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Greetings. Welcome to Orion Properties' First Quarter 2026 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Counsel. Thank you. You may begin.

Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended 31 March 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 estimates 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. The 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 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 McDowell, and Chief Financial Officer, Gavin Brandon, and joining us for the Q&A session will be Chris Day, our Chief Operating Officer. With that, I'm now going to turn the call over to Paul McDowell.

Good morning, everyone, and thank you for joining us. I would like to start the call today with a few comments about Orion's strategic options review process, which is ongoing and progressing well. The board and management continue to work closely and diligently with Orion's financial advisors at Wells Fargo and JPMorgan, and we remain open and fully committed to pursuing any actionable proposals that maximize shareholder value. We are conducting this process in a customary and thorough manner, and it will take time to conclude. While we have made significant progress so far, we are not yet in a position to comment on any specifics. We also can't comment on when the process will conclude, though we are working as expeditiously as possible. I also want to emphasize that the execution of our business plan continues to be positive.

Our improving results reflect ongoing confidence in our standalone prospects should the strategic review determine that is the best path forward. We appreciate your patience while we work through the strategic options process, and we'll have more to say at the appropriate time. The remainder of today's call will focus on our operating performance and the meaningful progress we continue to make on our business plan. Our strategy remains centered on the stabilization of the portfolio through increased leasing activity, the timely disposition of non-core assets, managing leverage, and very selective capital recycling into new DUA assets. We expect these efforts to result in Core FFO per share growth in 2026 and beyond. During the first quarter, we continued to build on the 2 million sq ft we leased over the past two years by completing 355,000 sq ft of leasing activity.

The leasing highlight for this quarter is a 172,000 sq ft full building lease of 12 years at our previously vacant Irving, Texas property. During 2024 and 2025, we strategically invested capital of about $5 per sq ft to enhance the common areas and improve the overall appearance of this core property, enabling us to launch an aggressive leasing effort and secure a full building tenant. Importantly, our weighted average lease term, or WALT, averaged nearly 12 years on new leases signed during the quarter. Overall, the average WALT for the consolidated portfolio continues to move in the right direction and is approaching 6 years. Cash rent spreads on the first quarter renewals were up for the fourth consecutive quarter at 2.5%.

As we have said many times before, rent spreads can and will be volatile quarter-over-quarter, though we feel positive about current trends overall. Our leasing efforts and non-core asset dispositions have resulted in our consolidated portfolio occupancy rate rising to 83.1% at the end of the first quarter, up from 73.7% in the first quarter of last year. Like rent spreads, our occupancy will show some volatility quarter-to-quarter as we have leases roll in our largely single tenant portfolio, though we see occupancy continuing to improve overall in coming years. Beyond the leasing completed year-to-date, our pipeline remains in excess of 1 million sq ft. That is in either discussion or documentation stages.

This includes several full building leases, as well as some possible longer duration renewals and new leases with terms materially greater than the average of our portfolio. Overall, we are quite pleased with leasing velocity to start the year. A second part of our strategy towards stabilization has been through the timely and strategic sale of non-core properties. Since our spin-off, we have sold 38 properties totaling 4.1 million sq ft. This includes first quarter sales of 2 vacant Northeast properties, one in Massachusetts and one in Pennsylvania, for aggregate gross proceeds of $13.1 million, as well as the second quarter sales of the 37.4 acre Deerfield, Illinois properties for $13.1 million, and the 120,000 sq ft property in Glen Burnie, Maryland for $22.5 million.

Regarding the Glen Burnie disposition, this was a very successful and accretive disposition for Orion. As the tenant's lease was terminated a few days prior to the sale, and pricing represented a 5% capitalization rate on expiring rent or $188 per square foot. In addition, we are currently under contract to sell an additional three properties for gross proceeds of $46 million, nearly all of which will be used to reduce debt. Our overall focus on selling properties, primarily with difficult re-leasing prospects and high carrying costs, has proven very effective. These sale transactions continue to substantially reduce the carry costs associated with vacant properties. Our 2025 and 2026 vacant or near-term vacant property sales are estimated to save more than $12 million in annual carrying costs.

