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 ...

Financial Data and Key Metrics Changes - Orion generated total revenues of $40.1 million in Q2 2024, down from $52 million in the same quarter of the prior year [15] - The company reported a net loss attributable to common stockholders of $33.8 million or $0.60 per share, compared to a net loss of $15.7 million or $0.28 per share in Q2 2023 [15] - Core funds from operations (Core FFO) for the quarter was $14.2 million or $0.25 per share, down from $26.9 million or $0.48 per share in the same quarter of 2023 [16] - Adjusted EBITDA was $20.5 million versus $32.7 million in Q2 2023 [16] - The company ended the quarter with $489.3 million of outstanding debt, with a net debt to annualized year-to-date adjusted EBITDA ratio of 4.92 times [17] Business Line Data and Key Metrics Changes - At the end of Q2 2024, the company owned 69 operating properties and 6 unconsolidated joint venture properties, comprising 8.2 million rentable square feet that were 79.7% occupied [4] - Adjusted for one operating property under agreement to be sold, the occupancy rate was 80.9% [5] - 72.3% of tenants were investment grade as of June 30, 2024 [5] - The company completed 633,000 square feet of lease transactions in 2024, more than double the total for all of 2023 [5] Market Data and Key Metrics Changes - Over 35% of annualized base rent is derived from Sun Belt markets [5] - The largest tenant by annualized base rent is the United States government, with the two largest tenant industries being government and health care [5] Company Strategy and Development Direction - The company is focused on repositioning its portfolio and has sold 18 properties totaling 1.9 million square feet, which is over 15% of the portfolio [10] - The strategy includes maintaining a low leverage balance sheet to retain financial flexibility for future investments [14] - The company intends to invest approximately $3 million in improvements to adapt properties for multi-tenant usage and upgrade amenities [6] Management's Comments on Operating Environment and Future Outlook - Management anticipates that leasing will remain challenging, with substantial vacancy expected for the foreseeable future [9] - The company is optimistic about its forward leasing pipeline, which includes over 1 million square feet in various stages of discussion and negotiation [8] - Management has narrowed the range of guidance expectations for Core FFO and net debt to adjusted EBITDA for 2024 [20] Other Important Information - The company declared a quarterly cash dividend of $0.10 per share for Q3 2024, payable on October 15, 2024 [20] - The company has strong total liquidity of $267.9 million, which includes $24.9 million in cash and $243 million of available capacity on its revolving credit facility [18] Q&A Session Summary Question: What drove the decision to accelerate work on the Walgreens Campus? - Management indicated that the project took longer than expected, and the developer has made progress, prompting the decision to demolish buildings to reduce carry costs [21] Question: Will capital projects align more with leasing efforts going forward? - Management confirmed that capital projects will be more aligned with leasing efforts, as upgrades are expected to attract tenants [23] Question: What is the outlook for net debt to EBITDA as vacancies are absorbed? - Management acknowledged that declining revenue and increased expenses would push the debt-to-EBITDA ratio up, but additional property sales could help mitigate this [25] Question: What is the sensitivity to the top and bottom end of the guidance? - Management stated that the guidance range is relatively tight, with tenant reimbursements potentially pushing results towards the top end and unexpected expenditures towards the lower end [28]

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].

