Investor Presentation March 2025 Legal Disclaimer This Investor Presentation includes "forward-looking statements" which reflect Orion Properties Inc.'s (the "Company", "Orion", "we", or "us") 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 "antic ...

Financial Data and Key Metrics Changes - Orion Office REIT Inc. reported total revenues of $38.4 million in Q4 2024, down from $43.8 million in Q4 2023 [31] - The net loss attributable to common stockholders was $32.8 million or $0.59 per share, compared to a net loss of $16.2 million or $0.29 per share in the same quarter of the previous year [32] - Core FFO for Q4 was $10.2 million or $0.18 per share, down from $18.5 million or $0.33 per share in Q4 2023 [32] - For the full year, revenues were $164.9 million, with a net loss of $103 million or $1.84 per share, and core FFO of $56.8 million or $1.01 per share [33] Business Line Data and Key Metrics Changes - The company signed 287,000 square feet of new leases in 2024, significantly up from 21,000 square feet in 2023 [11] - Renewal rent spreads for 2024 leasing activity decreased by 6.6%, but renewal rent spreads on a GAAP basis showed a positive increase of just over 2% [12] - The weighted average lease term (WALT) increased to 5.2 years from 4 years year-over-year, indicating a stabilizing portfolio [11] Market Data and Key Metrics Changes - The overall market tone improved, reflected in the leasing performance which totaled approximately 1.1 million square feet, more than four times the leasing delivered in 2023 [8] - The company faced significant competition to retain and find new tenants in specific markets, impacting renewal rent spreads [12] Company Strategy and Development Direction - The company plans to shift focus from traditional office properties to dedicated use assets (DUA), which include medical, lab, R&D, and non-CBD government properties [16] - Approximately 32% of properties by annualized base rent are now dedicated use, with plans to increase this percentage over time through property sales and selective acquisitions [17] - The company is rebranding to Orion Properties to better reflect its current portfolio mix and strategic direction [17] Management's Comments on Operating Environment and Future Outlook - Management believes that 2025 and into 2026 will be the nadir of revenue and core FFO earnings declines, followed by growth starting in 2027 [14] - The company recognizes the need to maintain liquidity and expects to see rising debt levels, offset by anticipated earnings growth in the future [24] - Management remains cautiously optimistic about the impact of the new presidential administration on the GSA portfolio, as most properties are not in the immediate Washington, D.C. area [23] Other Important Information - The company will incur a restructuring charge in 2025 related to changes in G&A costs, with expected annualized savings of approximately $1 million following the retirement of the Chief Investment Officer [19][21] - The board of directors declared a quarterly cash dividend of $0.02 per share for Q1 2025, reflecting the strategic shift towards maintaining and growing existing tenancy [40] Q&A Session Summary Question: What gives you the confidence that 2026 is going to start a rebound? - Management cited intensive portfolio analysis and leasing trends, indicating stabilization and expected revenue growth in 2025 or 2026 [46][47] Question: Is the thought that over the next 36 months, you'll pursue significant asset sales? - Management confirmed the strategy to sell outdated office properties and replace them with dedicated use assets, aiming for a longer weighted average lease term [48][51] Question: What is happening with the joint venture and its capital situation? - Management reassured that they maintain a strong relationship with the joint venture partner and have structured a loan to mitigate risks associated with capital access [52][55] Question: Will the restructuring charge be included in G&A or smoothed out in the bottom line next year? - The restructuring charge will be added back into core FFO, smoothing its impact throughout the year [58]

Debt and Financial Obligations - The company has incurred debt under the Revolving Facility and the CMBS Loan, with a minimum debt yield test of 8.0% that must be satisfied to avoid cash flow diversion to the lender[79]. - As of September 30, 2024, the company satisfied the minimum debt yield test, but future compliance will depend on lease extensions and re-leasing pace[79]. - The company is dependent on external capital sources for significant investments in its portfolio, as cash flows from operations are insufficient to fund future capital needs[81]. - The company’s ability to pay dividends is limited by the credit agreement governing its Revolving Facility, which may negatively impact its REIT status[103]. - The company must maintain its REIT qualification by distributing at least 90% of its taxable income annually, or face significant tax consequences[116]. - The company is subject to a 4% non-deductible excise tax if it fails to distribute at least 85% of its ordinary income and 95% of its capital gain net income for the calendar