Orion Properties Inc 2025年度报告

Dear Shareholders, Ourteamdelivered strongoperatingperformance in2025whilemaking significantprogresstostabilizetheportfolio and execute ourbusiness plan.This sustained effort overthe past couple of years has nowpositioned us for Core FFO earnings growth in 2026 and beyond. Startingwith leasing-we completed over900,000squarefeetof leasing in2025,on topof the1.1million squarefeetleased in2024,reflecting an improving marketbackdrop.Thesearemeaningfulvolumes,particularly given the reduced size of our portfolio, and have really moved the needle toenhance the quality and stability ofour lease roll.Our weighted average leaseterm,orWALT,averagedcontinuestoimprove. Ouraccelerating portfolio improvement through increased disposition activity was anotherhighlight in2025.During the year,we sold10 properties totalingmore than 960,000 squarefeet for approximately$81 million ofgross proceeds.After year end, we sold twoadditional vacanttraditional officepropertiesfor over $13millionand are undercontractto sell additional non-coreproperties for approximatelyS43million inthenearterm.Thesesaletransactions will substantiallyreducetheestimatedcarrycosts As we have shared previously, we inherited a portfolio of primarily short lease term office properties,over time.Over the pastfouryears since our spinoff from Realty Income,we have aggressively managedtheportfolio,selling31mostlyvacantpropertiestotaling3.4millionsquarefeetor32%oftheportfolio.Thesedeliberateactions stabilizedtheportfolio under difficult market conditions and allowed us tofocus onproperties thatbetteralign withourlongterm investment priorities. risk and cost of carry, we expect that the pace of dispositions will moderate in the years ahead as werenewal probability,resulting in more stable cash flow anda strongerlong term growth profile.Thesededicateduseassets,orDUAs,haveotherattractivefeaturesthatwebelieveenhancetenantstability,such as significanttenant investmentin ourproperties,and strategicplacement neardedicatedworkforces,inadditiontootherattributes.OurDUAfocusincludesmedicaloffice,R&D,flex/laboratory,flex/industrial,andgovernmental.Atyearend,DUAscompriseapproximately36%ofourportfolio'sannualizedbaserent. A terrific example of this strategy is our acquisition of Barilla America's headquarters building, whichincludes their sole pasta test kitchen and R&Dfacility in the United States.Worldwide,the Barilla Groupis the world's largest maker of pasta, and theirproducts are a familiar sight on US groceryshelves.The75,000squarefootpropertywas acquiredfor$15millionatan attractive8.1% initial cashcapitalizationrateanda 9%average capitalization rateovertheapproximately11-yearlease term. Turning to the balance sheet, inFebruary of this year we addressed bothof our major debtmaturitiesthat were scheduled to come due within the next year. First, with the support of our existing lenders, weentereda new$215million secured revolvingfacilitywhichwillmature in February2029 including OrionProperties Inc.3200ECamelback Road,Suite100,Phoenix,AZ85018NewYorkStockExchangeSymbol"ONL" continueto execute ourbusiness plan.We continue to prioritize prudent leverage.At year end ourfullyear Net Debt toAdjusted EBITDA was 6.8xand on a modified basis net of restricted cash was 6.2x.Ourliquidityatyearend,adjustedforournewrevolver,was$146million. Asa small cap REIT, we remain focused on maintaining disciplined corporate overhead.During 2025 andcomingyears. options, which may include,among other things,the consideration of potential acquisition and mergertargets, the potential sale of Orion and continuingto operate as an independent publiclytraded entity.Weareassisted inthis endeavorby ourfinancialadvisors at WellsFargoand J.P.Morgan.Whilewehave increasing confidence in our stand-alone prospects,management and the Board have also devotedtime toconsidering otheravenues for Orion tomaximize shareholdervalue.Ourongoing public strategicoptions review processprovides further opportunity to considera range of potential strategicalternatives to maximize stockholder value and we remain very open to pursuing any actionableproposals. This process is ongoing as of the date of this letter. Wearefortunatetohaveassembledaveryseasonedleadershipteamwithdecadesofexperienceinthecompanies through the inevitable cycles in the real estate industry, and I would liketo thankthem fortheir dedication and hard work throughout 2025.Welookforward tokeepingyouupdatedon Orion'scontinued progress in theyearahead. Sincerely, Paul McDowellCEO, President UNITEDSTATESSECURITIESANDEXCHANGECOMMISSIONWashington, D.C.20549 FORM10-K (Mark One) 区For the fiscal year ended December 31,2025OR口TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934For the transition period fromtoCommissionfilenumber:001-40873 Securities registered pursuant to Section 12(g) of the Securities Act of 1934: None Indicate by check mark iftheregistrant is a well-known seasoned issuer, as defined in Rule405ofthe Securities A