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Orion Properties Inc. Reports 2024 Earnings and Strategic Shift

Orion Properties Inc. Reports 2024 Earnings and Strategic Shift

Orion Office Reit, Inc. ( (ONL) ) has released its Q4 earnings. Here is a breakdown of the information Orion Office Reit, Inc. presented to its investors.

Orion Properties Inc., formerly known as Orion Office REIT Inc., is a real estate investment trust focused on the ownership, acquisition, and management of a diversified portfolio of single-tenant net lease office properties across the United States. The company recently announced a strategic shift towards more dedicated use assets, such as flex, laboratory, medical, and governmental properties, to enhance portfolio stability and renewal prospects.

In its latest earnings report, Orion Properties reported significant leasing activity, completing 1.1 million square feet of leasing in 2024, which is four times the volume of the previous year. The company also acquired a 97,000 square foot flex/laboratory/R&D facility in San Ramon, California, for $34.6 million and sold two vacant properties for $5.3 million. The company declared a dividend for the first quarter of 2025, reflecting its ongoing commitment to shareholder returns.

Financially, Orion Properties reported total revenues of $38.4 million for the fourth quarter of 2024, with a net loss attributable to common stockholders of $32.8 million. For the full year, revenues were $164.9 million, with a net loss of $103.0 million. Despite these losses, the company achieved a Core FFO of $56.8 million for the year. The company also implemented cost-saving measures, expecting to deliver approximately $1.0 million of annualized savings.

Looking ahead, Orion Properties is optimistic about its strategic shift towards dedicated use assets, which is expected to stabilize Core FFO earnings and drive meaningful growth in the coming years. The company remains focused on maintaining liquidity to support its well-located portfolio and future leasing activities, despite the challenges posed by the current economic environment.

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