# EDGAR Filing Document

**Accession Number:** 0001873923
**File Stem:** 0001873923-25-000130
**Filing Date:** 2025-11
**Character Count:** 261051
**Document Hash:** e01a4f6ef3b76adcd277d6dfc5224247
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001873923-25-000130.hdr.sgml**: 20251106

**ACCESSION NUMBER**: 0001873923-25-000130

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 94

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251106

**DATE AS OF CHANGE**: 20251106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Orion Properties Inc.
- **CENTRAL INDEX KEY:** 0001873923
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40873
- **FILM NUMBER:** 251458769

**BUSINESS ADDRESS:**
- **STREET 1:** 2398 E. CAMELBACK ROAD, SUITE 1060
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016
- **BUSINESS PHONE:** (602) 698-1002

**MAIL ADDRESS:**
- **STREET 1:** 2398 E. CAMELBACK ROAD, SUITE 1060
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Orion Office REIT Inc.
- **DATE OF NAME CHANGE:** 20210720

?xml version='1.0' encoding='ASCII'? onl-20250930

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 **FORM 10-Q** 

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended September 30, 2025** 

---

| | |
|:---|:---|
| | **OR** |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| | **For the transition period from _________ to __________** |

---

**Commission file number: 001-40873** 

---

| |
|:---|
| **Orion Properties Inc.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Maryland** | **Maryland** | **Maryland** | **87-1656425** |
| (State or other jurisdiction of incorporation or organization) | (State or other jurisdiction of incorporation or organization) | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **2398 E. Camelback Road, Suite 1060** | **Phoenix** | **AZ** | **85016** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

---

| | |
|:---|:---|
| **(602)** | **698-1002** |
| (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |

---

---

| | | | |
|:---|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: |
| *Title of each class:* | *Title of each class:* | *Trading Symbol(s):* | *Name of each exchange on which registered:* |
| Common Stock | $0.001 par value per share | ONL | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Large accelerated filer | □ | Accelerated filer | ⌧ | Non-accelerated filer | □ |
| | | | | Non-accelerated filer | |
| Smaller reporting company | □ | Emerging growth company | ⌧ | Non-accelerated filer | |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

There were 56,314,634 shares of common stock of Orion Properties Inc. outstanding as of October 31, 2025.

------

**ORION PROPERTIES INC.**

**For the quarterly period ended September 30, 2025**

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| **<u>PART I</u>** | |
| <u>[Item 1. Unaudited Financial Statements](#i8799b212310a481cb890c86e20ab0aac_13)</u> | <u>[3](#i8799b212310a481cb890c86e20ab0aac_13)</u> |
| <u>[Consolidated Balance Sheets as of](#i8799b212310a481cb890c86e20ab0aac_19)[September](#i8799b212310a481cb890c86e20ab0aac_19)[30, 2025 and December 31, 2024](#i8799b212310a481cb890c86e20ab0aac_19)</u> | <u>[3](#i8799b212310a481cb890c86e20ab0aac_19)</u> |
| <u>[Consolidated Statements of Operations for the Three and](#i8799b212310a481cb890c86e20ab0aac_22)[Nine](#i8799b212310a481cb890c86e20ab0aac_22)[Months Ended](#i8799b212310a481cb890c86e20ab0aac_22)[September](#i8799b212310a481cb890c86e20ab0aac_22)[30, 2025 and 2024](#i8799b212310a481cb890c86e20ab0aac_22)</u> | <u>[4](#i8799b212310a481cb890c86e20ab0aac_22)</u> |
| <u>[Consolidated Statements of Comprehensive Income (Loss) for the Three and](#i8799b212310a481cb890c86e20ab0aac_25)[Nine](#i8799b212310a481cb890c86e20ab0aac_25)[Months Ended](#i8799b212310a481cb890c86e20ab0aac_25)[September](#i8799b212310a481cb890c86e20ab0aac_25)[30, 2025 and 2024](#i8799b212310a481cb890c86e20ab0aac_25)</u> | <u>[5](#i8799b212310a481cb890c86e20ab0aac_25)</u> |
| <u>[Consolidated Statements of Equity for the Three and](#i8799b212310a481cb890c86e20ab0aac_28)[Nin](#i8799b212310a481cb890c86e20ab0aac_28)[e](#i8799b212310a481cb890c86e20ab0aac_28)[Months Ended](#i8799b212310a481cb890c86e20ab0aac_28)[September](#i8799b212310a481cb890c86e20ab0aac_28)[30, 2025 and 2024](#i8799b212310a481cb890c86e20ab0aac_28)</u> | <u>[6](#i8799b212310a481cb890c86e20ab0aac_28)</u> |
| <u>[Consolidated Statements of Cash Flows for the](#i8799b212310a481cb890c86e20ab0aac_31)[Nine](#i8799b212310a481cb890c86e20ab0aac_31)[Months Ended](#i8799b212310a481cb890c86e20ab0aac_31)[September](#i8799b212310a481cb890c86e20ab0aac_31)[30, 2025 and 2024](#i8799b212310a481cb890c86e20ab0aac_31)</u> | <u>[8](#i8799b212310a481cb890c86e20ab0aac_31)</u> |
| <u>[Notes to](#i8799b212310a481cb890c86e20ab0aac_37)[Consolidated Financial Statements](#i8799b212310a481cb890c86e20ab0aac_37)</u> | <u>[10](#i8799b212310a481cb890c86e20ab0aac_37)</u> |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i8799b212310a481cb890c86e20ab0aac_193)</u> | <u>[30](#i8799b212310a481cb890c86e20ab0aac_193)</u> |
| <u>[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i8799b212310a481cb890c86e20ab0aac_361)</u> | <u>[54](#i8799b212310a481cb890c86e20ab0aac_361)</u> |
| <u>[Item 4. Controls and Procedures](#i8799b212310a481cb890c86e20ab0aac_364)</u> | <u>[56](#i8799b212310a481cb890c86e20ab0aac_364)</u> |
| **<u>PART II</u>** |  |
| <u>[Item 1. Legal Proceedings](#i8799b212310a481cb890c86e20ab0aac_370)</u> | <u>[57](#i8799b212310a481cb890c86e20ab0aac_370)</u> |
| <u>[Item 1A. Risk Factors](#i8799b212310a481cb890c86e20ab0aac_373)</u> | <u>[57](#i8799b212310a481cb890c86e20ab0aac_373)</u> |
| <u>[Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](#i8799b212310a481cb890c86e20ab0aac_376)</u> | <u>[58](#i8799b212310a481cb890c86e20ab0aac_376)</u> |
| <u>[Item 3. Defaults Upon Senior Securities](#i8799b212310a481cb890c86e20ab0aac_382)</u> | <u>[58](#i8799b212310a481cb890c86e20ab0aac_382)</u> |
| <u>[Item 4. Mine Safety Disclosures](#i8799b212310a481cb890c86e20ab0aac_385)</u> | <u>[58](#i8799b212310a481cb890c86e20ab0aac_385)</u> |
| <u>[Item 5. Other Information](#i8799b212310a481cb890c86e20ab0aac_388)</u> | <u>[59](#i8799b212310a481cb890c86e20ab0aac_388)</u> |
| <u>[Item 6. Exhibits](#i8799b212310a481cb890c86e20ab0aac_391)</u> | <u>[59](#i8799b212310a481cb890c86e20ab0aac_391)</u> |
| <u>[Signatures](#i8799b212310a481cb890c86e20ab0aac_394)</u> | <u>[60](#i8799b212310a481cb890c86e20ab0aac_394)</u> |

---

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**PART I — FINANCIAL INFORMATION**

**Item 1. Unaudited Financial Statements.**

**ORION PROPERTIES INC.**

**CONSOLIDATED BALANCE SHEETS**

(In thousands, except for share and per share data) (Unaudited)

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| Real estate investments, at cost: |  |  |
| &nbsp;&nbsp;&nbsp;Land | $187415 | $227145 |
| &nbsp;&nbsp;&nbsp;Buildings, fixtures and improvements | 986834 | 1055307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total real estate investments, at cost | 1174249 | 1282452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated depreciation | 188317 | 177906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate investments, net | 985932 | 1104546 |
| Accounts receivable, net | 32611 | 22833 |
| Intangible lease assets, net | 80102 | 95944 |
| Cash and cash equivalents | 32639 | 15600 |
| Restricted cash | 30126 | 41570 |
| Real estate assets held for sale, net | 14969 | 9671 |
| Other assets, net | 46414 | 46258 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1222793 | $1336422 |
| &nbsp;&nbsp;&nbsp;&nbsp;**LIABILITIES AND EQUITY** |  |  |
| Mortgages payable, net | $371772 | $371222 |
| Credit facility revolver | 110000 | 119000 |
| Accounts payable and accrued expenses | 40300 | 31585 |
| Below-market lease liabilities, net | 18959 | 20596 |
| Distributions payable | 1126 | 5633 |
| Other liabilities, net | 20519 | 23130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 562676 | 571166 |
| Common stock, $0.001 par value, 100,000,000 shares authorized 56,314,634 and 55,951,876 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 56 | 56 |
| Additional paid-in capital | 1150246 | 1148223 |
| Accumulated other comprehensive loss | (17) | (15) |
| Accumulated deficit | (491463) | (384348) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 658822 | 763916 |
| Non-controlling interest | 1295 | 1340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 660117 | 765256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $1222793 | $1336422 |

---

*The accompanying notes are an integral part of these statements.*

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

(In thousands, except for per share data) (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Rental | $36918 | $38976 | $111817 | $125894 |
| Fee income from unconsolidated joint venture | 204 | 202 | 611 | 605 |
| &nbsp;&nbsp;Total revenues | 37122 | 39178 | 112428 | 126499 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operating | 17284 | 16643 | 49629 | 48399 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4607 | 4468 | 14341 | 13961 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 14709 | 19913 | 45659 | 83031 |
| &nbsp;&nbsp;&nbsp;Impairments | 63698 |  | 84910 | 25365 |
| &nbsp;&nbsp;&nbsp;Transaction related | 114 | 105 | 253 | 382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 100412 | 41129 | 194792 | 171138 |
| Other (expenses) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (7880) | (8170) | (24052) | (24374) |
| &nbsp;&nbsp;&nbsp;Gain on disposition of real estate assets | 3265 |  | 4156 |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, net |  |  |  | (1078) |
| &nbsp;&nbsp;&nbsp;Other (expense) income, net | (799) | 208 | (250) | 580 |
| &nbsp;&nbsp;&nbsp;Equity in loss of unconsolidated joint venture, net | (256) | (218) | (773) | (497) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other (expenses) income, net | (5670) | (8180) | (20919) | (25369) |
| Loss before taxes | (68960) | (10131) | (103283) | (70008) |
| Provision for income taxes | (67) | (76) | (200) | (226) |
| Net loss | (69027) | (10207) | (103483) | (70234) |
| Net income attributable to non-controlling interest | (8) | (10) | (16) | (16) |
| Net loss attributable to common stockholders | $(69035) | $(10217) | $(103499) | $(70250) |
| Weighted average shares outstanding - basic and diluted | 56313 | 55948 | 56204 | 55887 |
| Basic and diluted net loss per share attributable to common stockholders | $(1.23) | $(0.18) | $(1.84) | $(1.26) |

---

*The accompanying notes are an integral part of these statements.*

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

(In thousands) (Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(69027) | $(10207) | $(103483) | $(70234) |
| Total other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain (loss) on interest rate derivatives | 18 | (88) | 9 | 162 |
| &nbsp;&nbsp;&nbsp;Reclassification of previous unrealized gain on interest rate derivatives into net loss | (10) |  | (11) |  |
| Total other comprehensive income (loss) | 8 | (88) | (2) | 162 |
| Total comprehensive loss | (69019) | (10295) | (103485) | (70072) |
| &nbsp;&nbsp;&nbsp;Comprehensive income attributable to non-controlling interest | (8) | (10) | (16) | (16) |
| Total comprehensive loss attributable to common stockholders | $(69027) | $(10305) | $(103501) | $(70088) |

---

*The accompanying notes are an integral part of these statements.*

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF EQUITY**

(In thousands, except for share data) (Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | | | |
| | **Number<br>of Shares** | **Par<br>Value** |<br>**Additional Paid-In Capital** |<br>**Accumulated Other Comprehensive Loss** |<br>**Accumulated<br>Deficit** |<br>**Total Stockholders' Equity** |<br>**Non-Controlling Interest** |<br>**Total Equity** |
| **Balance, January 1, 2025** | 55951876 | $56 | $1148223 | $(15) | $(384348) | $763916 | $1340 | $765256 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  | (9361) | (9361) | 6 | (9355) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (1327) | (1327) | (30) | (1357) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock to settle tax obligations | (132362) |  | (466) |  |  | (466) |  | (466) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net | 374151 |  | 704 |  |  | 704 |  | 704 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net |  |  |  | 14 |  | 14 |  | 14 |
| **Balance, March 31, 2025** | 56193665 | $56 | $1148461 | $(1) | $(395036) | $753480 | $1316 | $754796 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  | (25103) | (25103) | 2 | (25101) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (1163) | (1163) |  | (1163) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net | 113636 |  | 822 |  |  | 822 |  | 822 |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss, net |  |  |  | (24) |  | (24) |  | (24) |
| **Balance, June 30, 2025** | 56307301 | $56 | $1149283 | $(25) | $(421302) | $728012 | $1318 | $729330 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  | (69035) | (69035) | 8 | (69027) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (1126) | (1126) | (31) | (1157) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock to settle tax obligations | (3397) |  | (9) |  |  | (9) |  | (9) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net | 10730 |  | 972 |  |  | 972 |  | 972 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net |  |  |  | 8 |  | 8 |  | 8 |
| **Balance, September 30, 2025** | 56314634 | $56 | $1150246 | $(17) | $(491463) | $658822 | $1295 | $660117 |

---

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF EQUITY**

(In thousands, except for share data) (Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | | | | | | |
| | **Number<br>of Shares** | **Par<br>Value** |<br>**Additional Paid-In Capital** |<br>**Accumulated Other Comprehensive Loss** |<br>**Accumulated<br>Deficit** |<br>**Total Stockholders' Equity** |<br>**Non-Controlling Interest** |<br>**Total Equity** |
| **Balance, January 1, 2024** | 55783548 | $56 | $1144636 | $(264) | $(258805) | $885623 | $1380 | $887003 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  | (26232) | (26232) | 6 | (26226) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (5673) | (5673) |  | (5673) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock to settle tax obligations | (46598) |  | (162) |  |  | (162) |  | (162) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net | 132869 |  | 790 |  |  | 790 |  | 790 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net |  |  |  | 219 |  | 219 |  | 219 |
| **Balance, March 31, 2024** | 55869819 | $56 | $1145264 | $(45) | $(290710) | $854565 | $1386 | $855951 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (33801) | (33801) |  | (33801) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (5625) | (5625) |  | (5625) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net | 77983 |  | 935 |  |  | 935 |  | 935 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income, net |  |  |  | 31 |  | 31 |  | 31 |
| **Balance, June 30, 2024** | 55947802 | $56 | $1146199 | $(14) | $(330136) | $816105 | $1386 | $817491 |
| &nbsp;&nbsp;&nbsp;Net (loss) income |  |  |  |  | (10217) | (10217) | 10 | (10207) |
| &nbsp;&nbsp;&nbsp;Distributions |  |  |  |  | (5593) | (5593) |  | (5593) |
| &nbsp;&nbsp;&nbsp;Equity-based compensation, net |  |  | 725 |  |  | 725 |  | 725 |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss, net |  |  |  | (88) |  | (88) |  | (88) |
| **Balance, September 30, 2024** | 55947802 | $56 | $1146924 | $(102) | $(345946) | $800932 | $1396 | $802328 |

