Orion Properties Inc. · NYSE:ONL
Orion Properties — Q1 2025 Earnings Presentation
20 slides from Orion Properties's earnings presentation, May 8, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Legal Disclaimer
Legal Disclaimer This Investor Presentation includes “forward-looking statements” which reflect Orion Properties Inc.’s (the “Company”, “Orion”, “we”, or “us”) expectations and projections regarding future events and plans, future financial condition, results of operations, liquidity and business, i
Slide 3: The Orion Properties Story
The Orion Properties Story ▪ Spun off from Realty Income following the merger of VEREIT with Realty Income ▪ Orion portfolio comprised of substantially all the office properties of both companies History ▪ High-quality core portfolio including headquarters and solid operating properties on long leas
Slide 4: Proven Leadership
Proven Leadership Seasoned leadership team with significant net lease and public REIT experience Paul McDowell Gavin Brandon Chris Day Gary Landriau Paul Hughes CHIEF EXECUTIVE OFFICER, DIRECTOR EVP, CHIEF FINANCIAL OFFICER EVP, CHIEF OPERATING OFFICER EVP, CHIEF INVESTMENT OFFICER GENERAL COUNSEL A
Slide 5: Board of Directors
Board of Directors In addition to Paul McDowell, Orion’s Board is comprised of four independent directors, each possessing diverse backgrounds with significant experience Reginald H. Gilyard Kathleen R. Allen, Ph.D. Richard J. Lieb Gregory J. Whyte Paul McDowell CHAIRMAN OF THE BOARD INDEPENDENT DIR
Slide 6: Investment Highlights
1 Ample Liquidity And Fully Developed Platform To Support Business Plan 2 Experienced Team With Successful Track Record Of Acquiring, Managing And Selling Properties In Target Sectors Differentiated Opportunity To Selectively Invest In Properties In Investment 3 Target Sectors At Attractive Risk-Adj
Slide 7: Shifting Opportunity
Shifting Opportunity Orion is shifting its focus to properties that include a substantial specialized use component where tenant operations require high workday building head count, on-site operation is of high value to the tenant and continuing investment by the tenant in the operation is likely, w
Slide 8: Attractive Market Features
Attractive Market Features Focused on key growth markets with strong fundamentals and demographic tailwinds Highly Educated Market/Submarket Population Growth Workforce Employment Growth Limited New Office Supply of Affordable Access to Mass Transit Supply Housing Orion Properties Inc. All rights re
Slide 9: Portfolio Highlights
Portfolio Highlights Focused on building and maintaining a sustainable investment-grade tenant base 68 6 8,037 74.3% Operating Properties Arch Street Joint Venture Properties Rentable Square Feet (000s) Occupancy % Orion Properties Inc. All rights reserved. $120,121 $14.95 72.3% 5.2 years ABR ($000s
Slide 10: Robust Industry and Tenant Diversification
Robust Industry and Tenant Diversification Portfolio well-diversified across economically resilient industries and primarily investment-grade tenants Top 10 Tenant Industries (% of ABR) Top 10 Tenants (% of ABR) # Tenant Credit Rating (1) % of ABR Government & Public Services 16.6% 1 AA+ 16.2% Healt
Slide 11: National Portfolio Well-Diversified by Geography
National Portfolio Well-Diversified by Geography National portfolio with concentrations in strong suburban office markets Top 10 States (% of ABR) Geographic Footprint (% of ABR) Texas 16.6% New Jersey 12.5% Kentucky 8.7% Colorado 7.2% California 6.9% Oklahoma 5.8% Orion Properties Inc. All rights r
Slide 12: Case Study: Leasing
Case Study: Leasing Value Creation through Dynamic Leasing Strategy ▪ 136,000 square foot, class A, single tenant office building in Providence, Rhode Island that was constructed in 1985 and occupied by Hasbro. Background ▪ Hasbro communicated intent to vacate the property at lease expiration on Feb
Slide 13: Case Study: Leasing
Case Study: Leasing Value Creation through Multi-Tenant Leasing ▪ 166,000 square foot, class A, single tenant office building in Parsippany, New Jersey that was occupied entirely by Medicines Co. until December 5, 2023. Background ▪ Medicines Co. vacated the property resulting in a full building vac
Slide 14: Key Value Creation Drivers to Spur Growth
Key Value Creation Drivers to Spur Growth Seek to generate growth via active asset management, portfolio optimization through capital recycling and pursuit of accretive acquisitions ▪ In-house asset management allows control over entire leasing process ▪ Develop favorable relationships with tenants
Slide 15: Arch Street Joint Venture
Arch Street Joint Venture The joint venture enhances portfolio quality and provides an additional revenue source Joint Venture Highlights Properties (2) Arch Street Credentials (1) Joint Venture Summary Pro Rata Credit Pro Rata Pro Rata Tenant Location Debt ▪ Leading advisor to large ▪ Year Created:
Slide 16: Balance Sheet Strategy
Balance Sheet Strategy Balance sheet provides ample liquidity for potential growth Seeking to maintain a prudent leverage profile Debt Capital Structure ▪ Conservative balance sheet strategy ▪ Opportunities for growth without an overreliance on the equity Wtd. Avg. Wtd. Avg. 3/31/2025 Maturity (Year
Slide 17: 2025 Accomplishments
2025 Accomplishments Ongoing portfolio transformation to establish a high-quality right-sized property base ▪ Completed 380,000 square feet of lease renewals and new leases across four different properties with a weighted average lease term of 6.7 years during the first quarter and an additional 73,
Slide 18: Proven Investment Evaluation Framework
Proven Investment Evaluation Framework Guided by a four-pronged framework to assess investment opportunities Tenant Credit Underwriting Lease Characteristics NT Utilize credit underwriting A Structure and review leases to EN expertise to discern underlying ensure high-quality, durable credit quality
Slide 19: Tenant Credit Underwriting
Tenant Credit Underwriting Utilize a multi-faceted credit underwriting approach to diligently determine the underlying credit quality of every tenant 1 2 Conduct Independent Credit Analysis and Evaluate Credit Ratings From Major Determine Shadow Rating Agencies (S&P and Moody’s) 3 4 Regularly Review
Slide 20: Real Estate Attributes
Real Estate Attributes Dedicated to acquiring properties with high-quality real estate characteristics ✓ Dedicated use assets including government, medical, flex/laboratory and R&D, flex/industrial Real Estate Use operations, traditional office and non-CBD government Location within Market ✓ Easy ac