Financial Data and Key Metrics Changes - For Q4 2025, total revenues were $35.2 million, down from $38.4 million in Q4 2024. Core FFO was $0.19 per share compared to $0.18 per share in the previous year [17] - For the full year 2025, total revenues were $147.6 million, down from $164.9 million in 2024. Core FFO was $0.78 per share, which included approximately $0.09 per share of lease terminations [19] - Adjusted EBITDA for 2025 was $69 million, compared to $82.8 million in 2024 [19] Business Line Data and Key Metrics Changes - In 2025, the company completed over 900,000 sq ft of leasing, following 1.1 million sq ft in 2024, indicating an improving market backdrop [4] - The average weighted average lease term (WALT) for new leases signed in 2025 was nearly 10 years, with an overall average WALT of 7.5 years for all leasing activity [5] - Cash rent spreads for Q4 renewals were up 12.8%, although overall 2025 rent spreads were down 7.1% for the year [6] Market Data and Key Metrics Changes - The lease rate improved by 600 basis points year-over-year to over 80% at year-end, and occupancy rate improved by 500 basis points to 78.7% [6] - The company entered 2026 with scheduled lease expirations totaling $11.4 million of Annualized Base Rent, significantly lower than $16.2 million in 2025 [7] Company Strategy and Development Direction - The company is undergoing a strategic options review process to explore pathways to unlock shareholder value [4] - Orion is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUAs) such as medical, lab, and government properties [10] - The company aims to improve portfolio quality, lengthen WALT, renew tenants, and fill vacant space while managing leverage prudently [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the standalone prospects of the company and expects Core FFO growth in 2026 and beyond [15] - The leasing momentum is seen as constructive, with a robust pipeline of over 1 million sq ft in discussion or documentation stages [7] - The company anticipates that the market will gradually recover, which may lead to improved renewal rent increases [41] Other Important Information - The company reduced G&A expenses by more than 10% and expects annualized savings of about $1.8 million [12] - A quarterly cash dividend of $0.02 per share was declared for Q1 2026 [27] - The company has maintained significant liquidity of $145.9 million as of December 31, 2025, to support ongoing leasing efforts [21] Q&A Session Summary Question: Is the leasing pipeline seeing improvement? - Management indicated that the leasing pipeline has improved due to both market conditions and increased leasing momentum, although numbers can be volatile quarter-over-quarter [31] Question: What is the historical success rate of the leasing pipeline? - Management noted that the success rate has significantly improved over the past two years, with a notable increase in leased space from previous years [32] Question: Can you provide details on the Barilla transaction? - The Barilla transaction was brokered and includes both office and R&D space, with approximately half of the asset dedicated to test kitchens and R&D [34] Question: What is the pace of vacant property disposals? - Management stated that while significant activity occurred in 2025, future disposals will depend on the assessment of current vacancies and their leasing potential [39] Question: What opportunities do upcoming lease maturities present? - Management expects Core FFO to grow as the portfolio stabilizes and as they rent up properties, although renewal rent increases may vary based on market conditions [41]

Financial Performance and Outlook - Bristow reported LTM operating revenues of $1.2 billion as of June 30, 2023 [14] - The company projects operating revenues between $1.30 billion and $1.47 billion for 2024, representing an approximate 10% increase compared to 2023 guidance [31] - Adjusted EBITDA is projected to be in the range of $190 million to $220 million in 2024, which is more than a 25% increase compared to 2023 guidance [31] - Bristow's unrestricted cash balance was $212 million as of June 30, 2023, with total liquidity of $285.3 million [76] - Total debt was $568 million, resulting in net debt of $356 million as of June 30, 2023 [77] Business Segments and Contracts - Offshore energy services accounted for 64% of operating revenues [34] - Government services represented 26% of operating revenues [48] - Bristow was awarded a 10-year Irish Coast Guard contract worth approximately €670 million, expected to commence in October 2024 [25, 54] - The company is investing between $155 million and $165 million in the UKSAR2G contract and between $135 million and $145 million in the Irish Coast Guard contract [53, 54] Fleet and Operations - Bristow has a diverse fleet of 221 aircraft, including rotary-wing, fixed-wing, and UAS [14] - The company operates in 17 countries across 6 continents [14] - The fleet includes 67 S92 heavy helicopters and 53 AW139 medium helicopters [74]