---

*The accompanying notes are an integral part of these statements.*

------

<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands) (Unaudited)

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(103483) | $(70234) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 45659 | 83031 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash revenue adjustments, net | (11216) | 783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments | 84910 | 25365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of real estate assets | (4156) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt, net |  | 1078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2767 | 2758 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on deferred offering costs | 576 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation | 2498 | 2450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in loss of unconsolidated joint venture, net | 773 | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net and other assets, net | 234 | (698) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities, net | (3505) | (3269) |
| Net cash provided by operating activities | 15057 | 41761 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in real estate assets |  | (34734) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures and leasing costs | (32586) | (12649) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposition of real estate, net | 44040 | 2070 |
| &nbsp;&nbsp;&nbsp;&nbsp;Return of investment from unconsolidated joint venture |  | 987 |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination of member loan to unconsolidated joint venture | (8328) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal repayments received on member loan to unconsolidated joint venture | 3003 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal repayments received on notes receivable | 2500 | 1200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits for real estate assets | (425) | (1350) |
| &nbsp;&nbsp;&nbsp;&nbsp;Uses and refunds of deposits for real estate assets |  | 1350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the settlement of property-related insurance claims |  | 171 |
| Net cash provided by (used in) investing activities | 8204 | (42955) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from credit facility revolver | 13000 | 28000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of credit facility revolver | (22000) | (14000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of deferred financing costs | (8) | (1363) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock to settle tax obligations | (475) | (162) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions paid | (7845) | (16759) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financing activities | (338) | (116) |
| Net cash used in financing activities | (17666) | (4400) |
| Net change in cash and cash equivalents and restricted cash | 5595 | (5594) |
| Cash and cash equivalents and restricted cash, beginning of year | 57170 | 57198 |
| Cash and cash equivalents and restricted cash, end of period | $62765 | $51604 |
| **Reconciliation of Cash and Cash Equivalents and Restricted Cash** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of year | $15600 | $22473 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash at beginning of year | 41570 | 34725 |

---

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands) (Unaudited)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash at beginning of year | $57170 | $57198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at end of period | $32639 | $16564 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash at end of period | 30126 | 35040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash at end of period | $62765 | $51604 |

---

*The accompanying notes are an integral part of these statements.*

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

**Note 1 – Organization**

***Organization***

Orion Properties Inc. (the "Company", "Orion", "we" or "us") is an internally managed real estate investment trust ("REIT") engaged in the ownership, acquisition, and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. The Company's portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. On March 5, 2025, the Company changed its name from Orion Office REIT Inc. to Orion Properties Inc. to better describe its broader investment strategy to shift its portfolio concentration over time away from traditional office properties, towards more dedicated use assets that have an office component. The Company defines dedicated use assets as those that include a substantial specialized use component such as government, medical, laboratory and research and development, and flex operations, and would therefore not be considered traditional office properties.

The Company was initially formed as a wholly owned subsidiary of Realty Income Corporation ("Realty Income"). Following completion of the merger transaction involving Realty Income and VEREIT, Inc. ("VEREIT") on November 1, 2021, Realty Income contributed the combined business comprising certain office real properties and related assets previously owned by subsidiaries of Realty Income, and certain office real properties and related assets previously owned by subsidiaries of VEREIT (the "Separation"), to the Company and its operating partnership, Orion Properties LP ("Orion OP"), and on November 12, 2021, effected a special distribution to its stockholders of all the outstanding shares of common stock of the Company (the "Distribution").

Following the Distribution, the Company became an independent and publicly traded company and its common stock, par value $0.001 per share, trades on the New York Stock Exchange (the "NYSE") under the symbol "ONL." The Company has elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with its initial taxable year ended December 31, 2021.

As of September 30, 2025, the Company owned and operated 63 operating properties, with an aggregate of 7.4 million leasable square feet located in 28 states, and six non-operating properties. In addition, the Company owns an equity interest in OAP/VER Venture, LLC (the "Arch Street Joint Venture"), an unconsolidated joint venture with an affiliate of Arch Street Capital Partners, LLC ("Arch Street Capital Partners"). As of September 30, 2025, the Arch Street Joint Venture owned a portfolio consisting of six properties totaling approximately 1.0 million leasable square feet located within six states.

**Note 2 – Summary of Significant Accounting Policies**

***Going Concern***

The consolidated financial statements of the Company presented herein include the accounts of the Company and its consolidated subsidiaries, including Orion OP, and a consolidated joint venture. All intercompany transactions have been eliminated upon consolidation. The consolidated financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") assuming the Company will continue as a going concern. The going concern assumption contemplates continuity of operations, the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, as discussed below, substantial doubt about the Company's ability to continue as a going concern exists for at least one year from the issuance of these consolidated financial statements due to uncertainty with regard to the Company's ability to extend or refinance the Revolving Facility (as defined in Note 6 – Debt, Net), which matures on May 12, 2026.

As discussed in Note 6 – Debt, Net, the Company's Revolving Facility matures on May 12, 2026 and has no remaining extension options. The Company does not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility, which was $110.0 million as of September 30, 2025 and $92.0 million as of November 6, 2025, on this scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or to refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing its leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and, there can be no assurance the Company will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. These adjustments are considered to be of a normal, recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The consolidated financial statements do not include any adjustments to the carrying amounts and classifications of assets, liabilities and reported expenses that may be necessary if the Company is unable to continue as a going concern. These consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2024, which are included in the Company's Annual Report on Form 10-K filed with the SEC on March 5, 2025. Information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC and U.S. GAAP.

***Principles of Consolidation***

The portion of the consolidated joint venture not owned by the Company is presented as non-controlling interest in the accompanying consolidated balance sheets, statements of operations, statements of comprehensive income (loss) and statements of equity.

For legal entities being evaluated for consolidation, the Company must first determine whether the interests that it holds and fees it receives qualify as variable interests in the entity. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. The Company's evaluation includes consideration of fees paid to the Company where the Company acts as a decision maker or service provider to the entity being evaluated. If the Company determines that it holds a variable interest in an entity, it evaluates whether that entity is a variable interest entity ("VIE"). VIEs are entities where investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one or more of the following characteristics: (a) the power to direct the activities that most significantly impact the entity's economic performance, (b) the obligation to absorb the expected losses of the entity; or (c) the right to receive the expected returns of the entity. The Company consolidates entities that are not VIEs if it has a majority voting interest or other rights that result in effectively controlling the entity.

The Company then qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE, which is generally defined as the party who has a controlling financial interest in the VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. The Company continually evaluates the need to consolidate VIEs based on standards set forth in U.S. GAAP.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding real estate impairments and purchase price allocations.

***Reclassification***

During the nine months ended September 30, 2025, the Company elected to separately present restricted cash on the consolidated balance sheets, which was previously presented in other assets, net on the consolidated balance sheets. Management believes that separately presenting restricted cash provides greater visibility into the Company's liquidity. As a result of this change in presentation, the Company has reclassified restricted cash amounts from other assets, net to restricted cash on the consolidated balance sheets for the prior period presented. The reclassification had no impact on the reported total assets, net loss or cash flows in the accompanying consolidated financial statements.

***Revenue Recognition***

*Rental Revenue*

For operating leases with minimum scheduled rent increases, the Company recognizes rental revenue on a straight-line basis, including the effect of any free rent periods, over the lease term when collectability of lease payments is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

Certain of the Company's leases also contain provisions for tenants to reimburse the Company for real estate taxes, insurance and maintenance and other property operating expenses. Such reimbursements are included in rental revenue on a gross basis. Property operating expenses paid directly by tenants are recorded on a net basis (i.e., treated as fully offset by an identical amount of assumed reimbursement revenue) and, therefore, are not included in the accompanying consolidated financial statements.

The Company continually reviews receivables related to rent, straight-line rent and property operating expense reimbursements and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. The review includes a binary assessment of whether or not substantially all of the amounts due under a tenant's lease agreement are probable of collection. For leases that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For leases that are deemed not probable of collection, revenue is recorded as cash is received and the Company reduces rental revenue for any straight-line rent receivables. The Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue. During the three and nine months ended September 30, 2024, the Company recorded a reduction to rental revenue of less than $0.1 million for income not probable of collection. No such amounts were recorded for the three and nine months ended September 30, 2025.

Periodically the Company receives reimbursements from previous tenants for certain end of lease obligations that are recognized on a cash basis or when the amounts are definitively agreed upon. The Company recognized $0.1 million and $2.9 million of such reimbursements during the three and nine months ended September 30, 2024, respectively. No such amounts were recorded for the three and nine months ended September 30, 2025. Rental revenue also includes lease termination income collected from tenants to allow for the tenants to settle their lease obligations and/or to vacate their space prior to their scheduled termination dates. The Company recognized lease termination income of $1.5 million and $2.6 million during the three and nine months ended September 30, 2025, respectively, and $0.2 million and $1.9 million during the three and nine months ended September 30, 2024, respectively. Amortization of above and below-market leases and lease incentives is also included in rental revenue and is discussed further in Note 3 – Real Estate Investments and Related Intangibles.

*Fee Income from Unconsolidated Joint Venture* 

The Company provides various services to the Arch Street Joint Venture in exchange for market-based fees. Total asset and property management fees earned in connection with this entity was $0.2 million for the three months ended September 30, 2025 and 2024, and $0.6 million for the nine months ended September 30, 2025 and 2024.

***Cash and Cash Equivalents and Restricted Cash***

Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid funds with original maturities of three months or less. Restricted cash is primarily comprised of reserves held by the lender under the CMBS loan (as defined in Note 6 – Debt, Net) for future rent concessions and tenant improvement allowances. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to an insurance limit of $250,000. At times, the Company's cash and cash equivalents and restricted cash may exceed federally insured levels. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held.

***Segment Reporting***

The Company operates in one business segment: commercial real estate. This segment is characterized as owning, managing and leasing commercial real estate assets under long-term agreements. The chief operating decision maker ("CODM") of the Company is the chief executive officer. The CODM reviews net income (loss) attributable to common stockholders, included in the accompanying consolidated statements of operations, when assessing performance and making operating decisions, including the allocation of resources. The CODM uses net income (loss) attributable to common stockholders as it informs comparative period trends for the forecasting process and is the baseline measurement for any additional measures of profit or loss of the Company's consolidated financial results. Additionally, the CODM reviews the following significant expenses when measuring segment performance: property operating expenses for properties that were fully vacant or became fully vacant during the reporting period ("Vacant Property Operating Expenses") and general and administrative expenses.

Segment revenues, profit or loss and general and administrative expenses are all disclosed in the accompanying consolidated statements of operations. Vacant Property Operating Expenses included in property operating expenses of the accompanying consolidated statements of operations were $4.2 million and $13.2 million for the three and nine months ended

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

September 30, 2025, respectively, and $4.0 million and $11.2 million for the three and nine months ended September 30, 2024, respectively.

Asset information for the segment is not used by the CODM to measure performance but is disclosed in the accompanying consolidated balance sheets as of September 30, 2025 and December 31, 2024. The Company does not have intra-entity sales or transfers, and its revenues have been generated in and all long-lived assets are located within the United States.

***Recent Accounting Pronouncements***

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures). ASU 2024-03 serves to improve disclosures about a public business entity's expenses and provide detailed information about expense categories commonly presented in cost of sales, research and development and selling, general, and administrative expenses, including but not limited to purchases of inventory, employee compensation, depreciation, amortization and depletion. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2024-03 on its consolidated financial statements.

**Note 3 – Real Estate Investments and Related Intangibles** 

***Property Acquisitions***

During the three and nine months ended September 30, 2025, the Company had no acquisitions.

During the nine months ended September 30, 2024, the Company acquired fee simple, controlling financial interest in one real property and the improvements thereon including an approximate 97,000 square foot flex/laboratory and R&D facility located in San Ramon, California for a gross purchase price of $34.6 million and external acquisition-related expenses of $0.1 million that were capitalized. The property was fully leased to a single tenant with a remaining lease term of 15.0 years as of the acquisition date.

The following table presents the allocation of the purchase consideration and capitalized transaction costs to the assets acquired and liabilities assumed based on their relative fair values during the nine months ended September 30, 2024 (in thousands):

---

| | |
|:---|:---|
| Real estate investment, at cost: |  |
| &nbsp;&nbsp;Land | $12250 |
| &nbsp;&nbsp;Building, fixtures and improvements | 25269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total real estate investment, at cost | 37519 |
| Acquired intangible assets: |  |
| &nbsp;&nbsp;Intangible lease asset | 13847 |
| Assumed intangible liabilities: |  |
| &nbsp;&nbsp;Below-market lease liability | (16632) |
| Net assets acquired | $34734 |

---

Additionally, during the nine months ended September 30, 2024, the Company acquired for no consideration, the fee simple interest in one parcel of land in connection with the maturity of the tax advantaged bond and ground lease structure. As a result of the transaction, $3.5 million that was previously classified as a finance lease right-of-use asset with respect to such land parcel previously subject to the ground lease was reclassified from other assets, net to land in the accompanying consolidated balance sheet as of September 30, 2024.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

***Property Dispositions and Real Estate Assets Held for Sale***

The following table summarizes the Company's property dispositions during the periods indicated below (dollars in thousands)**:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Total dispositions | 3 |  | 7 | 1 |
| Aggregate gross sales price | $21750 | $— | $48680 | $2100 |
| Gain on disposition of real estate assets | $3265 | $— | $4156 | $— |
| Property count | 1 |  | 4 |  |
| Impairments on disposition of real estate assets | $5233 | $— | $6399 | $20 |
| Property count | 2 |  | 3 | 1 |

---

As of September 30, 2025, the Company had one property classified as held for sale with a carrying value of $15.0 million, primarily comprised of land of $3.2 million, building, fixtures and improvements, net, of $11.2 million, and intangible lease assets, net, of $0.6 million, included in real estate assets held for sale, net in the accompanying consolidated balance sheets. During October 2025, the Company closed on the sale of this held for sale property. See Note 15 – Subsequent Events, below.

During the nine months ended September 30, 2025, the Company recorded losses of $7.7 million related to properties that were classified as held for sale and subsequently disposed, which are included as part of impairments in the accompanying consolidated statements of operations. There were no recorded losses related to properties that were classified as held for sale during the nine months ended September 30, 2024.