year[117]. - The company intends to continue making distributions to stockholders to comply with tax requirements and reduce exposure to federal income taxes[118]. - Distributions may be made in cash and/or common stock, which could lead to stockholders selling shares to pay taxes, potentially putting downward pressure on the stock price[119]. - The company may face a 100% penalty tax on net income from prohibited transactions, which could limit its ability to engage in certain sales[120]. - The ability to pay dividends is limited by Maryland law, which may affect the market price of common stock if dividends cannot be paid[131]. - Future dividends will be at the discretion of the Board of Directors and may change based on various factors, potentially impacting stockholder interest[132]. Risks and Compliance - The company faces risks of increased expenses that may not decrease even if revenues decline, potentially adversely affecting financial condition[83]. - Property taxes may increase unexpectedly, impacting financial condition and cash flows, especially for vacant properties[84]. - Compliance with various regulatory requirements, including environmental laws, may incur significant costs and affect financial condition[87]. - The company is subject to risks associated with climate change, which could impact property demand and operating costs[90]. - Increased scrutiny regarding sustainability practices may lead to additional costs and affect investor interest and tenant retention[91]. - The company carries comprehensive insurance coverage on all properties, but may face uninsured losses from events like riots or acts of God, which could materially affect its financial condition[95]. - The company is exposed to risks from cyber-attacks and security breaches, which could lead to operational interruptions and increased costs, adversely impacting its business[96]. - The company faces risks related to deficiencies in its disclosure controls and procedures, which could harm its financial reporting and market confidence[99]. - Legislative changes affecting REITs could negatively impact the company and its investors, including changes to tax laws that may affect REIT qualification[121]. - The company has ownership limits in its charter to maintain REIT qualification, which may inhibit acquisition proposals and change of control[122]. Investment and Market Risks - Real estate investments are illiquid, limiting the company's ability to sell properties quickly or at favorable terms, which could adversely affect financial results[85]. - The market price of the company's common stock may fluctuate widely due to various factors, including changes in revenues or earnings estimates[106]. - Future offerings of debt or equity securities may adversely affect the per share trading price of common stock and dilute existing stockholders[130]. Interest Rate Management - The company manages interest rate risk through a combination of fixed and variable rate borrowings and may enter into interest rate hedge contracts[305]. - As of December 31, 2024, the company had fixed-rate debt with a fair value of $352.5 million and a carrying value of $373.0 million[306]. - A 100 basis point increase in market interest rates would decrease the fair value of the fixed-rate debt by $7.2 million, while a decrease would increase it by $7.5 million[306]. - The company had variable-rate debt with a fair value and carrying value of $119.0 million, which is subject to interest rate fluctuations[307]. - A 100 basis point change in variable interest rates would affect the fair value of the variable-rate debt by less than $0.1 million and increase or decrease annual interest expense by $1.2 million[307]. - The company has interest rate collar agreements on a total notional amount of $60.0 million to hedge against interest rate volatility[308]. - Outstanding derivative agreements had a fair value resulting in net liabilities of less than $0.1 million as of December 31, 2024[308]. Tenant and Credit Risk - Credit risk concentrations arise from tenants engaged in similar business activities or located in the same geographic region, which could impact cash flows[311]. - Factors determining tenant credit risk include payment history, credit status, and economic conditions in specific regions[312]. - The company believes credit risk is mitigated by a high-quality and diverse tenant base and consistent monitoring of the portfolio[312]. Management and Personnel - The company’s success is significantly dependent on retaining key personnel, such as its CEO, with potential adverse effects on operations if key employees leave[100]. - The company may amend its investment strategy without stockholder approval, which could increase exposure to various risks and adversely affect its financial condition[102]. - Failure to hedge effectively against interest rate changes may have a material adverse effect on the company's financial condition and results of operations[101]. - As of the filing date, the company qualifies as an "emerging growth company," allowing it to take advantage of certain reporting exemptions until December 31, 2026, after which compliance costs may increase[98].

