Orion Office REIT (ONL)2024-08-08 20:21Portfolio 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 47,197,000 in the previous quarter[10]. - Rental income for Q2 2024 was 46,995,000 in Q1 2024, representing a decline of approximately 15%[10]. - Net loss attributable to common stockholders for Q2 2024 was 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 (0.47) in the previous quarter[10]. - Total operating expenses for Q2 2024 were 65,247,000 in Q1 2024[10]. Assets and Liabilities - Total assets as of June 30, 2024, were 1,385,519,000 at the end of Q1 2024[9]. - Total liabilities decreased to 529,568,000 at the end of Q1 2024[9]. - Cash and cash equivalents increased to 23,618,000 in Q1 2024[9]. - Accumulated deficit increased to (290,710,000) at the end of Q1 2024[9]. Debt and Financing - Total secured debt as of June 30, 2024, was 60.0 million to hedge against interest rate volatility on the credit facility revolver[16]. Operational Metrics - The company reported impairments of 19,685,000 in the previous quarter[10]. - Funds From Operations (FFO) attributable to common stockholders decreased to 18,389 thousand in Q1 2024, a decline of 40.5%[11]. - Core FFO attributable to common stockholders was 20,365 thousand in Q1 2024, representing a decrease of 30.4%[11]. - The company's net operating income (NOI) for Q2 2024 was 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 75.0 million[16].