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]

Core Viewpoint - Orion Properties Inc. announced that the nomination notice submitted by The Kawa Fund Limited for five candidates to stand for election to the Board of Directors at the 2026 annual meeting is invalid due to non-compliance with the company's bylaws [1][2]. Summary by Sections Board of Directors' Review - The Board of Directors unanimously determined that Kawa's notice did not meet several requirements outlined in Orion's bylaws, including the necessity for Kawa to be a record holder of the company's common stock [2]. - The Board emphasized that Kawa failed to provide proof of being an eligible stockholder and did not comply with other procedural requirements, such as a lack of detailed plans for the company beyond previous acquisition proposals [2]. Company Commitment - Orion's Board and management are dedicated to creating long-term value for all stockholders and will continue to engage with the investment community regarding the company's strategy and performance [2]. - The company will maintain ongoing communications with Kawa despite the invalid nomination notice [2]. Future Actions - Orion will announce the date of the 2026 Annual Meeting and file proxy materials with the SEC in due course, indicating that no action is required from stockholders at this time [3]. Company Overview - Orion Properties Inc. is an internally-managed real estate investment trust (REIT) focused on owning, acquiring, and managing a diversified portfolio of office properties across the United States, primarily leased to creditworthy tenants [4]. - The company was founded on July 1, 2021, and began trading on the New York Stock Exchange on November 15, 2021 [4].

Group 1 - The article discusses the investment strategy focused on identifying Real Estate Investment Trusts (REITs) that are currently undervalued in the market [1] - The investment approach is characterized as long-term, contrarian, and deep-value, emphasizing the importance of fundamental economic insights to assess intrinsic stock value [1] - The author has exited a deep-value position in ONL due to refinancing risks and is awaiting a clearer path for the company before considering re-entry [3] Group 2 - The article does not provide any specific financial data or performance metrics related to the companies mentioned [2][3]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $37.1 million, down from $39.2 million in Q3 2024 [14] - Core FFO for the quarter was $11 million, or $0.19 per share, compared to $12 million, or $0.21 per share in the same quarter of 2024 [14] - Adjusted EBITDA was $17.4 million, down from $19.1 million in Q3 2024 [15] - Year-to-date core FFO for 2025 was $33.1 million, or $0.59 per share, including approximately $0.05 per share of lease-related termination income [14][15] - The company raised its full-year core FFO guidance to a range of $0.74-$0.76 per share, up from $0.67-$0.71 per share [20] Business Line Data and Key Metrics Changes - The company leased 303,000 sq ft of space in Q3 2025, with a weighted average lease term (WALT) of over 10 years [4] - Year-to-date leasing totaled 919,000 sq ft, in addition to 1.1 million sq ft leased last year [5] - Rent spreads on lease renewals were positive, up over 2% for renewals and over 4% for total leasing activity [6] - The operating property occupancy rate was 72.8% at quarter end, down from 73.7% at the end of 2024 [6] Market Data and Key Metrics Changes - The company has sold seven vacant or soon-to-be-vacant properties totaling 761,000 sq ft for a gross sales price of $64.4 million [8] - Agreements are in place to sell another four properties totaling over 500,000 sq ft for $46.6 million [9] - Approximately 33.9% of the portfolio by annualized base rent and 24.6% by square footage were dedicated use assets (DUAs) [12] Company Strategy and Development Direction - The company is focused on shifting its portfolio away from traditional office properties towards DUAs, which exhibit stronger renewal trends and more durable cash flows [11] - The strategy includes recycling capital from property dispositions into targeted acquisitions of DUAs [11] - The company aims to enhance the quality and durability of its portfolio, with a goal of increasing the WALT [4][12] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 will represent a trough for core FFO, with expectations for accelerating earnings growth and rising occupancy in subsequent years [13][21] - The company is actively managing leverage while maintaining significant liquidity to support ongoing leasing efforts [12] - Management expressed confidence in the continued improvement of the leasing environment and the company's ability to execute its business plan [6][12] Other Important Information - The company ended the quarter with total liquidity of $273 million, including $33 million in cash and $240 million available on the credit facility revolver [17] - The board declared a quarterly cash dividend of $0.02 per share for Q4 2025 [19] Q&A Session Summary Question: Discussion on guidance and lease termination income - Management explained that lease termination income was a result of a negotiated settlement with a tenant, and that leasing efforts in Q3 and Q4 are contributing positively [24][25] Question: Leasing pipeline and demand - Management confirmed that demand for properties remains strong, and the slight decrease in the leasing pipeline is due to fewer expected vacancies and a smaller portfolio [26] Question: Acquisition pipeline and pricing - Management noted a strong pipeline of potential transactions but emphasized the need for selectivity based on pricing and property quality [28]

Investor Presentation November 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 "an ...