Financial Performance - Total revenues for Q4 2024 were $38.4 million, down from $43.8 million in Q4 2023[7] - Net loss attributable to common stockholders for Q4 2024 was $(32.8) million, or $(0.59) per share, compared to $(16.2) million, or $(0.29) per share in Q4 2023[7] - Core FFO for Q4 2024 was $10.2 million, or $0.18 per diluted share, down from $18.5 million, or $0.33 per diluted share in Q4 2023[7] - For the full year 2024, total revenues were $164.9 million, compared to $195.0 million in 2023[8] - Total revenues for the year ended December 31, 2024, were $164,862, a decrease of 15.4% compared to $195,041 in 2023[79] - Net loss attributable to common stockholders for the year ended December 31, 2024, was $103,012, compared to a net loss of $57,302 in 2023, representing an increase of 79.8%[79] - Funds from Operations (FFO) attributable to common stockholders decreased to $7,642,000 in Q4 2024 from $16,447,000 in Q4 2023, a decline of 53.6%[84] - Core FFO attributable to common stockholders for Q4 2024 was $10,192,000, down from $18,499,000 in Q4 2023, reflecting a 44.9% decrease[84] - Adjusted EBITDA for Q4 2024 was $16,579,000, compared to $24,647,000 in Q4 2023, indicating a decline of 32.8%[84] - Full Year Adjusted EBITDA decreased from $118,542 million in 2023 to $82,849 million in 2024, a decline of about 30.2%[90] Leasing and Property Management - The company completed 1.1 million square feet of leasing in 2024, which is four times the leasing volume of 261,000 square feet in 2023[3] - The occupancy rate as of December 31, 2024, was 73.7%, with 74.4% of Annualized Base Rent derived from Investment-Grade Tenants[14] - The company acquired a 97,000 square foot property for $34.6 million in 2024, fully leased to a single tenant with a remaining term of 15 years[11] - The company sold two vacant properties in 2024 for a total gross sales price of $5.3 million[12] Financial Metrics and Ratios - The Company utilizes Adjusted EBITDA as a non-GAAP measure to evaluate operating performance, which excludes non-routine items and certain non-cash items[38] - Funds Available for Distribution (FAD) is defined as Core FFO modified to exclude capital expenditures and leasing costs, providing insight into the Company's ability to fund its dividend[41] - The Company calculates Net Debt as Adjusted Principal Outstanding minus cash and cash equivalents, which aids in assessing financial flexibility and capital structure[60] - The Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments, providing a measure of leverage[61] - The Company reported a Fixed Charge Coverage Ratio, which is Adjusted EBITDA divided by the sum of Interest Expense and secured debt principal amortization, indicating its ability to meet fixed financing obligations[39] - The Company defines Cash NOI as total revenues less property operating expenses, excluding certain GAAP adjustments, providing a clearer view of property-level performance[62] - The Interest Coverage Ratio decreased to 2.13x in Q4 2024 from 3.35x in Q4 2023, indicating a decline in the company's ability to cover interest expenses[86] - Net Debt to Annualized Most Recent Quarter Adjusted EBITDA Ratio rose significantly from 4.82x in 2023 to 7.57x in 2024[90] - Net Debt to Full Year Adjusted EBITDA Ratio increased from 4.01x in 2023 to 6.06x in 2024[90] Expenses and Liabilities - Property operating expenses for the year ended December 31, 2024, increased to $65,151, up 7.3% from $60,783 in 2023[79] - The Company reported a net interest expense of $32,637 for the year ended December 31, 2024, compared to $29,669 in 2023, indicating an increase of 9.9%[79] - The Company experienced impairments totaling $47,552 for the year ended December 31, 2024, compared to $33,112 in 2023, an increase of 43.8%[79] - Total debt as reported increased to $490,222,000 as of December 31, 2024, from $468,856,000 in the previous year, marking a 4.5% rise[88] - Net Debt rose to $502,304,000 in Q4 2024, up from $475,209,000 in Q4 2023, an increase of 5.5%[88] Company Changes and Future Outlook - The Company changed its name from Orion Office REIT Inc. to Orion Properties Inc. on March 5, 2025, to reflect a broader investment strategy[31] - The Company anticipates potential risks from rising interest rates and inflation affecting future financial performance and operational costs[72] - The Company expects 2025 Core FFO per diluted share to range between $0.61 and $0.70[92] - General & Administrative Expenses are projected to be between $19.5 million and $20.5 million[95]

