The following is a summary of the Orion Office REIT Inc. (ONL) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Orion Office REIT reported a Q4 2023 revenue of $43.8 million, compared to $50.3 million in Q4 of the previous year.

• The net loss for Q4 was $16.2 million or $0.29 per share. Core funds from operations for the quarter reached $18.5 million or $0.33 per share and adjusted EBITDA was $24.6 million.

• Total revenue for the full year was $195 million, with a net loss of $57.3 million or a loss of $1.02 per share. Core funds from operations totaled $94.8 million or $1.68 per share and adjusted EBITDA was $118.5 million.

• Addressed debt reduction in 2023 by overseeing the sales of 17 non-core properties, generating total gross proceeds of $59 million, which majorly contributed towards repaying debt, and successfully reducing overall debt by over $145 million.

• Orion continues to hold $332.1 million in liquidity and outstanding debt standing at $498.3 million.

Business Progress:

• Orion successfully renewed and secured new leases across 2023, including a 10-year early lease renewal in Memphis and a five-year early lease renewal at a Minnesota property.

• New long-term lease transactions with the United States Government were signed post the end of the year 2023.

• They continue to prioritize spending towards improving building assets and lease incentives to retain existing tenants while also attracting new ones.

• Orion is keen on divesting non-core properties aiming to maximize the long-term value of the remaining elements within the portfolio and gear for future profitable growth.

• Leasing pipeline shows increased activity with discussions for over 1 million square feet of space.

• For 2024, Orion expects lesser revenue and increased vacancy costs due to anticipated significant lease expirations. Core FFO for 2024 is expected to range from $0.93 to $1.01 per share.

• Their firm strategic pillars include retaining existing tenants, populating empty spaces, and the planned sale of non-core properties. They remain open to adapting the business plan based on market dynamics.

More details: Orion Office Reit IR

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