Our ongoing targeted disposition efforts are expected to enable us to continue to reduce debt levels while still funding vital tenant improvement allowances, leasing commissions, and other capital expenditures in support of our strong leasing activity. Beyond continuing to reduce leverage, we also continue to search for and actively evaluate opportunities to recycle a modest percentage of asset sale proceeds into accretive cash flowing acquisitions. We employed this targeted approach with the $15 million acquisition of the Barilla America headquarters and R&D facility in Northbrook, Illinois during the first quarter.

It remains our intention to continue shifting our portfolio concentration towards 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. Our experience is that these assets tend to exhibit stronger renewal trends, higher tenant investment, and more durable cash flows. At quarter end, approximately 37.1% of our consolidated portfolio by annualized base rent consisted of dedicated use assets versus 32.2% at the end of the first quarter 2025.

We expect this percentage will continue to increase over time through disposition activity of traditional office and targeted acquisitions of DUA properties. We continue to evolve the portfolio toward stabilization and have positioned the company for meaningful per share Core FFO growth in the coming years. For the balance of 2026, our benchmarks will be to remain focused on improving portfolio quality, lengthen WALT, renew tenants, and fill or sell vacant space, all while prudently managing expenses and leverage as we work to maximize Orion's value for investors and potential strategic partners. With that, I'll turn the call over to Gavin.

Thanks, Paul. For the first quarter of 2026 compared to the first quarter of 2025, Orion had total revenues of $36.3 million compared to $38 million. Net loss of $0.24 per share compared to $0.17 per share. Core FFO of $0.21 per share compared to $0.19 per share. The $0.21 per share of this quarter's Core FFO includes a one-time expected lease termination payment of $1.9 million associated with our East Syracuse, N.Y. property. Adjusted EBITDA was $17.2 million compared to $17.4 million. G&A came in as expected at $5.1 million compared to $4.9 million, with the increase primarily driven by approximately $100,000 of legal expenses related to the ongoing strategic option review process and activist shareholder relations costs.

CapEx and leasing costs were $18.7 million compared to $8.3 million. The increase in CapEx in the first quarter of 2026 was primarily due to the completion of landlord and tenant improvement work relating to the acceleration in our leasing activity. As we have previously discussed, CapEx timing is dependent on when leases are signed and work is completed on properties. We expect to allocate more capital to CapEx over time as leases roll and new and existing tenants draw upon their tenant improvement allowances. Our net debt to annualized most recent quarter adjusted EBITDA was a relatively conservative 6.36 times at quarter end. As of 31st March we had total liquidity of $148.5 million, including $60.5 million of cash and cash equivalents and restricted cash, and $88 million of available revolver capacity.

Orion continues to manage leverage while maintaining significant liquidity to support our ongoing leasing efforts and provide the financial flexibility needed to execute on our business plan for the next several years. Since our spin and including a recent repayment, we have repaid a net $166 million of outstanding debt. As previously announced, during the first quarter, we entered into a new senior secured credit facility revolver, which refinances our original credit facility revolver and extends the maturity date until February 2029, inclusive of two six-month borrower extension options. The updated terms of the agreement have also right-sized our borrowing capacity and lowered the interest rate on our borrowings. As of 31st March we had $127 million outstanding and $88 million of borrowing capacity under our new credit facility revolver.

Subsequent to the quarter, we repaid $25 million and now have $113 million of available borrowing capacity. As communicated previously, we also successfully amended our CMBS loan in the first quarter. The loan modification agreement extends the maturity to August 2030, inclusive of two borrower extension options for a total of 18 months. During all extension periods, the fixed interest rate on the CMBS loan remains at 4.971%, and excess cash flows will be used by the lender to prepay the outstanding principal balance of the loan and to fund an all-purpose reserve, which we can access to pay leasing costs and capital expenditures. As of 31st March we had $352.3 million outstanding under the CMBS loan and $46.1 million in reserves. Turning to our unconsolidated joint venture.

While we have written our investment in the JV down to zero and recorded a loan loss reserve for the full amount of our member loan due to the uncertainty around the mortgage debt financing, we continue to believe that the portfolio, which is performing with an occupancy rate of 100% and a weighted average lease term of 6.1 years, has positive equity net of the mortgage debt and our outstanding member loan. We intend to continue to work with our partner and lenders to maximize the value of the portfolio and recover both our member loan and as much equity as possible. As part of these efforts, we are working on a disposition plan with our partner and the lenders and continue to explore refinancing options.