Property and Occupancy - As of September 30, 2025, the company owned and operated 63 properties with a total of 7.4 million leasable square feet and an occupancy rate of 72.1%[175] - The occupancy rate as of September 30, 2025, was 72.1% with 7.4 million leasable square feet, down from 74.0% and 8.1 million leasable square feet as of September 30, 2024[232] - The occupancy rate of operating properties was 72.8%, down from 73.7% as of December 31, 2024[200] - The occupancy rate as of September 30, 2025, is projected to be 74.5% after adjusting for properties under agreements to be sold[201] - 66.8% of the properties are classified as class A, while class B and class C properties account for 27.8% and 5.4%, respectively[179] Lease and Rental Information - The weighted average remaining lease term for the properties is 5.8 years, with 2.9% and 9.5% of annualized base rent scheduled to expire in 2025 and 2026, respectively[177] - The company’s annualized base rent as of September 30, 2025, is calculated based on the monthly aggregate cash amount charged to tenants, multiplied by 12[169] - The company completed approximately 862,000 square feet of lease renewals and new leases across 13 properties with a weighted average lease term of 7.8 years during the nine months ended September 30, 2025[195] - The company entered into 7 leases during the three months ended September 30, 2025, comprising 303,000 rentable square feet, with a weighted average rental rate change of 4.1%[214] - For the nine months ended September 30, 2025, the company executed 15 leases totaling 862,000 rentable square feet, with a weighted average rental rate change of -7.1%[220] Financial Performance - Total revenues for the three months ended September 30, 2025, were $37,122,000, a decrease of 5.4% from $39,178,000 in the same period of 2024[203] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $(69,035,000), compared to a loss of $(10,217,000) in 2024[203] - Funds from Operations (FFO) attributable to common stockholders for the three months ended September 30, 2025, was $6,553,000, down from $10,122,000 in 2024[203] - Total revenues decreased by $2.1 million and $14.1 million for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to a reduction in occupied square footage from lease expirations[231] - Rental revenues decreased by $3.4 million and $15.4 million during the three and nine months ended September 30, 2025, due to lease expirations[232] Debt and Liquidity - The nearest debt maturity for the company is associated with the Arch Street Joint Venture, scheduled for November 27, 2025, with an option to extend until November 27, 2026[180] - The company has substantial doubt about its ability to continue as a going concern for at least one year due to uncertainty regarding the extension or refinancing of the $110.0 million Revolving Facility maturing on May 12, 2026[264] - As of September 30, 2025, the total consolidated debt outstanding was $483.0 million, comprising a $355.0 million fixed-rate mortgage note, $110.0 million borrowed under a senior revolving credit facility, and an $18.0 million fixed-rate mortgage note[266] - The company plans to address liquidity needs through cash flows from operations, borrowings, and potential property disposals[265] - The company has entered into interest rate collar agreements to hedge against interest rate volatility, with a notional amount of $75.0 million, effective from May 12, 2025, to May 12, 2026[267][275] Market and Economic Conditions - The current economic environment, including high interest rates and inflation, poses risks to the company’s financial condition and tenant lease renewals[178] - The company faces challenges in tenant retention due to significant lease expirations and changing office space utilization trends, including increased remote work[177] - The company is shifting its portfolio concentration away from traditional office properties towards dedicated use assets with an office component[183] Asset Sales and Impairments - The company closed on the sale of seven properties totaling approximately 634,000 square feet for an aggregate gross sales price of $48.7 million during the nine months ended September 30, 2025[195] - The company has pending agreements to sell four operating properties for an aggregate gross sales price of $46.6 million, subject to various conditions[195] - Impairment charges increased by $63.7 million and $59.5 million for the three and nine months ended September 30, 2025, respectively, primarily related to real estate assets sold or expected to be sold[242] Dividends and Share Repurchase - The company declared a quarterly cash dividend of $0.02 per share for the first three quarters of 2025, with the fourth quarter dividend also declared on November 5, 2025[199] - The Company has a Share Repurchase Program authorized for up to $50.0 million, with $45.0 million remaining available for repurchase as of September 30, 2025[305] Cash Flow and Expenses - Net cash provided by operating activities decreased by $26.7 million to $15.1 million for the nine months ended September 30, 2025, compared to $41.8 million in 2024[306] - Net cash from investing activities increased by $51.2 million, totaling $8.2 million for the nine months ended September 30, 2025, driven by proceeds from real estate asset sales of $44.0 million[307] - Net cash used in financing activities increased by $13.3 million, totaling $(17.7) million for the nine months ended September 30, 2025, primarily due to net repayments on the Revolving Facility[308] Risk Management - The company is subject to credit risk concentrations due to tenants engaged in similar business activities or located in the same geographic region[317] - Credit risk assessment includes factors such as payment history, credit status, tenant financial performance, and economic conditions[318] - The company believes credit risk is mitigated by a high-quality and diverse tenant base and consistent monitoring of the portfolio[318]

