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 ...

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 March 31, 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 Orion Office REIT Inc. (Exact name of registrant as specified in its charter) Maryland 87-1656425 (S ...

Exhibit 99.2 Q1 2024 SUPPLEMENTAL INFORMATION Forward-Looking Statements Information set forth herein includes "forward-looking statements" which reflect the Company's 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 "anticipates," "assumes," "beli ...

Resolution | --- | --- | |-------|-------| | Arch Street Credentials (1) | Joint Venture Highlights \nJoint Venture Summary | | ▪ Leading advisor to large international investors | ▪ Year Created: 2020 (Formed by VEREIT and Arch Street Capital Partners) | | ▪ Advised $9.7+ billion of transactions since inception | ▪ Orion Ownership: 20% | | ▪ 20 years of experience | ▪ Interest Rate on Current Financing: Swapped to Fixed 5.19% | Source: Company data as of December 31, 2023. (1) Weighted average interest rat ...

Orion Office REIT Inc. (NYSE:ONL) Q4 2023 Earnings Conference Call February 28, 2024 10:00 AM ET Company Participants Paul Hughes – General Counsel Paul McDowell – Chief Executive Officer Gavin Brandon – Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to Orion Office REIT’s Fourth Quarter 2023 Earnings 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 now begin. Paul Hu ...

Portions of the registrant's definitive proxy statement to be delivered to stockholders in connection with the registrant's 2024 Annual Meeting of Stockholders (the "Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K. The registrant intends to file the Proxy Statement within 120 days after its fiscal year end. Only those portions of the Proxy Statement which are specifically incorporated by reference herein shall constitute a part of this Annual Report on Form 1 ...

Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the North American market [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered three new international markets, contributing to a 20% increase in global sales [4]. - A new distribution center was opened in Europe to support the growing demand in the region [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Product Development - Launched two new product lines, which accounted for 25% of total revenue in the last quarter [7]. - R&D investment increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new products has been overwhelmingly positive, with a 90% satisfaction rate [9]. Operational Efficiency - Implemented new supply chain management software, reducing delivery times by 15% [10]. - Achieved a 5% reduction in production costs through process optimization [11]. - Employee training programs were expanded, resulting in a 10% increase in productivity [12]. Sustainability Initiatives - Reduced carbon emissions by 12% through the adoption of renewable energy sources [13]. - Introduced eco-friendly packaging for all product lines, reducing plastic usage by 30% [14]. - Partnered with environmental organizations to promote sustainable practices across the industry [15]. Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Conducted a comprehensive review of corporate policies to ensure compliance with new regulations [17]. - Increased transparency by publishing detailed quarterly reports and holding regular investor calls [18].