Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $35.2 million, down from $38.4 million in Q4 2024. Core FFO was $0.19 per share compared to $0.18 per share in the previous year [17] - For the full year 2025, total revenues were $147.6 million, down from $164.9 million in 2024. Core FFO was $0.78 per share, which included approximately $0.09 per share of lease terminations [19] - Adjusted EBITDA for 2025 was $69 million, compared to $82.8 million in 2024 [19] Business Line Data and Key Metrics Changes - In 2025, the company completed over 900,000 sq ft of leasing, following 1.1 million sq ft in 2024, indicating an improving market backdrop [4] - The average weighted average lease term (WALT) for new leases signed in 2025 was nearly 10 years, with an overall average WALT of 7.5 years for all leasing activity [5] - Cash rent spreads for Q4 renewals were up 12.8%, although overall 2025 rent spreads were down 7.1% for the year [6] Market Data and Key Metrics Changes - The lease rate improved by 600 basis points year-over-year to over 80% at year-end, and occupancy rate improved by 500 basis points to 78.7% [6] - The company entered 2026 with scheduled lease expirations totaling $11.4 million of Annualized Base Rent, significantly lower than $16.2 million in 2025 [7] Company Strategy and Development Direction - The company is undergoing a strategic options review process to explore pathways to unlock shareholder value [4] - Orion is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUAs) such as medical, lab, and government properties [10] - The company aims to improve portfolio quality, lengthen WALT, renew tenants, and fill vacant space while managing leverage prudently [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the standalone prospects of the company and expects Core FFO growth in 2026 and beyond [15] - The leasing momentum is seen as constructive, with a robust pipeline of over 1 million sq ft in discussion or documentation stages [7] - The company anticipates that the market will gradually recover, which may lead to improved renewal rent increases [41] Other Important Information - The company reduced G&A expenses by more than 10% and expects annualized savings of about $1.8 million [12] - A quarterly cash dividend of $0.02 per share was declared for Q1 2026 [27] - The company has maintained significant liquidity of $145.9 million as of December 31, 2025, to support ongoing leasing efforts [21] Q&A Session Summary Question: Is the leasing pipeline seeing improvement? - Management indicated that the leasing pipeline has improved due to both market conditions and increased leasing momentum, although numbers can be volatile quarter-over-quarter [31] Question: What is the historical success rate of the leasing pipeline? - Management noted that the success rate has significantly improved over the past two years, with a notable increase in leased space from previous years [32] Question: Can you provide details on the Barilla transaction? - The Barilla transaction was brokered and includes both office and R&D space, with approximately half of the asset dedicated to test kitchens and R&D [34] Question: What is the pace of vacant property disposals? - Management stated that while significant activity occurred in 2025, future disposals will depend on the assessment of current vacancies and their leasing potential [39] Question: What opportunities do upcoming lease maturities present? - Management expects Core FFO to grow as the portfolio stabilizes and as they rent up properties, although renewal rent increases may vary based on market conditions [41]

Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $35.2 million, down from $38.4 million in Q4 2024. Core FFO was $0.19 per share compared to $0.18 per share in the prior year [17] - For the full year 2025, total revenues were $147.6 million, down from $164.9 million in 2024. Core FFO was $0.78 per share, which included approximately $0.09 per share of lease terminations [19] - Adjusted EBITDA for 2025 was $69 million, down from $82.8 million in 2024 [19] Business Line Data and Key Metrics Changes - In 2025, the company completed over 900,000 sq ft of leasing, following 1.1 million sq ft in 2024, indicating an improving market backdrop [4] - The average weighted average lease term (WALT) for new leases signed in 2025 was nearly 10 years, with an overall average WALT of 7.5 years for all leasing activity [5] - Cash rent spreads for Q4 renewals were up 12.8%, although overall 2025 rent spreads were down 7.1% for the year [6] Market