The joint venture has entered into an agreement to sell one of the properties in the portfolio, and if it closes, we intend to use the net proceeds from the sale to reduce the principal balance of the mortgage debt. As for the dividend, on 5th May, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the second quarter of 2026. Turning to our 2026 outlook. As our recent leasing and capital initiatives begin to translate into improved recurring earnings power for 2026 and beyond, we believe the positive trajectory will continue to take hold as we move ahead. Accordingly, we are affirming our previously announced guidance. Core FFO for the year is expected to range from $0.69-$0.76 per diluted share.

G&A is expected to range from $19.8 million to $20.8 million. Excluding non-cash compensation, we expect 2026 G&A will be in line or slightly better than 2025. We also do not expect G&A to rise significantly in future periods, including non-cash compensation. As a percentage of revenue and total assets, our G&A remains in line with other similarly sized public REITs. Net debt to adjusted EBITDA is expected to range from 6.5x-7.3x. With that, we will open the line for questions. Operator?

Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Matthew Erdner with JonesTrading. Please proceed with your question.

Hey, good morning, guys. Thanks for taking the question. You touched on the pipeline kind of about 1 million sq ft, you know, that you guys are talking to right now. You know, how much of that is the leases that are going to expire this year versus next year? You know, just what should we expect in terms of momentum as we, you know, progress throughout the year?

Good morning. This is Paul. A lot of the renewals that we're working on are summer 2026.

Most are for 2027 and even actually in beyond that in 2028 as well. As you know, we don't have too much lease rollover for the remainder of this year. And we've got good momentum on the renewal on the rollover for next. We also have got pretty good momentum on filling some of our vacant space. We've got a bunch of leases that we're in discussion with potential tenants for in our vacancy. So, you know, we feel, in general, pretty good about our pipeline.

You know, our pipeline has been roughly the same size for the past few quarters, you know, which is reflected in our overall leasing momentum, you know, that we had in both in 2024 and 2025 and now the beginning of 2026.

Got it. That, that's helpful. Then shifting to the guidance, you know, you guys reaffirmed there, came in at $0.21 this quarter. Just looking at that, you know, from an annualized basis, that would put you above the guidance. You know, were there any kind of one-time things or, you know, stuff that we should be thinking about that's going to drive that a little bit lower based off of that $0.21?

Sure. Gavin, why don't you answer that?

Hey. Matt Gavin here. This quarter we had a $1.9 million lease termination payment that came in on the first quarter. We also had a reimbursement from some of our G&A or our GSA work we did in Lincoln, Nebraska. The one-time reimbursement for the Lincoln, Nebraska work will be straight-lined versus recognized in the full period quarter. The $1.9 million for the lease termination income really drove up the first quarter in our model. As far as the remaining of the year goes, we haven't accrued for or expecting a significant amount of lease termination income coming in.

Got it. That's helpful. Appreciate the comments.

Thank you. Our next question comes from the line of Mitch Germain with Citizens JMP. Please proceed with your question.

Thank you very much. Paul, what's the profile of the buyers of these vacant properties, and are most of them being repurposed to other uses?

Good question, Mitch. You know, the profile's sort of mixed. The Walgreens properties, as you or the property in Deerfield, Illinois, we call it the Walgreens property. It was their former headquarters. We actually tore the buildings down there and sold raw land to a developer. The Glen Burnie property that we sold at such a terrific premium, that was sold to a user, who happened to be a next-door neighbor, so that property was, you know, very valuable to them. Over our sale process over the past few years, you know, we've had the best outcomes are from, you know, people who are gonna either repurpose the property into something else or users. When you have somebody who's just buying the property as an investor hoping to re-lease it, you know, those are the most challenging buyers, but sometimes they're the only ones in the market.

Got you. That's helpful. You only have three vacant assets remaining, which is quite an accomplishment considering, I think that metric's been, you know, kind of double-digit for you the last couple of years. Is the goal for those three remaining, are those sale candidates or is some of that part of your leasing pipeline as well?

