Orion Properties (ONL) investor relations material

Executive summary

• Portfolio strategy shifts from traditional office toward Dedicated Use Assets, with priorities including leasing, non-core sales, portfolio-quality improvement and prudent leverage.

• The strategic-options review remains active; potential outcomes include a merger, sale or continued independent operation, with no transaction assured. Higher Treasury rates have slowed progress.

• Core FFO growth is expected over time, with acceleration dependent on leasing.

Financial highlights

• Q3 revenue was $35.4M vs. $37.1M YoY; net loss attributable to common stockholders was $3.3M, or $0.06/share, vs. $69.0M, or $1.23/share.

• Q3 FFO was $9.2M, or $0.16/share, vs. $6.6M, or $0.12; Core FFO was $11.4M, or $0.20/share, vs. $11.0M, or $0.19.

• Q3 Adjusted EBITDA was $16.5M vs. $17.4M, primarily reflecting fewer assets; FAD was $1.3M, or $0.02/share, vs. negative $12.3M, or negative $0.22/share.

• 9M impairment charges were $6.3M vs. $84.9M YoY; 9M gains on real estate dispositions were $28.8M.

• Q3 property operating expenses were $14.3M vs. $17.3M YoY; CapEx and leasing costs were $6.9M vs. $18.3M.

Outlook and guidance

• FY2026 Core FFO guidance increased to $0.75–$0.78 per diluted share from $0.72–$0.77; Net Debt to Adjusted EBITDA guidance improved to 5.8x–6.4x from 6.0x–6.8x.

• FY2026 G&A guidance remains $19.8M–$20.8M; guidance depends on leasing, dispositions, CapEx, borrowing costs and strategic-review expenses.

• Occupancy is expected to improve through leasing, vacant-property sales and selective capital recycling, with quarter-to-quarter volatility.

• Management expects to lease over 1M sq. ft. for a third consecutive year; a potential 93,000-sq.-ft., 15-year Buffalo lease would bring the renovated property to 64% leased.