | | | | 1,302 | Total equity | | | 630,376 | | | | 624,515 | Total liabilities and equity | | $ | 1,136,550 | | | $ | 1,170,502 | ORION PROPERTIES INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data) (Unaudited) | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Revenues: | | | | | | | | Rental | | $ | 35,235 | | | $ | 36,918 | | | $ | 105,467 | | | $ | 111,817 | Fee income from Unconsolidated Joint Venture | | | 198 | | | | 204 | | | | 541 | | | | 611 | Total revenues | | | 35,433 | | | | 37,122 | | | | 106,008 | | | | 112,428 | Operating expenses: | | | | | | | | Property operating | | | 14,282 | | | | 17,284 | | | | 41,542 | | | | 49,629 | General and administrative | | | 4,735 | | | | 4,607 | | | | 14,486 | | | | 14,341 | Depreciation and amortization | | | 12,518 | | | | 14,709 | | | | 39,197 | | | | 45,659 | Impairments | | | — | | | | 63,698 | | | | 6,296 | | | | 84,910 | Transaction related | | | 120 | | | | 114 | | | | 691 | | | | 253 | Total operating expenses | | | 31,655 | | | | 100,412 | | | | 102,212 | | | | 194,792 | Other (expenses) income: | | | | | | | | Interest expense, net | | | (7,099 | ) | | | (7,880 | ) | | | (21,679 | ) | | | (24,052 | ) Gain on disposition of real estate assets | | | — | | | | 3,265 | | | | 28,826 | | | | 4,156 | Loss on extinguishment of debt, net | | | — | | | | — | | | | (532 | ) | | | — | Other income | | | 117 | | | | 317 | | | | 423 | | | | 974 | Other expenses | | | — | | | | (1,116 | ) | | | (3,320 | ) | | | (1,224 | ) Recovery of reserve on Member Loan | | | — | | | | — | | | | 439 | | | | — | Equity in loss of Unconsolidated Joint Venture, net | | | — | | | | (256 | ) | | | — | | | | (773 | ) Total other (expenses) income, net | | | (6,982 | ) | | | (5,670 | ) | | | 4,157 | | | | (20,919 | ) (Loss) income before taxes | | | (3,204 | ) | | | (68,960 | ) | | | 7,953 | | | | (103,283 | ) Provision for income taxes | | | (69 | ) | | | (67 | ) | | | (211 | ) | | | (200 | ) Net (loss) income | | | (3,273 | ) | | | (69,027 | ) | | | 7,742 | | | | (103,483 | ) Net income attributable to non-controlling interest | | | (11 | ) | | | (8 | ) | | | (25 | ) | | | (16 | ) Net (loss) income attributable to common stockholders | | $ | (3,284 | ) | | $ | (69,035 | ) | | $ | 7,717 | | | $ | (103,499 | ) | | | | | | | | Weighted average common shares outstanding - basic | | | 57,045 | | | | 56,313 | | | | 56,853 | | | | 56,204 | Weighted average common shares outstanding - diluted | | | 57,045 | | | | 56,313 | | | | 57,594 | | | | 56,204 | | | | | | | | | Net (loss) income per share attributable to common stockholders - basic | | $ | (0.06 | ) | | $ | (1.23 | ) | | $ | 0.14 | | | $ | (1.84 | ) Net (loss) income per share attributable to common stockholders - diluted | | $ | (0.06 | ) | | $ | (1.23 | ) | | $ | 0.13 | | | $ | (1.84 | ) ORION PROPERTIES INC.FFO, CORE FFO AND FAD(In thousands, except for per share data) (Unaudited) | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net (loss) income attributable to common stockholders | | $ | (3,284 | ) | | $ | (69,035 | ) | | $ | 7,717 | | | $ | (103,499 | ) Adjustments: | | | | | | | | Depreciation and amortization of real estate assets | | | 12,480 | | | | 14,681 | | | | 39,086 | | | | 45,566 | Gain on disposition of real estate assets | | | — | | | | (3,265 | ) | | | (28,826 | ) | | | (4,156 | ) Impairment of real estate | | | — | | | | 63,698 | | | | 6,296 | | | | 84,910 | Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | | | — | | | | 474 | | | | — | | | | 1,418 | FFO attributable to common stockholders | | $ | 9,196 | | | $ | 6,553 | | | $ | 24,273 | | | $ | 24,239 | Transaction related | | | 120 | | | | 114 | | | | 691 | | | | 253 | Amortization of deferred financing costs | | | 1,081 | | | | 933 | | | | 2,854 | | | | 2,767 | Amortization of deferred lease incentives, net | | | 207 | | | | 175 | | | | 590 | | | | 394 | Equity-based compensation, net | | | 804 | | | | 852 | | | | 2,388 | | | | 2,378 | Loss on extinguishment of debt, net | | | — | | | | — | | | | 532 | | | | — | Other adjustments, net | | | 41 | | | | 2,366 | | | | 3,660 | | | | 3,045 | Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | | | — | | | | 14 | | | | — | | | | 42 | Core FFO attributable to common stockholders | | $ | 11,449 | | | $ | 11,007 | | | $ | 34,988 | | | $ | 33,118 | Amortization of above and below market leases, net | | | (279 | ) | | | (312 | ) | | | (903 | ) | | | (987 | ) Straight-line rental revenue | | | (3,109 | ) | | | (4,898 | ) | | | (4,277 | ) | | | (11,048 | ) Unconsolidated Joint Venture basis difference amortization | | | — | | | | 114 | | | | — | | | | 341 | Capital expenditures and leasing costs | | | (6,943 | ) | | | (18,283 | ) | | | (34,446 | ) | | | (42,196 | ) Other adjustments, net | | | 164 | | | | 66 | | | | 509 | | | | 207 | Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | | | — | | | | 27 | | | | — | | | | 66 | FAD attributable to common stockholders | | $ | 1,282 | | | $ | (12,279 | ) | | $ | (4,129 | ) | | $ | (20,499 | ) | | | | | | | | Weighted average common shares outstanding - basic | | | 57,045 | | | | 56,313 | | | | 56,853 | | | | 56,204 | Effect of weighted average dilutive securities (1) | | | 986 | | | | 530 | | | | 741 | | | | 56 | Weighted average common shares outstanding - diluted | | | 58,031 | | | | 56,843 | | | | 57,594 | | | | 56,260 | | | | | | | | | FFO attributable to common stockholders per diluted share | | $ | 0.16 | | | $ | 0.12 | | | $ | 0.42 | | | $ | 0.43 | Core FFO attributable to common stockholders per diluted share | | $ | 0.20 | | | $ | 0.19 | | | $ | 0.61 | | | $ | 0.59 | FAD attributable to common stockholders per diluted share | | $ | 0.02 | | | $ | (0.22 | ) | | $ | (0.07 | ) | | $ | (0.36 | ) ____________________________________ (1) | Dilutive securities include unvested restricted stock units net of assumed repurchases in accordance with the treasury stock method and exclude performance-based restricted stock units for which the performance thresholds have not been met by the end of the applicable reporting period. Such dilutive securities are not included when calculating net loss per diluted share applicable to the Company for the periods presented above, as the effect would be antidilutive. ORION PROPERTIES INC.EBITDA, EBITDAre AND ADJUSTED EBITDA(In thousands) (Unaudited) | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net (loss) income attributable to common stockholders | | $ | (3,284 | ) | | $ | (69,035 | ) | | $ | 7,717 | | | $ | (103,499 | ) Adjustments: | | | | | | | | Interest expense, net | | | 7,099 | | | | 7,880 | | | | 21,679 | | | | 24,052 | Depreciation and amortization | | | 12,518 | | | | 14,709 | | | | 39,197 | | | | 45,659 | Provision for income taxes | | | 69 | | | | 67 | | | | 211 | | | | 200 | Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | | | — | | | | 1,004 | | | | — | | | | 2,989 | EBITDA | | $ | 16,402 | | | $ | (45,375 | ) | | $ | 68,804 | | | $ | (30,599 | ) Gain on disposition of real estate assets | | | — | | | | (3,265 | ) | | | (28,826 | ) | | | (4,156 | ) Impairment of real estate | | | — | | | | 63,698 | | | | 6,296 | | | | 84,910 | EBITDAre | | $ | 16,402 | | | $ | 15,058 | | | $ | 46,274 | | | $ | 50,155 | Transaction related | | | 120 | | | | 114 | | | | 691 | | | | 253 | Amortization of above and below market leases, net | | | (279 | ) | | | (312 | ) | | | (903 | ) | | | (987 | ) Amortization of deferred lease incentives, net | | | 207 | | | | 175 | | | | 590 | | | | 394 | Loss on extinguishment of debt, net | | | — | | | | — | | | | 532 | | | | — | Other adjustments, net | | | 41 | | | | 2,366 | | | | 3,660 | | | | 3,045 | Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | | | — | | | | (7 | ) | | | — | | | | (22 | ) Adjusted EBITDA | | $ | 16,491 | | | $ | 17,394 | | | $ | 50,844 | | | $ | 52,838 | ORION PROPERTIES INC.FINANCIAL AND OPERATIONS STATISTICS AND RATIOS(Dollars in thousands) (Unaudited) | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Interest expense - as reported | | $ | 7,099 | | | $ | 7,880 | | | $ | 21,679 | | | $ | 24,052 | Adjustments: | | | | | | | | Amortization of deferred financing costs and other non-cash charges | | | (1,081 | ) | | | (933 | ) | | | (2,854 | ) | | | (2,767 | ) Proportionate share of Unconsolidated Joint Venture Interest Expense, excluding non-cash amortization | | | — | | | | 516 | | | | — | | | | 1,528 | Interest Expense, excluding non-cash amortization | | $ | 6,018 | | | $ | 7,463 | | | $ | 18,825 | | | $ | 22,813 | | | Three Months Ended September 30, | | Nine Months Ended September 30, Interest Coverage Ratio | | 2026 | | 2025 | | 2026 | | 2025 Interest Expense, excluding non-cash amortization (1) | | $ | 6,018 | | $ | 7,463 | | $ | 18,825 | | $ | 22,813 Adjusted EBITDA (2) | | | 16,491 | | | 17,394 | | | 50,844 | | | 52,838 Interest Coverage Ratio | | 2.74x | | 2.33x | | 2.70x | | 2.32x | | | | | | | | Fixed Charge Coverage Ratio | | | | | | | | Interest Expense, excluding non-cash amortization (1) | | $ | 6,018 | | $ | 7,463 | | $ | 18,825 | | $ | 22,813 Proportionate share of Unconsolidated Joint Venture adjustments for secured debt principal amortization | | | — | | | 146 | | | — | | | 433 Total fixed charges | | | 6,018 | | | 7,609 | | | 18,825 | | | 23,246 Adjusted EBITDA (2) | | | 16,491 | | | 17,394 | | | 50,844 | | | 52,838 Fixed Charge Coverage Ratio | | 2.74x | | 2.29x | | 2.70x | | 2.27x ____________________________________ (1) | Refer to the Statements of Operations for interest expense calculated in accordance with GAAP and to the Supplemental Information Package for the required reconciliation to the most directly comparable GAAP financial measure. (2) | Refer to the Statements of Operations for net income (loss) calculated in accordance with GAAP and to the EBITDA, EBITDAre and Adjusted EBITDA section above for the required reconciliation to the most directly comparable GAAP financial measure. Net Debt | | September 30, 2026 | | December 31, 2025 Mortgages payable, net | | $ | 331,955 | | | $ | 371,957 | Credit facility revolver | | | 102,000 | | | | 92,000 | Total debt - as reported | | | 433,955 | | | | 463,957 | Deferred financing costs, net | | | 2,539 | | | | 1,043 | Principal Outstanding | | | 436,494 | | | | 465,000 | Proportionate share of Unconsolidated Joint Venture Principal Outstanding | | | — | | | | 25,753 | Adjusted Principal Outstanding | | | 436,494 | | | | 490,753 | Cash and cash equivalents | | | (13,731 | ) | | | (22,362 | ) Restricted cash | | | (50,450 | ) | | | (38,277 | ) Proportionate share of Unconsolidated Joint Venture cash and cash equivalents | | | — | | | | (495 | ) Proportionate share of Unconsolidated Joint Venture restricted cash | | | — | | | | (1,580 | ) Net Debt | | $ | 372,313 | | | $ | 428,039 | ORION PROPERTIES INC.FINANCIAL AND OPERATIONS STATISTICS AND RATIOS(Dollars in thousands) (Unaudited) | | | | | | September 30, 2026 | | December 31, 2025 Total real estate investments, at cost - as reported | | $ | 1,129,917 | | | $ | 1,153,208 | Adjustments: | | | | Gross intangible lease assets | | | 248,873 | | | | 250,204 | Gross intangible lease liabilities | | | (38,660 | ) | | | (38,660 | ) Non-Operating Properties total real estate investments, at cost | | | — | | | | (11,113 | ) Proportionate