Financial Performance - Total revenues for Q3 2025 were $37.1 million, down from $39.2 million in Q3 2024[4] - Net loss attributable to common stockholders was $(69.0) million, or $(1.23) per share, compared to $(10.2) million, or $(0.18) per share in the same quarter of 2024[5] - Core FFO for Q3 2025 was $11.0 million, or $0.19 per diluted share, down from $12.0 million, or $0.21 per diluted share in Q3 2024[4] - Total revenues for Q3 2025 were $37,122,000, a decrease of 5.3% from $39,178,000 in Q3 2024[69] - Net loss attributable to common stockholders for Q3 2025 was $69,035,000, compared to a net loss of $10,217,000 in Q3 2024, reflecting a significant increase in losses[69] - Funds from Operations (FFO) attributable to common stockholders for Q3 2025 was $6,553,000, down from $10,122,000 in Q3 2024, representing a decrease of 35.5%[71] - Core FFO attributable to common stockholders for Q3 2025 was $11,007,000, compared to $12,027,000 in Q3 2024, reflecting an 8.4% decline[71] - Adjusted EBITDA for Q3 2025 was $17,394,000, down from $19,083,000 in Q3 2024, indicating a decrease of 8.9%[76] Leasing and Sales Activity - The company completed 919,000 square feet of leasing year-to-date, including 303,000 square feet in Q3 2025[1] - Eight properties were sold year-to-date for $64.4 million, including three properties in Q3 for $21.8 million[1] - The company has agreements in place to sell four operating properties for an aggregate gross sales price of $46.6 million[9] Financial Ratios and Guidance - The company improved its 2025 guidance for Core FFO per share to $0.74 - $0.76, up from the prior guidance of $0.67 - $0.71[17] - The company's net debt to annualized year-to-date adjusted EBITDA was 6.75x[5] - The Interest Coverage Ratio for Q3 2025 was 2.33x, down from 2.47x in Q3 2024, indicating a decline in coverage[79] - The Fixed Charge Coverage Ratio for Q3 2025 was 2.29x, compared to 2.43x in Q3 2024, reflecting a decrease in coverage[79] - The Company expects a Net Debt to Adjusted EBITDA ratio between 6.7x and 7.2x for 2025[88] Assets and Liabilities - Cash and cash equivalents increased to $32,639,000 as of September 30, 2025, compared to $15,600,000 at the end of 2024[67] - Total assets decreased to $1,222,793,000 as of September 30, 2025, down from $1,336,422,000 at the end of 2024[67] - The company reported a total of $985,932,000 in net real estate investments as of September 30, 2025, a decline from $1,104,546,000 at the end of 2024[67] - The accumulated deficit increased to $491,463,000 as of September 30, 2025, compared to $384,348,000 at the end of 2024[67] - Net Debt as of September 30, 2025, was $475,864,000, a decrease from $502,304,000 at the end of 2024, representing a reduction of 5.3%[81] Expenses - Total operating expenses for Q3 2025 were $100,412,000, up from $41,129,000 in Q3 2024, primarily due to impairments of $63,698,000[69] - Capital expenditures and leasing costs for Q3 2025 amounted to $18,283,000, significantly higher than $6,057,000 in Q3 2024[72] - General & Administrative Expenses are anticipated to be between $19.5 million and $20.0 million for 2025[88] Impairments and Losses - Impairment of real estate assets for Q3 2025 was $63,698,000, with no impairments reported in Q3 2024[76] - The company experienced a loss on extinguishment of debt, netting $1,078,000 in Q3 2025[69] Future Projections - Diluted net loss per share attributable to common stockholders is projected to be between $(0.58) and $(0.56)[90] - FFO attributable to common stockholders per diluted share is expected to range from $0.51 to $0.53[90] - Annualized Year-to-Date Adjusted EBITDA for 2025 is projected at $70,451 million, compared to $82,849 million for the previous year[84] Other Financial Metrics - The Occupancy Rate is calculated as the sum of Occupied Square Feet divided by Rentable Square Feet, indicating the utilization of the company's properties[55] - The Unencumbered Asset Ratio decreased to 54.5% from 58.5%[84] - The company calculates Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") in accordance with Nareit's definition, which includes adjustments for interest expense, income tax expense, depreciation, and impairment write-downs on real estate[30] - Adjusted EBITDA is used as a non-GAAP measure to evaluate operating performance, excluding non-routine items and certain non-cash items, providing a clearer view of the company's portfolio performance over time[31] - Funds Available for Distribution ("FAD") is defined as Core FFO adjusted for capital expenditures and certain non-cash items, reflecting the company's ability to fund its dividend[34] - Nareit Funds from Operations ("Nareit FFO") is adjusted for gains or losses from real estate asset dispositions and depreciation, providing a measure of operating performance[36] - Core FFO excludes items that do not reflect ongoing operating performance, allowing for better comparison with other publicly-traded REITs[38] - Net Operating Income ("NOI") represents total revenues less property operating expenses, excluding certain costs, and is used to evaluate operating performance[54] - Net Debt is calculated as Adjusted Principal Outstanding minus cash and cash equivalents, providing insight into the company's liquidity and financial flexibility[52]