Data and Key Metrics Changes - The lease rate improved by 600 basis points year-over-year to over 80% at year-end, and occupancy rate improved by 500 basis points to 78.7% [6] - The company entered 2026 with scheduled lease expirations totaling $11.4 million of Annualized Base Rent, down from $16.2 million in 2025 [7] Company Strategy and Development Direction - The company is undergoing a strategic options review process to explore pathways to unlock shareholder value [4] - Orion is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUAs) such as medical and lab properties, which are expected to exhibit stronger renewal trends [10] - The company aims to improve portfolio quality, lengthen WALT, renew tenants, and fill vacant space while managing leverage prudently [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the standalone prospects of the company and expects Core FFO to grow meaningfully in the coming years as the portfolio stabilizes [14][41] - The leasing momentum is seen as a result of an improving market, with a robust pipeline of over 1 million sq ft in discussion or documentation stages [7][31] - The company anticipates that G&A expenses will remain in line with other similarly sized public REITs and does not expect significant increases in the outer years [29] Other Important Information - The company sold 10 properties totaling over 960,000 sq ft for approximately $81 million in gross proceeds during 2025 [8] - A quarterly cash dividend of $0.02 per share was declared for Q1 2026 [27] - The company has maintained significant liquidity of $145.9 million as of December 31, 2025, to support ongoing leasing efforts [21] Q&A Session Summary Question: Is the leasing pipeline reflecting an overall conviction in office leasing? - Management indicated that the leasing momentum is a result of both market improvement and the company's portfolio size, which can lead to dramatic changes in numbers [31] Question: What is the historical success rate of converting the leasing pipeline into signed leases? - Management noted that the success rate has significantly improved over the past two years, with a notable increase in leasing activity compared to previous years [32] Question: Can you provide context on the Barilla transaction? - The transaction was brokered and involved a property that includes test kitchens and R&D facilities, with approximately half of the space being office and the other half dedicated to R&D [34] Question: What is the pace of remaining vacant property disposals? - Management stated that while there has been significant activity in 2025, the focus will be on leasing up current vacancies rather than selling them unless necessary [39] Question: What opportunities do upcoming lease maturities present? - Management expects Core FFO to grow as the portfolio stabilizes, with mixed renewal rent increases anticipated as the market gradually recovers [41]

Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $35.2 million, down from $38.4 million in Q4 2024. Core FFO was $0.19 per share compared to $0.18 per share in the prior year [17] - For the full year 2025, total revenues were $147.6 million, down from $164.9 million in 2024. Core FFO was $0.78 per share, which included approximately $0.09 per share of lease terminations [19] - Adjusted EBITDA for 2025 was $69 million, compared to $82.8 million in 2024 [19] - G&A expenses for 2025 were $20.3 million, slightly up from $20.1 million in 2024 [19] Business Line Data and Key Metrics Changes - In 2025, the company completed over 900,000 sq ft of leasing, following 1.1 million sq ft in 2024, indicating an improving market backdrop [4] - The average weighted average lease term (WALT) for new leases signed in 2025 was nearly 10 years, almost double the portfolio average WALT [5] - Cash rent spreads for Q4 renewals were up 12.8%, although overall rent spreads for 2025 were down 7.1% [6] Market Data and Key Metrics Changes - The lease rate improved by 600 basis points year-over-year to over 80% at year-end, with occupancy rate improving by 500 basis points to 78.7% [6] - The company entered 2026 with scheduled lease expirations totaling $11.4 million of Annualized Base Rent, down from $16.2 million in 2025 [7] Company Strategy and Development Direction - The company is undergoing a strategic options review to explore pathways to unlock shareholder value [4] - There is a focus on shifting portfolio concentration away from traditional suburban office properties towards dedicated use assets (DUAs) [11] - The company aims to