***Intangible Lease Assets and Liabilities***

Intangible lease assets and liabilities consisted of the following as of the dates indicated below (in thousands, except weighted average useful life as of September 30, 2025):

---

| | | | |
|:---|:---|:---|:---|
| | **Weighted Average Useful Life (Years)** | **September 30, 2025** | **December 31, 2024** |
| **Intangible lease assets:** | | | |
| &nbsp;&nbsp;In-place leases, net of accumulated amortization of $152,520 and $169,898, respectively | &nbsp;&nbsp;&nbsp;10.5 | $48343 | $68099 |
| &nbsp;&nbsp;Leasing commissions, net of accumulated amortization of $7,084 and $4,508, respectively | 12.5 | 26276 | 21834 |
| &nbsp;&nbsp;Above-market lease assets, net of accumulated amortization of $12,254 and $12,831, respectively | 11.4 | 1390 | 2041 |
| &nbsp;&nbsp;Deferred lease incentives, net of accumulated amortization of $1,167 and $927, respectively | 11.5 | 4093 | 3970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible lease assets, net |  | $80102 | $95944 |
| **Intangible lease liabilities:** |  |  |  |
| &nbsp;&nbsp;Below-market leases, net of accumulated amortization of $19,701 and $24,877, respectively | 15.1 | $18959 | $20596 |

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The aggregate amount of amortization of above-market and below-market leases included as a net increase to rental revenue in the accompanying statements of operations was $0.3 million and less than $0.1 million for the three months ended September 30, 2025 and 2024, respectively, and $1.0 million for the nine months ended September 30, 2025 and 2024. The aggregate amount of amortization of deferred lease incentives included as a net decrease to rental revenue was $0.2 million and $0.1 million for the three months ended September 30, 2025 and 2024, respectively, and $0.4 million for the nine months ended September 30, 2025 and 2024. The aggregate amount of in-place leases, leasing commissions and other lease intangibles amortized and included in depreciation and amortization expense in the accompanying statements of operations was $6.3 million and $20.7 million for the three and nine months ended September 30, 2025, respectively, and $11.7 million and $42.1 million for the three and nine months ended September 30, 2024, respectively.

The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible lease assets and liabilities for the next five years as of September 30, 2025 (in thousands)**:**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Remainder of 2025** | **2026** | **2027** | **2028** | **2029** | **2030** |
| **In-place leases:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total projected to be included in amortization expense | $4436 | $14873 | $7810 | $5517 | $2797 | $2377 |
| **Leasing commissions:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total projected to be included in amortization expense | $752 | $2745 | $2585 | $2348 | $2055 | $2030 |
| **Above-market lease assets:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total projected to be deducted from rental revenue | $198 | $680 | $237 | $115 | $63 | $63 |
| **Deferred lease incentives:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total projected to be deducted from rental revenue | $136 | $471 | $448 | $434 | $424 | $420 |
| **Below-market lease liabilities:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total projected to be added to rental revenue | $510 | $1928 | $1766 | $1682 | $1500 | $1425 |

---

***Investment in Unconsolidated Joint Venture***

The following is a summary of the Company's investment in the Arch Street Joint Venture, as of the dates and for the periods indicated below (dollars in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Ownership %** <sup>(1)</sup> | **Number of Properties** | **Carrying Value of <br>Investment** | **Carrying Value of <br>Investment** | **Equity in Loss, Net** | **Equity in Loss, Net** |
| | **Ownership %** <sup>(1)</sup> | **Number of Properties** | **Carrying Value of <br>Investment** | **Carrying Value of <br>Investment** | **Nine Months Ended** | **Nine Months Ended** |
|<br>**Investment** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **September 30, 2025** | **September 30, 2024** |
| Arch Street Joint Venture <sup>(2)</sup> | 20% | 6 | $11049 | $11822 | $(773) | $(497) |

---

____________________________________

(1)The Company's ownership interest reflects its legal ownership interest. The Company's legal ownership interest may, at times, not equal the Company's economic interest because of various provisions in the joint venture agreement regarding capital contributions, distributions of cash flow based on capital account balances and allocations of profits and losses. As a result, the Company's actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interest.

(2)The total carrying value of the Company's investment in the Arch Street Joint Venture was less than the underlying equity in net assets by $0.4 million and less than $0.1 million as of September 30, 2025 and December 31, 2024, respectively. This difference is related to the recognition of the fair value of the investment in the Arch Street Joint Venture in connection with the Separation and the Distribution. The difference in fair value and carrying value of the investment was allocated based on the underlying assets and liabilities of the Arch Street Joint Venture and is being amortized over the estimated useful lives of the respective assets and liabilities in accordance with the Company's accounting policies.

The non-recourse mortgage notes associated with the Arch Street Joint Venture are scheduled to mature on November 27, 2025, with one remaining option to extend the maturity for an additional 12 months until November 27, 2026. As of September 30, 2025, there was $129.5 million outstanding under the mortgage notes and the Company's proportionate share was $25.9 million. During September 2025, the Arch Street Joint Venture exercised the remaining option to extend the maturity date of the mortgage notes until November 27, 2026, and the lenders are working to confirm all extension conditions are met, including a maximum loan-to-value of 60% which may require the Arch Street Joint Venture to partially repay the mortgage notes to satisfy this condition. The Company cannot provide any assurance that the Arch Street Joint Venture will be able to

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

satisfy the conditions to extend the maturity date of this debt obligation, including that the joint venture partner will be able to contribute its share of capital requirements to partially repay the mortgage notes if required to satisfy the loan-to-value condition, or otherwise extend or refinance this debt obligation prior to maturity. If the Arch Street Joint Venture is unable to extend or refinance the mortgage notes, the Company's investment in the Arch Street Joint Venture could be materially adversely affected.

The Arch Street Joint Venture mortgage notes have a variable interest rate and the spread on a SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York) loan is 2.60%, and the spread on a base rate loan is 0.50%. The Arch Street Joint Venture has entered into an interest rate cap agreement that caps the SOFR rate at 5.50%.

During November 2024, the Company provided a member loan to the Arch Street Joint Venture of $1.4 million in connection with the partial repayment of the Arch Street Joint Venture mortgage notes to satisfy the maximum 60% loan-to-value extension condition. During February 2025, the Company made an additional member loan of $8.3 million to fund leasing costs related to a lease extension that was completed for one of the properties in the Arch Street Joint Venture portfolio. The Company's member loan to the Arch Street Joint Venture, which had $6.7 million receivable as of September 30, 2025, earns interest at 15%, matures on November 27, 2026, and is non-recourse and unsecured, structurally subordinate to the Arch Street Joint Venture mortgage notes. Interest and principal are payable monthly solely out of the excess cash from the joint venture after payment of property operating expenses, interest and principal on the Arch Street mortgage notes and other joint venture expenses and excess proceeds from the sale of any of the joint venture properties.

**Note 4 – Receivables and Other Assets**

Accounts receivable, net consisted of the following as of the dates indicated below (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Accounts receivable, net | $4941 | $5852 |
| Straight-line rent receivable, net | 27670 | 16981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $32611 | $22833 |

---

Other assets, net consisted of the following as of the dates indicated below (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Right-of-use assets, net <sup>(1)</sup> | $21503 | $22216 |
| Investment in unconsolidated joint venture | 11049 | 11822 |
| Notes receivable <sup>(2)</sup> | 6725 | 3900 |
| Prepaid expenses | 2989 | 2133 |
| Other assets, net | 1912 | 1591 |
| Deferred costs, net <sup>(3)</sup> | 1811 | 4596 |
| Restricted escrow deposits | 425 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $46414 | $46258 |

---

____________________________________

(1)Includes right-of-use finance leases of $5.6 million, right-of-use operating leases of $9.6 million, and a below-market right-of-use asset, net of $6.3 million as of September 30, 2025. Includes right-of-use finance leases of $5.6 million, right-of-use operating leases of $10.2 million, and a below-market right-of-use asset, net of $6.4 million as of December 31, 2024. Amortization expense for below market right-of-use asset was less than $0.1 million for the three months ended September 30, 2025 and 2024 and $0.1 million for the nine months ended September 30, 2025 and 2024.

(2)Notes receivable includes a member loan to the Arch Street Joint Venture discussed in Note 3 – Real Estate Investments and Related Intangibles – Investment in Unconsolidated Joint Venture of $6.7 million and $1.4 million as of September 30, 2025 and December 31, 2024, respectively. Notes receivable as of December 31, 2024 also includes one $2.5 million long-term seller financed promissory note for one property sold during the year ended December 31, 2023. This loan was structured as a first mortgage loan on the property sold with an unsecured recourse guaranty from the buyer principal and was repaid in full during the nine months ended September 30, 2025.

(3)Includes accumulated amortization for deferred costs related to the Revolving Facility of $9.2 million and $7.0 million as of September 30, 2025 and December 31, 2024, respectively. Amortization expense for deferred costs related to the Revolving Facility was $0.7 million and $2.2 million for the three and nine months ended September 30, 2025 and 2024, respectively. Deferred costs, net as of December 31, 2024 also includes outstanding deferred equity offering costs of $0.6 million, which were expensed against other (expense) income, net in the accompanying consolidated statements of operations during the three and nine months ended September 30, 2025 in connection with the scheduled expiration of the Company's universal shelf registration statement on Form S-3 with the SEC during November 2025.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

**Note 5 – Fair Value Measures**

***Items Measured at Fair Value on a Recurring Basis***

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of the dates indicated below, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Balance as of September 30, 2025** |
| Derivative liabilities | $– $| 17 | $– $| 17 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** | **Level 3** | **Balance as of December 31, 2024** |
| Derivative liabilities | $– $| 15 | $– $| 15 |

---

*Derivative Liabilities* – The Company's derivative financial instruments comprise interest rate collar agreements entered into in order to hedge interest rate volatility with respect to the Company's borrowings under the Revolving Facility with an aggregate notional amount of $75.0 million and $60.0 million as of September 30, 2025 and December 31, 2024, respectively (as described in Note 6 – Debt, Net). The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company's potential non-performance risk and the performance risk of the counterparties.

Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2025 and December 31, 2024, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

***Items Measured at Fair Value on a Non-Recurring Basis***

Certain financial and non-financial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

*Real Estate and Other Investments* – The Company performs quarterly impairment review procedures for real estate investments, right of use assets and its investment in the Arch Street Joint Venture, primarily through continuous monitoring of events and changes in circumstances that could indicate the carrying value of such assets may not be recoverable.

The following table summarizes the Company's provisions for impairment during the periods indicated below (dollars in thousands). The impairment charges reflect changes in the Company's future cash flow assumptions for agreed-upon or estimated sales proceeds with respect to real estate assets that were expected to be sold as well as changes to assumptions with regard to management's intent to sell or lease the real estate assets.

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| Number of properties | 11 | 8 |
| Carrying value of impaired properties | $179243 | $62710 |
| Provisions for impairment | (84910) | (25365) |
| &nbsp;&nbsp;Estimated fair value | $94333 | $37345 |

---

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The Company estimates fair values using Level 2 and Level 3 inputs and uses a combined income and market approach, specifically using discounted cash flow analysis and/or recent comparable sales transactions. The evaluation of real estate assets for potential impairment requires the Company's management to exercise significant judgment and make certain key assumptions, including the following: (1) capitalization rates; (2) discount rates; (3) number of years the property will be held; (4) property operating expenses; and (5) re-leasing assumptions including the number of months to re-lease, market rental revenue and required tenant improvements. There are inherent uncertainties in making these estimates such as market conditions and performance and sustainability of the Company's tenants.

For the Company's impairment tests over the real estate assets during the nine months ended September 30, 2025, the fair value measurements for six properties were determined based on sales prices under definitive agreements, three properties were determined by using a weighted average discount rate of 8.9% and a weighted average capitalization rate of 8.6%, and two properties were determined based on estimated sales prices based on market data. During the nine months ended September 30, 2025, impairment charges of $67.4 million were recorded for held and used properties, impairment charges of $6.0 million were recorded for held for sale properties and impairment charges of $11.5 million were recorded for disposed properties, including $1.7 million recorded on properties classified as held for sale during the three months ended March 31, 2025.

For the Company's impairment tests over the real estate assets during the nine months ended September 30, 2024, the fair value measurements for seven properties were determined based on the sales prices under definitive agreements and one property was determined by a discount rate of 9.0% and capitalization rate of 8.5%. During the nine months ended September 30, 2024, impairment charges of $22.1 million were recorded for held and used properties and impairment charges of $3.3 million were recorded for one disposed property. No impairment charges were recorded for held for sale properties during the nine months ended September 30, 2024.

The following tables present certain of the Company's assets which were subject to impairment as of the dates indicated below and therefore, have been measured at fair value on a non-recurring basis, aggregated by the level in the fair value hierarchy within which those assets fall (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** <sup>(1)</sup> | **Level 3** <sup>(1)</sup> | **Balance as of September 30, 2025** |
| Assets of properties held and used | $— | $— | $44378 | $44378 |
| Assets of properties held for sale |  | 14969 |  | 14969 |
| &nbsp;&nbsp;Total | $— | $14969 | $44378 | $59347 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Level 1** | **Level 2** <sup>(1)</sup> | **Level 3** <sup>(1)</sup> | **Balance as of December 31, 2024** |
| Assets of properties held and used | $— | $— | $22903 | $22903 |
| Assets of properties held for sale |  | 9671 |  | 9671 |
| &nbsp;&nbsp;Total | $— | $9671 | $22903 | $32574 |

---

____________________________________

(1)The fair value of the level 2 category was derived using negotiated sales prices with third parties and the fair value of the level 3 category was derived using discounted cash flow analysis and management estimates of selling prices.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

***Fair Value of Financial Instruments***

The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable approximates their carrying value in the accompanying consolidated balance sheets due to their short-term nature. The following table presents carrying values and fair values of the Company's long-term financial instruments as of the dates indicated below (dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Level** | **Carrying Value at September 30, 2025** | **Fair Value at September 30, 2025** | **Carrying Value at December 31, 2024** | **Fair Value at December 31, 2024** |
| Assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Notes receivable | 3 | 6725 | 6725 | 3900 | 3900 |
| Liabilities <sup>(1)</sup>: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mortgages payable | 2 | $373000 | $363811 | $373000 | $352476 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | 2 | 17 | 17 | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  | $373017 | $363828 | $373015 | $352491 |

---

____________________________________

(1)Current and prior period liabilities' carrying and fair values exclude net deferred financing costs.

*Notes Receivable* – The carrying value of the Company's long-term promissory notes receivable were determined to be at fair value based on management's estimates of credit spreads and observable market interest rates, representing level 3 on the fair value hierarchy.

*Debt* – The fair value is estimated by an independent third party using a discounted cash flow analysis, based on management's estimates of credit spreads and observable market interest rates, representing level 2 on the fair value hierarchy.

**Note 6 – Debt, Net**

As of September 30, 2025, the Company had debt outstanding of $481.8 million, including net deferred financing costs, with a weighted average years to maturity of 1.4 years and a weighted average effective interest rate for the nine months ended September 30, 2025 of 5.66%. The following table summarizes the carrying value of debt as of and the debt activity for the periods indicated below (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | |
| |<br>**Balance as of December 31, 2024** | **Debt Issuances** | **Repayments, Extinguishment and Assumptions** | **Accretion and Amortization** |<br>**Balance as of September 30, 2025** |
| Mortgages payable: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Outstanding balance | $373000 | $— | $— | $— | $373000 |
| &nbsp;&nbsp;&nbsp;Deferred costs | (1778) |  |  | 550 | (1228) |
| Mortgages payable, net | 371222 |  |  | 550 | 371772 |
| Credit facility revolver | 119000 | 13000 | (22000) |  | 110000 |
| Total debt | $490222 | $13000 | $(22000) | $550 | $481772 |

---

The following table summarizes the scheduled aggregate principal repayments due on the Company's debt outstanding as of September 30, 2025 (in thousands):

---

| | |
|:---|:---|
| | **Total** |
| October 1, 2025 to December 31, 2025 | $— |
| 2026 | 110000 |
| 2027 | 355000 |
| Thereafter | 18000 |
| &nbsp;&nbsp;&nbsp;Total | $483000 |

---

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

***Credit Agreement***

In connection with the Separation and the Distribution, on November 12, 2021, the Company, as parent, and Orion OP, as borrower, entered into a credit agreement (the "Credit Agreement") providing for a three-year, $425.0 million senior revolving credit facility (the "Revolving Facility"), including a $25.0 million letter of credit sub-facility, and a two-year, $175.0 million senior term loan facility (the "Term Loan Facility") with Wells Fargo Bank, National Association, as administrative agent, and the lenders and issuing banks party thereto.

