Orion Properties Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter of 2026 were $35.4 million, a decrease from $37.1 million in the same quarter of 2025.
• Net loss attributable to common stockholders was $(3.3) million, or $(0.06) per share, compared to a net loss of $(69.0) million, or $(1.23) per share, in the third quarter of 2025.
• Funds from Operations (FFO) for the quarter were $9.2 million, or $0.16 per diluted share, compared to $6.6 million, or $0.12 per share, in the prior year period.
• Core FFO for the quarter was $11.4 million, or $0.20 per diluted share, compared to $11.0 million, or $0.19 per share, in the prior year period.
• EBITDA was $16.4 million and Adjusted EBITDA was $16.5 million for the quarter.
• Net Debt to Annualized Most Recent Quarter Adjusted EBITDA was 5.6x as of September 30, 2026.
• Principal outstanding debt totaled $436.5 million, comprised of a $316.5 million CMBS loan, $102.0 million on the credit facility revolver, and an $18.0 million mortgage loan.
• Liquidity was $177.2 million, consisting of $64.2 million in cash and restricted cash and $113.0 million in available capacity on the credit facility revolver.

Guidance and Future Outlook:

• The Company raised its 2026 Core FFO per share guidance range to $0.75 – $0.78 from the previous range of $0.72 – $0.77.
• The Company improved its 2026 Net Debt to Adjusted EBITDA guidance range to 5.8x – 6.4x from the previous range of 6.0x – 6.8x.
• The 2026 General and Administrative Expense guidance range remains unchanged at $19.8 million to $20.8 million.
• The Company expects to lease over one million square feet in 2026, with 922,000 square feet completed year-to-date as of the report date.

Business Segments and Product Lines:

• Leasing activity for the third quarter included 143,000 square feet, with 922,000 square feet completed year-to-date.
• Subsequent to quarter end, the Company completed approximately 222,000 square feet of leasing, including two new leases in Plano, Texas (74,000 sq. ft.), a lease extension in Milwaukee, Wisconsin (65,000 sq. ft.), and a renewal in Indianapolis, Indiana (83,000 sq. ft.).
• The portfolio consists of 57 Operating Properties as of September 30, 2026, with an Annualized Base Rent of $107.0 million.
• 67.8% of Annualized Base Rent is derived from Investment-Grade Tenants, and 40.6% is derived from Dedicated Use Assets (DUAs).
• The Occupancy Rate was 78.3% with a Weighted Average Remaining Lease Term of 6.1 years.
• Year-to-date, the Company sold four properties and the 37.4-acre Deerfield, Illinois campus for an aggregate gross sales price of $83.7 million.
• As of November 5, 2026, the Company has agreements to sell three properties for a total gross sales price of $14.4 million.

Market and Competitive Landscape:

• The Company is shifting its portfolio concentration over time away from traditional office properties toward more Dedicated Use Assets.
• Macroeconomic events, including a significant rise in Treasury rates, have created challenges for the strategic options review process.
• The Company faces risks associated with an oversupply of office space, tenant credit risk, and general economic conditions.

Risks and Challenges:

• The strategic options review process remains ongoing and is costly and time-consuming, with no assurance it will result in a transaction.
• Risks include the potential for increased borrowing costs, inflation impacting operating expenses, and the risk of tenants defaulting on lease obligations.
• The Unconsolidated Joint Venture experienced a payment default on its mortgage debt at maturity in February 2026; the Company has suspended recognition of additional losses from this venture.
• Pending real estate transactions are subject to conditions outside the Company's control, including buyer due diligence.

Management Commentary and Tone:

• CEO Paul McDowell stated the Company remains on pace to lease over one million square feet and highlighted strongly positive cash rent spreads on third-quarter renewals.
• Management expressed confidence in its ability to drive Core FFO per share growth over time, citing sustained execution of strategy and a strengthened balance sheet.
• The Company remains committed to maximizing stockholder value while the strategic options review process continues.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2026, payable on January 15, 2027.
• The Company entered into an interest rate cap agreement in August 2026 to cap Daily Simple SOFR at 4.25% on $50.0 million of the credit facility revolver.
• The credit facility revolver has a maturity date of February 18, 2028, with two six-month extension options available.
• The CMBS Loan is fixed at 4.971% and matures on February 11, 2029, with two borrower extension options for a total of 18 months.
• The Company suspended recognition of its share of additional losses from the Unconsolidated Joint Venture after cumulative losses exceeded the carrying amount of the investment.