improve portfolio quality, lengthen WALT, renew tenants, and fill vacant space while managing leverage prudently [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in standalone prospects and expects Core FFO to grow meaningfully in the coming years as the portfolio stabilizes [15] - The leasing momentum is seen as a result of an improving market, with a robust pipeline of over 1 million sq ft in discussion or documentation stages [7] - The company anticipates that 2025 represented a trough for Core FFO, with expectations for improvement in 2026 [29] Other Important Information - The company sold 10 properties in 2025 for approximately $81 million, including additional sales of vacant properties in early 2026 [8][9] - A new $215 million secured revolving facility was established, maturing in February 2029, providing financial flexibility [14] - The board declared a quarterly cash dividend of $0.02 per share for Q1 2026 [28] Q&A Session Summary Question: Is the leasing pipeline reflecting an overall improvement in office leasing? - Management indicated that the leasing momentum is a result of both market improvement and increased activity within their portfolio [31] Question: What is the historical success rate of converting the leasing pipeline into signed leases? - Management noted that their success rate has significantly improved over the past two years, with a notable increase in leasing activity [32] Question: Can you provide context on the Barilla transaction? - The transaction was brokered and involved a property that includes test kitchens and R&D facilities, with about half being office space [34][35] Question: What is the pace of disposing of remaining vacant properties? - Management stated that while they have sold a significant number of properties, they will evaluate future vacancies on a case-by-case basis [38] Question: What opportunities do upcoming lease maturities present? - Management expects Core FFO to grow as the portfolio stabilizes, although renewal rent increases may vary based on market conditions [41]

Investor Presentation March 2026 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 ...

Property Portfolio - As of December 31, 2025, Orion Properties Inc. owned and operated 58 properties with a total of 6.5 million leasable square feet and an occupancy rate of 78.1%[22] - The company had a weighted average remaining lease term of 5.6 years for its properties as of December 31, 2025[22] - As of December 31, 2025, properties in Texas, New Jersey, and New York accounted for 42.3% of total annualized base rent[25] - The company had 37 employees, emphasizing a corporate culture that values inclusivity and engagement[40] - As of December 31, 2025, the company's portfolio consisted of 70.1% traditional office properties based on rentable square feet and 64.2% based on annualized base rent[61] - The top ten tenant industries account for 70.2% of occupied square feet and 89.3% of annualized base rent[147] - Texas represents the largest geographic concentration with 15 properties, accounting for 20.1% of rentable square feet and 18.9% of annualized base rent[149] - The General Services Administration is the largest tenant, occupying 724 thousand square feet and contributing 17.8% of annualized base rent[150] - As of December 31, 2025, the company owned and operated 58 properties with an occupancy rate of 78.1% and a weighted average remaining lease term of 5.6 years[172] Financial Performance - Total revenues for the year ended December 31, 2025, decreased by $17.2 million, or approximately 11.0%, compared to the prior year, primarily due to lease expirations[174] - The annualized base rent decreased to $111,280,000 in 2025 from $120,293,000 in 2024, representing a decline of approximately 7.9%[207] - Total revenues for the year ended December 31, 2025, were $147,647,000, a decrease of 10.4% from $164,862,000 in 2024[210] - The net loss attributable to common stockholders was $139,309,000 in 2025, compared to a loss of $103,012,000 in 2024, indicating a worsening of approximately 35.1%[210] - Funds from operations (FFO) attributable to common stockholders decreased to $24,323,000 in 2025 from $47,078,000 in 2024, a decline of 48.3%[210] - Core FFO attributable to common stockholders also decreased to $43,676,000 in 2025 from $56,755,000 in 2024, representing a decline of 23.0%[210] Debt and Financing - The company had total consolidated debt of $465.0 million as of December 31, 2025, including a $355.0 million fixed-rate securitized mortgage loan[35] - The company