In June 2023, as further described below, the Term Loan Facility was repaid and retired with borrowings under the Revolving Facility and, as of September 30, 2025, $110.0 million of principal amount was outstanding under the Revolving Facility with $240.0 million available for future borrowings thereunder, including the $25.0 million letter of credit sub-facility.

The Company and Orion OP have entered into three amendments to the Credit Agreement. The purpose of the first amendment entered into in December 2022 was to change the benchmark rate for borrowings under the Credit Agreement from LIBOR (the London interbank offered rate as administered by the ICE Benchmark Administration) to SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York). The purpose of the second amendment entered into in June 2023 was to repay and retire $175.0 million of outstanding borrowings under the Term Loan Facility with borrowings from the Revolving Facility which was undrawn at the time of the second amendment, provide Orion OP with the option to extend the maturity of the Revolving Facility for an additional 18 months to May 12, 2026 from November 12, 2024 and to effect certain other modifications. On May 3, 2024, the Company entered into a third amendment to the Credit Agreement which resulted in a permanent $75.0 million reduction in the capacity of the Revolving Facility to $350.0 million from $425.0 million, while making a proportional reduction in the minimum value of the unencumbered asset pool required under the Credit Agreement to $500.0 million from $600.0 million and certain other modifications to financial covenants. On May 16, 2024, the Company exercised the option under the Credit Agreement to extend the maturity of the Revolving Facility to May 12, 2026. Substantial doubt exists about the Company's ability to continue as a going concern for at least one year from the issuance of these consolidated financial statements due to uncertainty with regard to its ability to extend or refinance the Revolving Facility. The Revolving Facility has no remaining extension options and the Company does not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility of $92.0 million as of November 6, 2025 on its scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing its leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and there can be no assurance the Company will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all.

The interest rate applicable to the loans under the Revolving Facility may be determined, at the election of Orion OP, on the basis of Daily Simple SOFR, Term SOFR or a base rate, in the case of a SOFR loan, plus a SOFR adjustment of 0.10%, and in the case of a SOFR loan or a base rate loan, plus an applicable margin of 3.25% for SOFR loans and 2.25% for base rate loans. Loans under the Revolving Facility may be prepaid and reborrowed, and unused commitments under the Revolving Facility may be reduced, at any time, in whole or in part, by Orion OP, without premium or penalty (except for SOFR breakage costs).

In December 2022, the Company entered into interest rate swap agreements with an aggregate notional amount of $175.0 million, which effectively fixed the interest rate on $175.0 million of principal under the Revolving Facility (or, until June 29, 2023, the Term Loan Facility) at 3.92% until November 12, 2023. Upon the scheduled expiration of the interest rate swap agreements, the Company entered into interest rate collar agreements on a total notional amount of $60.0 million to hedge against interest rate volatility on the Revolving Facility. Under the agreements, the benchmark rate for the Revolving Facility floated between no higher than 5.50% and no lower than 4.20% on $25.0 million, and no higher than 5.50% and no lower than 4.035% on $35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into a new interest rate collar agreement to hedge against interest rate volatility on the Revolving Facility. Under the agreement, the benchmark rate for the Revolving Facility will float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026. As of September 30, 2025, the weighted average effective interest rate of the Revolving Facility was 7.47%.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

To the extent that amounts under the Revolving Facility remain unused, Orion OP is required to pay a quarterly commitment fee on the unused portion of the Revolving Facility in an amount equal to 0.25% of the unused portion of the Revolving Facility.

The Revolving Facility is guaranteed pursuant to a guaranty by the Company and, subject to certain exceptions, substantially all of Orion OP's existing and future subsidiaries (including substantially all of its subsidiaries that directly or indirectly own unencumbered real properties), other than certain joint ventures and subsidiaries that own real properties subject to certain other indebtedness (such subsidiaries of Orion OP, the "Subsidiary Guarantors").

The Revolving Facility is secured by, among other things, first priority pledges of the equity interests in the Subsidiary Guarantors.

The Revolving Facility requires that Orion OP comply with various covenants, including covenants restricting, subject to certain exceptions, liens, investments, mergers, asset sales and the payment of certain dividends. If, on any day, Orion OP has unrestricted cash and cash equivalents in excess of $25.0 million (excluding amounts that are then designated for application or use and are subsequently used for such purposes within 30 days), Orion OP will use such excess amount to prepay loans under the Revolving Facility, without premium or penalty and without any reduction in the lenders' commitment under the Revolving Facility.

In addition, the Revolving Facility requires that Orion OP satisfy the following financial covenants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ratio of total debt to total asset value of not more than 0.60 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ratio of adjusted EBITDA to fixed charges of not less than 1.50 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ratio of secured debt to total asset value of not more than 0.40 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ratio of unsecured debt to unencumbered asset value of not more than 0.60 to 1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ratio of net operating income from all unencumbered real properties to unsecured interest expense of not less than 2.00 to 1.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the unencumbered asset value maintained by Orion OP must be at least $500.0 million.

If the ratio of unsecured debt to unencumbered asset value exceeds 0.35 to 1.00 as of the end of two consecutive fiscal quarters, Orion OP will be required, within 90 days and subject to cure rights, to grant the administrative agent a first priority lien on all the properties included in the pool of unencumbered assets (other than properties identified for disposition by the Company so long as such properties are sold within one year of such identification).

As of September 30, 2025, Orion OP was in compliance with the Revolving Facility financial covenants.

The Revolving Facility includes customary representations and warranties of the Company and Orion OP, which must be true and correct in all material respects as a condition to future extensions of credit under the Revolving Facility. The Revolving Facility also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of Orion OP under the Revolving Facility to be immediately due and payable and foreclose on the collateral securing the Revolving Facility.

***CMBS Loan***

On February 10, 2022, certain indirect subsidiaries of the Company (the "Mortgage Borrowers") obtained a $355.0 million fixed rate mortgage note (the "CMBS Loan") from Wells Fargo Bank, National Association (together with its successor, the "Lender"), which is secured by the Mortgage Borrowers' fee simple or ground lease interests in 19 properties owned indirectly by the Company (collectively, the "Mortgaged Properties"). During March 2022, Wells Fargo effected a securitization of the CMBS Loan. The CMBS Loan bears interest at a fixed rate of 4.971% and matures on February 11, 2027.

The CMBS Loan requires monthly payments of interest only and all principal is due at maturity. Upon closing of the CMBS Loan, the Mortgage Borrowers funded $35.5 million of loan reserves primarily for future rent concessions and tenant improvement allowances under the leases with respect to the 19 Mortgaged Properties. These amounts, as well as the transaction expenses incurred in connection with the CMBS Loan, were funded with cash on hand and borrowings under the Company's Revolving Facility. During March 2025 and December 2024, the Mortgage Borrowers funded an additional $1.5 million and $9.4 million, respectively, of loan reserves for future rent concessions and tenant improvement allowances agreed to as part of the extension of certain leases in the CMBS collateral pool.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The CMBS Loan is secured by, among other things, first priority mortgages and deeds of trust granted by the Mortgage Borrowers and encumbering the Mortgaged Properties.

The CMBS Loan is generally not freely prepayable by the Mortgage Borrowers without payment of certain prepayment premiums and costs. The CMBS Loan may be prepaid in whole, but not in part, except as provided in the loan agreement governing the CMBS Loan (the "CMBS Loan Agreement"), at any time, subject to the payment of a yield maintenance premium and the satisfaction of other terms and conditions set forth in the CMBS Loan Agreement. Further, releases of individual properties are permitted in connection with an arm's length third party sale upon repayment of the Release Price (as defined in the CMBS Loan Agreement) for the applicable individual property and subject to payment of the applicable yield maintenance premium and the satisfaction of other terms and conditions set forth in the CMBS Loan Agreement. The CMBS Loan may be prepaid in full without premium or penalty beginning in May 2026 (nine months prior to maturity).

The CMBS Loan Agreement also contains customary cash management provisions, including certain trigger events (such as failure of the Mortgage Borrowers to satisfy a minimum debt yield of 8.0%) which allow the Lender to retain any excess cash flow as additional collateral for the Loan, until such trigger event is cured.

In connection with the CMBS Loan Agreement, the Company (as the guarantor) delivered a customary non-recourse carveout guaranty to the Lender (the "Guaranty"), under which the Company guaranteed the obligations and liabilities of the Mortgage Borrowers to the Lender with respect to certain non-recourse carveout events and the circumstances under which the CMBS Loan will be fully recourse to the Mortgage Borrowers, and which includes requirements for the Company to maintain a net worth of no less than $355.0 million and liquid assets of no less than $10.0 million, in each case, exclusive of the values of the collateral for the CMBS Loan. As of September 30, 2025, the Company was in compliance with these financial covenants.

The Mortgage Borrowers and the Company also provided a customary environmental indemnity agreement, pursuant to which the Mortgage Borrowers and the Company agreed to protect, defend, indemnify, release and hold harmless the Lender from and against certain environmental liabilities relating to the Mortgaged Properties.

The CMBS Loan Agreement includes customary representations, warranties and covenants of the Mortgage Borrowers and the Company. The CMBS Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the Mortgage Borrowers to be immediately due and payable and foreclose on the Mortgaged Properties.

***San Ramon Loan***

On November 7, 2024, an indirect subsidiary of the Company (the "San Ramon Borrower") obtained an $18.0 million fixed rate mortgage note (the "San Ramon Loan") from RGA Americas Investments LLC (the "San Ramon Lender") secured by the fee simple interest in the San Ramon, California property acquired in September 2024 (the "San Ramon Property"). The San Ramon Loan bears interest at a fixed rate of 5.90% and matures on December 1, 2031.

The San Ramon Loan requires monthly payments of interest only and all principal is due at maturity and is generally not freely prepayable by the San Ramon Borrower until December 2026, and thereafter without payment of certain prepayment premiums and costs. In connection with the San Ramon Loan, the Company (as guarantor) delivered a customary non-recourse carveout guaranty, under which the Company guaranteed the obligations and liabilities of the San Ramon Borrower under the San Ramon Loan with respect to certain non-recourse carveout events and the circumstances under which the San Ramon Loan will be fully recourse to the San Ramon Borrower. The San Ramon Borrower and the Company also provided a customary environmental indemnity agreement, pursuant to which the San Ramon Borrower and the Company agreed to protect, defend, indemnify and hold harmless the San Ramon Lender from and against certain environmental liabilities related to the San Ramon Property.

The loan agreement governing the San Ramon Loan (the "San Ramon Loan Agreement") includes customary representations, warranties and covenants of the San Ramon Borrower and the Company. The San Ramon Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the San Ramon Borrower to be immediately due and payable and foreclose on the San Ramon Property.

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<u>[**Table of Contents**](#i8799b212310a481cb890c86e20ab0aac_7)</u>

**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The Company's mortgages payable consisted of the following as of September 30, 2025 (dollars in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Encumbered Properties** | **Net Carrying Value of Collateralized Properties** <sup>(1)</sup> | **Outstanding Balance** | **Weighted Average Interest Rate** | **Weighted Average Years to Maturity** |
| Fixed-rate debt | 20 | $429782 | $373000 | 5.02% | 1.6 |

---

____________________________________

(1)Net carrying value is real estate assets, including right-of-use assets, net of real estate liabilities.

The table above does not include non-recourse mortgage notes associated with the Arch Street Joint Venture of $129.5 million, of which the Company's proportionate share was $25.9 million, as of September 30, 2025.

**Note 7 – Derivatives and Hedging Activities**

***Cash Flow Hedges of Interest Rate Risk***

As of September 30, 2025 and December 31, 2024, the Company had outstanding derivative agreements with aggregate notional amounts of $75.0 million and $60.0 million, respectively, which were designated as cash flow hedges under U.S. GAAP. The interest rate derivative agreements comprise interest rate collar agreements entered into in order to hedge interest rate volatility with respect to the Company's borrowings under the Revolving Facility. Under the agreements, the benchmark rate for the Revolving Facility floated between no higher than 5.50% and no lower than 4.20% on $25.0 million, and no higher than 5.50% and no lower than 4.035% on $35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into a new interest rate collar agreement to hedge against interest rate volatility on the Revolving Facility. Under the agreement, the benchmark rate for the Revolving Facility will float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026.

The table below presents the fair value of the Company's derivative financial instruments designated as cash flow hedges as well as their classification in the accompanying consolidated balance sheets as of the dates indicated below (in thousands):

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| | | | |
|:---|:---|:---|:---|
| **Derivatives Designated as Hedging Instruments** | **Balance Sheet Location** | **September 30, 2025** | **December 31, 2024** |
| Interest rate collars | Other liabilities, net | (17) | (15) |

---

During the three and nine months ended September 30, 2025, the Company recorded net unrealized gains of less than $0.1 million for changes in the fair value of its cash flow hedge in accumulated other comprehensive loss. During the three and nine months ended September 30, 2024, the Company recorded unrealized losses of less than $0.1 million and unrealized gains of $0.2 million, respectively, for changes in the fair value of its cash flow hedges in accumulated other comprehensive loss.

During the three and nine months ended September 30, 2025, the Company reclassified previous net gains of less than $0.1 million from accumulated other comprehensive loss into interest expense, net as a result of the hedged transactions impacting earnings. During the three and nine months ended September 30, 2024, the Company did not reclassify any previous net gains or losses from accumulated other comprehensive loss into interest expense, net as a result of the hedged transactions impacting earnings.

During the next twelve months, the Company estimates that less than $0.1 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense, net.

***Derivatives Not Designated as Hedging Instruments***

As of September 30, 2025 and December 31, 2024, the Company had no derivatives that were not designated as qualifying hedging relationships.

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

***Tabular Disclosure of Offsetting Derivatives***

The table below details a gross presentation, the effects of offsetting and a net presentation of the Company's derivatives as of the dates indicated below (in thousands). The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** | **Offsetting of Derivative Assets and Liabilities** |
| | **Gross Amounts of Recognized Assets** | **Gross Amounts of Recognized Liabilities** | **Gross Amounts Offset in the Consolidated Balance Sheets** | **Net Amounts of Assets Presented in the Consolidated Balance Sheets** | **Net Amounts of Liabilities Presented in the Consolidated Balance Sheets** | **Financial Instruments** | **Cash Collateral Received** | **Net Amount** |
| September 30, 2025 | $— | $(17) | $— | $— | $(17) | $— | $— | $(17) |
| December 31, 2024 | $— | $(15) | $— | $— | $(15) | $— | $— | $(15) |

---

**Note 8** – **Supplemental Cash Flow Disclosures**

Supplemental cash flow information was as follows during the periods indicated below (in thousands):

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| **Supplemental disclosures:** |  |  |
| Cash paid for interest, net <sup>(1)</sup> | $21327 | $21647 |
| Cash paid for income taxes, net of refunds | $231 | $246 |
| **Non-cash investing and financing activities:** |  |  |
| Accrued capital expenditures and leasing costs | $16570 | $6920 |
| Accrued deferred financing costs  | $— | $17 |
| Distributions declared and unpaid | $1126 | $5595 |
| Land acquired upon finance lease termination | $— | $3470 |

---

____________________________________

(1)Net of capitalized interest of $0.3 million for the nine months ended September 30, 2025. No interest was capitalized during the nine months ended September 30, 2024.