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $39.2 million, down from $49.1 million in Q3 2023 [33] - Net loss attributable to common stockholders was $10.2 million or $0.18 per share, compared to a loss of $16.5 million or $0.29 per share in the previous year [33] - Core funds from operations (FFO) decreased to $12 million or $0.21 per share from $24.1 million or $0.43 per share [33] - Adjusted EBITDA fell to $19.1 million from $30 million year-over-year [33] Business Line Data and Key Metrics Changes - The company signed four leases totaling 254,000 square feet during the quarter, with a weighted average lease term of 8.9 years [7] - Year-to-date leasing efforts resulted in over 830,000 square feet leased, more than three times the total for the entire year of 2023 [8] - Portfolio weighted average lease term (WALT) increased to five years from 3.9 years year-over-year [8] Market Data and Key Metrics Changes - Net office absorption turned positive in Q2 2024 for the first time in two years, indicating a potential recovery in the office market [11] - The availability of space in the newest and highest quality buildings is declining rapidly, now below pre-pandemic levels [11] - 79% of CEOs polled in September expect a full-time return to work over the next three years, up from 34% in April [12] Company Strategy and Development Direction - The company is focusing on extending existing leases and improving the quality of its portfolio by selling non-core assets [14][19] - A total of 18 properties, representing about 1.9 million square feet, have been sold, amounting to over 15% of the portfolio [14] - The company aims to maintain a low leverage balance sheet while investing in capital expenditures to enhance asset competitiveness [26] Management's Comments on Operating Environment and Future Outlook - The company anticipates fluctuations in leasing activity and expects to carry substantial vacancy for the foreseeable future [13] - Management expects cumulative impacts on core FFO could be as much as $20 million to $24 million lower in 2025 compared to 2024 [29] - Despite challenges, the company remains profitable on an FFO and core FFO basis and expects to stabilize and grow in the future [31] Other Important Information - The company declared a quarterly cash dividend of $0.10 per share for Q4 2024, payable on January 15, 2025 [40] - Total liquidity at quarter end was $237.3 million, including $17.3 million in cash and $220 million available on the revolving credit facility [37] Q&A Session Summary Question: Can a new buyer leverage the work done from the previous buyer for the Walgreens property? - Management confirmed that a new buyer can leverage the previous redevelopment work and tax increment financing established [42] Question: Was there anything unique about the seller in the recent acquisition? - Management indicated that the seller was not under distress, and the ability to purchase the property for an all-cash transaction provided additional pricing power [44] Question: How does the company balance investment opportunities against cash requirements for CapEx? - Management emphasized that the primary focus is on existing assets, using capital to lease up vacancies, which is seen as the most accretive use of capital [49]

Property Portfolio - As of September 30, 2024, the company owned and operated 70 office properties with an aggregate of 8.1 million leasable square feet and an occupancy rate of 74.0%[138] - The occupancy rate, including the company's pro rata share from the Arch Street Joint Venture, is 74.6%, or 76.9% adjusted for properties under agreement to be sold[138] - As of September 30, 2024, 63.3% of the company's office buildings by square feet were classified as class A, while class B and class C properties accounted for 31.7% and 5.0%, respectively[143] - As of September 30, 2024, the company had 70 operating properties, down from 75 as of December 31, 2023, with a total rentable square footage of 8,299,000 square feet[161] - The portfolio occupancy rate was 74.0% with 70 operating properties and 8.1 million leasable square feet as of September 30, 2024, compared to 80.1% with 79 properties and 9.3 million leasable square feet as of September 30, 2023[179] Financial Performance - Total revenues for the three months ended September 30, 2024, were $39.2 million, compared to $49.1 million for the same period in 2023, representing a decrease of approximately 20%[162] - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $10.2 million, compared to a loss of $16.5 million for the same period in 2023[162] - The annualized base rent as of September 30, 2024, was $124.0 million, a decrease from $141.3 million as of December 31, 2023[161] - The occupancy rate as of September 30, 2024, was 74.6%, down from 80.4% as of December 31, 2023[161] - Rental revenues decreased by $9.9 million and $24.8 million for the three and nine months ended September 30, 2024, respectively, primarily due to a decrease in occupied square footage and property dispositions[178][179] Debt and Financing - The company has incurred significant indebtedness, with non-recourse mortgage notes associated with the Arch Street Joint Venture amounting to $135.7 million, maturing on November 27, 2024[144] - The company extended the maturity date of its Revolving Facility for 18 months, now set to mature on May 12, 2026[144] - Total consolidated debt outstanding as of September 30, 2024, was $485.0 million, consisting of a $355.0 million CMBS Loan and $130.0 million under the Revolving Facility[210] - The company entered into a Third Amendment to the Credit Agreement, reducing the borrowing capacity of the Revolving Facility to $350.0 million from $425.0 million[203] - The company maintained a total indebtedness to total asset value ratio of 39.2%, well below the required maximum of 60%[220] Lease and Tenant Activity - Approximately 2.8% and 13.0% of the company's annualized base rent are scheduled to expire during the remainder of 2024 and in 2025, respectively[142] - The weighted-average remaining lease term for the company's properties is 5.0 years as of September 30, 2024[138] - The weighted-average remaining lease term for the company's properties increased to 5.0 years as of September 30, 2024, from 4.0 years as of December 31, 2023[161] - The company completed approximately 832,000 square feet of lease renewals and new leases across 10 different properties during the nine months ended September 30, 2024[158] - During the nine months ended September 30, 2024, seven leases across six properties expired, totaling 1.1 million square feet[174] Cash and Liquidity - As of September 30, 2024, the company had $220.0 million of borrowing capacity under the Revolving Facility, with $130.0 million of outstanding borrowings[159] - As of September 30, 2024, the company had $16.6 million in cash and cash equivalents and $220.0 million of borrowing capacity under the Revolving Facility[201] - The company had restricted cash reserves of $34.7 million as of September 30, 2024, allocated for tenant improvement allowances and rent concessions[169] Expenses and Costs - Property operating expenses increased by $1.1 million and $2.1 million during the three and nine months ended September 30, 2024, respectively, due to property vacancies[182] - General and administrative expenses rose by $0.1 million and $0.7 million during the three and nine months ended September 30, 2024, respectively, primarily due to increased stock compensation expenses[183] - Depreciation and amortization expenses decreased by $7.1 million during the three months ended September 30, 2024, due to the full amortization of certain intangible assets[184] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.10 per share for the first three quarters of 2024, with the fourth quarter dividend also set at $0.10 per share[160] - The company declared quarterly cash dividends of $0.10 per share during the nine months ended September 30, 2024, with a fourth quarter dividend also declared for January 15, 2025[238] - The Company had approximately $45.0 million available under the Share Repurchase Program[244] Market Conditions and Risks - The company anticipates continued challenges in tenant retention due to significant lease expirations and changing office space utilization trends[142] - The company faces risks associated with rising interest rates and inflation, which may impact operating costs and borrowing[133] - The company anticipates that tenant improvement allowances may increase in future periods due to competitive market conditions[165] Impairments and Charges - Impairment charges totaled $25.4 million for the nine months ended September 30, 2024, related to eight properties, a decrease from $27.0 million for the same period in 2023[185] Interest Rate Management - The company entered into interest rate swap agreements totaling $175.0 million to hedge interest rate volatility, fixing the interest rate at 3.92% per annum until November 12, 2023[213] - Following the expiration of the interest rate swap agreements, the company established interest rate collar agreements on a total notional amount of $60.0 million, with rates floating between 5.50% and 4.20% per annum[213]

Exhibit 99.1 FOR IMMEDIATE RELEASE Orion Office REIT Inc. Announces Third Quarter 2024 Results - Completed 832,000 Square Feet of Leasing Year-to-Date, Including 254,000 Square Feet in the Quarter - - Acquired One 97,000 Square Foot Property in San Ramon, California for $34.6 Million - - Declares Dividend for Fourth Quarter 2024 - - Updated 2024 Outlook - Phoenix, AZ, November 7, 2024 -- Orion Office REIT Inc. (NYSE: ONL) ("Orion" or the "Company"), a fully-integrated real estate investment trust ("REIT") f ...

Orion Office REIT Inc. (NYSE:ONL) Q2 2024 Earnings Conference Call August 9, 2024 10:00 AM ET Company Participants Paul Hughes - General Counsel Paul McDowell - Chief Executive Officer Chris Day - Chief Operating Officer Conference Call Participants Mitch Germain - Citizens JMP Jyoti Yadav - Citizens JMP Operator Greetings, and welcome to Orion Office REIT's Second Quarter 2024 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Cou ...

Investor Presentation August 2024 Legal Disclaimer This Investor Presentation includes "forward-looking statements" which reflect Orion Office REIT Inc.'s (the "Company", "Orion", "we", or "us") 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 "ant ...

