Wednesday, May 13, 2026
Orion Properties Inc. reports wider Q1 loss as leasing, property sales continue amid strategic review
Orion Properties Inc. reported a net loss of $13.6 million in the first quarter of 2026 as the company continued leasing activity, property sales and a review of strategic options.
The company, a real estate investment trust focused on single-tenant net lease office properties, reported total revenue of $36.3 million for the quarter ended March 31, down from $38 million during the same period in 2025. Net loss attributable to common stockholders was $13.6 million, or 24 cents per share, compared with a loss of $9.4 million, or 17 cents per share, a year earlier.
Funds from operations totaled $5.8 million, or 10 cents per diluted share. Core funds from operations reached $11.7 million, or 21 cents per diluted share, compared with $10.7 million, or 19 cents per diluted share, in the first quarter of 2025.
Chief Executive Officer Paul McDowell said the company continued to focus on leasing and asset sales.
"We continue to execute on our strategy to stabilize the portfolio through increased leasing activity and the timely disposition of non-core assets in order to drive Core FFO per share growth in 2026 and beyond," McDowell said.
During the quarter, Orion completed about 355,000 square feet of leasing transactions, including a 172,000-square-foot lease in Irving, Texas, a 160,000-square-foot lease extension in Buffalo, New York, and a 23,000-square-foot lease in Phoenix, Arizona.
The company also sold two non-operating properties totaling about 516,000 square feet for $13.1 million during the quarter.
After the quarter ended, Orion sold properties in Deerfield, Illinois, and Glen Burnie, Maryland, for a combined $35.6 million. The company said it also has agreements to sell three additional properties for a combined $46 million.
In February, Orion acquired a 75,000-square-foot property in Northbrook, Illinois, for $15 million. The property is leased through December 2036.
As of March 31, Orion's portfolio included 59 operating properties and six non-operating properties. The six non-operating properties were sold in April. The company reported an occupancy rate of 83.1% and a weighted average remaining lease term of 5.9 years.
Annualized base rent totaled $115.2 million, with 64.8% derived from investment-grade tenants and 37.1% from dedicated use assets.
Orion reported $497.3 million in principal outstanding debt as of March 31, including a $352.3 million securitized mortgage loan, $127 million outstanding under its revolving credit facility and an $18 million mortgage loan tied to a California property.
The company said it refinanced its revolving credit facility in February, extending the maturity date to February 2028 with options to extend to February 2029 under certain conditions. Orion also amended its CMBS loan to extend the maturity date to February 2029, with extension options totaling 18 months.
As of March 31, Orion reported liquidity of $148.5 million, including $60.5 million in cash and restricted cash and $88 million available under its revolving credit facility.
The company's board declared a quarterly cash dividend of 2 cents per share payable July 15 to stockholders of record on June 30.
Orion said its review of strategic options, announced in January, remains ongoing. The review could include acquisitions, mergers, a sale of the company or continuing operations as an independent public company.
The company reaffirmed its 2026 guidance for Core FFO per share of between 69 cents and 76 cents and projected net debt to adjusted EBITDA between 6.5 times and 7.3 times.
This report was written with the assistance of artificial intelligence.
The company, a real estate investment trust focused on single-tenant net lease office properties, reported total revenue of $36.3 million for the quarter ended March 31, down from $38 million during the same period in 2025. Net loss attributable to common stockholders was $13.6 million, or 24 cents per share, compared with a loss of $9.4 million, or 17 cents per share, a year earlier.
Funds from operations totaled $5.8 million, or 10 cents per diluted share. Core funds from operations reached $11.7 million, or 21 cents per diluted share, compared with $10.7 million, or 19 cents per diluted share, in the first quarter of 2025.
Chief Executive Officer Paul McDowell said the company continued to focus on leasing and asset sales.
"We continue to execute on our strategy to stabilize the portfolio through increased leasing activity and the timely disposition of non-core assets in order to drive Core FFO per share growth in 2026 and beyond," McDowell said.
During the quarter, Orion completed about 355,000 square feet of leasing transactions, including a 172,000-square-foot lease in Irving, Texas, a 160,000-square-foot lease extension in Buffalo, New York, and a 23,000-square-foot lease in Phoenix, Arizona.
The company also sold two non-operating properties totaling about 516,000 square feet for $13.1 million during the quarter.
After the quarter ended, Orion sold properties in Deerfield, Illinois, and Glen Burnie, Maryland, for a combined $35.6 million. The company said it also has agreements to sell three additional properties for a combined $46 million.
In February, Orion acquired a 75,000-square-foot property in Northbrook, Illinois, for $15 million. The property is leased through December 2036.
As of March 31, Orion's portfolio included 59 operating properties and six non-operating properties. The six non-operating properties were sold in April. The company reported an occupancy rate of 83.1% and a weighted average remaining lease term of 5.9 years.
Annualized base rent totaled $115.2 million, with 64.8% derived from investment-grade tenants and 37.1% from dedicated use assets.
Orion reported $497.3 million in principal outstanding debt as of March 31, including a $352.3 million securitized mortgage loan, $127 million outstanding under its revolving credit facility and an $18 million mortgage loan tied to a California property.
The company said it refinanced its revolving credit facility in February, extending the maturity date to February 2028 with options to extend to February 2029 under certain conditions. Orion also amended its CMBS loan to extend the maturity date to February 2029, with extension options totaling 18 months.
As of March 31, Orion reported liquidity of $148.5 million, including $60.5 million in cash and restricted cash and $88 million available under its revolving credit facility.
The company's board declared a quarterly cash dividend of 2 cents per share payable July 15 to stockholders of record on June 30.
Orion said its review of strategic options, announced in January, remains ongoing. The review could include acquisitions, mergers, a sale of the company or continuing operations as an independent public company.
The company reaffirmed its 2026 guidance for Core FFO per share of between 69 cents and 76 cents and projected net debt to adjusted EBITDA between 6.5 times and 7.3 times.
This report was written with the assistance of artificial intelligence.