share of Unconsolidated Joint Venture Gross Real Estate Investments (1) | | | — | | | | 29,118 | Gross Real Estate Investments | | $ | 1,340,130 | | | $ | 1,382,757 | | | September 30, 2026 | | December 31, 2025 Net Debt Ratios | | | | | | | | Net Debt (1) | | $ | 372,313 | | | $ | 428,039 | Annualized Most Recent Quarter Adjusted EBITDA | | | 65,964 | | | | 64,476 | Net Debt to Annualized Most Recent Quarter Adjusted EBITDA Ratio | | | 5.64 | x | | | 6.64 | x | | | | | | | | Net Debt (1) | | $ | 372,313 | | | $ | 428,039 | Annualized Year-to-Date Adjusted EBITDA (2) | | | 67,792 | | | | 68,957 | Net Debt to Annualized Year-to-Date Adjusted EBITDA Ratio (2) | | | 5.49 | x | | | 6.21 | x | | | | | | | | Net Debt (1) | | $ | 372,313 | | | $ | 428,039 | Gross Real Estate Investments (1) | | | 1,340,130 | | | | 1,382,757 | Net Debt Leverage Ratio | | | 27.8 | % | | | 31.0 | % ____________________________________ (1) | Refer to the Balance Sheets for total debt and real estate investments, at cost calculated in accordance with GAAP and to the table above for the required reconciliation to the most directly comparable GAAP financial measure. (2) | Year-to-date Adjusted EBITDA for December 31, 2025 has not been annualized for the purpose of this calculation. ORION PROPERTIES INC. CORE FUNDS FROM OPERATIONS PER DILUTED SHARE - 2026 GUIDANCE (Unaudited) The Company expects its 2026 Core FFO per diluted share to be in a range between $0.75 and $0.78. This guidance assumes: - Net Debt to Adjusted EBITDA: 5.8x to 6.4x - General & Administrative Expenses: $19.8 million to $20.8 million The estimated net income per diluted share is not a projection and is provided solely to satisfy the disclosure requirements of the SEC. The Company does not provide a reconciliation of Net Debt to Adjusted EBITDA guidance to the most directly comparable GAAP measure, due to the inherent difficulty and uncertainty in quantifying certain adjustments primarily related to the Company's debt obligations and restricted cash balances. The impact of such adjustments could be significant and cannot be presented without unreasonable efforts. | | Low | | High Diluted net income per share attributable to common stockholders | | $ | 0.01 | | | $ | 0.04 | Gain on disposition of real estate assets, net | | | (0.50 | ) | | | (0.50 | ) Depreciation and amortization of real estate assets | | | 0.90 | | | | 0.90 | Impairment of real estate | | | 0.11 | | | | 0.11 | FFO attributable to common stockholders per diluted share | | | 0.52 | | | | 0.55 | Adjustments (1) | | | 0.23 | | | | 0.23 | Core FFO attributable to common stockholders per diluted share | | $ | 0.75 | | | $ | 0.78 | ____________________________________ (1) | Includes transaction related expenses, amortization of deferred lease incentives, net, amortization of deferred financing costs, equity-based compensation, loss on extinguishment of debt and other adjustments to Core FFO that do not reflect the ongoing performance of the Company. View source version on businesswire.com: https://www.businesswire.com/news/home/20261105766390/en/ Contacts Investor Relations Contact: Email: [email protected] Phone: 602-675-0338

PHOENIX, October 13, 2026--(BUSINESS WIRE)--Orion Properties Inc. (NYSE: ONL) ("Orion" or the "Company"), a fully-integrated real estate investment trust ("REIT") which owns a diversified portfolio of single-tenant net lease office properties including dedicated use assets located across the United States, announced today that it will release its operating results for the third quarter 2026 after market close on Thursday, November 5, 2026. Webcast and Conference Call Information Orion will host a webcast and conference call to review its results at 10:00 a.m. ET on Friday, November 6, 2026. The webcast and call will be hosted by Paul McDowell, Chief Executive Officer and President, and Gavin Brandon, Chief Financial Officer, Executive Vice President and Treasurer. To participate, the webcast can be accessed live by visiting the "Investors" section of Orion's website at onlreit.com/investors. To join the conference call, callers from the United States and Canada should dial 1-844-539-3703, and international callers should dial 1-412-652-1273, ten minutes prior to the scheduled call time. Replay Information A replay of the webcast may be accessed by visiting the "Investors" section of Orion's website at onlreit.com/investors. The conference call replay will be available after 1:00 p.m. ET on Friday, November 6, 2026 through 11:59 p.m. ET on Friday, November 20, 2026. To access the replay, callers may dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use passcode, 13762320. About Orion Properties Inc. Orion Properties Inc. is an internally-managed real estate investment trust engaged in the ownership, acquisition and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. The Company's portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. As part of its investment strategy, the Company intends to shift its portfolio concentration over time away from traditional office properties, towards more Dedicated Use Assets. The Company was founded on July 1, 2021, spun-off from Realty Income (NYSE: O) on November 12, 2021 and began trading on the New York Stock Exchange on November 15, 2021. The Company is headquartered in Phoenix, Arizona and has an office in New York, New York. For additional information on the Company and its properties, please visit onlreit.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20261013707525/en/ Contacts Investor Relations Contact: Email: [email protected] Phone: 602-675-0338

Image source: The Motley Fool. Friday, Aug. 7, 2026, at 10 a.m. ET Chief Executive Officer-Paul H. McDowell Chief Financial Officer-Gavin Brandon Chief Operating Officer-Christopher Haviland Day General Counsel-Paul C. Hughes Operator: Greetings. Welcome to Orion Properties Second Quarter 26 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul C. Hughes, general counsel. Paul C. Hughes: Thank you. Operator: You may begin. Paul C. Hughes: Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended 06/30/2026, filed its Form 10 Q with the Securities and Exchange Commission and posted its earnings supplement to its website at onlreit.com. During the call today, we will be discussing Orion's guidance for calendar year 2026 and other forward looking statements. Which are based on management's current expectations and are subject to certain risks that could cause actual results to differ materially from our estimates. These risks are discussed in our earnings release as well as in our Form 10 Q and other SEC filings. And Orion undertakes no duty to update any forward looking statements made during this call. We will also be discussing non GAAP financial measures such as funds from operations or FFO and core funds from operations or core FFO. These non GAAP financial measures are not a substitute for financial information presented in accordance with GAAP and Orion's earnings release and supplement include a reconciliation of our non GAAP financial measures to the most directly comparable GAAP measure. Hosting the call today are Orion's Chief Executive Officer, Paul H. McDowell and Chief Financial Officer, Gavin Brandon. Joining us for the Q and A session will be Christopher Haviland Day, our Chief Operating Officer. With that, I will turn the call over to Paul H. McDowell. Paul H. McDowell: Good morning, everyone. And thank you for joining us on Orion's second quarter earnings call. I will start with a few words on our continuing strategic options process that began in late January. Since that announcement, in concert with our financial advisors at Wells Fargo and JPMorgan, we have conducted a robust effort including broad outreach to solicit proposals from interested parties. Those efforts have been supported by a virtual data room containing comprehensive property and corporate data for those participants that sign nondisclosure agreements. With several parties continuing to conduct diligence we believe it is in shareholders' interest to see that work through to its reasonable conclusion rather than set arbitrary deadlines. Rest assured, we are moving as expeditiously as possible although we can offer no assurance that this process will result in Orion concluding any particular transaction. Beyond the ongoing strategic review efforts, the team has continued to execute and deliver strong results against our business plan, which is reflected in our second quarter results. Our strategy remains centered on 4 priorities. Stabilizing the portfolio through increased leasing activity, the timely disposition of noncore assets, prudent leverage management, and selective capital recycling into dedicated use assets. As we have consistently communicated, we expect these efforts to drive core FFO per share growth in 2026 and beyond while maintaining prudent levels of leverage. So far this year, we have been successful on each of those priorities. From a leasing perspective, we have completed 673 thousand square feet of leasing including 202 thousand square feet completed in the second quarter and a 116 thousand square feet after quarter end including our first new lease at our Tulsa property. The weighted average lease term for the consolidated portfolio stands at 6.2 years at the end of the second quarter up from 5.5 years at the end of the second quarter last year continuing our steady improvement of this crucial metric. Cash rent spreads on second quarter renewals were down 7.7% when comparing ending rents in the current term to starting rents in the new term. However, rent spreads are up 2.1% when comparing current ending rents to new ending rents driven by escalations over the new lease term. For the year to date period, cash rent spreads are very slightly down by 0.2% on renewals and up 7.1% when comparing current ending rents to new ending rents. Although volatile, leasing concessions are so far trending lower this year than last on a per square foot basis. Due to a few scheduled move outs, and select opportunistic dispositions, offset to some extent by our leasing efforts, our consolidated portfolio occupancy rate of 78.1% at the end of the second quarter was down as expected from the end of the first quarter but up from 76.8% at the end of the second quarter of last year. As we have said many times, rent spreads and occupancy rates can and will be volatile from quarter to quarter given our largely single tenant portfolio though we remain positive about the overall trends, which continue to see steady improvement. Beyond the leasing completed year to date, our pipeline remains quite strong despite our smaller size at over 1.1 million square feet or over 17% of the total portfolio that is in either discussion or documentation stage including a substantial number of new long term leases for currently vacant space and some full building renewals. And as we look out, we continue to see improving demand for our and we are working hard to move forward on executing as much leasing as possible. The key message is that we continue to be quite pleased with our leasing velocity so far this year. Turning to dispositions. We have been very successful this year and we have primarily utilized proceeds from opportunistic asset sale activity to continue to deleverage ending the quarter with net debt to annualized adjusted EBITDA at 5.4x almost a full turn better than last quarter and the same quarter a year ago. Specifically, during the first half of the year, we generated gross proceeds of $84 million on the sale of 4 properties plus the 37.4 acre Deerfield, Illinois campus. Gavin Brandon: The second quarter sales activity generated an aggregate gross sales price of $70.6 million and included 2 strategic dispositions. 