We hope to lease all three of those properties up, Mitch. You know, we've made a lot of progress, obviously in the property in Buffalo with moving Ingram Micro into that property. The property in Tulsa, Oklahoma, is a very high quality Class A building, that is currently vacant, we've started to get some good leasing momentum there. We're in discussion and in negotiation with a few leases in that property. Our goal is to lease up that vacancy.

As you may have noticed over the past year or so, given our accelerated disposition volume, we're taking a very hard look quickly at whether or not that leasing interest is gonna turn into true leases signed in buildings. If we come to the conclusion that it is, we're gonna lease these properties up. If we come to the conclusion that leasing is stalling, we're gonna take a hard look and perhaps sell those assets. You know, just to be clear, the vacant assets we have remaining, for the most part, we expect to be able to lease up.

That's super helpful. Which leads me to, it seems like the next phase of dispositions is going to be, you know, some of your stable properties that have some WALT, fairly decent tenant, but just may not fit some of that criteria that you mentioned, you know, the critical use criteria. Is that a way to think about the next phase if there is a go-forward plan for you guys?

I think that's pretty good. I mean, I think, you know, we look at things, Mitch, as, you know, sort of everything's for sale. We'll comment on it probably next quarter. You know, one of the properties we're announcing that we, you know, we have under contract for sale is where, you know, we have the tenant is interested in buying the property, and they offered us a price we frankly couldn't refuse.

You say, okay, if you're willing to, you know, pay a, you know, a price and it makes sense for them because they're already in the building, and it makes sense for us because they're paying us a, you know, significant value for the real estate. I think we'll look at sales opportunistically, and then once we get those proceeds, we'll look at what do we do with those proceeds. You know, in the case of the property I just mentioned, we're gonna utilize it to pay down debt. In the future, we will utilize some of these, some of those sales to recycle capital into dedicated use assets, just as you described.

All right. That's it for me. Thank you.

Thank you.

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. McDowell for any final comments.

Thank you all for participating in the call today. We look forward to further updates at the end of the second quarter. Have a good day.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Greetings. Welcome to Orion Properties Inc. Year End 2025 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Emma Little, Investor Relations. Thank you. You may begin.

Thank you, and good morning, everyone. Yesterday, Orion Properties Inc. released its results for the quarter and year ended 12/31/2025, filed its 2025 Form 10-Ks 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 Properties Inc.’s guidance estimates 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. The risks are discussed in our earnings release as well as in our Form 10-Ks and other SEC filings, and Orion Properties Inc. 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 Properties Inc.’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 Properties Inc.’s Chief Executive Officer, Paul McDowell, and Chief Financial Officer, Gavin Brandon. And joining us for the Q&A session will be Chris Day, our Chief Operating Officer. With that, I am now going to turn the call over to Paul McDowell.