may need to incur additional indebtedness to finance future acquisitions and investments, which could have material adverse consequences[73] - The company is subject to risks associated with debt financing, including the inability to extend, refinance, or repay debt as it becomes due[79] - Financial covenants under the New Revolving Facility and CMBS Loan may restrict the company's ability to conduct business and pursue beneficial initiatives[81] - The company has incurred significant amounts of indebtedness, which may restrict access to capital and increase costs as it seeks to refinance or repay debts[189] Strategic Direction - The company intends to shift its portfolio focus from traditional office properties to dedicated use assets with specialized uses, enhancing tenant utilization and renewal probability[27] - The company is undergoing a strategic review process to explore potential acquisitions, mergers, or continuing as an independent entity[20] - The strategic review process initiated in January 2026 may incur significant costs and divert management's attention from core operations, potentially impacting stockholder value[46] - The company intends to shift its portfolio concentration away from traditional office properties towards more dedicated use assets[190] Market and Operational Risks - The company faces significant competition in the leasing market, which may hinder its ability to renew existing leases or re-let space on favorable terms[8] - Changes in workplace practices, including remote and hybrid work, have reduced demand for office space, negatively impacting leasing efforts and rental income[48] - The company is subject to risks from tenant payment defaults, which could materially affect its financial condition and results of operations[8] - The company may incur unrecoverable costs in converting properties to multi-tenant use, which could adversely affect the value of those properties[52] - The company faces risks of impairment charges on real estate assets due to negative market conditions or tenant vacancies[92] - The company is subject to risks associated with climate change, which could impact demand for leasing and increase operating costs[90] Compliance and Regulatory Issues - Compliance with various regulatory requirements, including environmental laws, may incur significant costs and affect financial condition[88] - As a public company, the company faces extensive obligations that may increase compliance demands and costs after no longer qualifying as an "emerging growth company"[96] - The company may experience a less active trading market for its common stock as it transitions away from emerging growth company status, potentially affecting stock price volatility[97] - Legislative changes affecting REITs could negatively impact the company and its investors, including potential changes to tax laws[120] Dividends and Stockholder Considerations - The company declared a quarterly cash dividend of $0.02 per share for each of the four quarters of 2025[183] - The ability to pay dividends is limited by Maryland law, which may lead to selling pressure on the stock if dividends cannot be paid[134] - Future dividends will depend on cash generated from operations and other factors, with no assurance of maintaining current levels[135] - The New Revolving Facility may limit the company's ability to pay dividends, potentially impacting its REIT status and stockholder confidence[102] Cybersecurity - The company has established a Risk Committee to oversee cybersecurity risks and has not experienced material cybersecurity incidents since its inception[141] - Regular cybersecurity training is conducted for employees, including simulated cyber threats to enhance awareness and preparedness[142]

Financial Performance - Total revenues for Q4 2025 were $35.2 million, down from $38.4 million in Q4 2024, while full year revenues were $147.6 million compared to $164.9 million in 2024[5][7] - Net loss attributable to common stockholders for Q4 2025 was $(35.8) million, or $(0.64) per share, compared to $(32.8) million, or $(0.59) per share in Q4 2024; full year net loss was $(139.3) million, or $(2.48) per share[6][8] - Core FFO for Q4 2025 was $10.6 million, or $0.19 per diluted share, compared to $10.2 million, or $0.18 per diluted share in Q4 2024; full year Core FFO was $43.7 million, or $0.78 per diluted share, down from $56.8 million, or $1.01 per diluted share in 2024[6][8] - Total revenues for the year ended December 31, 2025, were $147.647 million, a decrease of 10.4% from $164.862 million in 2024[76] - Net loss attributable to common stockholders for the year ended December 31, 2025, was $139.309 million, compared to a net loss of $103.012 million in 2024, representing a 35.1% increase in losses[76] - Core FFO attributable to common stockholders for Q4 2025 was $10,558,000, slightly up from $10,192,000 in Q4 2024, while for the full year 2025, it was $43,676,000 compared to $56,755,000 in 2024[81] - Full Year Adjusted EBITDA declined from $82,849 million in 2024 to $68,957 million in 2025, a decrease of approximately 16.7%[93] Leasing and Property Management - The company completed 924,000 square feet of leasing in 2025, with a weighted average lease term of 7.5 years; Q4 leasing included 62,000 square feet[1][9] - The occupancy rate was 78.7%, with 66.7% of Annualized Base Rent derived from Investment-Grade Tenants[13] - The occupancy rate includes the Company's proportionate share of amounts related to the Unconsolidated Joint Venture, reflecting the overall performance of the properties[64] - The Leased Rate, which measures occupancy, is calculated as the sum of Leased Square Feet divided by Rentable Square Feet[56] Financial Position and Liquidity - The company has $145.9 million of liquidity, including $22.9 million in cash and $123.0 million available on the credit facility revolver[19] - Cash and cash equivalents increased to $22.362 million as of December 31, 2025, from $15.600 million in 2024, reflecting a 43.3% increase[74] - Total assets decreased to $1.170 billion as of December 31, 2025, down from $1.336 billion in 2024, a decline of 12.4%[74] - Total debt as reported at the end of 2025 was $463,957,000, a decrease from $490,222,000 at the end of 2024[90] - Net Debt at the end of 2025 was $467,896,000, down from $502,304,000 at the end of 2024[90] Capital Expenditures and Investments - The company sold 10 properties for $80.7 million in 2025, including three properties for $32.0 million in Q4[1][10] - The company acquired one Dedicated Use Asset for $15.0 million in February 2026, fully leased to a single tenant through December 2036[12] - Capital expenditures and leasing costs for Q4 2025 were $17,777,000, compared to $8,247,000 in Q4 2024, and for the full year 2025, it was $59,973,000 versus $24,068,000 in 2024[81] - Total real estate investments at cost decreased from $1,282,452 million in 2024 to $1,153,208 million in 2025, a reduction of approximately 10.1%[93] Future Guidance and Strategic Focus - The company provided guidance for 2026, estimating Core FFO per share between $0.69 and $0.76, with a Net Debt to Adjusted EBITDA ratio of 6.5x to 7.3x[23] - The Company expects 2026 Core FFO per diluted share to range between $0.69 and $0.76, reflecting a strategic focus on improving operational efficiency[96] - Projected General & Administrative Expenses for 2026 are estimated to be between $19.8 million and $20.8 million[96] - The estimated diluted net loss per share attributable to common stockholders for 2026 is projected to be between $(0.60) and $(0.55)[98] - The Company anticipates a Net Debt to Adjusted EBITDA ratio of 6.5x to 7.3x for 2026, indicating a targeted reduction in leverage[96] Company Overview and Market Position - Orion Properties Inc. reported a diversified portfolio of office properties primarily leased on a single-tenant net lease basis to creditworthy tenants[27] - The company aims to shift its portfolio concentration from traditional office properties to more Dedicated Use Assets over time[27] - The Company was founded on July 1, 2021, and began trading on the New York Stock Exchange on November 15, 2021[27] - Orion Properties Inc. is headquartered in Phoenix, Arizona, with an additional office in New York, New York[27] Risk Factors and Forward-Looking Statements - The Company anticipates potential risks from interest rate increases and inflation affecting operating costs and borrowing[70] - Forward-looking statements indicate that actual results may differ materially due to various known and unknown risks and uncertainties[69]