1 of which was sold to the existing tenant at a 5.6% cash capitalization rate and the other was a recently vacated asset sold to an adjacent user at an implied 5% cash capitalization rate on expiring rent. These sales have allowed us to repay roughly $61 million of debt including over $35 million on our CMBS loan in the second quarter. Our debt repayment and refinance efforts have also allowed us to steadily reduce interest expense by $700 thousand for the second quarter $1.6 million for the year to date period compared to the same period in 2025. Paul H. McDowell: On another very positive note, the average sale price per square foot has steadily increased on the sale of vacant properties over the past year or so. Gavin Brandon: These transactions continue to demonstrate our ability to monetize noncore assets and redeploy capital while improving the overall quality and durability of our remaining portfolio. Our continued focus on selling properties with re leasing prospects and high carrying costs has allowed us to continue to materially reduce property operating expenses. For example, our 2025 and 2026 vacant or near term vacant property sales are estimated to save more than $12 million in annual carrying costs. Paul H. McDowell: These efforts have already contributed to an improvement in property operating costs of $3.4 million for the second quarter $5.1 million for the year to date period compared to the same periods in 2025. We remain committed to shifting our portfolio concentration toward dedicated use assets where our tenants perform work that cannot be replicated from home or relocated to a generic office setting, and away from traditional suburban office properties. These property types include medical, lab, R&D, flex, and government properties all of which we already own. Gavin Brandon: At quarter end, these dedicated use assets or DUA represent 38.7% of annualized base rent of our consolidated portfolio compared to 37.1% at the end of last quarter and 32.6% at the end of the second quarter of 25, reflecting our sales of traditional office assets, and our purchase earlier this year of the Barilla DUA property. We expect this percentage to continue increasing over time through continued disposition activity of traditional office and targeted acquisitions of DUA properties. Paul H. McDowell: Before I close, I do want to take a moment to reflect on the very significant progress we have made in Orion. Gavin Brandon: Over the past 2 years, we have averaged about 1 million square feet of leasing per year, and are on track to lease about that much again this year. We have sold 39 properties since our spin, totaling more than 4.2 million square feet. Reducing property operating expenses by millions per year. We continue to work to manage overhead, significantly reducing headcount over the past 2 years including at the executive level. We successfully refinanced and extended both our revolving debt and our CMBS debt this year. We continue to manage leverage and have steadily reduced debt by $183 million since the spin. These combined efforts are showing up in our key metrics. Such as WALT, occupancy, net debt to adjusted EBITDA, and G&A all of which are improved over the same period a year ago. Finally, we have significant confidence in our ability to meaningfully grow core FFO from here. For the balance of 2026, our operational focus remains on improving portfolio quality, lengthening WALT, renewing tenants, filling or selling vacant space, and prudently managing expenses and leverage as we work to maximize Orion's value for investors, and potential strategic partners. I firmly believe that if we continue to execute on our business plan, the market will finally begin to recognize the meaningful intrinsic value of this company that is not reflected in our current discounted valuation. With that, I will turn the call over to Gavin. Paul H. McDowell: Thanks, Paul. Gavin Brandon: For the second quarter of 26 compared to the second quarter of 25, Orion had total revenues of $34.3 million compared to $37.3 million. Net income of $24.6 million or $0.43 per share for the second quarter of 26 and included a gain of $28.8 million primarily related to the opportunistic sale of 2 OR operating properties during the quarter. This nonrecurring gain does not impact our core FFO results which were $11.8 million or $0.20 per share basically flat compared to the same quarter in 2025. Adjusted EBITDA was $17.2 million versus $18 million in the same quarter of 2025. G&A in the second quarter improved to $4.6 million compared to $4.8 million in the same quarter of 2025 as we benefited from the decision to continue to lower headcount through attrition and other means. G&A expense includes the ongoing cost related to the strategic review which we equate to approximately $100 thousand in the second quarter of 26 and $200 thousand year to date. CapEx and leasing costs in the second quarter were $8.9 million compared to $15.6 million in the same quarter of 25. As we have previously discussed, CapEx timing is dependent on when leases are executed and work is completed on properties. Turning to the balance sheet. Our net debt to annualized adjusted EBITDA was 5.4 times at quarter end compared to 6.4x at the end of the second quarter of 25. As of June 30, we had total liquidity of $177 million, comprised of $63.5 million of cash and cash equivalents and restricted cash, and $113 million of available capacity under our credit facility revolver. Given our strong efforts to sell noncore and select operating properties, we have significantly lowered debt outstanding and extended maturities we ended the quarter with $436.6 million of outstanding debt compared to $483 million a year ago. Excluding a proportionate share of the unconsolidated joint venture's debt. Our next significant maturity is not until February 2028, which we have an option to extend until February 2029. Our net debt to gross real estate assets was 27.9% at the end of the quarter compared to 29.5% a year ago. On August 5, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the third quarter of 26 payable on October 15, 2026 to stockholders on record as of September 30, 2026. Moving to our outlook for 2026. We are narrowing and raising the range for our core FFO lowering the range for our net debt to adjusted EBITDA, and reaffirming our expectations for G&A. Core FFO for the year is now expected to range from $0.72 to $0.77 per diluted share up from our previously affirmed range of $0.69 to $0.76 per diluted share. Net debt to adjusted EBITDA is now expected to range from 6 to 6.8x, down from our previous range of 6.5 to 7.3x. These improvements in our guidance for the year are driven by several factors including recurring items such as actively reducing operating expenses and improved leasing expectations, as well as onetime items such as lease termination income and property tax appeals and refunds. Our G&A range of $19.8 million to $20.8 million is unchanged. With that, we will open the line for questions. Operator? Operator: Thank you. You may press 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset Our first question is from Mitch Germain with Citizens JMP. Please proceed. Mitch Germain: Congrats on the quarter. 1 asset for sale today, it seems like, I am curious about your decision to potentially sell an asset leased to the government, which kind of meets your criteria for the existing portfolio. Christopher Haviland Day: Correct. Hey, Mitch. This is Christopher. Thanks for dialing in. The asset that we are under contract to sell it is 1 where the government's looking to downsize on that asset. So there is some risk around the government tenancy in that 1 asset. Plus it is in a very remote area, and it is 1 that you know, we analyze the disposition of it and thought that is the best overall outcome for that asset. Mitch Germain: that is super helpful. There are 4 vacant assets in the portfolio. it is pretty amazing. I think at 1 point, you had 11 or 12. Tell me about the decision and process that you guys go through regarding a either to sell or to release. Paul H. McDowell: Yeah. I mean, Mitch, it is been a pretty consistent process. That is you know, and it you know, it has evolved over time, as you might imagine. But, you know, we sort of look really hard at the asset and say, is this an asset that we think it is worth putting money into and leasing up over time, or is this an asset that is going to cost us either a lot of money to retenant or really just does not have in our view, the long term demand factors. Present. So you know, you we have obviously sold a lot of vacant assets, but we have also been pretty successful in leasing some assets up. You know? For example, we thought it made sense to put money into our asset in Parsippany, New Jersey. We put that money in. That asset is leasing up pretty well. I think the same is true with our Buffalo property. You know, we looked at that property and thought, you know, that is a class a building in Downtown Buffalo. We think we can lease that up. We have migrated our tenant Ingram Micro into that building and we have got some strong momentum on leasing in the building from other tenants. So we, you know, we feel good about that. So it is it is sort of an ongoing and dynamic process, and but we are fortunate in that we have moved most of the vacant properties off our balance sheet. And we have a few left. Some we have quite a bit of confidence about leasing up. For example, the Tulsa property, we just put our first lease into that property. And others were sort of evaluating whether we think in the long term we are going to get leasing momentum or not. Mitch Germain: Got you. 57 assets, 6.4 million square feet. What percentage would you characterize to be, you know, kinda noncore at this point? Paul H. McDowell: it is hard to it is hard to sort of you know, we make that judgment based upon you know, our expectations for long-term leases. I would say you know, it is just a few percent at this stage. We, you know, we feel pretty confident about the assets we have left. And our ability to keep those properties leased or to lease them up if they are vacant or become vacant. You know, we are always going to look at it. We may have some vacant sales. Over the course of the year, but, you know, we just have to see how leasing shapes up. Mitch Germain: Great. Last 1 for me. Paul, I really truly appreciate the color and you are providing regarding your strategic review, not so many management teams are as transparent regarding the process. To that end, will there be a formal announcement I mean, obviously, if something happens, we will know. But will there be a formal announcement? Announcement if you