Good morning, everyone, and thank you for joining us on Orion Properties Inc.’s 2025 Year End Earnings Call. As recently announced, Orion Properties Inc. has begun a strategic options review process as management and the board of directors continue to explore pathways to unlock value for our shareholders. Since this process is in the early stages, we will focus today's call on our operating performance and the tremendous progress we made further stabilizing the portfolio and executing our business plan during 2025, which has now positioned us for core FFO earnings growth in 2026 and beyond. We completed over 900,000 square feet of leasing in 2025, on top of the 1,100,000 square feet we leased in 2024, reflecting an improving market backdrop. We also signed an additional 183,000 square feet after year end. These are meaningful volumes, particularly given the reduced size of our portfolio and have really moved the needle to enhance the quality and stability of our lease roll. One critical metric to measure our success is weighted average lease term, or WALT, which averaged nearly 10 years on new leases signed in 2025. This is nearly double our portfolio average WALT. Overall, the average WALT for all leasing activity in 2025 was 7.5 years, which continues to move in the right direction and is approaching six years for the total portfolio. Cash rent spreads on fourth quarter renewals were up for the third straight quarter at 12.8%, though overall, 2025 rent spreads remained volatile and were down 7.1% for the year, but were up an average of 3.7% when comparing ending rents in the current term versus ending rents in the renewal term. Importantly, our 2025 leasing momentum and noncore dispositions translated into a 600 basis point improvement in our leased rate year-over-year to over 80% at year end and a 500 basis point improvement in our occupancy rate to 78.7% at year end. Equally significant, our lease rollover profile has improved and we entered 2026 with scheduled lease expirations totaling just $11.4 million of annualized base rent in 2026. This is relative to the nearly $16.2 million of annualized base rent that was scheduled to expire in 2025 and $39.4 million in 2024. This positions us to drive further occupancy gains and stabilize revenues as we continue to lease, sell vacant properties, and selectively recycle capital into new cash-flowing assets throughout this year and into next. Leasing momentum remains constructive so far in 2026. Our pipeline is robust, and we have over 1,000,000 square feet in either discussion or documentation stages, which includes several full building leases as well as longer duration renewals and new leases with terms materially greater than the average of our portfolio. Our accelerating portfolio improvement through increased disposition activity was another key story for the year. During 2025, we sold 10 properties totaling more than 960,000 square feet for approximately $81 million of gross proceeds, which included two vacant traditional office properties and one stabilized traditional office property sold in the fourth quarter for $32 million. Subsequent to year end, we sold two more vacant properties in Bedford, Massachusetts, and Malvern, Pennsylvania, totaling an additional 516,000 square feet for over $13 million, and are under contract to sell additional noncore properties for gross proceeds of roughly $36 million in the near term, including the 37.4-acre Deerfield, Illinois property where we completed the demolition of the six buildings formerly leased to Walgreens during the fourth quarter. While the per square foot price of these sales varied from $17 per square foot to $216 per square foot, our focus was on selling properties where we felt the releasing prospects did not outweigh the burden of continuing to carry them. These sale transactions will substantially reduce the estimated carry costs associated with these vacant properties by a combined $10.3 million annually. Our 2025 and near-term dispositions will generate a total of roughly $130 million, and this has allowed us to maintain reasonable debt levels while still funding vital tenant improvement allowances, leasing commissions, and other capital expenditures to support our strong leasing activity. We are also actively evaluating opportunities to recycle a modest percentage of these proceeds into acquisitions as we continue to shift our portfolio concentration away from traditional suburban office properties and toward dedicated use assets, or DUAs, where our tenants perform work that cannot be replicated from home or relocated to a generic office setting. These property types include medical, lab, R&D, flex, and government properties, all of which we already own. Our experience is that these assets tend to exhibit stronger renewal trends, higher tenant investment, and more durable cash flows. A terrific example of this strategy is the Barilla Americas headquarters building we just purchased at the end of last week in Northbrook, Illinois. In addition to serving as Barilla's headquarters, the building also houses their sole test kitchen and R&D facility in the U.S. Worldwide, the Barilla Group is the world's largest maker of pasta and their pasta and sauces are a familiar sight on U.S. grocery shelves. The 75,000 square foot building is subject to a 10.8-year lease with current net rents at approximately $15.30 per square foot and growing 2.5% annually. We bought the property for $15 million, equating to a going-in cash capitalization rate of 8.1% and an average capitalization rate over the approximately 11-year lease term of 9%. At year end, approximately 35.8% of our portfolio by annualized base rent consisted of dedicated use assets, versus 31.8% at the end of 2024, and we expect this percentage will continue to increase over time through disposition activity and targeted acquisitions. We recognize, as a small cap REIT, that G&A expense is a very important consideration and we remain disciplined on expenses at the corporate level. In 2025 and early 2026, we reduced headcount by more than 10%, including at the executive and senior vice president levels, and managed controllable G&A. We estimate these initiatives will generate about $1.8 million of annualized savings. These efforts are, however, offset by inevitable inflation, expected increased accounting fees associated with SOX 404 internal control audit requirements beginning in 2026 for us, and legal and other expenses associated with managing an activist investor. Turning very briefly to the balance sheet, as Gavin will give more detail in his remarks. In February, we were able to deal with both our major debt maturities that had been scheduled to come due within the next year. First, with the support of our existing lenders, we entered into a new $215 million secured revolving facility which will mature in February 2029, inclusive of two six-month extension options. Second, we extended our existing $355 million CMBS loan by three and a half years to August 2030, inclusive of two extension options totaling 18 months. These very significant achievements give us the financial flexibility and term to continue to execute on our business plan. A final note on our strategic options process. While we have increasing confidence in our stand-alone prospects, over the past three years, as we have consistently disclosed, management and the board have devoted time to considering avenues for Orion Properties Inc. to potentially pursue in addition to our business plan. Our ongoing public strategic options review process will provide further opportunity to consider with our board and our financial advisers what could be a range of potential strategic alternatives to maximize stockholder value. And as we have said before, we remain very open to pursuing any actionable proposals. To sum up, the progress we have made over the past four years, and which progress accelerated in 2025, has materially de-risked and stabilized our portfolio and we are finally set for meaningful growth from a core FFO standpoint over the next several years. Our priorities in 2026 remain: improve portfolio quality, lengthen WALT, renew tenants and fill vacant space, reduce risk, lower expenses, prudently manage leverage, and position Orion Properties Inc. with a more stable and durable earnings profile. We believe these are the right steps to unlock long-term value which will make Orion Properties Inc. attractive to investors and potential strategic partners alike. I will now turn the call over to Gavin Brandon for the financial results.

