Orion Properties Inc. is an investment firm concentrating its expertise on acquiring, owning, and managing a varied collection of essential corporate headquarters ...
Orion Properties Inc. (NYSE: ONL) is a fully-integrated real estate investment trust that focuses on the ownership, acquisition, and management of a diversified portfolio of mission-critical and corporate headquarters office properties. Headquartered in Phoenix, Arizona, the company was founded in 2021 and has 37 full-time employees. Led by CEO and ...Orion Properties Inc. (NYSE: ONL) is a fully-integrated real estate investment trust that focuses on the ownership, acquisition, and management of a diversified portfolio of mission-critical and corporate headquarters office properties. Headquartered in Phoenix, Arizona, the company was founded in 2021 and has 37 full-time employees. Led by CEO and President Paul H. McDowell, Orion Properties' seasoned leadership team employs a rigorous, market-tested investment framework to drive strategic capital deployment.
The company's portfolio is predominantly secured by single-tenant net leases with financially robust tenants, providing stable and predictable cash flows. With a market capitalization of approximately $156 million, Orion Properties generates revenue by leasing office space to tenants in premier suburban markets across the United States. The company's business model emphasizes acquiring properties at attractive yields, actively managing assets to maximize occupancy and rental income, and strategically divesting non-core assets to recycle capital into higher-growth opportunities.
Financially, Orion Properties faces challenges typical of the office REIT sector. The company's trailing twelve months (TTM) revenue is estimated at around $143 million (derived from revenue per share of $2.51 and 56.8 million shares outstanding), but it has reported negative net income, with a net profit margin of -65.7% and a return on equity of -14.9%. The debt-to-equity ratio stands at 0.71, and the current ratio is 0.45, indicating potential liquidity pressures. Despite these difficulties, the company maintains a dividend yield of 2.9% and is actively pursuing leasing activities to improve occupancy.
Orion Properties also benefits from a legacy spanning over 100 years of collective real estate experience through its predecessor entities. The company is committed to creating long-term shareholder value through disciplined capital allocation, portfolio optimization, and a focus on creditworthy tenants. With an enterprise value of approximately $590 million, the company is positioned to navigate the evolving office market by leveraging its expertise and strategic approach.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$147.6M
-10.4%
-5.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-139.3M
-35.2%
+280.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+56.1%
-7.3%
+8.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-1.5%
+88.6%
+207.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-94.4%
-51.0%
+291.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-28.1M
-188.7%
+96.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-19.0%
-199.1%
+96.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
77.4%
+15.8%
-12.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.63x
+6.7%
-34.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to Orion Properties Second Quarter 26 Earnings Call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul C. Hughes, general counsel.
Paul C. Hughes: Thank you.
Operator: You may begin.
Paul C. Hughes: Thank you, and good morning, everyone. Yesterday, Orion released its results for the quarter ended 06/30/2026, filed its Form 10 Q with the Securities and Exchange Commission and posted its earnings supplement to its website at onlreit.com. During the call today, we will be discussing Orion's guidance for calendar year 2026 and other forward looking statements. Which are based on management's current expectations and are subject to certain risks that could cause actual results to differ materially from our estimates. These risks are discussed in our earnings release as well as in our Form 10 Q and other SEC filings. And Orion undertakes no duty to update any forward looking statements made during this call. We will also be discussing non GAAP financial measures such as funds from operations or FFO and core funds from operations or core FFO. These non GAAP financial measures are not a substitute for financial information presented in accordance with GAAP and Orion's earnings release and supplement include a reconciliation of our non GAAP financial measures to the most directly comparable GAAP measure. Hosting the call today are Orion's Chief Executive Officer, Paul H. McDowell and Chief Financial Officer, Gavin Brandon. Joining us for the Q and A session will be Christopher Haviland Day, our Chief Operating Officer. With that, I will turn the call over to Paul H. McDowell.
Paul H. McDowell: Good morning, everyone. And thank you for joining us on Orion's second quarter earnings call. I will start with a few words on our continuing strategic options process that began in late January. Since that announcement, in concert with our financial advisers at Wells Fargo and JPMorgan, we have conducted a robust effort including broad outreach to solicit proposals from interested parties. Those efforts have been supported by a virtual data room containing comprehensive property and corporate data for those participants that sign nondisclosure agreements. With several parties continuing to conduct diligence we believe it is in shareholders' interest to see that work through to its reasonable conclusion rather than set arbitrary deadlines. Rest assured, we are moving as expeditiously as possible although we can offer no assurance that this process will result in Orion concluding any particular transaction. Beyond the ongoing strategic review efforts, the team has continued to execute and deliver strong results against our business plan, which is reflected in our second quarter results. Our strategy remains centered on 4 priorities. Stabilizing the portfolio through increased leasing activity, the timely disposition of noncore assets, prudent leverage management, and selective capital …