decide to continue to operate? Is that the plan here? Paul H. McDowell: Yeah. I mean, look, Mitch. Thank you very much for you know, for the transparency. We wanna be as transparent as we possibly can be. We know this process has been going on for a long time. You know, we do not control a lot of the timing. You know, we are interacting with third parties, and they control the timing to some degree. So we are we are trying to move as expeditiously as possible. When we come to a conclusion of the process, whatever that is, we will make an announcement. We just we are just not there yet. And when we do get there, we will let everyone know. And that includes if we decide to move forward with our independent business plan. Thank you. Operator: As a reminder, just press star 1 on your questions. There are no further questions at this time. I would like to turn the floor back over to Paul H. McDowell. Actually, we do have a question. I am sorry. From Matthew Gardner with Jones Trading. Please proceed. Analyst: Hey, guys. Apologies. I thought I had dialed in. Thanks for taking the question. Congrats on the continued progress. You know, I thought you guys had a really good quarter. So I guess following up on kind of the portfolio, you said you had a few percentage left. You know, kind of piggybacking on that, you know, what percentage are you looking to get those dedicated use assets to in kind of the near term and then over the long term, call it, you know, 3 to 5 years out. Paul H. McDowell: it is a good question. And I think a lot of it when you think about the longer term component, that is the 3-5 years out you know, that will be dependent to some degree on our access to outside, you know, to outside capital. You know, at the moment, you know, our share price does not support that, so we have to work within our existing portfolio. So to the extent we are working within our existing portfolio, the progress will be steady but incremental. As we recycle capital, you know, we will we will we sell assets, and we might you know, occasionally buy DUA assets. So we will slowly build that up over time. To the extent we get access to outside capital, we would expect that transition to occur much more rapidly. So, you know, the longer term goals, of course, are to have well more than a majority of the portfolio in DUA assets. The timing of that is yet to be determined. Perfect. I appreciate the color there. And then I know that the CapEx is kind of a chunky number and can bounce around quarter to quarter. But do you guys have any idea of what you are expecting kind of across the remainder of the year? Yes. Just hang on just 1 second. Okay. Yeah. So far this year, you know, we have spent about, call it, $27 million in CapEx. And that is you know, I use that we use that term broadly, meaning that includes building and site updates, you know, that we have done to you know, update our buildings, tenant improvements, and lease incentives. And then leasing commissions. it is a pretty volatile number because we do not know when tenants are going to draw down on existing obligations that we have, which is disclosed in our 10 q. You know, we expect for the remainder of the year you know, that number could range that total number of additional CapEx from here could range from anywhere from $30 to $40 million. Okay. Got it. that is helpful. And we have modeled that in. So we are you know, this is an expectation. So our guidance incorporates those expectations. Okay. Perfect. that is very helpful. Then you talked a little bit about Tulsa starting to lease up. it is good to see somebody go in there. How are discussions going for the remainder of that building? And what is your confidence level there to kind of strengthen the occupancy at that specific site? Yeah. I mean, I think our confidence is relatively high. it is a it is a very high quality building. it is, you know, it is a very high quality building in Downtown Tulsa. there is not a lot of competing product of that quality. So sort of if you are looking for class a space where the ones you go to look to. You know, we have got 1 lease done, and we are in discussion on at least 1 more of relatively significant size. So, you know, we sort of feel pretty good about that over time. Awesome. that is great. Well, thank you guys for taking the questions and speaking with me. And last minute. No problem. Thank you very much. Operator: I would now like to turn the floor back over to Paul H. McDowell for closing comments. Paul H. McDowell: Thank you everyone for joining us on the call. And we look forward to updating you again at our third quarter call in the fall. Thank you. Operator: This will conclude today's conference. You may disconnect at this time, and thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Orion Properties (ONL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Orion Office REIT Inc.? Here are five stocks we like better. Orion raised its 2026 outlook, narrowing Core FFO guidance to $0.72–$0.77 per share from $0.69–$0.76, while lowering its expected net debt-to-adjusted EBITDA range to 6.0x–6.8x. Second-quarter Core FFO was stable at $0.20 per share. The company continued reducing leverage through asset sales, generating nearly $84 million in gross proceeds during the first half and repaying about $61 million of debt. Net debt to annualized adjusted EBITDA fell to 5.4x from 6.4x a year earlier, with approximately $177 million in liquidity. Orion’s strategic review remains ongoing, with multiple parties conducting due diligence, although management cautioned that no transaction is assured. Leasing activity improved, with 673,000 square feet completed year to date and dedicated-use properties growing to 38.7% of annualized base rent. Orion Office REIT (NYSE:ONL) reported second-quarter 2026 results that included stable Core FFO per share, lower leverage and updated full-year guidance, while the company continued its strategic review process and advanced portfolio repositioning efforts. Chief Executive Officer Paul McDowell said the strategic options review, announced in late January, remains underway with financial advisers Wells Fargo and JPMorgan. The company has conducted broad outreach to interested parties and made property and corporate information available through a virtual data room to parties that executed non-disclosure agreements. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “With several parties continuing to conduct diligence, we believe it is in shareholders’ interest to see that work through to its reasonable conclusion rather than set arbitrary deadlines,” McDowell said. He added that Orion cannot assure investors that the process will result in any particular transaction. In response to an analyst question, McDowell said the company will announce the outcome once the review concludes, including if it elects to continue pursuing its independent business plan. For the quarter ended June 30, Orion reported revenue of $34.3 million, compared with $37.3 million in the year-earlier period. Net income totaled $24.6 million, or $0.43 per share, and included a $28.8 million gain primarily related to the sale of two operating properties. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Core FFO was $11.8 million, or $0.20 per share, essentially unchanged from the second quarter of 2025. Adjusted EBITDA was $17.2 million, compared with $18 million a year earlier. Chief Financial Officer Gavin Brandon said general and administrative expense declined to $4.6 million from $4.8 million, reflecting lower headcount through attrition and other actions. G&A included approximately $100,000 of strategic-review costs during the quarter and $200,000 year to date. → No Hangover: Revisiting Microsoft One Week After Earnings Capital expenditures and leasing costs were $8.9 million, down from $15.6 million a year earlier. McDowell said the company had spent about $27 million year to date on a broad category of capital expenditures, including building and site upgrades, tenant improvements, lease incentives and leasing commissions. He said additional capital expenditures for the remainder of 2026 could range from $30 million to $40 million, an expectation incorporated into guidance. Orion raised and narrowed its 2026 Core FFO outlook to $0.72 to $0.77 per diluted share, from a prior range of $0.69 to $0.76. The company lowered its expected net debt-to-adjusted EBITDA range to 6.0x to 6.8x, from 6.5x to 7.3x, while reaffirming G&A guidance of $19.8 million to $20.8 million. Brandon attributed the updated guidance to reduced operating expenses, improved leasing expectations, lease termination income, and property tax appeals and refunds. McDowell said Orion completed 673,000 square feet of leasing so far in 2026, including 202,000 square feet during the second quarter and 116,000 square feet after quarter-end. The post-quarter leasing included the company’s first new lease at its Tulsa property. The portfolio’s weighted average lease term was 6.2 years at the end of the quarter, compared with 5.5 years at the end of the second quarter of 2025. Consolidated occupancy was 78.1%, down from the first quarter due to scheduled move-outs and dispositions but up from 76.8% a year earlier. Cash rent spreads on second-quarter renewals were down 7.7% when comparing ending rent under the prior term with starting rent under the new term. However, the spread was positive 2.1% when comparing current ending rents with new ending rents, reflecting escalations during the new lease terms. For the first half, cash rent spreads were down 0.2% on renewals and up 7.1% using the latter comparison. The company’s leasing pipeline exceeded 1.1 million square feet, representing more than 17% of the total portfolio in either discussion or documentation stages, McDowell said. The pipeline includes prospective long-term leases for vacant space and some full-building renewals. Management said it now has four vacant properties, down from roughly 11 or 12 at an earlier point. McDowell said the company evaluates vacant properties based on whether the expected leasing demand and potential returns justify additional investment. He cited leasing progress at properties in Parsippany, New Jersey, and Buffalo, New York, while saying the company is evaluating the remaining vacant assets individually. During the first half, Orion generated nearly $84 million of gross proceeds from sales of four properties and a 37.4-acre campus in Deerfield, Illinois. Second-quarter sales generated $70.6 million of aggregate gross proceeds and included a property sold to its existing tenant at a 5.6% cash capitalization rate and a recently vacated property sold to an adjacent user at an implied 5% cash capitalization rate on expiring rent. Sale proceeds supported roughly $61 million of debt repayment, including more than $35 million paid down on the company’s CMBS loan during the quarter. Net debt to annualized adjusted EBITDA was 5.4x at quarter-end, compared with 6.4x a year earlier. Total debt outstanding was $436.6 million, compared with $483 million a year earlier, excluding the company’s proportionate share of unconsolidated joint venture debt. Orion reported total liquidity of about $177 million as of June 30, including $63.5 million of cash, cash equivalents and restricted cash, along with $113 million of availability under its revolving credit facility. Its next significant debt maturity is in February 2028, with an option to extend it to February 2029. McDowell said sales of vacant or near-term vacant properties in 2025 and 2026 are expected to reduce annual carrying costs by more than $12 million. Property operating costs improved by $3.4 million in the second quarter and $5.1 million in the first half from the comparable 2025 periods. The company is also seeking to increase its exposure to dedicated-use assets, including medical, laboratory, research and development, flex and government properties. Such assets represented 38.7% of annualized base rent at quarter-end, up from 37.1% in the first quarter and 32.6% a year earlier. McDowell said the long-term goal is for dedicated-use assets to represent well more than a majority of the portfolio, though the pace will depend partly on access to outside capital. Orion’s board declared a quarterly cash dividend of $0.02 per share for the third quarter, payable Oct. 15 to stockholders of record as of Sept. 30. Orion Office REIT is a publicly traded real estate investment trust that acquires, owns and manages a diversified portfolio of Class A office properties across high-growth U.S. markets. The company focuses on suburban and infill locations, targeting properties with strong tenant credit profiles and long-term lease structures. Its business strategy emphasizes active asset management, capital recycling and selective development to enhance income stability and potential total return for shareholders. Orion Office REIT debuted on the New York Stock Exchange under the ticker ONL following a spin-off from Government Properties Income Trust in June 2021, though many of its core assets trace back to acquisitions made as early as 2013. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Orion Office REIT Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenues: $34.3 million in Q2 2026, compared to $37.3 million in Q2 2025. Net Income: $24.6 million, or $0.43 per share, including a $28.8 million gain from the sale of two operating properties. Core FFO: $11.8 million, or $0.20 per share, roughly flat year-over-year. Adjusted EBITDA: $17.2 million, versus $18.0 million in the prior-year quarter. G&A Expense: $4.6 million in Q2 2026, down from $4.8 million in Q2 2025. CapEx and Leasing Costs: $8.9 million in Q2 2026, compared to $15.6 million in Q2 2025. Net Debt to Annualized Adjusted EBITDA: 5.4 times at quarter end, improved from 6.4 times a year ago. Total Liquidity: Approximately $177 million, including $63.5 million in cash and restricted cash and $113 million available under the credit facility. Outstanding Debt: $436.6 million at quarter end, down from $483 million a year ago. Net Debt to Gross Real Estate Assets: 27.9%, compared to 29.5% a year ago. 2026 Core FFO Guidance: Raised to $0.72 to $0.77 per diluted share, up from the prior range of $0.69 to $0.76. 2026 Net Debt to Adjusted EBITDA Guidance: Lowered to 6.0 to 6.8 times, from the previous range of 6.5 to 7.3 times. Warning! GuruFocus has detected 8 Warning Signs with ONL. Is ONL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Completed 673,000 square feet of leasing year-to-date, including 202,000 square feet in Q2 and 116,000 square feet post-quarter-end, with a strong pipeline of over 1.1 million square feet in discussion or documentation. Improved portfolio quality metrics: WALT increased to 6.2 years from 5.5 years year-over-year, and occupancy rose to 78.1% from 76.8% in Q2 2025. Significant deleveraging: net debt to annualized Adjusted EBITDA improved to 5.4x from 6.4x year-over-year, and total debt reduced by $183 million since spin-off. Successful asset sales: generated $84 million in gross proceeds from four property sales and a land parcel, with increasing average sale prices per square foot for vacant properties. Raised 2026 Core FFO guidance to $0.72-$0.77 per share from $0.69-$0.76, and lowered net debt to Adjusted EBITDA guidance to 6.0-6.8x from 6.5-7.3x. Reduced property operating expenses by $3.4 million in Q2 and $5.1 million year-to-date, with estimated annual savings of $12 million from vacant property sales. Increased dedicated use assets (DUA) to 38.7% of annualized base rent, up from 32.6% a year ago, aligning with strategic focus. Lowered G&A expenses to $4.6 million in Q2 from $4.8 million year-over-year, despite ongoing strategic review costs. Strong liquidity position with $177 million total, including $63.5 million cash and $113 million revolver capacity. Continued strategic review with multiple parties conducting diligence, indicating potential for value realization. Occupancy declined to 78.1% from 80.1% in Q1 2026 due to scheduled move-outs and opportunistic dispositions, though up year-over-year. Cash rent spreads on renewals were down 7.7% in Q2, though up 2.1% when including escalations over the new lease term. Total revenues decreased to $34.3 million from $37.3 million year-over-year, reflecting asset sales and lower occupancy. Core FFO per share remained flat at $0.20 in Q2 compared to the prior year, indicating limited near-term earnings growth. Adjusted EBITDA declined to $17.2 million from $18.0 million year-over-year, partly due to asset sales. CapEx and leasing costs are expected to be $30-$40 million for the remainder of 2026, which could pressure cash flows. The strategic review process has no set timeline, creating uncertainty for shareholders, and may not result in a transaction. The company's share price remains discounted, limiting access to outside capital for faster portfolio transformation. A government-leased asset is under contract to sell due to tenant downsizing risk, highlighting potential tenancy challenges. The portfolio still has a few vacant assets, including the Tulsa property, which is only beginning to lease up. Q: Can you provide an update on the strategic options process that began in late January?A: Paul McDowell (CEO) stated that the company, with advisors Wells Fargo and JPMorgan, has conducted a robust effort with broad outreach and a virtual data room. Several parties are continuing diligence, and management believes it is in shareholders' interest to see the process through to a reasonable conclusion rather than set arbitrary deadlines. He offered no assurance that the process will result in a transaction but confirmed that an announcement will be made when a conclusion is reached, including if they decide to continue with their independent business plan. Q: Why did you decide to sell an asset leased to the government, which seems to meet your criteria for the existing portfolio?A: Christopher Day (COO) explained that the asset under contract to sell is one where the government tenant is looking to downsize, creating risk around the tenancy. Additionally, the asset is in a very remote area, and after analysis, the disposition was deemed the best overall outcome for that specific property. Q: What is your process for deciding whether to sell or re-lease vacant assets?A: Paul McDowell (CEO) detailed a consistent, dynamic process. The team evaluates whether an asset is worth the capital investment to lease up over time or if it lacks long-term demand factors. He cited examples of successful re-leasing efforts in Parsippany, New Jersey, and Buffalo, New York, while noting that most vacant properties have been moved off the balance sheet. The remaining few are being evaluated based on their potential for leasing momentum. Q: What percentage of the current portfolio would you characterize as non-core?A: Paul McDowell (CEO) stated that based on expectations for long-term leases, only a few percent of the portfolio is considered non-core at this stage. Management feels confident about the remaining assets' ability to stay leased or be leased up if vacant, though they may still execute some vacant sales depending on how leasing shapes up. Q: What is the target percentage for dedicated use assets (DUA) in the near term and over the next three to five years?A: Paul McDowell (CEO) noted that long-term progress toward a majority DUA portfolio will depend on access to outside capital, which is currently not supported by the share price. Working within the existing portfolio, progress will be steady but incremental through capital recycling. If outside capital becomes accessible, the transition could occur much more rapidly. Q: What are your expectations for capital expenditures (CapEx) for the remainder of the year?A: Paul McDowell (CEO) reported that roughly $27 million in CapEx has been spent year-to-date, a figure that includes building updates, tenant improvements, and leasing commissions. He expects an additional $30 million to $40 million in CapEx for the remainder of the year, noting the number is volatile due to tenant drawdowns on existing obligations. These expectations are incorporated into the company's guidance. Q: How are discussions going for the remainder of the Tulsa property, and what is your confidence level in strengthening occupancy there?A: Paul McDowell (CEO) expressed relatively high confidence in the Tulsa property, describing it as a high-quality building in downtown Tulsa with limited competing Class A product. After completing the first lease, they are in discussions on at least one more lease of relatively significant size, and they feel good about the property's prospects over time. Q: Can you elaborate on the drivers behind the improved 2026 guidance for Core FFO and net debt to Adjusted EBITDA?A: Gavin Brandon (CFO) confirmed the guidance raise, with Core FFO now expected to range from $0.72 to $0.77 per diluted share, up from $0.69 to $0.76. Net debt to Adjusted EBITDA is now expected to range from 6 to 6.8 times, down from 6.5 to 7.3 times. The improvements are driven by recurring items like reduced operating expenses and improved leasing expectations, as well as one-time items such as lease termination income and property tax appeals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is conducting a robust strategic review process with financial advisors, prioritizing a thorough diligence period over arbitrary deadlines to maximize shareholder value. The portfolio strategy is shifting toward Dedicated Use Assets (DUA) such as medical, lab, and R&D facilities, which now represent 38.7% of annualized base rent, up from 32.6% a year ago. Leasing velocity remains strong with 673,000 square feet completed year-to-date, driven by improving demand for high-quality Class A space in specific markets like Buffalo and Tulsa. Aggressive disposition of noncore assets has significantly reduced property operating expenses, with 2025 and 2026 sales estimated to save over $12 million in annual carrying costs. Deleveraging efforts have improved the net debt to annualized adjusted EBITDA ratio to 5.4x, a full turn better than the prior year, funded primarily by opportunistic asset sales. Management attributes the 7.7% decline in cash rent spreads on renewals to the timing of starting rents, noting that spreads are up 2.1% when accounting for escalations over the full lease term. Core FFO guidance for 2026 was raised to a range of $0.72 to $0.77 per share, reflecting improved leasing expectations and successful property tax appeals. The company expects to spend between $30 million and $40 million in additional CapEx for the remainder of the year, though timing remains dependent on tenant drawdowns. Management anticipates the percentage of DUA properties will continue to increase through the targeted acquisition of specialized assets and the exit of traditional suburban office space. Future growth in core FFO is expected to be driven by the stabilization of vacant properties and the continued reduction of interest expense through debt repayment. The strategic review process remains ongoing with no guaranteed outcome, though management committed to announcing a conclusion once the diligence phase is finalized. A nonrecurring gain of $28.8 million was recorded in Q2, primarily from the opportunistic sale of two operating properties, which does not impact core FFO. Significant headcount reductions over the past two years, including at the executive level, have been implemented to manage overhead and improve G&A efficiency. The company successfully refinanced its revolving and CMBS debt, pushing the next significant maturity out to February 2028. Strategic review costs impacted results by approximately $100,000 in the second quarter and $200,000 year-to-date. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that a specific government asset was sold because the tenant intended to downsize and the property was in a remote location. The disposition was deemed the best outcome to avoid future vacancy risk and high carrying costs. The company evaluates whether the long-term demand and required capital investment justify re-tenanting or if a sale is more prudent. Successes in Buffalo and Parsippany demonstrate a willingness to invest in Class A assets where market demand remains strong. Management emphasized transparency but noted they do not control the timing of third-party diligence. A formal announcement will be made regardless of the outcome, including if the company decides to remain independent. The transition to a majority-DUA portfolio will be incremental and funded by recycling capital as long as the share price does not support outside capital raises. Access to external capital would allow for a much more rapid shift in portfolio concentration.

- Completed 673,000 Square Feet of Leasing Year-to-Date, Including 202,000 Square Feet in the Second Quarter and 116,000 Square Feet Subsequent to Quarter End -- Sold Four Properties and the 37.4 Acre Deerfield, IL Campus Year-to-Date for $83.7 Million -- Reduced Debt Obligations by $60.7 Million Including $35.7 Million on the CMBS Loan in the Second Quarter -- Declares Dividend for Third Quarter 2026 -- Raises 2026 Core FFO Guidance Range and Lowers 2026 Net Debt to Adjusted EBITDA Range - PHOENIX, August 06, 2026--(BUSINESS WIRE)--Orion Properties Inc. (NYSE: ONL) ("Orion" or the "Company"), a fully-integrated real estate investment trust ("REIT") which owns a diversified portfolio of single-tenant net lease office properties including dedicated use assets located across the United States, announced today its operating results for the second quarter ended June 30, 2026. Paul McDowell, Orion’s Chief Executive Officer, commented, "With approximately 673,000 square feet of leasing completed through the end of July, we continue to execute on our strategy to further stabilize the portfolio as we build on our leasing momentum the past couple years. At the same time, we advanced our disposition program, closing on two property sales and the 37.4 acre Deerfield, Illinois campus for $70.6 million during the quarter. In concert with these sales, we reduced debt during the quarter by $60.7 million bringing our Net Debt to Annualized Adjusted EBITDA to 5.4x. These efforts and the raising of our 2026 financial outlook reflect the tangible progress we’re making toward our target of driving sustainable Core FFO per share growth over time. We remain committed to maximizing value for our stockholders and continue to closely evaluate strategic options as our review process is ongoing." Second Quarter 2026 Financial Overview Total revenues of $34.3 million $0.42 per diluted share Funds from Operations ("FFO") of $9.2 million, or $0.16 per diluted share Core FFO of $11.8 million, or $0.20 per diluted share EBITDA of $45.5 million, EBITDAre of $16.7 million and Adjusted EBITDA of $17.2 million Net Debt to Annualized Most Recent Quarter Adjusted EBITDA of 5.4x Financial ResultsDuring the second quarter of 2026, the Company generated total revenues of $34.3 million, as compared to $37.3 million in the same quarter of 2025. The Company’s net income attributable to common stockholders was $24.6 million, or $0.43 and $0.42 per basic and diluted share, respectively, during the second quarter of 2026, as compared to a net loss attributable to common stockholders of $(25.1) million, or $(0.45) per basic and diluted share in the same quarter of 2025. The increase in the Company’s net income during the second quarter was primarily driven by an increase in gains on dispositions of real estate assets of $27.9 million and a decrease in impairment charges of $19.5 million, each versus the same quarter of the prior year. Core FFO for the second quarter of 2026 was $11.8 million, or $0.20 per diluted share, as compared to $11.5 million, or $0.20 per diluted share in the same quarter of 2025. Leasing ActivityDuring the second quarter of 2026, the Company entered into the following lease transactions (square feet in thousands): Subsequent to quarter end, the Company completed a new 10.5-year lease for approximately 19,000 square feet at its property in Plano, Texas, a new 10.6-year lease for approximately 28,000 square feet at its property in Tulsa, Oklahoma and a 3.0-year lease renewal for 69,000 square feet at its property in Salem, Oregon. Disposition ActivityDuring the second quarter of 2026, the Company closed on the sale of two Operating Properties and the 37.4 acre Deerfield, Illinois campus for an aggregate gross sales price of $70.6 million. The two Operating Properties comprise a total of approximately 260,000 square feet for an aggregate gross sales price of $57.5 million. No building square footage is associated with the Deerfield, Illinois properties because we demolished the six buildings during the fourth quarter of 2025. As of August 6, 2026, the Company has an agreement in place to sell one property currently leased to the United States Government for a gross sales price of $3.4 million. The Company’s pending sale agreement is subject to a variety of conditions outside of our control, such as the buyer’s satisfactory completion of its due diligence and therefore, it cannot provide any assurance the transaction will close on the agreed upon price or other terms, or at all. Acquisition ActivityDuring the three months ended June 30, 2026, the Company acquired the fee simple interest in one parcel of land at a property located in Lincoln, Nebraska. The Company’s ownership interest of this property was previously comprised of a long-term ground lease interest. The gross purchase price for the fee interest was $0.6 million, which includes capitalized external acquisition-related expenses. As a result of the transaction, $2.1 million that was previously classified as a below-market right-of-use asset, net was reclassified from other assets, net to land in the Company’s consolidated balance sheet as of June 30, 2026. Real Estate PortfolioAs of June 30, 2026, the Company’s real estate portfolio consisted of 57 Operating Properties. Annualized Base Rent was $108.0 million, with 69.1% of Annualized Base Rent derived from Investment-Grade Tenants and 38.7% derived from properties deemed to be Dedicated Use Assets, or DUAs. The Company’s Occupancy Rate was 78.1% and the Weighted Average Remaining Lease Term was 6.2 years. Balance Sheet and LiquidityAs of June 30, 2026, the Company had principal outstanding of $436.6 million, comprised of: $316.6 million securitized mortgage loan (the "CMBS Loan") $102.0 million under the Company’s credit facility revolver $18.0 million mortgage loan secured by the Company’s San Ramon, California property (the "San Ramon Loan") During the three months ended June 30, 2026, the Company reduced debt obligations by $60.7 million, including $35.7 million on the CMBS Loan. The Company’s maximum borrowing capacity under the credit facility revolver is $215.0 million and amounts borrowed by the Company may be prepaid and re-borrowed from time to time. The Company’s outstanding borrowings under the credit facility revolver bear interest at a floating rate of SOFR plus a margin of 2.75% and the maturity date is February 18, 2028, subject to two six-month borrower extension options until February 18, 2029 if we satisfy certain conditions. The credit facility revolver is a senior secured fully recourse borrowing facility. The interest rate on the CMBS Loan is fixed at 4.971% and the CMBS Loan is scheduled to mature on February 11, 2029, subject to two borrower extension options for a total of 18 months if certain conditions have been satisfied. Subject to customary exceptions, the CMBS Loan is a non-recourse loan and is secured by first-priority mortgages on 18 of the Company’s owned properties. During June 2026, the Company sold one property encumbered under the CMBS Loan and used the net proceeds of $34.4 million to prepay a portion of the outstanding principal balance on the CMBS Loan. As of June 30, 2026, the Company had $176.5 million of liquidity, comprising $63.5 million of cash and cash equivalents and restricted cash as well as $113.0 million of available capacity on the Company’s credit facility revolver. DividendOn August 5, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.02 per share for the third quarter of 2026, payable on October 15, 2026, to stockholders of record as of September 30, 2026. Strategic Option Review ProcessOn January 26, 2026, the Company announced a review of strategic options. The strategic options may include, among other things, the consideration of potential acquisition and merger targets, the potential sale of the Company, and continuing to operate as an independent publicly traded entity. As of August 6, 2026, the strategic options review process remains ongoing as we continue to actively engage with several parties. There can be no assurance that the strategic options review process will result in Orion pursuing any particular transaction or other strategic outcome. The Company has not set a timetable for completion of this process. 