Thanks, Paul. For the fourth quarter of 2025 compared to 2024, Orion Properties Inc. had total revenues of $35.2 million as compared to $38.4 million, and core FFO of $0.19 per share as compared to $0.18 per share. As expected, we recognized $0.03 per share of lease termination income in 2025 associated with the Fresno, California asset sale. Adjusted EBITDA of $16.1 million versus $16.6 million. The year-over-year changes in operating income are primarily related to current year vacancies and costs incurred for the Deerfield demolition, offset by income from our San Ramon property acquired in 2024 and carry cost savings from dispositions of vacant assets. G&A came in as expected at $6 million compared to $6.1 million. CapEx and leasing costs were $17.8 million compared to $8.2 million, which primarily relates to work performed at our Buffalo, New York property for our new 160,000 square foot lease with Ingram Micro, which is expected to commence in April 2026, and at our Lincoln, Nebraska property where our new 886,000 square foot lease with the United States government commenced in February 2026. For the full year 2025 compared to 2024, Orion Properties Inc. had total revenues of $147.6 million as compared to $164.9 million, and core FFO of $0.78 per share, which included approximately $0.09 per share of income from lease terminations and end-of-lease obligations. This compares to core FFO of $1.01 in 2024, which included $0.04 per share of lease termination income. Adjusted EBITDA was $69 million versus $82.8 million. The year-over-year decreases in operating income are primarily related to current year vacancies and costs incurred for the demolition discussed earlier, offset by income from our 2024 acquisition and carry cost savings from dispositions of vacant assets, as well as successful property tax appeals. G&A came in as expected at $20.3 million as compared to $20.1 million in 2024. 2025 G&A includes $423,000 in legal and other expenses related to managing an activist investor. CapEx and leasing costs were $60 million compared to $24.1 million in the prior year. The increase in CapEx in 2025 was driven by completion of landlord and tenant improvement work related to the acceleration in our leasing activity. As we have previously discussed, CapEx timing is dependent on when leases are signed and work is completed on leased properties. We expect to allocate more capital to CapEx over time as leases roll and new and existing tenants draw upon their tenant improvement allowances. Our net debt to full-year adjusted EBITDA was a relatively conservative 6.8x at year end, and on a modified basis, net of restricted cash, was approximately 6.2x. As of 12/31/2025, and as adjusted for our new secured $215 million revolver, we had total liquidity of $145.9 million, including $22.9 million of cash and cash equivalents and $123 million of available revolver capacity. We also had $39.9 million of restricted cash, including our pro rata share of the joint venture's restricted cash. Orion Properties Inc. continues to manage leverage while maintaining significant liquidity to support our ongoing leasing efforts and provide the financial flexibility needed to execute on our business plan for the next several years. Since our spin, we have repaid a net $173 million of outstanding debt as of year end while supporting our current business plan. As Paul mentioned, on February 18, we entered into a credit agreement for a new senior secured credit facility revolver, which refinances our original credit facility revolver. The new credit facility revolver extends the maturity date until February 2029, including two six-month borrower extension options. It reduces the lender's commitment to $215 million to more closely align with our business plan, reduces the interest rate margin on our borrowings by 50 basis points to SOFR plus 2.75%, and eliminates the 10 basis point SOFR adjustment, which will help to lower future interest expense. As of 03/05/2026, we had $127 million outstanding and $88 million of borrowing capacity under our new credit facility revolver. We appreciate the continued support from our lending group and the timeliness of executing the credit agreement prior to our 10-K filing, which alleviated