Orion Properties (ONL) investor relations material

Executive summary

• The company, spun off in 2021, has shifted focus from traditional office to Dedicated Use Assets in growth markets, aiming for a resilient, high-quality portfolio and supported by experienced leadership and strong corporate governance.

• Strategic review process continues with several interested parties conducting due diligence; outcomes remain uncertain and may include a sale, merger, or continued independent operation.

• Significant leasing momentum with 673,000 sq ft completed year-to-date, and asset sales totaling $83.7M in H1 2026, supporting debt reduction and a return to profitability in Q2 2026.

• Portfolio repositioning has increased exposure to Dedicated Use Assets, improved occupancy, and extended weighted average lease term to 6.2 years.

• Corporate governance emphasizes accountability, shareholder rights, and risk oversight.

Financial highlights

• Q2 2026 revenue was $34.3 million, down from $37.3 million year-over-year, with net income of $24.6 million ($0.43/share), including a $28.8 million gain from property sales.

• Core FFO was $11.8 million ($0.20/share) in Q2 2026, flat year-over-year, and $0.41/share for the first half.

• Adjusted EBITDA was $17.2 million, down from $18 million year-over-year.

• G&A expense improved to $4.6 million from $4.8 million year-over-year.

• Operating expenses and interest expense both decreased due to lower impairments, property sales, and reduced debt.

Outlook and guidance

• 2026 Core FFO guidance raised to $0.72-$0.77 per diluted share, up from $0.69-$0.76.

• Net debt to Adjusted EBITDA guidance lowered to 6x-6.8x from 6.5x-7.3x.

• G&A expense guidance unchanged at $19.8-$20.8 million.

• CapEx for the remainder of 2026 expected to be $30-$40 million.

• Portfolio occupancy expected to improve as leasing and capital recycling continue, though with some quarter-over-quarter volatility.