Portfolio Overview - As of June 30, 2024, Orion owned and operated a portfolio of 69 office properties totaling approximately 8.0 million leasable square feet across 29 states[6]. - The company has a 20% equity interest in an Unconsolidated Joint Venture that owns six office properties totaling approximately 1.0 million leasable square feet[6]. - The company had a total of 69 operating properties and 6 unconsolidated joint venture properties, with a total rentable square footage of 8,202,000[32]. - The company operates a total of 75 properties, with a total rentable square footage of 8,202 thousand square feet[38]. - The company maintains a diverse portfolio with properties located in multiple states across the U.S.[40]. Financial Performance - Total revenues for Q2 2024 were $40,124,000, a decrease of 15% compared to $47,197,000 in the previous quarter[10]. - Rental income for Q2 2024 was $39,923,000, down from $46,995,000 in Q1 2024, representing a decline of approximately 15%[10]. - Net loss attributable to common stockholders for Q2 2024 was $33,801,000, compared to a net loss of $26,232,000 in Q1 2024, reflecting an increase in losses of approximately 29%[10]. - Basic and diluted net loss per share attributable to common stockholders was $(0.60) for Q2 2024, compared to $(0.47) in the previous quarter[10]. - Total operating expenses for Q2 2024 were $64,762,000, slightly down from $65,247,000 in Q1 2024[10]. Assets and Liabilities - Total assets as of June 30, 2024, were $1,339,853,000, a decrease of 3.3% from $1,385,519,000 at the end of Q1 2024[9]. - Total liabilities decreased to $522,362,000 as of June 30, 2024, down from $529,568,000 at the end of Q1 2024[9]. - Cash and cash equivalents increased to $24,224,000 in Q2 2024, up from $23,618,000 in Q1 2024[9]. - Accumulated deficit increased to $(330,136,000) as of June 30, 2024, compared to $(290,710,000) at the end of Q1 2024[9]. Debt and Financing - Total secured debt as of June 30, 2024, was $382,286 thousand, with a weighted average interest rate of 5.11%[13]. - The company’s debt composition includes 72.6% fixed-rate debt and 27.4% variable-rate debt, with a weighted-average interest rate of 5.89%[17]. - The interest coverage ratio decreased to 2.71x as of June 30, 2024, down from 3.52x in the previous quarter[18]. - The company has entered into interest rate collar agreements on a total notional amount of $60.0 million to hedge against interest rate volatility on the credit facility revolver[16]. Operational Metrics - The company reported impairments of $5,680,000 in Q2 2024, a significant decrease from $19,685,000 in the previous quarter[10]. - Funds From Operations (FFO) attributable to common stockholders decreased to $10,925 thousand in Q2 2024 from $18,389 thousand in Q1 2024, a decline of 40.5%[11]. - Core FFO attributable to common stockholders was $14,171 thousand in Q2 2024, down from $20,365 thousand in Q1 2024, representing a decrease of 30.4%[11]. - The company's net operating income (NOI) for Q2 2024 was $24.2 million, down from $31.0 million in Q1 2024, reflecting a decrease of approximately 22.4%[22]. Tenant and Lease Information - Approximately 72.3% of the Annualized Base Rent was from Investment-Grade Tenants, with an Occupancy Rate of 79.7%[6]. - The weighted average lease term (by rentable square feet) for new leases was 15.1 years, indicating a long-term commitment from tenants[23]. - The company reported an occupancy rate of 79.7% and a leased rate of 81.4% as of June 30, 2024[32]. - The company has 51 leases with a credit rating of BBB or higher, indicating strong tenant quality[33]. Market and Economic Conditions - The company faces risks including rising interest rates, inflation, and changes in workplace practices affecting demand for office space[4]. - Future performance is subject to various risks and uncertainties, and historical rent collections may not indicate future performance[2]. Strategic Initiatives - The company has classified certain properties as Non-Operating Properties to enhance transparency in its portfolio[3]. - The company has rightsized its credit facility revolver to $350.0 million, reducing capacity by $75.0 million[16].

Core Viewpoint - Orion Office REIT has underperformed significantly in 2024, but the current market cap rate of 14% suggests that the poor operating performance is already priced in, indicating a potential buying opportunity despite risks related to leverage and declining occupancy [1][12]. Company Overview - Orion Office REIT is a double net lease office REIT managing single-tenant properties across 29 states, with Texas being the largest market, contributing 18.4% of annualized base rent (ABR) [2]. - The company’s tenant base is primarily concentrated in Health Care Equipment & Services (16.4% of ABR), Government & Public Services (14.9%), and Financial Institutions (11.8%) [3]. Operational Overview - As of Q1 2024, Orion Office's occupancy rate was 75.8%, a decline of 11.7% year-over-year, indicating distress within the REIT [3]. - Adjusting for properties under sale agreements, the occupancy rate stands at 83.2% [3]. - Funds from Operations (FFO) for Q1 2024 was $0.33 per share, down 19.5% year-over-year, while Core FFO was $0.36 per share, down 20% year-over-year, primarily due to lower revenues and higher interest expenses [4]. 2024 Outlook - The company reaffirmed its 2024 expectations, projecting Core FFO to decline to approximately $0.97 per share, a 42% decrease from $1.68 per share in 2023 [5]. - General and Administrative expenses are expected to range from $19.5 million to $20.5 million, with a net debt to adjusted EBITDA ratio projected between 6.2x and 7.0x [5]. Debt Position - As of Q1 2024, Orion Office had a net debt of $474 million, representing 70% of the company's enterprise value, with a weighted average cost of debt at 5.84% and an average maturity of 2.6 years [6]. - The debt structure includes 71% mortgages and 23% borrowed under a floating rate revolver at 8.66% [6]. - The company has made progress in addressing its 2026 revolver maturity by securing an amendment to its credit facility [7]. Market Implied Cap Rate - In Q1 2024, the company generated $18.4 million in FFO and incurred $8.1 million in interest expenses, leading to annual cash flows of approximately $95 million, resulting in an attractive market cap rate of 14% [9]. Progress on Disposals - Orion Office anticipates generating $48.1 million in gross proceeds from the sale of eight properties, although these transactions are subject to various conditions [10].

Orion Office REIT Inc. (NYSE:ONL) Q1 2024 Earnings Conference Call May 9, 2024 10:00 AM ET Company Participants Paul Hughes - General Counsel Paul McDowell - Chief Executive Officer Gavin Brandon - Chief Financial Officer Conference Call Participants Jyoti Yadav - JMP Securities Operator Greetings. Welcome to Orion Office REIT's First Quarter 2024 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Paul Hughes, General Counsel for Orion. Thank you, ...

This presentation does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for, purchase or otherwise acquire any securities of the Company in any jurisdiction, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or with any other contract or commitment whatsoever. 3 ▪ Spun off from Realty Income following the merger of VEREIT with Realty Income ▪ Orion ...