Spin-off - Orion Office REIT Inc.

Form Type: ARS

Filing Date: 2025-03-21

Corporate Action: Spin-off

Type: Update

Accession Number: 000187392325000061

Filing Summary: Orion Properties Inc. reported significant progress in 2024 amid challenging market conditions. The company successfully leased approximately 1.1 million square feet, marking a notable increase from the previous year. A key achievement was securing a long-term lease with Brown University Health for a 136,000 square foot property in Rhode Island. As of year-end 2024, Orion managed a portfolio of 69 properties with a weighted average lease term of 5.2 years. Following a strategic shift post-spin-off from Realty Income, Orion is prioritizing dedicated use assets over traditional office properties, rebranding itself to align with this focus. In the first quarter of 2025, the Board decided to cut the dividend to safeguard liquidity, which was deemed a necessary move in light of increasing debt levels and anticipated earnings growth. Orion aims to enhance its tenant stability by concentrating on specialized properties and plans to gradually shift its portfolio towards more dedicated use assets, such as medical and flex laboratory spaces. Financially, the company ended 2024 with $247 million in liquidity and has managed to reduce $146 million in outstanding debt since its spin-off.

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