**Note 9** – **Accounts Payable and Accrued Expenses** 

Accounts payable and accrued expenses consisted of the following as of the dates indicated below (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Accrued capital expenditures and leasing costs | $17343 | $8040 |
| Accrued real estate and other taxes | 11462 | 11228 |
| Accrued operating and other | 7720 | 9141 |
| Accrued interest | 1901 | 2017 |
| Accounts payable | 1874 | 1159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $40300 | $31585 |

---

**Note 10 – Commitments and Contingencies** 

***Leasing***

As part of its ordinary re-leasing activities, the Company has agreed and anticipates that it will continue to agree to provide rent concessions to tenants and incur leasing costs with respect to its properties, including amounts paid directly to tenants to improve their space and/or building systems, or tenant improvement allowances, landlord agreements to perform and pay for certain improvements, and leasing commissions. These commitments could be significant and are expected to vary due to factors such as competitive market conditions for leasing of commercial office space and the volume of square footage subject to re-leasing by the Company.

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

As of September 30, 2025, the Company had the following estimated total outstanding leasing cost commitments (in thousands):

---

| | |
|:---|:---|
| | **Total** <sup>(1)</sup> |
| Tenant improvement allowances <sup>(2)</sup> | $48416 |
| Reimbursable landlord work <sup>(3)</sup> | 7314 |
| Non-reimbursable landlord work <sup>(3)</sup> | 13299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $69029 |

---

____________________________________

(1)Outstanding commitments do not include rent concessions as such amounts are recorded as a component of straight-line rent receivable, net, in accordance with U.S. GAAP.

(2)Includes additional allowances of $3.6 million provided within the respective lease agreements, which require election by the tenant in exchange for additional rental income through the remaining term of the lease.

(3)Landlord work represents specific improvements agreed to within the lease agreement to be performed by the Company, as landlord, as a new and non-recurring obligation and in order to induce the tenant to enter into a new lease or lease renewal or extension. Outstanding commitments for reimbursable and non-reimbursable landlord work include estimates and are subject to change.

The actual amount the Company pays for tenant improvement allowances may be lower than the amount agreed upon in the applicable lease and will depend upon the tenant's use of the capital on the agreed upon timeline. The timing of the Company's cash outlay for tenant improvement allowances is significantly uncertain and will depend upon the applicable tenant's schedule for the improvements and corresponding use of capital, if any.

For assets financed on the CMBS Loan, the Company has funded reserves with the lender for tenant improvement allowances and rent concessions. As of September 30, 2025, total cash of $30.0 million was reserved for outstanding leasing costs, including $15.3 million for tenant improvement allowances and $14.7 million for rent concession commitments, and is included in restricted cash in the accompanying consolidated balance sheets.

***Litigation***

From time to time, the Company may be party to various legal proceedings which it believes are routine in nature and incidental to the ordinary operation of its business. As of September 30, 2025, the Company does not believe that any such legal proceedings will have a material adverse effect, individually or in aggregate, upon its consolidated position or results of operations.

***Environmental Matters***

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition, in each case, that it believes will have a material adverse effect upon its consolidated position or results of operations.

**Note 11 – Leases** 

***Lessor***

As of September 30, 2025, the Company's operating leases have non-cancelable lease terms ranging from 0.3 months to 15.8 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index).

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The components of rental revenue from the Company's operating leases during the periods indicated below were as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Fixed:** |  |  |  |  |
| &nbsp;&nbsp;Cash rental revenue | $21469 | $29148 | $68001 | $91132 |
| &nbsp;&nbsp;Straight-line rental revenue | 4898 | (1283) | 11048 | (974) |
| &nbsp;&nbsp;Lease intangible amortization | 137 | (68) | 593 | 651 |
| &nbsp;&nbsp;Fixed property operating cost reimbursements | 1526 | 1531 | 4554 | 4422 |
| &nbsp;&nbsp;Other fixed rental revenue | 432 | 90 | 1927 | 1128 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed | 28462 | 29418 | 86123 | 96359 |
| **Variable:** |  |  |  |  |
| &nbsp;&nbsp;Variable property operating cost reimbursements | 7889 | 8786 | 23929 | 27451 |
| &nbsp;&nbsp;Other variable rental revenue | 567 | 772 | 1765 | 2084 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total variable | 8456 | 9558 | 25694 | 29535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total rental revenue | $36918 | $38976 | $111817 | $125894 |

---

The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of September 30, 2025 (in thousands).

---

| | |
|:---|:---|
| | **Future Minimum<br>Base Rent Payments** |
| October 1, 2025 - December 31, 2025 | $20061 |
| 2026 | 85350 |
| 2027 | 77404 |
| 2028 | 69204 |
| 2029 | 53167 |
| 2030 | 51173 |
| Thereafter | 261211 |
| &nbsp;&nbsp;&nbsp;Total | $617570 |

---

***Lessee***

The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of September 30, 2025, the Company's operating leases had remaining lease terms ranging from 0.2 years to 59.3 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company's operating leases was 3.61% as of September 30, 2025. As the Company's leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments.

Operating lease costs were $0.3 million for the three months ended September 30, 2025 and 2024, and $0.9 million for the nine months ended September 30, 2025 and 2024. No cash paid for operating lease liabilities was capitalized during the three and nine months ended September 30, 2025 and 2024.

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of September 30, 2025 (in thousands).

---

| | |
|:---|:---|
| | **Future Minimum Lease Payments** |
| October 1, 2025 - December 31, 2025 | $295 |
| 2026 | 778 |
| 2027 | 752 |
| 2028 | 761 |
| 2029 | 473 |
| 2030 | 447 |
| Thereafter | 11597 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 15103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: imputed interest | 5261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $9842 |

---

**Note 12 – Stockholders' Equity**

***Common Stock***

The Company was initially capitalized on July 15, 2021 with the issuance of 100,000 shares of common stock to Realty Income for a total of $1,000.

On November 10, 2021, the Company issued 56,525,650 additional shares of common stock to Realty Income, such that Realty Income owned 56,625,650 shares of the Company's common stock. On November 12, 2021, Realty Income effected the Distribution.

***Distributions***

During the nine months ended September 30, 2025 and 2024, the Company's Board of Directors declared quarterly cash dividends on shares of the Company's common stock as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Declaration Date** | **Record Date** | **Paid Date** | **Distributions Per Share** |
| March 4, 2025 | March 31, 2025 | April 15, 2025 | $0.02 |
| May 6, 2025 | June 30, 2025 | July 15, 2025 | $0.02 |
| August 5, 2025 | September 30, 2025 | October 15, 2025 | $0.02 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Declaration Date** | **Record Date** | **Paid Date** | **Distributions Per Share** |
| February 27, 2024 | March 29, 2024 | April 15, 2024 | $0.10 |
| May 7, 2024 | June 28, 2024 | July 15, 2024 | $0.10 |
| August 7, 2024 | September 30, 2024 | October 15, 2024 | $0.10 |

---

On November 5, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2025, payable on January 15, 2026, to stockholders of record as of December 31, 2025.

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

***Share Repurchase Program***

On November 1, 2022, the Company's Board of Directors authorized the repurchase of up to $50.0 million of the Company's outstanding common stock until December 31, 2025, as market conditions warrant (the "Share Repurchase Program"). Repurchases may be made through open market purchases, privately negotiated transactions, structured or derivative transactions, including accelerated stock repurchase transactions, or other methods of acquiring shares in accordance with applicable securities laws and other legal requirements. The Share Repurchase Program does not obligate the Company to make any repurchases at a specific time or in a specific situation. Repurchases are subject to prevailing market conditions, the trading price of the Company's common stock, the Company's liquidity and anticipated liquidity needs, financial performance and other conditions. Shares of common stock repurchased by the Company under the Share Repurchase Program, if any, will be returned to the status of authorized but unissued shares of common stock.

The Company did not repurchase any shares under the Share Repurchase Program during the nine months ended September 30, 2025 or 2024. As of September 30, 2025, the approximate dollar value of shares that remain available for repurchase under the Share Repurchase Program was $45.0 million.

**Note 13 – Equity-Based Compensation**

The Company has an equity-based incentive award plan (the "Equity Plan") for officers, other employees, non-employee directors and consultants who provide services to the Company. Awards under the Equity Plan are accounted for under U.S. GAAP as share-based payments. The expense for such awards is recognized over the requisite service period, which is generally the vesting period. Under the Equity Plan, the Company may grant various types of awards, including restricted stock units that will vest if the recipient maintains employment with the Company over the requisite service period (the "Time-Based RSUs") and restricted stock units that may vest in a number ranging from 0% to 100% of the total number of units granted, based on the Company's total shareholder return measured on an absolute basis ("TSR-Based RSUs") and based on certain operational performance metrics ("Metrics-Based RSUs" and collectively with the TSR-Based RSUs, "Performance-Based RSUs"), in each case for officers and other employees during a three-year performance period. The Company also granted Time-Based RSUs to its non-employee directors which are scheduled to vest on the earlier of the one-year anniversary of the grant date and the next annual meeting, subject to the recipient's continued service with the Company.

Failure to satisfy the performance conditions for the Metrics-Based RSUs will result in the forfeiture of the units and, in the case of awards where the performance conditions were previously determined to be likely of achieving, a reversal of any previously recognized equity-based compensation expense. Failure to satisfy the market conditions for the TSR-Based RSUs will result in the forfeiture of the units but does not result in a reversal of previously recognized equity-based compensation expense, provided that the requisite service has been rendered. Forfeiture of Time-Based RSUs or Performance-Based RSUs due to the failure to meet the service requirements results in the reversal of previously recognized equity-based compensation expense. The Company adjusts for forfeitures of Time-Based RSUs and Performance-Based RSUs as they occur.

During the nine months ended September 30, 2025 and 2024, the Company granted Time-Based RSUs and/or Performance-Based RSUs to non-employee directors and officers and other employees of the Company. The fair value of the Time-Based RSUs is determined using the closing stock price on the grant date and is expensed over the requisite service period on a straight-line basis. The fair value of the TSR-Based RSUs is determined using a Monte Carlo simulation which takes into account multiple input variables that determine the probability of satisfying the required total shareholder return, and such fair value is expensed over the performance period. The fair value of the Metrics-Based RSUs is determined using the closing stock price on the grant date and is expensed over the requisite service period to the extent that the likelihood of achieving the performance metrics is probable. As of September 30, 2025, the Company determined that the likelihood of achieving some of the performance metrics was probable and, accordingly, the Company recognized compensation expense for such Metrics-Based RSUs and determined that the likelihood of achieving the remaining performance metrics was improbable and the Company recognized no compensation expense for the remaining Metrics-Based RSUs.

Time-Based RSUs and Performance-Based RSUs do not provide for any rights of a common stockholder prior to the vesting of such restricted stock units. Equity-based compensation expense related to Time-Based RSUs and Performance-Based RSUs for the three and nine months ended September 30, 2025, was $1.0 million and $2.5 million, respectively. Equity-based compensation expense related to Time-Based RSUs and Performance-Based RSUs for the three and nine months ended September 30, 2024, was $0.7 million and $2.4 million, respectively. As of September 30, 2025, total unrecognized compensation expense related to Time-Based RSUs and Performance-Based RSUs was approximately $3.9 million, with an aggregate weighted average remaining term of 1.6 years.

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**ORION PROPERTIES INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**September 30, 2025 (Unaudited)**

The Company was also required under U.S. GAAP to recognize equity-based compensation expense for awards to employees who received grants of Realty Income time-based restricted stock units and stock options in connection with the Separation and the Distribution. Equity-based compensation expense related to such Realty Income equity-based compensation awards was less than $0.1 million for the nine months ended September 30, 2024. As of September 30, 2025, there was no remaining unrecognized compensation expense related to Realty Income time-based restricted stock units and stock options and no equity-based compensation expense related to these awards during the nine months ended September 30, 2025.

**Note 14 – Net Loss Per Share** 

The computation of basic and diluted earnings per share is as follows for the periods indicated below (in thousands, except per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(69027) | $(10207) | $(103483) | $(70234) |
| Net income attributable to non-controlling interest | (8) | (10) | (16) | (16) |
| Net loss attributable to common stockholders and used in basic and diluted net loss per share | (69035) | (10217) | (103499) | (70250) |
| Weighted average shares of common stock outstanding - basic | 56313 | 55948 | 56204 | 55887 |
| Effect of dilutive securities <sup>(1)</sup> |  |  |  |  |
| Weighted average shares of common stock - diluted | 56313 | 55948 | 56204 | 55887 |
| Basic and diluted net loss per share attributable to common stockholders | $(1.23) | $(0.18) | $(1.84) | $(1.26) |

---

____________________________________

(1)There were no adjustments to the weighted average common shares outstanding used in the diluted calculation given that all potentially dilutive shares were antidilutive for the three and nine months ended September 30, 2025 and 2024.

The following were excluded from diluted net loss per share attributable to common stockholders during the periods indicated below, as the effect would have been antidilutive (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted average unvested Time-Based RSUs and Performance-Based RSUs <sup>(1)</sup> | 530 | 236 | 56 | 19 |
| Weighted average stock warrants | 1120 | 1120 | 1120 | 1120 |

---

____________________________________

(1)Net of assumed purchases in accordance with the treasury stock method and exclude Performance-Based RSUs for which the performance thresholds have not been met by the end of the applicable reporting period.

**Note 15 – Subsequent Events**

***Distributions***

On November 5, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2025, payable on January 15, 2026, to stockholders of record as of December 31, 2025.

***Disposition***

In October 2025, the Company closed on the simultaneous sale and lease termination for one property located in Fresno, California for a gross sales price of $15.7 million and lease termination proceeds of $2.6 million.

***Leasing Activity***

During October 2025, the Company completed a 1.5-year lease renewal for approximately 50,000 square feet at its property in San Antonio, Texas. During November 2025, the Company completed a 5.5-year new lease for approximately 7,000 square feet at one of its properties in The Woodlands, Texas.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.** 

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q 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, including leasing and occupancy, acquisitions, dispositions, rent receipts, expected borrowings and financing costs and the payment of future dividends. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," "guidance," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to us and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause our business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. These factors include, among other things, those discussed below. Information regarding historical rent collections should not serve as an indicator of future rent collections. We disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as may be required by law.