any accounting disclosures with respect to near-term debt maturities. On February 17, we amended our CMBS loan. The loan modification agreement extends the maturity date by two years to February 2029, subject to two borrower extension options for a total of 18 months until August 2030. During this time, the fixed interest rate on the CMBS loan of 4.971% will remain unchanged, and excess cash flows after payment of interest and property operating expenses will be swept by the lender to be applied to a combination of prepaying the outstanding principal balance of the CMBS loan and funding reserves which we can access principally for capital expenditures. As part of the loan modification, we negotiated partial release provisions for certain assets in the pool that we may dispose of and repay principal. Additionally, yield maintenance premiums will no longer apply to principal payments made during the term. Potential property dispositions, as well as the amortizing nature of the CMBS loan, will repay principal and reduce interest expense during the term, further lowering leverage over the next several years. As of 03/05/2026, we had $353 million outstanding under the CMBS loan and $37.7 million in an all-purpose reserve. Turning to the York Street joint venture. The nonrecourse mortgage debt was $128.8 million as of year end, and our 20% share of that was $25.8 million. Due to the capital constraints of our joint venture partner, the joint venture was unable to make an approximately $16 million loan principal prepayment to satisfy the 60% loan-to-value condition to extend this debt obligation until 11/27/2026. The lenders have been providing short-term extensions while the joint venture remains in active, cooperative discussions with the lenders with respect to the plans of the portfolio and an additional extension. Further, the joint venture has entered into a contract to sell one of the assets out of the portfolio and is in active discussions with the lenders on additional asset sales to repay debt. Due to the uncertainties regarding the Arch Street joint venture investments, as of 12/31/2025, we reduced the carrying value of our investment to zero and recorded a loan loss reserve against our member loan to the Arch Street joint venture. The impairments are driven by accounting rules, which are focused on the probable recoverability of our investment in and collection of the member loan based on facts and circumstances as of 12/31/2025. The Arch Street joint venture contributed approximately $0.05 of core FFO in 2025, which primarily related to interest income from our member loan and management fees. We have not included income from the JV in our outlook for this year past February 2026. While we have written our investment in the JV down due to the uncertainty around the debt finance and our partner's ability to meet capital calls, we continue to believe that the portfolio, which is performing with an occupancy rate of 100% and a weighted average lease term of 6.3 years, has positive equity. We expect to continue to work with the JV's lenders and our JV partner to find a way to collect our member loan in full and unlock our equity. As for the dividend, on 03/04/2026, Orion Properties Inc.’s board of directors declared a quarterly cash dividend of $0.02 per share for 2026. Turning to our 2026 outlook. As previewed last quarter, 2025 represented a trough for our core FFO, excluding lease-related termination income, as our recent leasing and capital initiatives begin to translate into improved recurring earnings power over 2026 and beyond. Core FFO for the year is expected to range from $0.69 to $0.76 per diluted share. As a reminder, core FFO for 2025 would have been $0.69, excluding $0.09 of lease termination income. G&A is expected to range from $19.8 million to $20.8 million. Excluding noncash compensation, we expect 2026 G&A will be in line or slightly better than 2025. We also do not expect G&A to rise significantly in the outer years, including noncash compensation. As a percentage of revenue and total assets, our G&A remains in line with other similarly sized public REITs. Net debt to adjusted EBITDA is expected to range from 6.5x to 7.3x. With that, we will open the line for questions.

