Orion Properties (ONL) investor relations material

Executive summary

• Strategic review is ongoing, considering options such as sale, merger, or continued independent operation, with the board and advisors focused on maximizing shareholder value; no timeline for completion was provided.

• The company has shifted focus from traditional office to dedicated use assets, including government, medical, laboratory, and R&D properties, aiming for more stable, long-term tenants and rebranded in March 2025 to align with this strategy.

• Q1 2026 leasing activity totaled 355,000 sq ft, including major leases in Irving, TX, Buffalo, NY, and Phoenix, AZ, with a weighted average lease term of nearly 12 years.

• Portfolio occupancy rose to 83.1% at quarter end, up from 73.7% a year ago, with 59 operating properties and 6.62 million rentable sq ft.

• Leadership and board have deep REIT and net lease experience, supporting disciplined asset management and capital allocation.

Financial highlights

• Q1 2026 revenue was $36.3 million, down from $38 million in Q1 2025.

• Net loss attributable to common stockholders was $13.6 million, or $0.24 per share, compared to $9.4 million, or $0.17 per share, last year.

• Core FFO was $11.7 million ($0.21 per share), up from $10.7 million ($0.19 per share), including a $1.9 million one-time lease termination payment.

• Adjusted EBITDA was $17.2 million, slightly down from $17.4 million.

• CapEx and leasing costs increased to $18.7 million from $8.3 million, driven by accelerated leasing activity.

Outlook and guidance

• 2026 Core FFO guidance affirmed at $0.69–$0.76 per diluted share.

• G&A expected at $19.8–$20.8 million, with no significant increases anticipated.

• Net debt to adjusted EBITDA projected at 6.5x–7.3x.

• Portfolio occupancy expected to improve as vacant properties are sold and capital is recycled into new assets, with some quarter-over-quarter volatility.

• Significant lease expirations expected in 2026 (9.7% of ABR) and 2027 (11.7%).