The following are some, but not all, of the assumptions, risks, uncertainties and other factors that could cause our actual results to differ materially from those presented in our forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of rising interest rates, including that our borrowing costs may increase and we may be unable to extend or refinance our debt obligations on favorable terms and in a timely manner, or at all, including our Revolving Facility which has no remaining extension options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of inflation, including that our operating costs, such as insurance premiums, utilities, real estate taxes, capital expenditures and repair and maintenance costs, may rise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions associated with the global market, including an oversupply of office space, tenant credit risk and general economic conditions and geopolitical conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainties regarding future actions that may be taken by Kawa Capital Management, Inc. in furtherance of its unsolicited proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that recent changes in United States trade policy and the imposition of new tariffs continue to create disruption in macroeconomic conditions and could adversely impact our lenders, tenants and prospective tenants, and cause them to reduce or decline to do business with us or fail to meet their obligations to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which changes in workplace practices and office space utilization, including remote and hybrid work arrangements, and changes in government budgetary priorities, will continue and the impact that may have on demand for office space at our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to acquire new properties, convert certain vacant properties to multi-tenant use and sell non-core assets on favorable terms and in a timely manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with acquisitions, including the risk that we may not be in a position, or have the opportunity in the future, to make suitable property acquisitions on advantageous terms and/or that such acquisitions will fail to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our assumptions concerning tenant utilization and renewal probability of dedicated use assets, and our ability to successfully execute on our strategy to shift our portfolio concentration over time away from traditional office properties, towards more dedicated use assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with the terms of our credit agreements or to meet the debt obligations on our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to access the capital markets to raise additional equity or refinance maturing debt on favorable terms and in a timely manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the real estate industry and in performance of the financial markets and interest rates and our ability to effectively hedge against interest rate changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of tenants defaulting on their lease obligations, which is heightened due to our focus on single-tenant properties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to renew leases with existing tenants or re-let vacant space to new tenants on favorable terms and in a timely manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty as to whether the new Department of Government Efficiency, or DOGE, will lead to efforts by the General Services Administration to exercise termination options under or otherwise seek to terminate our leases with the United States Government or make it more likely the United States Government terminates the applicable lease at lease expiration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of rent concessions, tenant improvement allowances and leasing commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential for termination of existing leases pursuant to tenant termination rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount, growth and relative inelasticity of our expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the ownership and development of real property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks accompanying our investment in and the management of OAP/VER Venture, LLC (the "Arch Street Joint Venture"), our unconsolidated joint venture, in which we hold a non-controlling ownership interest, including that our joint venture partner may not be able to contribute its share of capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to close pending real estate transactions, which may be subject to conditions that are outside of our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may change our dividend policy at any time, and therefore the amount, timing and continued payment of dividends are not assured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our properties may be subject to impairment charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks resulting from losses in excess of insured limits or uninsured losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the potential volatility of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk that we may fail to maintain our income tax qualification as a real estate investment trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks and uncertainties detailed from time to time in our SEC filings.

All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as may be updated from time to time in any of the Company's Quarterly Reports filed during the year ended December 31, 2025.

We use certain defined terms throughout this Quarterly Report on Form 10-Q that have the following meanings:

When we refer to "annualized base rent," we mean the monthly aggregate cash amount charged to tenants under our leases (including monthly base rent receivables and certain fixed contractually obligated reimbursements by our tenants), as of September 30, 2025, multiplied by 12, including the Company's proportionate share of such amounts related to the Arch Street Joint Venture, the Company's unconsolidated joint venture with an affiliate of Arch Street Capital Partners, LLC ("Arch Street Capital Partners"). Annualized base rent is not indicative of future performance.

Under a "net lease", the tenant occupying the leased property (usually as a single tenant) does so in much the same manner as if the tenant was the owner of the property. There are various forms of net leases, most typically classified as triple net or double net. Triple net leases typically require that the tenant pay all expenses associated with the property (*e.g.*, real estate taxes, insurance, maintenance and repairs in accordance with the lease terms). Double net leases typically require that the tenant pay all operating expenses associated with the property (*e.g.*, real estate taxes, insurance and maintenance), but excludes some or all major repairs (*e.g.*, roof, structure and parking lot, in each case, as further defined in the applicable lease). Accordingly, the owner receives the rent "net" of these expenses, rendering the cash flow associated with the lease predictable for the term of the lease.

**Overview** 

Orion is an internally managed real estate investment trust ("REIT") engaged in the ownership, acquisition, and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. Our portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. On March 5, 2025, we changed our name from Orion Office REIT Inc. to Orion Properties Inc. to better describe our broader investment strategy to shift our portfolio concentration over time away from traditional office properties, towards more dedicated use assets that have an office component. We define dedicated use assets as those that include a substantial specialized use component such as government, medical, laboratory and research and development, and flex operations, and would therefore not be considered traditional office properties.

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The Company was initially formed as a wholly owned subsidiary of Realty Income Corporation ("Realty Income"). Following completion of the merger transaction involving Realty Income and VEREIT, Inc. ("VEREIT") on November 1, 2021, Realty Income contributed the combined business comprising certain office real properties and related assets previously owned by subsidiaries of Realty Income, and certain office real properties and related assets previously owned by subsidiaries of VEREIT (the "Separation"), to the Company and its operating partnership, Orion Properties LP ("Orion OP"), and on November 12, 2021, effected a special distribution to its stockholders of all the outstanding shares of common stock of the Company (the "Distribution").

Following the Distribution, we became an independent and publicly traded company, and our common stock, par value $0.001, trades on the New York Stock Exchange (the "NYSE") under the symbol "ONL". The Company has elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with its initial taxable year ended December 31, 2021.

As of September 30, 2025, we owned and operated 63 operating properties with an aggregate of 7.4 million leasable square feet located in 28 states with an occupancy rate of 72.1% and a weighted average remaining lease term of 5.8 years. As of September 30, 2025, we had six properties designated as non-operating properties. We also owned a 20% equity interest in the Arch Street Joint Venture, which as of September 30, 2025, owned a portfolio of six properties with an aggregate of 1.0 million leasable square feet located in six states with an occupancy rate of 100% and a weighted average remaining lease term of 6.6 years. Including our proportionate share of leasable square feet and annualized base rent from the Arch Street Joint Venture, we owned an aggregate of 7.6 million leasable square feet with an occupancy rate of 72.8%, or 74.5% adjusted for five operating properties that are currently under agreements to be sold or have been sold following September 30, 2025, and a weighted average remaining lease term of 5.8 years, as of September 30, 2025.

***Factors That May Influence Our Operating Results and Financial Condition***

*Rental Revenues*

Our operating results depend primarily upon generating rental revenue from the properties in our portfolio. The amount of rental revenue generated by these properties is affected by our ability to maintain or increase occupancy levels, which will depend upon our ability to re-lease expiring space at favorable rates (see "Economic Environment and Tenant Retention" below). In addition, we have agreed to provide rent concessions to tenants and incur leasing costs with respect to our properties, including amounts paid directly to tenants to improve their space and/or building systems, or tenant improvement allowances, landlord agreements to perform and pay for certain improvements, and leasing commissions, and we anticipate we will continue to do so in future periods (see "Leasing Activity and Capital Expenditures" below).

*Economic Environment and Tenant Retention*

Our portfolio comprises primarily single-tenant leases, and tenant retention remains a significant challenge, as we have faced and will continue to face significant lease expirations the next few years. For example, leases representing approximately 2.9% and 9.5% of our annualized base rent are scheduled to expire during the remainder of 2025 and in 2026, respectively, and we may be unable to renew leases or find replacement tenants. Certain changes in office space utilization, including increased remote and hybrid work arrangements and tenants consolidating their real estate footprint, continue to impact the office leasing market. The utilization and demand for office space continue to face headwinds and the duration and ultimate impact of current trends on the demand for office space at our properties remains uncertain and subject to change. Accordingly, we do not yet know what the full extent of the impacts will be on our or our tenants' businesses and operations or the long-term outlook for leasing our properties. Higher interest rates, inflationary pressures, geopolitical hostilities and tensions, changes in United States trade policy and the imposition of new tariffs and concerns that the United States economy may enter an economic recession have caused disruptions in the financial markets; in addition, the impact of a prolonged federal government shutdown may cause increased government budgetary pressures and uncertainty surrounding budgetary priorities. These factors could adversely affect our and our tenants' financial condition and the ability or willingness of our current and prospective tenants to renew their leases, enter into new leases or pay rent to us.

Our leasing and asset disposition activity since the completion of our distribution from Realty Income continues to be adversely impacted by a variety of market and property specific conditions. The COVID-19 pandemic and its aftermath has significantly reduced demand for office space and changes in space usage in the office leasing market, as tenants seek to attract employees back to the office, in newer, renovated properties with more amenities.

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As of September 30, 2025, 66.8%, 27.8% and 5.4% of our properties by rentable square feet were classified as class A, class B and class C, respectively, as determined primarily by the most recent appraisals of the properties. As of September 30, 2025, our class B and class C properties collectively included the following 10% or greater geographic concentrations and property type concentrations as measured by rentable square feet:

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| | |
|:---|:---|
| **Geographic Concentration** | **% of Rentable Square Feet** |
| Texas | 20.7% |
| California | 13.5% |

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| | |
|:---|:---|
| **Property Type** | **% of Rentable Square Feet** |
| Traditional Office | 64.6% |
| Flex/Industrial | 17.7% |
| Governmental | 11.7% |

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In the current office environment, class B and class C properties generally have been experiencing reduced demand and lease or sell at discounts to class A properties and our tenants and prospective new tenants across our portfolio sometimes compare the cost and the value of leasing space in our property to the value of newer space with more amenities asking higher rent in other properties in the market. The class of buildings we own may be negatively impacting our leasing velocity and pushing our leasing costs higher and may also be negatively impacting our sales price on non-core asset sales.

*Indebtedness*

We have incurred significant amounts of indebtedness and, therefore, are subject to the risks normally associated with debt financing, including that we may be unable to extend, refinance or repay our debt obligations as they come due. Deteriorating office fundamentals, high interest rates, market sentiment towards the office sector and recent changes in United States trade policy and the imposition of new tariffs may adversely impact us or our lenders restrict our access to, and increase our cost of, capital as we seek to extend, refinance or repay our debts. Our nearest debt maturity is the non-recourse mortgage notes associated with the Arch Street Joint Venture, which are scheduled to mature on November 27, 2025 with one remaining option to extend the maturity for an additional 12 months until November 27, 2026. As of September 30, 2025, our proportionate share of the non-recourse mortgage notes associated with the Arch Street Joint Venture was $25.9 million. During September 2025, the Arch Street Joint Venture exercised the remaining option to extend the maturity date of the mortgage notes until November 27, 2026, and the lenders are working to confirm all extension conditions are met, including a maximum loan-to-value of 60% which may require the Arch Street Joint Venture to partially repay the mortgage notes to satisfy this condition. We cannot provide any assurance that the Arch Street Joint Venture will be able to satisfy the conditions to extend the maturity date of this debt obligation, including that our joint venture partner will be able to contribute its share of capital requirements to partially repay the mortgage notes if required to satisfy the loan-to-value condition, or otherwise extend or refinance this debt obligation prior to maturity. If the Arch Street Joint Venture is unable to extend or refinance the mortgage notes, our investment in the Arch Street Joint Venture could be materially adversely affected.

Substantial doubt exists about our ability to continue as a going concern for at least one year from the issuance of the consolidated financial statements included in this Quarterly Report on Form 10-Q due to uncertainty with regard to our ability to extend or refinance the Revolving Facility. The Revolving Facility is scheduled to mature on May 12, 2026 and has no remaining extension options. We do not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility, which was $110.0 million as of September 30, 2025 and $92.0 million as of November 6, 2025, on this scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing its leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and, therefore, there can be no assurance the Company will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all. See Part II, Item 1A. "Risk Factors" of this Quarterly Report on Form 10-Q for risks related to our potential inability to extend or refinance the Revolving Facility.

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*Property Acquisitions and Dispositions*

We intend to shift our portfolio concentration over time away from traditional office properties, towards more dedicated use assets that have an office component. We expect to continue to selectively dispose of properties in our current portfolio if we determine that they do not fit our investment strategies. Proceeds from the sale of real estate assets are expected to be redeployed to fund capital investment into our existing portfolio to further enhance the quality of our portfolio and stability of our cash flows, selective acquisitions and other general corporate purposes. As part of our capital recycling efforts, we are seeking opportunities to invest in properties featuring, among other uses, government, medical, laboratory and research and development, and flex operations. We cannot provide any assurance as to whether we will be able to acquire new properties or sell non-core assets on favorable terms and in a timely manner, or at all.

***Emerging Growth Company Status***

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act (the "JOBS Act"). As such, we are eligible to take advantage of certain exemptions from various reporting requirements that apply to other public companies that are not emerging growth companies, including compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and the requirements to hold a non-binding advisory vote on executive compensation and any golden parachute payments not previously approved. We cannot predict if investors will find our common stock less attractive because we rely on the exemptions available to us as an emerging growth company. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

In addition, Section 107 of the JOBS Act provides that an emerging growth company may take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period and, therefore, will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies until we can no longer avail ourselves of the exemptions applicable to emerging growth companies or until we affirmatively and irrevocably opt out of the extended transition period.

We will remain an emerging growth company until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (ii) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement under the Securities Act, (iii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur on the last day of the fiscal year in which the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of our most recently completed second fiscal quarter, or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period. As of June 30, 2025, the market value of our common stock held by non-affiliates was less than $700.0 million, and therefore, we will remain an "emerging growth company" for the year ended December 31, 2025; however, the fiscal year following the fifth anniversary of the date of the first sale of common equity securities of the Company will be the year ended December 31, 2026 and, therefore, as of December 31, 2026, we will no longer qualify as an emerging growth company.

**Basis of Presentation**

The consolidated financial statements of the Company for the three and nine months ended September 30, 2025 and 2024, include the accounts of the Company and its consolidated subsidiaries, including Orion OP, and a consolidated joint venture. All intercompany transactions have been eliminated upon consolidation.

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**Election as a REIT**

The Company elected to be taxed as a REIT for U.S. federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2021. To maintain our qualification as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute annually at least 90% of our REIT taxable income, subject to certain adjustments and excluding any net capital gain, to stockholders. As a REIT, except as discussed below, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders so long as we distribute at least 90% of our annual taxable income (computed without regard to the deduction for dividends paid and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if we maintain our qualification for taxation as a REIT, we may become subject to certain state and local taxes on our income and property, and federal income taxes on certain income and excise taxes on our undistributed income.

**Critical Accounting Estimates**

Our accounting policies have been established to conform with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that it has made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, expectations and projections regarding future events and plans, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to the various transactions had been different, it is possible that different accounting estimates would have been applied, thus resulting in a different presentation of the financial statements. Additionally, other companies may utilize different assumptions or estimates that may impact comparability of our results of operations to those of companies in similar businesses. We believe the critical accounting policies described below involve significant judgments and estimates used in the preparation of our financial statements, which should be read in conjunction with the more complete discussion of our accounting policies and procedures included in Note 2 – Summary of Significant Accounting Policies to our consolidated financial statements.

***Real Estate Impairment***

We invest in real estate assets and subsequently monitor those investments quarterly for impairment. The risks and uncertainties involved in applying the principles related to real estate impairment include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The review of impairment indicators and subsequent determination of the undiscounted future cash flows could require us to reduce the carrying value of assets and recognize an impairment loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The evaluation of real estate assets for potential impairment requires our management to exercise significant judgment and make certain key assumptions, including the following: (1) capitalization rate; (2) discount rate; (3) number of years the property will be held; (4) property operating expenses; and (5) re-leasing assumptions including the number of months to re-lease, market rental revenue and required tenant improvements. There are inherent uncertainties in making these estimates such as market conditions and performance and sustainability of our tenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes related to management's intent to sell or lease the real estate assets used to develop the forecasted cash flows may have a material impact on our financial results.