Thank you. If you would like to ask a question, you may press star followed by one. You may press two if you would like to remove your question from the queue, before pressing the star keys. Our first question is from Mitch Germain with Citizens JMP. Please proceed.

Thank you. It seems like your leasing pipeline is almost two times higher relative to last quarter. Is that just an overall conviction that you are seeing in office leasing? Is the tide really turning a bit more positively here?

Good morning, Mitch. I think it is probably a little bit of both, frankly. You know, our portfolio is not very big, so the numbers can move pretty dramatically if we start to get some leasing momentum on one or two properties, which is exactly the case that has occurred from last quarter to this quarter. And I would characterize that leasing momentum that we have gotten as a result of the market improving somewhat. So I think it is a bit of both. But I would reemphasize that the number may be volatile quarter over quarter.

And from a historical context, and I know that the track record is three, four years for you guys, when you look at your leasing pipeline and compare that to the success rate that you have had, maybe if you have thought about what the percentage is that you have seen historically in your ability to take the pipeline into a lease?

We have not calculated that specifically. But I will tell you, Mitch, that our success rate has improved very significantly over the past two years. I think, in 2023, you might remember, we only leased 230,000 square feet of space and we did not have any new leases. And in 2024, we did 1,100,000 square feet, and in 2025, we did 900,000 square feet, and 183,000 square feet so far this year, with a pretty strong pipeline. So I would say that our ability to turn inquiry into signed leases has really improved a lot. And I would say that the decision-making process at tenants has also shortened up quite significantly, where they are now looking at space, deciding it meets their needs, and then entering into lease negotiations with us.

That is helpful. Last one for me. The Barilla transaction, was that a broker that brought it to you, was it a relationship, and I do understand some of the criteria as to why you consider it a stronghold or an investment, and maybe what percentage of the asset is office versus nontraditional or more like industrial space? If you could provide some context there.

Well, the transaction came to us through the broker. You know, it was brokered. It was a marketed transaction, so we saw it as well as other market participants. Stephanie Peacher works for us, she is the one who does acquisitions, and so she keeps a close eye on the market, and she brought that in from the brokerage community. The property itself contains the test kitchens and R&D facilities for the Barilla operations here in North America and South America as well, so very important. From a percentage perspective, about half, roughly, is their test and R&D, and half is office.

Thank you.

Our next question is from Matthew Gardner with JonesTrading. Please proceed.

Hey, good morning, guys, and thanks for taking the question. It is good to see you back in the market acquiring properties. How should we think about the pace of the remaining, I guess, vacant properties being disposed of throughout the year, and then what should we look for from you to go out and acquire more properties?

Yes, that is a great question. On the vacant property side, it is important to note that we had a huge amount of activity in 2025—obviously, 10 properties in 2025 and then two additional vacant properties in 2026—and then we have pending a couple of additional sales, our vacant land in Deerfield, Illinois. With respect to the pace of vacant sales in the future, we do not have that much vacancy left, but as we generate—as vacancy comes online, we are going to take a hard look, and we will make a judgment about whether or not we sell those properties or whether we hold them for lease-up. Some of the vacancy that we have now, we feel pretty confident about our ability to lease it up, so that is the primary focus. With respect to acquisitions, we have been very judicious. This is only our second acquisition since the spin. But we do want to recycle capital, and so when we have capital recycled from sale of either vacant properties or stabilized properties, both of which we did last year, we look at that capital, and we can allocate it towards debt repayment, we can allocate it towards our existing asset base for tenant improvements and leasing commissions and building improvements and the like, or we can allocate it towards acquisitions, all of which we expect to do during the course of this year.

I guess just looking at the upcoming lease maturities, it looks like through 2028, there is a little under 46% that is scheduled to roll over. What kind of opportunity does this present to you in terms of being able to go out there and grow these cash spreads and generate that FFO growth?

Well, I think we do expect core FFO to grow meaningfully in the coming years as the portfolio stabilizes and as we rent stuff up. We have had, I would characterize it, which is I think reflective of the broader market, mixed renewal rent increases or decreases. Sometimes the market requires us to lower rents for renewal because that is just what the market will bear. But as we have seen at the end of last year, where we had three quarters in a row of increases in renewal rents, we hope that continues into 2026 and 2027 as the market gradually recovers. But I think it is going to be volatile quarter over quarter.

Got it. That is helpful. Thank you, guys.

There are no further questions at this time. I would like to turn the conference back over to Paul for closing remarks.

Okay. Thank you, everyone, for joining us today on the call. We had a terrific year in 2025, and we are hoping to have just as good a year in 2026. We look forward to updating you on our first quarter later in the year. Thank you.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.