Core Insights - Orion Properties Inc. reported significant leasing activity in 2025, completing 924,000 square feet of leasing, including 62,000 square feet in Q4, and an additional 183,000 square feet post-year-end [1][2] - The company sold 10 properties for a total of $80.7 million in 2025, with three properties sold in Q4 for $32.0 million and two additional properties sold post-year-end for $13.1 million [1][2] - A new Dedicated Use Asset was acquired for $15.0 million in February 2026, fully leased to a single tenant until December 2036 [2] - The company declared a dividend of $0.02 per share for Q1 2026, payable on April 15, 2026 [2][3] Financial Overview Fourth Quarter 2025 - Total revenues were $35.2 million, down from $38.4 million in Q4 2024 [1] - Net loss attributable to common stockholders was $(35.8) million, or $(0.64) per share, compared to $(32.8) million, or $(0.59) per share in Q4 2024 [1] - Core FFO for Q4 2025 was $10.6 million, or $0.19 per diluted share, slightly up from $10.2 million, or $0.18 per diluted share in Q4 2024 [1] Full Year 2025 - Total revenues for the year were $147.6 million, down from $164.9 million in 2024 [1] - Net loss attributable to common stockholders was $(139.3) million, or $(2.48) per share, compared to $(103.0) million, or $(1.84) per share in 2024 [1] - Core FFO for the year was $43.7 million, or $0.78 per diluted share, down from $56.8 million, or $1.01 per diluted share in 2024 [1] Leasing and Disposition Activity - In Q4 2025, the company completed three property dispositions totaling approximately 327,000 square feet for $32.0 million [1] - For the full year, 10 property dispositions totaled approximately 961,000 square feet for $80.7 million [1] - Subsequent to year-end, two non-operating property dispositions were completed for $13.1 million [1] Real Estate Portfolio - As of December 31, 2025, the portfolio consisted of 58 Operating Properties and eight Non-Operating Properties, with an occupancy rate of 78.7% [2] - Annualized Base Rent was $111.3 million, with 66.7% derived from Investment-Grade Tenants [2] - The weighted average remaining lease term was 5.7 years [2] Balance Sheet and Liquidity - As of December 31, 2025, the company had an Adjusted Principal Outstanding of $490.8 million [2] - The company had $145.9 million of liquidity, including $22.9 million in cash and $123.0 million available on the credit facility revolver [2] - A new credit facility revolver was established in February 2026, extending the maturity date until February 2028 [2] Strategic Review Process - A strategic options review process was announced on January 26, 2026, which may include potential acquisitions, mergers, or the sale of the company [3]

Core Viewpoint - Orion Properties Inc. has announced the income tax classification of its 2025 dividends for common stock, providing detailed information on ordinary dividends, capital gain distributions, and non-dividend distributions [1] Dividend Classification - The dividends for 2025 are classified as follows: - December 31, 2024: $0.10 per share as ordinary dividends - March 31, 2025: $0.02 per share as ordinary dividends - June 30, 2025: $0.02 per share as ordinary dividends - September 30, 2025: $0.02 per share as ordinary dividends - No capital gain distributions or non-dividend distributions are reported for these dates [1] Company Overview - Orion Properties Inc. is a fully-integrated real estate investment trust (REIT) that owns a diversified portfolio of single-tenant net lease office properties across the United States - The company was founded on July 1, 2021, and spun off from Realty Income on November 12, 2021, beginning trading on the New York Stock Exchange on November 15, 2021 - The portfolio includes traditional office properties, governmental, medical office, flex/laboratory, R&D, and flex/industrial properties [1]

Company Overview - Orion Properties (ONL) has initiated a strategic alternatives process following a "going concern" statement, indicating potential financial distress or operational challenges [1] Industry Insights - The oil and gas sector is characterized as a boom-bust, cyclical industry, requiring patience and experience for successful investment [1] - The focus is on identifying under-followed oil companies and out-of-favor midstream companies that present compelling investment opportunities [1]

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued names within the sector, including their balance sheets, competitive positions, and development prospects [1] - Orion Properties (ONL) has a going concern statement in its financials, indicating elevated risk, which may deter conservative investors [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The investing group Oil & Gas Value Research seeks under-followed oil companies and out-of-favor midstream companies that present compelling investment opportunities [2] - The group includes an active chat room for investors to discuss recent information and share ideas related to oil and gas investments [2]