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***Allocation of Purchase Price of Real Estate Assets***

We generally account for acquisitions of properties as asset acquisitions and we measure the real estate assets acquired based on the purchase price or total consideration exchanged, inclusive of acquisition costs, and allocate the total consideration exchanged to tangible and intangible assets and liabilities based on their respective estimated fair values. Tangible assets consist of land, buildings, fixtures and improvements. Intangible assets and liabilities consist of any above-market and below-market leases, acquired in-place leases and other identified intangible assets and assumed liabilities (including ground leases, if applicable). Our purchase price allocations are developed utilizing third-party appraisal reports, industry standards and management experience. The risks and uncertainties involved in applying the principles related to purchase price allocations include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The value allocated to land, as opposed to buildings, fixtures and improvements, affects the amount and timing of depreciation expense we record. If more value is attributed to land, depreciation expense is lower than if more value is attributed to buildings, fixtures and improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intangible lease assets and liabilities can be significantly affected by estimates, including market rent, lease term (including renewal options at rental rates below estimated market rental rates), carrying costs of the property during a hypothetical expected lease-up period, and current market conditions and costs, including tenant improvement allowances and rent concessions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If any financing is assumed, we determine whether such financing is above-market or below-market based upon comparison to similar financing terms for similar investment properties.

**Recently Issued Accounting Pronouncements**

Recently issued accounting pronouncements are described in Note 2 – Summary of Significant Accounting Policies to our consolidated financial statements.

**Significant Transactions Summary** 

***Activity through September 30, 2025 and Subsequent Events***

*Real Estate Operations*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the nine months ended September 30, 2025, we completed approximately 862,000 square feet of lease renewals and new leases across 13 different properties, which includes one Arch Street Joint Venture property, and a weighted average lease term of 7.8 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During October 2025, we completed a 1.5-year lease renewal for approximately 50,000 square feet at our property in San Antonio, Texas. During November 2025, we completed a 5.5-year new lease for approximately 7,000 square feet at one of our properties in The Woodlands, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the nine months ended September 30, 2025, we closed on the sale of seven properties totaling approximately 634,000 square feet for an aggregate gross sales price of $48.7 million. In connection with four of the property dispositions, we provided aggregate sales price credits to the buyers of $3.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During October 2025, we closed on the simultaneous sale and lease termination for one property located in Fresno, California for approximately 127,000 square feet and a gross sales price of $15.7 million. As of November 6, 2025, we had pending agreements in place to sell four operating properties for an aggregate gross sales price of $46.6 million, which includes three vacant or near-term vacant properties and one stabilized traditional office property. Our pending sale agreements are subject to a variety of conditions outside of our control, such as the buyer's satisfactory completion of its due diligence and therefore, we cannot provide any assurance the transaction will close on the agreed upon price or other terms, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During February 2025, we made an additional member loan of $8.3 million to fund leasing costs related to a lease extension that was completed for one of the properties in the Arch Street Joint Venture portfolio. As of September 30, 2025, the outstanding principal balance of the member loan was $6.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the nine months ended September 30, 2025, six leases expired or were downsized comprising a total reduction in occupied square feet of approximately 681,000 square feet. As of September 30, 2025, we had a total of eight fully vacant operating properties.

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*Debt*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 9, 2025, we entered into an interest rate collar agreement to hedge against interest rate volatility. Under the agreement, the benchmark rate for the Revolving Facility will float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During September 2025, the Arch Street Joint Venture exercised the remaining option to extend the maturity date of the mortgage notes until November 27, 2026, and the lenders are working to confirm all extension conditions are met, including a maximum loan-to-value of 60% which may require the Arch Street Joint Venture to partially repay the mortgage notes to satisfy this condition. As of September 30, 2025, our proportionate share of the aforementioned mortgage note was $25.9 million.

*Equity*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the first, second and third quarters of 2025 which were paid on April 15, 2025, July 15, 2025 and October 15, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 5, 2025 the Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2025, payable on January 15, 2026, to stockholders of record as of December 31, 2025.

**Unsolicited Indication of Interest**

During June and July 2025, the Company's Board of Directors received two separate unsolicited, non-binding indication of interest from Kawa Capital Management, Inc. ("Kawa") to potentially acquire all of the outstanding shares of the Company's common stock not already owned by Kawa for cash consideration of $2.50 per share and $2.75 per share, respectively. The Company's Board of Directors unanimously rejected both proposals after it concluded the proposals undervalued the Company and were not in the best interest of the Company and its stockholders.

The Company does not undertake any obligation to provide any updates with respect to the proposals received from Kawa or any other proposal received from any other person, except as required by applicable law or other regulatory requirements. There can be no assurance that any transaction will result from the proposals received from Kawa or any other person, or, if so, the timing, terms and conditions of any such transaction.

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**Portfolio Overview**

***Real Estate Portfolio Metrics***

Our financial performance is impacted by the timing of acquisitions and dispositions and the operating performance of our properties. The following table shows the property statistics of our operating properties as of the dates indicated below, including our proportionate share of the applicable statistics of the properties owned by the Arch Street Joint Venture:

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| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **Portfolio Metrics** | | |
| Operating properties | &nbsp;&nbsp;&nbsp;63 | 69 |
| Arch Street Joint Venture properties | &nbsp;&nbsp;&nbsp;6 | 6 |
| Non-Operating properties | 6 | 7 |
| Rentable square feet (in thousands) <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;7580 | 8112 |
| Annualized base rent (in thousands) | &nbsp;&nbsp;&nbsp;$113883 | $120293 |
| Occupancy rate <sup>(2)</sup> | &nbsp;&nbsp;&nbsp;72.8% | 73.7% |
| Leased rate <sup>(3)</sup> | &nbsp;&nbsp;&nbsp;74.6% | 74.7% |
| Investment-grade tenants <sup>(4)</sup> | &nbsp;&nbsp;&nbsp;67.0% | 74.4% |
| Weighted average remaining lease term (in years) | 5.8 | 5.2 |

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(1)Represents leasable square feet of operating properties and the Company's proportionate share of leasable square feet of properties owned by the Arch Street Joint Venture.

(2)Occupancy rate equals the sum of occupied square feet divided by rentable square feet of operating properties. Adjusting for five operating properties that are currently under agreements to be sold or have been sold following September 30, 2025, the occupancy rate as of September 30, 2025 would be 74.5%.

(3)Leased rate equals the sum of leased square feet divided by rentable square feet of operating properties.

(4)Based on annualized base rent of our real estate portfolio, including the Company's proportionate share of annualized base rent for properties owned by the Arch Street Joint Venture, as of September 30, 2025. Investment-grade tenants are those with a credit rating of BBB- or higher by Standard & Poor's Financial Services LLC or a credit rating of Baa3 or higher by Moody's Investor Service, Inc. The ratings may reflect those assigned by Standard & Poor's Financial Services LLC or Moody's Investor Service, Inc. to the lease guarantor or the parent company, as applicable.

***Operating Performance***

In addition, management uses the following financial metrics to assess our operating performance (in thousands, except per share amounts):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Financial Metrics** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total revenues | $37122 | $39178 | $112428 | $126499 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to common stockholders | $(69035) | $(10217) | $(103499) | $(70250) |
| &nbsp;&nbsp;&nbsp;Basic and diluted net loss per share attributable to common stockholders | $(1.23) | $(0.18) | $(1.84) | $(1.26) |
| &nbsp;&nbsp;&nbsp;FFO attributable to common stockholders <sup>(1)</sup> | $6553 | $10122 | $24239 | $39436 |
| &nbsp;&nbsp;&nbsp;FFO attributable to common stockholders per diluted share <sup>(1)</sup> | $0.12 | $0.18 | $0.43 | $0.71 |
| &nbsp;&nbsp;&nbsp;Core FFO attributable to common stockholders <sup>(1)</sup> | $11007 | $12027 | $33118 | $46563 |
| &nbsp;&nbsp;&nbsp;Core FFO attributable to common stockholders per diluted share <sup>(1)</sup> | $0.19 | $0.21 | $0.59 | $0.83 |

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(1)See the Non-GAAP Measures section below for descriptions of our non-GAAP measures and reconciliations to the most comparable U.S. GAAP measure.

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***Leasing Activity and Capital Expenditures***

We remain highly focused on leasing activity, given the 5.8 year weighted average remaining lease term and the significant lease maturities which will occur across the portfolio over the next few years. If our tenants decide not to renew their leases, terminate their leases early or default on their leases, we will seek to re-lease the space to new tenants. We may not, however, be able to re-lease the space to suitable replacement tenants on a timely basis, or at all. Our properties may not be as attractive to existing or new tenants as properties owned by our competitors due to age of buildings, physical condition, lack of amenities or other similar factors. Even if we are able to renew leases with existing tenants or enter into new leases with replacement tenants, the terms of renewals or new leases, including the cost of required renovations, improvements or concessions to tenants, may be less favorable to us than current lease terms. As a result, our net income and ability to pay dividends to stockholders could be materially adversely affected. Further, if any of our properties cannot be leased on terms and conditions favorable to us, we may seek to dispose of the property; however, such property may not be marketable at a suitable price without substantial capital improvements, alterations, or at all, which could inhibit our ability to effectively dispose of those properties and could require us to expend capital to fund necessary capital improvements or alterations. In general, when we sell properties that are vacant or soon to be vacant, the valuation will be discounted to reflect that the new owner will bear carrying costs until the property has been leased up and take the risk that the property may not be leased up on a timely basis, favorable terms or at all.

As an owner of commercial real estate, we are required to make capital expenditures with respect to our portfolio, which include normal building improvements to replace obsolete building components and expenditures to extend the useful life of existing assets and lease related expenditures to retain existing tenants or attract new tenants to our properties. We have agreed to provide rent concessions to tenants and incur leasing costs with respect to our properties, including amounts paid directly to tenants to improve their space and/or building systems, or tenant improvement allowances, landlord agreements to perform and pay for certain improvements, and leasing commissions. We anticipate that we will continue to agree to tenant improvement allowances, the amount of which may increase in future periods. These rent concessions and leasing costs could be significant and are expected to vary due to factors such as competitive market conditions for leasing of commercial office space and the volume of square footage subject to re-leasing by us.

As of September 30, 2025, we had the following estimated total outstanding rent concessions and leasing costs commitments, including our proportionate share of the commitments of the Arch Street Joint Venture (in thousands, except per square foot amounts):

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| | | | |
|:---|:---|:---|:---|
| | **Outstanding Amount** | **Leased Square Feet** <sup>(1)</sup> | **Outstanding Amount Per Square Foot** <sup>(1)</sup> |
| Rent concessions <sup>(2)</sup> | $20845 | 1510 | $13.80 |
| Tenant improvement allowances <sup>(3)</sup> | 49816 | 2015 | $24.72 |
| Reimbursable landlord work <sup>(4)</sup> | 7314 | 280 | $26.12 |
| Non-reimbursable landlord work <sup>(4)</sup> | 13299 | 1179 | $11.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $91274 | 2843 | $32.10 |

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(1)Certain leases may contain more than one of the above rent concessions and leasing costs. The total leased square feet associated with our outstanding rent concessions and leasing costs excludes any duplicate square footage for the purpose of calculating the total outstanding amount per square foot.

(2)Rent concessions include free rent for future periods under our executed leases which include certain leases for which the lease term has yet to commence, and includes estimates of property operating expenses, where applicable.

(3)Includes additional allowances of $3.6 million provided within the respective lease agreements, which require election by the tenant in exchange for additional rental income through the remaining term of the lease as well as $1.4 million for our proportionate share of a tenant improvement allowance outstanding with an Arch Street Joint Venture tenant.

(4)Landlord work represents specific improvements agreed to within the lease agreement to be performed by us, as landlord, as a new non-recurring obligation and in order to induce the tenant to enter into a new lease or lease renewal or extension. Outstanding commitments for reimbursable and non-reimbursable landlord work amounts include estimates and are subject to change.

The actual amount we pay for tenant improvement allowances may be lower than the amount agreed upon in the applicable lease and will depend upon the tenant's use of the capital on the agreed upon timeline. The timing of our cash outlay for tenant improvement allowances is significantly uncertain and will depend upon the applicable tenant's schedule for the improvements and corresponding use of capital, if any. We estimate that the foregoing rent concessions and leasing costs will be funded between 2025 and 2041.

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We have funded and intend to continue to fund our outstanding leasing costs with cash on hand, which may include proceeds from dispositions. For assets financed on our CMBS Loan, we have funded reserves with the lender for tenant improvement allowances and rent concessions. As of September 30, 2025, total restricted cash of $30.0 million was reserved for outstanding leasing costs, including $15.3 million for tenant improvement allowances and $14.7 million for rent concession commitments, and is included in restricted cash in our consolidated balance sheets.

During the periods indicated below, we entered into new and renewal leases as summarized in the following tables (dollars and square feet in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **New Leases** | **Renewals** | **Total** |
| Number of leases | 2 | 5 | 7 |
| Rentable square feet leased | 83 | 220 | 303 |
| Weighted average rental rate change (cash basis) <sup>(1) (2)</sup> | 9.4% | 2.2% | 4.1% |
| Tenant rent concessions and leasing costs <sup>(3)</sup> | $2249 | $14623 | $16872 |
| Tenant rent concessions and leasing costs per rentable square foot <sup>(4)</sup> | $27.02 | $66.44 | $55.62 |
| Weighted average lease term (by rentable square feet) (years) <sup>(5)</sup> | 5.8 | 11.6 | 10.0 |
| Tenant rent concessions and leasing costs per rentable square foot per year | $4.64 | $5.74 | $5.57 |

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
| | **New Leases** | **Renewals** | **Total** |
| Number of leases |  | 4 | 4 |
| Rentable square feet leased |  | 254 | 254 |
| Weighted average rental rate change (cash basis) <sup>(1) (2)</sup> | N/A | 5.6% | 5.6% |
| Tenant rent concessions and leasing costs <sup>(3)</sup> | $— | $6159 | $6159 |
| Tenant rent concessions and leasing costs per rentable square foot <sup>(4)</sup> | $— | $24.24 | $24.24 |
| Weighted average lease term (by rentable square feet) (years) <sup>(5)</sup> | N/A | 8.7 | 8.7 |
| Tenant rent concessions and leasing costs per rentable square foot per year | $— | $2.80 | $2.80 |

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____________________________________

(1)Represents weighted average percentage increase or decrease in (i) the annualized monthly cash amount charged to the applicable tenants (including monthly base rent receivables and certain fixed contractually obligated reimbursements by the applicable tenants, which may include estimates) as of the commencement date of the new lease term (excluding any full or partial rent abatement period) compared to (ii) the annualized monthly cash amount charged to the applicable tenants (including the monthly base rent receivables and certain fixed contractually obligated reimbursements by the applicable tenants, which may include estimates) as of the expiration date of the prior lease term. Contractually obligated reimbursements include estimated amortization of certain landlord funded improvements under our United States Government leases. If a space has been or will be vacant for more than 12 months prior to the commencement of a new lease, was previously otherwise not generating full cash rental revenue or if the lease types are not comparable, the lease will be excluded from the rental rate change calculation.