2026 OutlookThe Company is providing the following updated guidance estimates for 2026. The Company’s 2026 General and Administrative Expense guidance range of $19.8 million to $20.8 million is unchanged from the previous quarter. The Company’s guidance is based on current plans and assumptions and subject to the risks and uncertainties more fully described in the Company’s filings with the SEC. The Company reminds investors that its guidance estimates include assumptions with regard to its shift in portfolio concentration towards more dedicated use assets, rent receipts and property operating expense reimbursements, the amount and timing of acquisitions, dispositions, leasing transactions, capital expenditures, interest rate fluctuations and expected borrowings, the cost of the Company’s ongoing strategic review process and other factors. These assumptions are uncertain and difficult to accurately predict and actual results may differ materially from our estimates. See "Forward-Looking Statements" below. Webcast and Conference Call InformationOrion will host a webcast and conference call to review its results at 10:00 a.m. ET on Friday, August 7, 2026. The webcast and call will be hosted by Paul McDowell, Chief Executive Officer and President, and Gavin Brandon, Chief Financial Officer, Executive Vice President and Treasurer. To participate, the webcast can be accessed live by visiting the "Investors" section of Orion’s website at onlreit.com/investors. To join the conference call, callers from the United States and Canada should dial 1-844-539-3703, and international callers should dial 1-412-652-1273, ten minutes prior to the scheduled call time. Replay InformationA replay of the webcast may be accessed by visiting the "Investors" section of Orion’s website at onlreit.com/investors. The conference call replay will be available after 1:00 p.m. ET on Friday, August 7, 2026 through 11:59 p.m. ET on Friday, August 21, 2026. To access the replay, callers may dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and use passcode, 13761041. Non-GAAP Financial MeasuresTo supplement the presentation of the Company’s financial results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), this press release and the accompanying supplemental information as of and for the quarter ended June 30, 2026 (the "Supplemental Information Package") contain certain financial measures that are not prepared in accordance with GAAP, including FFO, Core FFO, Funds Available for Distribution ("FAD"), Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), and Adjusted EBITDA. Please see the attachments to this press release for how the Company defines these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure. About Orion Properties Inc.Orion Properties Inc. is an internally-managed real estate investment trust engaged in the ownership, acquisition and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. The Company’s portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. As part of its investment strategy, the Company intends to shift its portfolio concentration over time away from traditional office properties, towards more Dedicated Use Assets. The Company was founded on July 1, 2021, spun-off from Realty Income (NYSE: O) on November 12, 2021 and began trading on the New York Stock Exchange on November 15, 2021. The Company is headquartered in Phoenix, Arizona and has an office in New York, New York. For additional information on the Company and its properties, please visit onlreit.com. About the DataThis data and other information described herein are as of and for the three and six months ended June 30, 2026, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the consolidated financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Orion Properties Inc.'s (the "Company," "Orion," "us," "our" and "we") Quarterly Reports on Form 10-Q for the periods ended June 30, 2026 and March 31, 2026 and Annual Report on Form 10-K for the year ended December 31, 2025. Unconsolidated Joint Venture The Company owns a 20% equity interest in one Unconsolidated Joint Venture which, as of June 30, 2026, owned a portfolio of six properties with an aggregate of 1.0 million leasable square feet located in six states. All assets in the joint venture portfolio are performing and the portfolio has an Occupancy Rate of 100% with a Weighted Average Remaining Lease Term of 5.8 years as of June 30, 2026. The Company has also made a member loan to the Unconsolidated Joint Venture (the "Member Loan") with an outstanding principal balance of $5.5 million as of June 30, 2026. As previously disclosed, the non-recourse mortgage notes associated with the Unconsolidated Joint Venture, which had an outstanding principal balance of $125.6 million as of August 6, 2026, experienced a payment default at maturity in February 2026. The lenders’ agent under the loan has issued a default notice and has informed the joint venture that it intends to seek to compel a sale of the properties in the joint venture in order to repay the loan. During June 2026, the lenders agreed to extend the loan maturity date until July 31, 2026, to provide the Unconsolidated Joint Venture with time to consummate the sale of one of the six properties, however the sale transaction was subsequently terminated and the loan went back into default on August 1, 2026. The lenders have implemented an excess cash flow sweep and as a result of the loan default, have various additional rights and remedies that are customary in a non-recourse mortgage financing, such as the right to collect default interest, institute a proceeding for foreclosure and apply for the appointment of a receiver. The joint venture has delivered a proposed disposition strategy to the lenders for the six properties and remains in discussions with the lenders about next steps which may include a short-term extension and the requirement to sell one or more properties and utilize the proceeds to repay principal outstanding under the debt. The Company cannot provide any assurance that the Unconsolidated Joint Venture will be able to extend or refinance all or any portion of this debt obligation, complete the disposition of the six properties on favorable terms or in a timely manner, or at all, or that the lenders will not seek to enforce their remedies due to the ongoing payment default. Due to uncertainties with regard to the recovery of its investments in the Unconsolidated Joint Venture, the Company reduced the carrying value of its investment in the Unconsolidated Joint Venture to zero as of December 31, 2025, and has recorded a loan loss reserve for the entire outstanding principal balance of its Member Loan. The Company accounts for its investment in the Unconsolidated Joint Venture under the equity method of accounting and during the year ended December 31, 2025, its share of losses exceeded the carrying amount of its investment. Accordingly, the Company has suspended recognition of its share of additional losses and will resume recognizing its share of earnings only after the Unconsolidated Joint Venture generates net income that exceeds the previously recognized losses. The Company has not recognized any further losses in excess of its investment and no contingent liabilities have been recorded related to the Unconsolidated Joint Venture as of and for the three and six months ended June 30, 2026. Additionally, beginning January 1, 2026, the Company is recording management fees from the Unconsolidated Joint Venture and interest income on the Member Loan on a cash basis rather than an accrual basis. Historically, the Company has included its proportionate share of the Unconsolidated Joint Venture's financial statement line items and operating metrics in its non-GAAP financial results and other operating metrics. This includes, among other line items and metrics, the Company’s proportionate share of Annualized Base Rent, Occupied Square Feet, Rentable Square Feet and Weighted Average Remaining Lease Term from the Unconsolidated Joint Venture properties, and Gross Real Estate Investments, outstanding principal balance under debt obligations, cash and cash equivalents, and restricted cash from the Unconsolidated Joint Venture’s balance sheet. As a result of the factors described above, including the suspension of equity method accounting on the Unconsolidated Joint Venture, the full loan loss reserve recorded against its Member Loan and the recording of fees and interest income on a cash basis, beginning January 1, 2026, the Company no longer includes the proportionate share of the Unconsolidated Joint Venture’s financial statement line items and operating metrics in its non-GAAP financial results and other operating metrics. Definitions Annualized Base Rent ("ABR") is the monthly aggregate cash amount charged to tenants under our leases (including monthly base rent receivables and certain fixed contractually obligated reimbursements by our tenants), as of the final date of the applicable period, multiplied by 12. Annualized Base Rent is not indicative of future performance. Dedicated Use Asset is a property that includes a substantial specialized use component such as government, medical, laboratory and research and development, and flex operations, and would therefore not be considered a traditional office property. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") and Adjusted EBITDADue to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income (loss) computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, gains or losses from disposition of real estate assets. For periods prior to January 1, 2026, we also adjust for our proportionate share of EBITDAre adjustments related to the Unconsolidated Joint Venture. We calculated EBITDAre in accordance with Nareit's definition described above. In addition to EBITDAre, we use Adjusted EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Adjusted EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as transaction related expenses. We also exclude certain non-cash items such as impairments of intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, amortization of intangibles, above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities and, for periods prior to January 1, 2026, our proportionate share of Adjusted EBITDA adjustments related to the Unconsolidated Joint Venture. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Adjusted EBITDA should not be considered as an alternative to net income (loss), as determined under GAAP. The Company uses Adjusted EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Funds Available for Distribution ("FAD")Funds available for distribution, as defined by the Company, represents Core FFO, as defined below, modified to exclude capital expenditures and leasing costs, as well as certain non-cash items such as amortization of above market leases, net of amortization of below market lease liabilities, straight-line rental revenue, and, for periods prior to January 1, 2026, our proportionate share of FAD adjustments related to the Unconsolidated Joint Venture and amortization of the Unconsolidated Joint Venture basis difference. Management believes that adjusting these items from Core FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides useful information regarding the Company's ability to fund its dividend. However, not all REITs calculate FAD and those that do may not calculate FAD the same way, so comparisons with other REITs may not be meaningful. FAD should not be considered as an alternative to net income (loss) or cash flow provided by (used in) operating activities as determined under GAAP. Nareit Funds from Operations ("Nareit FFO" or "FFO") and Core Funds from Operations ("Core FFO")Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of the Company. FFO is not equivalent to our net income (loss) as determined under GAAP. Nareit defines FFO as net income (loss) computed in accordance with GAAP adjusted for gains or losses from disposition of real estate assets, depreciation and amortization of real estate assets, impairment write-downs on real estate and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. For periods prior to January 1, 2026, we also adjust for our proportionate share of FFO adjustments related to the Unconsolidated Joint Venture. We calculate FFO in accordance with Nareit's definition described above. In addition to FFO, we use Core FFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. Core FFO, as defined by the Company, excludes from FFO items that we believe do not reflect the ongoing operating performance of our business such as transaction related expenses, amortization of deferred financing costs, amortization of deferred lease incentives, net, equity-based compensation, amortization of premiums and discounts on debt, net and gains or losses on extinguishment of swaps and/or debt, and, for periods prior to January 1, 2026, our proportionate share of Core FFO adjustments related to the Unconsolidated Joint Venture. We believe that FFO and Core FFO allow for a comparison of the performance of our operations with other publicly-traded REITs, as FFO and Core FFO, or a substantially similar measure, are routinely reported by publicly-traded REITs, each adjust for items that we believe do not reflect the ongoing operating performance of our business and we believe are often used by analysts and investors for comparison purposes. For all of these reasons, we believe FFO and Core FFO, in addition to net income (loss), as determined under GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and Core FFO the same way, so comparisons with other REITs may not be meaningful. FFO and Core FFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate Core FFO and its use as a non-GAAP financial performance measure. Net Debt, Principal Outstanding and Adjusted Principal OutstandingPrincipal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. For periods prior to January 1, 2026, Adjusted Principal Outstanding includes the Company's proportionate share of the Unconsolidated Joint Venture's outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined under GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and, for periods prior to January 1, 2026, the Company's proportionate share of the Unconsolidated Joint Venture's cash and cash equivalents. Beginning January 1, 2026, the Company has revised its definition and calculation of Net Debt to also add restricted cash to the amounts that reduce the Company’s Adjusted Principal Outstanding under debt obligations. This change in definition has also been applied retrospectively for comparison purposes and, for periods prior to January 1, 2026, also includes the Company’s proportionate share of restricted cash from the Unconsolidated Joint Venture. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Operating Income ("NOI"), Cash NOI, Trailing NOI and Trailing Cash NOINOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents total revenues less property operating expenses and excludes fee revenue earned for services to the Unconsolidated Joint Venture, impairment, depreciation and amortization, general and administrative expenses, and transaction related expenses. Cash NOI excludes the impact of certain GAAP adjustments included in rental revenue, such as straight-line rental revenue, amortization of above-market intangible lease assets and below-market lease intangible liabilities, and amortization of deferred lease incentives. For periods prior to January 1, 2026, Cash NOI includes the proportionate share of such amounts from properties owned by the Unconsolidated Joint Venture. Trailing NOI and Trailing Cash NOI represent trailing 12-month NOI and Cash NOI, calculated for the most recent 12-month period as of the applicable date. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income in accordance with GAAP. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies. Non-Operating Properties refers to all properties owned and consolidated by the Company as of the applicable date which have been excluded from Operating Properties due to the properties being vacant and repositioned, redeveloped, developed or held for sale. Unconsolidated Joint Venture means the Company's investment in the unconsolidated joint venture with an affiliate of Arch Street Capital Partners, LLC. Forward-Looking Statements Information set forth herein includes "forward-looking statements" which reflect the Company's expectations and projections regarding future events and plans, future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, expected borrowings and financing costs and the payment of future dividends. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," "guidance," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to the Company and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, 2026 financial outlook, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. These factors include, among other things, those discussed below. Information regarding historical rent collections should not serve as an indicator of future rent collections. We disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as may be required by law. The following are some, but not all, of the assumptions, risks, uncertainties and other factors that could cause the Company’s actual results to differ materially from those presented in the forward-looking statements: the risk of increases in interest rates, including that our borrowing costs may increase and we may be unable to extend or refinance our debt obligations on favorable terms and in a timely manner, or at all; the risk of inflation, including that our operating costs, such as insurance premiums, utilities, real estate taxes, capital expenditures and repair and maintenance costs, may rise; conditions associated with the global market, including an oversupply of office space, tenant credit risk and general economic conditions and geopolitical conditions; our strategic review process is and will continue to be costly and time-consuming and may not result in a transaction, and any transaction that occurs may not increase stockholder value; the risk that our strategic review process may disrupt our operations, divert management’s attention and create uncertainty for tenants, employees and counterparties; the risk that recent changes in United States trade policy and the imposition of new tariffs continue to create disruption in macroeconomic conditions and could adversely impact our lenders, tenants and prospective tenants, and cause them to reduce or decline to do business with us or fail to meet their obligations to us; the extent to which changes in workplace practices and office space utilization, including remote and hybrid work arrangements, and changes in government budgetary priorities, will continue and the impact that may have on demand for office space at our properties; our ability to acquire new properties, convert certain vacant properties to multi-tenant use and sell non-core assets on favorable terms and in a timely manner, or at all; risks associated with acquisitions, including the risk that we may not be in a position, or have the opportunity in the future, to make suitable property acquisitions on advantageous terms and/or that such acquisitions will fail to perform as expected; our assumptions concerning tenant utilization and renewal probability of dedicated use assets, and our ability to successfully execute on our strategy to shift our portfolio concentration over time away from traditional office properties, towards more dedicated use assets; our ability to comply with the terms of our credit agreements or to meet the debt obligations on our properties; our ability to access the capital markets to raise additional equity or refinance maturing debt on favorable terms and in a timely manner, or at all; changes in the real estate industry and in performance of the financial markets and interest rates and our ability to effectively hedge against interest rate changes; the risk of tenants defaulting on their lease obligations, which is heightened due to our focus on single tenant properties; our ability to renew leases with existing tenants or re-let vacant space to new tenants on favorable terms and in a timely manner, or at all; the cost of rent concessions, tenant improvement allowances and leasing commissions; the potential for termination of existing leases pursuant to tenant termination rights; the amount, growth and relative inelasticity of our expenses; risks associated with the ownership and development of real property; risks accompanying our investment in and the management of OAP/VER Venture, LLC (the "Unconsolidated Joint Venture"), our unconsolidated joint venture, in which we hold a non-controlling ownership interest, including that the Unconsolidated Joint Venture may be unable to extend or refinance all or any portion of its mortgage debt obligations which are subject to an ongoing payment default that occurred at maturity or complete the disposition of the six joint venture properties on favorable terms or in a timely manner, or at all, or that the lenders may seek to enforce their remedies due to the ongoing payment default under the Unconsolidated Joint Venture Mortgage debt, and we may be unable to recover our original investment in the Unconsolidated Joint Venture, which we have written down to zero or, in the case of the Member Loan, fully reserved accordingly; our ability to close pending real estate transactions, which may be subject to conditions that are outside of our control; we may change our dividend policy at any time, and therefore the amount, timing and continued payment of dividends are not assured; our properties may be subject to impairment charges; risks resulting from losses in excess of insured limits or uninsured losses; risks associated with the potential volatility of our common stock; and the risk that we may fail to maintain our income tax qualification as a real estate investment trust. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available on the SEC’s website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law. ORION PROPERTIES INC.CORE FUNDS FROM OPERATIONS PER DILUTED SHARE - 2026 GUIDANCE(Unaudited) The Company expects its 2026 Core FFO per diluted share to be in a range between $0.72 and $0.77. This guidance assumes: Net Debt to Adjusted EBITDA: 6.0x to 6.8x General & Administrative Expenses: $19.8 million to $20.8 million The estimated net loss per diluted share is not a projection and is provided solely to satisfy the disclosure requirements of the SEC. The Company does not provide a reconciliation of Net Debt to Adjusted EBITDA guidance to the most directly comparable GAAP measure, due to the inherent difficulty and uncertainty in quantifying certain adjustments primarily related to the Company’s debt obligations and restricted cash balances. The impact of such adjustments could be significant and cannot be presented without unreasonable efforts. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806055378/en/ Contacts Investor Relations Contact: Email: [email protected] Phone: 602-675-0338