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 ...

Orion Office REIT Inc. (NYSE:ONL) Q4 2024 Earnings Conference Call March 6, 2025 10:00 AM ET Company Participants Paul Hughes - General Counsel Paul McDowell - CEO Gavin Brandon - CFO Gary Landriau - Chief Investment Officer Chris Day - Chief Operating Officer Conference Call Participants Mitch Germain - Citizens Capital Markets Operator Greetings and welcome to Orion Office REIT Inc.'s Fourth Quarter and Full Year 2024 earnings call. As a reminder, this conference is being recorded. I would now like to tur ...

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]

Orion Office REIT Inc. (NYSE:ONL) Q3 2024 Earnings Conference Call November 8, 2024 10:00 AM ET Company Participants Paul Hughes - General Counsel Paul McDowell - CEO Gavin Brandon - CFO Conference Call Participants Mitch Germain - JMP Securities Operator Greetings. Welcome to Orion Office REIT's Third Quarter 2024 Earnings Conference Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Counsel for Orion. Thank you. You may begin. Paul Hughes ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number: 001-40873 | --- | --- | --- | --- | |-----------------------------------------------------------------|--- ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission file number: 001-40873 | --- | --- | --- | --- | |-----------------------------------------------------------------|-------- ...