Orion Office Reit Stock Earnings Reports

Orion Properties reported Q1 2026 results and reaffirmed 2026 guidance while continuing an active strategic review. Key operational progress: leasing momentum continued with 355k sq ft signed in the quarter (including a 172k sq ft, 12-year full-building lease in Irving, TX), pipeline >1M sq ft, WALT on new leases ~12 years and consolidated portfolio WALT approaching 6 years. Occupancy improved to 83.1% (vs. 73.7% a year ago). The company continues targeted dispositions of noncore/vacant assets (38 properties sold since the spin; several recent and under‑contract sales totaling meaningful proceeds) to reduce carrying costs and pay down debt, while selectively recycling proceeds into dedicated-use assets (DUA) — DUA share by ABR rose to ~37.1% from 32.2% a year ago. Financials: Q1 revenues $36.3M, net loss $0.24/sh, core FFO $0.21/sh (included a one-time $1.9M lease termination payment). Adjusted EBITDA $17.2M. CapEx/leasing costs increased to $18.7M as leasing activity accelerated. Liquidity remains strong: $148.5M total liquidity (cash + revolver capacity) at quarter end, net debt to annualized MRQ adjusted EBITDA 6.36x; subsequent $25M revolver repayment improved available capacity. The company refinanced its revolver (maturity extended to Feb 2029 with extension options) and amended a CMBS loan (maturity extended to Aug 2030). Dividend: quarterly cash dividend $0.02/share. Outlook: reaffirmed 2026 core FFO guidance of $0.69–$0.76/sh, G&A expected ~$19.8–$20.8M, net debt/EBITDA guidance 6.5x–7.3x. Management emphasizes continuing the strategic review while executing the business plan focused on leasing, disposals of noncore assets, lowering leverage, and shifting toward DUA properties to drive durable cash flows and core FFO per-share growth.