Property Portfolio and Occupancy - As of June 30, 2024, the company owned and operated 69 office properties with an aggregate of 8.0 million leasable square feet and an occupancy rate of 79.2%[111]. - The occupancy rate, including the pro rata share from the Arch Street Joint Venture, is 79.7%, or 80.9% adjusted for one operating property currently under agreement to be sold[111]. - As of June 30, 2024, the occupancy rate of operating properties was 79.7%, down from 80.4% as of December 31, 2023[133]. - The portfolio occupancy rate dropped to 79.2% with 69 operating properties and 8.0 million leasable square feet as of June 30, 2024, down from 86.2% and 81 properties with 9.5 million leasable square feet as of June 30, 2023[151]. - As of June 30, 2024, 64.1% of the company's office buildings by square feet were classified as class A, 30.9% as class B, and 5.0% as class C[116]. Financial Performance - For the six months ended June 30, 2024, total revenues were $87.321 million, a decrease of 14.6% compared to $102.214 million for the same period in 2023[135]. - Total revenues for the three and six months ended June 30, 2024 were $40.1 million and $87.3 million, respectively, representing decreases of $11.9 million (29.1%) and $14.9 million (14.4%) compared to the same periods in 2023[150]. - The net loss attributable to common stockholders for the three months ended June 30, 2024, was $33.801 million, or $(0.60) per diluted share, compared to a net loss of $15.730 million, or $(0.28) per diluted share, for the same period in 2023[135]. - Net loss attributable to common stockholders for Q2 2024 was $33.8 million, compared to a loss of $15.7 million in Q2 2023, representing a 115% increase in losses year-over-year[171]. - Funds from Operations (FFO) attributable to common stockholders for Q2 2024 was $10.9 million, down from $24.4 million in Q2 2023, a decline of 55%[171]. - Core FFO attributable to common stockholders for Q2 2024 was $14.2 million, compared to $26.9 million in Q2 2023, reflecting a decrease of 47%[171]. Debt and Financing - The company has incurred significant amounts of indebtedness, with non-recourse mortgage notes associated with the Arch Street Joint Venture totaling $136.4 million, maturing on November 27, 2024[117]. - The company has extended the maturity date of its Revolving Facility for 18 months, now set to mature on May 12, 2026[117]. - The company may face increased borrowing costs and challenges in refinancing its debt obligations due to rising interest rates and market conditions[106]. - Total consolidated debt outstanding as of June 30, 2024, was $462.0 million, consisting of a $355.0 million CMBS Loan and $107.0 million under the Revolving Facility[180]. - The company reduced the borrowing capacity of the Revolving Facility from $425.0 million to $350.0 million, effective May 3, 2024[173]. - The interest rate for the Revolving Facility is SOFR + 3.35%, with a maturity date extended to May 12, 2026[176]. - The average debt outstanding was $471.0 million and $466.5 million for the three and six months ended June 30, 2024, compared to $530.0 million for the same periods in 2023[161]. Asset Management and Dispositions - The company expects to continue its non-core asset disposition strategy through the remainder of 2024, focusing on selling vacant and identified non-core assets[120]. - Pending agreements are in place to sell one operating property and six non-operating properties for an aggregate gross sales price of $39.0 million, subject to various conditions[129]. - The company completed approximately 578,000 square feet of lease renewals and new leases during the six months ended June 30, 2024, including a new lease with the U.S. Government for approximately 86,000 square feet[130]. - The company had a total of nine fully vacant operating properties as of June 30, 2024, with five leases expiring consisting of 597,000 square feet during the same period[130]. Cash Flow and Liquidity - As of June 30, 2024, the company had $24.2 million in cash and cash equivalents and $243.0 million of borrowing capacity under the Revolving Facility[172]. - Net cash provided by operating activities decreased by $15.9 million to $28.0 million for the six months ended June 30, 2024, compared to $43.9 million in the same period of 2023[208]. - Net cash used in investing activities decreased by $0.3 million to $(4.8) million for the six months ended June 30, 2024, primarily due to proceeds from the sale of a real estate asset of $2.1 million[209]. - Net cash used in financing activities increased by $4.2 million to $(21.4) million for the six months ended June 30, 2024, primarily due to repayments on the Revolving Facility of $9.0 million[209]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.10 per share for the first and second quarters of 2024, with the third quarter dividend also set at $0.10 per share[131]. - The Company authorized a Share Repurchase Program of up to $50.0 million until December 31, 2025, with approximately $45.0 million available as of June 30, 2024[207]. Market Conditions and Risks - The company anticipates continued challenges in tenant retention due to significant lease expirations and changing office space utilization trends[115]. - The Company is subject to credit risk concentrations due to tenants engaged in similar business activities or geographic regions, which could materially affect cash flows[215]. - The Company believes credit risk is mitigated by the high quality and diversity of its tenant base and consistent monitoring of potential problem tenants[216].