Orion Office REIT Inc. Announces Third Quarter 2024 Results

In This Article:

- Completed 832,000 Square Feet of Leasing Year-to-Date, Including 254,000 Square Feet in the Quarter -

- Acquired One 97,000 Square Foot Property in San Ramon, California for $34.6 Million -

- Declares Dividend for Fourth Quarter 2024 -

- Updated 2024 Outlook -

PHOENIX, November 07, 2024--(BUSINESS WIRE)--Orion Office REIT Inc. (NYSE: ONL) ("Orion" or the "Company"), a fully-integrated real estate investment trust ("REIT") focused on the ownership, acquisition and management of a diversified portfolio of single-tenant net lease office properties located across the United States, announced today its operating results for the third quarter ended September 30, 2024.

Paul McDowell, Orion’s Chief Executive Officer, commented, "We are excited to have successfully leased over 830,000 square feet to date in 2024. We are also proud of our efficient capital recycling from past dispositions and the addition of a strategically located, highly desirable flex/lab/R&D facility in California this quarter. We believe that this property not only enhances our portfolio’s weighted average lease term which increased to 5.0 years at quarter end and cash flow but will also modestly offset some of the anticipated and previously communicated financial impacts from asset sales and lease expirations. We also intend to continue to execute on our aggressive strategy to reposition the Orion portfolio through asset sales, with 19 properties representing almost 2.0 million square feet sold since our spin off, not including our pipeline of potential sales. These efforts have so far helped us reduce carrying costs and maintain a low leverage balance sheet that we believe will support us as we further stabilize our portfolio and fully experience the financial impacts in the coming year resulting from operating a much smaller portfolio. We firmly believe that our strong efforts to reposition our portfolio, coupled with an improved leasing environment will better position the Company for growth in the outer years."

Third Quarter 2024 Financial and Operating Highlights

  • Total revenues of $39.2 million

  • Net loss attributable to common stockholders of $(10.2) million, or $(0.18) per share

  • Funds from Operations ("FFO") of $10.1 million, or $0.18 per share

  • Core FFO of $12.0 million, or $0.21 per share

  • EBITDA and EBITDAre of $18.9 million and Adjusted EBITDA of $19.1 million

  • Net Debt to Annualized Year-to-Date Adjusted EBITDA of 5.60x

Financial Results

During the third quarter 2024, the Company generated total revenues of $39.2 million, as compared to $49.1 million in the same quarter of 2023. The Company’s net loss attributable to common stockholders was $(10.2) million, or $(0.18) per share, during the third quarter of 2024, as compared to $(16.5) million, or $(0.29) per share, reported in the same quarter of 2023. Core FFO for the third quarter of 2024 was $12.0 million, or $0.21 per share, as compared to $24.1 million, or $0.43 per share in the same quarter of 2023.

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