Core Viewpoint - Orion Properties Inc. is set to release its third-quarter operating results for the period ending September 30, 2025, after market close on November 6, 2025 [1] Group 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 [4] - The company was founded on July 1, 2021, and was spun off from Realty Income on November 12, 2021, beginning trading on the New York Stock Exchange on November 15, 2021 [4] - On March 5, 2025, the company changed its name from Orion Office REIT Inc. to Orion Properties Inc. to reflect a broader investment strategy that includes a shift away from traditional office properties towards dedicated use assets [4] Group 2: Upcoming Events - A webcast and conference call to review the third-quarter results will be held on November 7, 2025, at 10:00 a.m. ET, hosted by the CEO and CFO [2] - The conference call can be accessed by dialing specific numbers for domestic and international callers, ten minutes prior to the scheduled time [2] Group 3: Replay Information - A replay of the webcast will be available on the company's website, and the conference call replay will be accessible from November 7, 2025, after 1:00 p.m. ET until November 21, 2025 [3]

Core Insights - The article discusses the investment potential of Orion Properties (NYSE: ONL) and highlights the author's long-term contrarian investment strategy focused on Real Estate Investment Trusts (REITs) that are currently undervalued [1]. Company Overview - Orion Properties is positioned within the REIT sector, which has been experiencing fluctuations in market favor, particularly during the COVID-19 pandemic [1]. - The author emphasizes the importance of fundamental economic insights in assessing the intrinsic value of stocks, indicating a focus on long-term investment horizons [1]. Investment Strategy - The investment strategy revolves around identifying deep-value opportunities in the market, particularly those that are temporarily out-of-favor [1]. - The author has a beneficial long position in ONL, indicating confidence in the stock's future performance [2].

Core Insights - The article discusses the investment potential of Orion Properties (NYSE: ONL) and highlights the author's long-term contrarian investment strategy focused on Real Estate Investment Trusts (REITs) that are currently undervalued [1]. Company Overview - Orion Properties is positioned within the REIT sector, which has been experiencing fluctuations in market favor, particularly during the COVID-19 pandemic [1]. - The author emphasizes a focus on identifying REITs that are temporarily out-of-favor, suggesting a strategy that capitalizes on market inefficiencies [1]. Investment Strategy - The investment approach is characterized by a long-term horizon and a deep-value perspective, aiming to uncover intrinsic value in stocks that may not be recognized by the broader market [1]. - The author’s background as an economics teacher informs the analytical framework used to assess investment opportunities [1].