(2)Excludes one new lease for approximately 3,000 square feet for the three months ended September 30, 2025 that had been or will be vacant for more than 12 months at the time the new lease commences. There were no new leases excluded during the three months ended September 30, 2024.

(3)Includes tenant improvement allowances and base building allowances, certain reimbursable and non-reimbursable landlord funded improvements, leasing commissions and rent concessions (includes estimates of property operating expenses, where applicable). For our multi-tenant properties, we have allocated the estimated cost of landlord funded improvements that benefit the property generally and/or the common areas and not the tenant's premises in particular, to the applicable lease based on square footage of the related tenant.

(4)There were no reimbursable landlord funded improvements or tenant improvement allowances included in the tenant rent concessions and leasing costs for the three months ended September 30, 2025 and 2024.

(5)Weighted average lease term does not include specified periods of the stated lease term during which a tenant has the right to terminate their space without a termination fee, or "non-firm terms". The total weighted average lease term for new leases and renewals executed during the three months ended September 30, 2025 and 2024 would be 10.3 years and 8.9 years, respectively, if such non-firm terms were included.

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During the periods indicated below, we entered into new and renewal leases as summarized in the following table (dollars and square feet in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | **New Leases** | **Renewals** <sup>(1)</sup> | **Total** |
| Number of leases | 5 | 10 | 15 |
| Rentable square feet leased | 312 | 550 | 862 |
| Weighted average rental rate change (cash basis) <sup>(2) (3)</sup> | 9.4% | (9.0)% | (7.1)% |
| Tenant rent concessions and leasing costs <sup>(4)</sup> | $25592 | $19385 | $44977 |
| Tenant rent concessions and leasing costs per rentable square foot <sup>(5)</sup> | $81.74 | $35.34 | $52.20 |
| Weighted average lease term (by rentable square feet) (years) <sup>(6)</sup> | 9.5 | 6.7 | 7.7 |
| Tenant rent concessions and leasing costs per rentable square foot per year | $8.56 | $5.28 | $6.75 |

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
| | **New Leases** | **Renewals** | **Total** |
| Number of leases | 4 | 8 | 12 |
| Rentable square feet leased | 149 | 683 | 832 |
| Weighted average rental rate change (cash basis) <sup>(2) (3)</sup> | N/A | 3.2% | 3.2% |
| Tenant rent concessions and leasing costs <sup>(4)</sup> | $19942 | $7637 | $27579 |
| Tenant rent concessions and leasing costs per rentable square foot <sup>(5)</sup> | $133.47 | $11.18 | $33.12 |
| Weighted average lease term (by rentable square feet) (years) <sup>(6)</sup> | 10.2 | 5.9 | 6.7 |
| Tenant rent concessions and leasing costs per rentable square foot per year | $13.06 | $1.90 | $4.97 |

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(1)Includes the Company's proportionate share of rentable square feet and tenant rent concessions and leasing costs for one 163,000 square foot renewal at a property owned by the Company's Arch Street Joint Venture.

(2)Represents weighted average percentage increase or decrease in (i) the annualized monthly cash amount charged to the applicable tenants (including monthly base rent receivables and certain fixed contractually obligated reimbursements by the applicable tenants, which may include estimates) as of the commencement date of the new lease term (excluding any full or partial rent abatement period) compared to (ii) the annualized monthly cash amount charged to the applicable tenants (including the monthly base rent receivables and certain fixed contractually obligated reimbursements by the applicable tenants, which may include estimates) as of the expiration date of the prior lease term. Contractually obligated reimbursements include estimated amortization of certain landlord funded improvements under our United States Government leases. If a space has been or will be vacant for more than 12 months prior to the commencement of a new lease, was previously otherwise not generating full cash rental revenue or if the lease types are not comparable, the lease will be excluded from the rental rate change calculation.

(3)Excludes four new leases for approximately 232,000 square feet and four new leases for approximately 149,000 square feet of space for the nine months ended September 30, 2025 and 2024, respectively, that had been vacant for more than 12 months at the time the new lease commences.

(4)Includes tenant improvement allowances and base building allowances, leasing commissions and free rent (includes estimates of property operating expenses, where applicable). For our multi-tenant properties, we have allocated the estimated cost of landlord funded improvements that benefit the property generally and/or the common areas and not the tenant's premises in particular, to the applicable lease based on square footage of the related tenant.

(5)Includes reimbursable tenant improvement allowances per rentable square foot of $5.12 for new leases and $1.86 in total for the nine months ended September 30, 2025. Includes reimbursable landlord funded improvements and tenant improvement allowances per rentable square foot of $45.07 for new leases, $0.40 for renewals and $8.41 in total for the nine months ended September 30, 2024.

(6)Weighted average lease term does not include specified periods of the stated lease term during which a tenant has the right to terminate their space without a termination fee, or "non-firm terms." The total weighted average lease term for new leases and renewals executed during the nine months ended September 30, 2025 and 2024, would be 7.8 years and 7.6 years, respectively, if such non-firm terms were included.

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During the nine months ended September 30, 2025, six leases expired or were downsized comprising a total reduction in occupied square feet of approximately 681,000 square feet. During the three months ended September 30, 2025, two leases expired or were downsized comprising a total reduction in occupied square feet of approximately 404,000 square feet. We currently intend to re-let the vacancies from the three months ended September 30, 2025. The expired base rent per square foot and our market rent estimates for these vacancies are as follows (square feet in thousands):

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| | | | |
|:---|:---|:---|:---|
| **Vacancy Location** | **Rentable Square Feet** | **Expired Base Rent Per Square Foot** | **Estimated Market Rent Per Square Foot Range** |
| Tulsa, Oklahoma | 309 | $19.01 | $15.50 - $17.50 |
| Englewood, Colorado | 95 | $21.55 | $15.00 - $17.00 |

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Our market rent estimates are based on a variety of assumptions which are subject to change, and we cannot provide any assurance that we will be able to re-let vacant space to new tenants on these or any other terms, in a timely manner, or at all. Our plans with respect to vacant properties are subject to change.

During the periods indicated below, amounts capitalized by the Company for capital expenditures were as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Lease related costs <sup>(1)</sup> | $2394 | $1675 | $7018 | $5430 |
| Lease incentives <sup>(2)</sup> | 342 | 579 | 1373 | 656 |
| Building, fixtures and improvements <sup>(3)</sup> | 15547 | 3803 | 33805 | 9735 |
| &nbsp;&nbsp;Total capital expenditures | $18283 | $6057 | $42196 | $15821 |

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____________________________________

(1)Lease related costs generally include lease commissions paid in connection with the execution of new and/or renewed leases.

(2)Lease incentives generally include expenses paid on behalf of the tenant or reimbursed to the tenant, including expenditures related to the construction of tenant-owned improvements.

(3)Building, fixtures and improvements generally include expenditures to replace obsolete building or land components, expenditures that extend the useful life of existing assets, expenditures to construct landlord owned improvements and any capitalized interest charges associated with such expenditures.

**Results of Operations**

The results of operations discussed in this section include the accounts of the Company and its consolidated subsidiaries for the three and nine months ended September 30, 2025 and 2024.

***Revenues***

The table below sets forth, for the periods presented, revenue information and the dollar amount change year over year (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** |
| Rental | $36918 | $38976 | $(2058) | $111817 | $125894 | $(14077) |
| Fee income from unconsolidated joint venture | 204 | 202 | 2 | 611 | 605 | 6 |
| &nbsp;&nbsp;&nbsp;Total revenues | $37122 | $39178 | $(2056) | $112428 | $126499 | $(14071) |

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*Rental*

The decreases in rental revenues of $2.1 million and $14.1 million during the three and nine months ended September 30, 2025, as compared to the same periods in 2024, respectively, were primarily due to the impact of decreasing overall occupied square footage from expiration of leases totaling $3.4 million and $15.4 million in rental revenues during the three and nine months ended September 30, 2025, respectively. We had 63 operating properties with an aggregate of 7.4 million leasable square feet and an occupancy rate of 72.1% as of September 30, 2025, as compared to 70 operating properties with an aggregate of 8.1 million leasable square feet and an occupancy rate of 74.0% as of September 30, 2024.

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Other items impacting the quarter over quarter rental revenue results were a $0.3 million decline in reimbursement income of real estate taxes in the 2025 period due to lower property values, offset by a $0.8 million increase in rental revenue in the 2025 period from the property we acquired in September 2024 and a $1.2 million increase in lease termination income and reimbursement income for end of lease obligations in the 2025 period.

Other items impacting the year-to-date rental revenue results were a $2.2 million decrease in lease termination income and reimbursement income for end of lease obligations in the 2025 period and a $0.3 million decline in reimbursement income for real estate taxes in the 2025 period due to lower property values, offset by a $2.8 million increase in rental revenue in the 2025 period from the property we acquired in September 2024.

***Operating Expenses***

The table below sets forth, for the periods presented, certain operating expense information and the dollar amount change year over year (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** |
| Property operating | $17284 | $16643 | $641 | $49629 | $48399 | $1230 |
| General and administrative | 4607 | 4468 | 139 | 14341 | 13961 | 380 |
| Depreciation and amortization | 14709 | 19913 | (5204) | 45659 | 83031 | (37372) |
| Impairments | 63698 |  | 63698 | 84910 | 25365 | 59545 |
| Transaction related | 114 | 105 | 9 | 253 | 382 | (129) |
| &nbsp;&nbsp;&nbsp;Total operating expenses | $100412 | $41129 | $59283 | $194792 | $171138 | $23654 |

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*Property operating expenses*

Property operating expenses such as taxes, insurance, ground rent and maintenance include both reimbursable and non-reimbursable property expenses. Property operating expenses increased $0.6 million and $1.2 million during the three and nine months ended September 30, 2025, as compared to the same periods in 2024, respectively. The increase during the three months ended September 30, 2025 compared to the same period in 2024 is primarily the result of the ongoing demolition of the buildings on the six-property campus in Deerfield, Illinois of $1.3 million, offset by decreases in property operating expenses resulting from property dispositions of $0.6 million.

The increase during the nine months ended September 30, 2025 compared to the same period in 2024 is primarily the result of the ongoing demolition of the buildings on the six-property campus in Deerfield, Illinois of $1.8 million, property vacancies of $0.8 million and $0.7 million from our property acquired in September 2024, offset by decreases in property operating expenses resulting from property dispositions of $1.9 million and the timing of certain operating expenses of $0.5 million.

*General and administrative expenses* 

General and administrative expenses increased $0.1 million and $0.4 million during the three and nine months ended September 30, 2025, as compared to the same periods in 2024, respectively, primarily due to increased compensation expenses.

*Depreciation and amortization expenses*

Depreciation and amortization expenses decreased $5.2 million and $37.4 million during the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. The decrease in depreciation and amortization expense in the three month period was primarily driven by the $6.1 million impact from the full amortization of certain intangible assets and the $0.3 million impact of property dispositions, partially offset by $0.6 million related to capitalized real estate assets and intangible lease assets and $0.3 million related to the property we acquired in September 2024.

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The decrease in depreciation and amortization expenses in the nine month period was primarily driven by the $21.7 million impact from the full amortization of certain intangible assets, the $15.9 million impact from the full depreciation of the buildings on the six-property campus in Deerfield, Illinois in the 2024 period as a result of management's plans to demolish the buildings, the $1.9 million impact of impairments and the $0.8 million impact of property dispositions, partially offset by a $1.1 million increase in depreciation and amortization expenses in the 2025 period related to the property we acquired in September 2024 and $1.1 million related to capitalized real estate assets and intangible lease assets.

*Impairments*

Impairments increased $63.7 million and $59.5 million during the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. Impairment charges totaling $63.7 million and $84.9 million with respect to eight and 11 properties were recorded during the three and nine months ended September 30, 2025, respectively, and were incurred primarily with respect to real estate assets sold or expected to be sold and reflect management's estimates of lease renewal probability, timing and terms of such renewals, carrying costs for vacant properties, sale probability and estimates of sale proceeds.

There were no impairment charges recorded during the three months ended September 30, 2024. Impairment charges totaling $25.4 million with respect to eight properties were recorded during the nine months ended September 30, 2024. See Note 5 - Fair Value Measures for further information.

***Other (Expense) Income and Provision for Income Taxes***

The table below sets forth, for the periods presented, certain financial information and the dollar amount change year over year (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** | **2025** | **2024** | **2025 vs 2024<br>Increase/(Decrease)** |
| Interest expense, net | $(7880) | $(8170) | $(290) | $(24052) | $(24374) | $(322) |
| Gain on disposition of real estate assets | $3265 | $— | $3265 | $4156 | $— | $4156 |
| Loss on extinguishment of debt, net | $— | $— | $— | $— | $(1078) | $(1078) |
| Other (expense) income, net | $(799) | $208 | $(1007) | $(250) | $580 | $(830) |
| Equity in loss of unconsolidated joint venture, net | $(256) | $(218) | $38 | $(773) | $(497) | $276 |
| Provision for income taxes | $(67) | $(76) | $(9) | $(200) | $(226) | $(26) |

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*Interest expense, net* 

Interest expense, net decreased $0.3 million during the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024. Our average debt outstanding was $483.0 million and $487.5 million for the three and nine months ended September 30, 2025, respectively, compared to $473.5 million and $478.0 million for each of the same periods in 2024. The weighted average interest rate on our debt obligations was 5.62% and 5.66% for the three and nine months ended September 30, 2025, respectively, and 5.88% for the three and nine months ended September 30, 2024. Interest expense, net for the three and nine months ended September 30, 2025 was offset by capitalized interest of $0.2 million and $0.3 million, respectively. No interest expense was capitalized during the three and nine months ended September 30, 2024.

*Gain on disposition of real estate assets*

Gains on disposition of real estate assets were $3.3 million and $4.2 million for the three and nine months ended September 30, 2025 as compared to no gains on disposition of real estate assets recognized during the same periods in 2024. The gains recognized during the three and nine months ended September 30, 2025 were related to one and four of our dispositions, respectively. Of the four dispositions with gains recognized during the nine months ended September 30, 2025, two were subject to cumulative impairment losses of $12.2 million in prior periods.

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*Loss on extinguishment of debt, net*

Loss on extinguishment of debt, net during the nine months ended September 30, 2024 related to the proportionate write off of deferred financing costs due to the permanent reduction of the borrowing capacity of the Revolving Facility of $75.0 million in connection with the Third Amendment to the Credit Agreement, as defined below and discussed in Note 6 – Debt, Net. There were no such costs incurred during the three and nine months ended September 30, 2025.

*Other (expense) income, net*

Other (expense) income, net decreased $1.0 million and $0.8 million during the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, primarily due to the loss on deferred offering costs of $0.6 million recognized during the three and nine months ended September 30, 2025 in connection with the scheduled expiration of our universal shelf registration statement on Form S-3 with the SEC during November 2025 and expenses in connection with the retirement of Gary Landriau as Chief Investment Officer of $0.3 million.

*Equity in loss of unconsolidated joint venture, net*

Equity in loss of the unconsolidated joint venture, net increased $0.3 million during the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to an increase in interest expense following the expiration of an interest rate swap agreement on the Arch Street Joint Venture non-recourse mortgage notes on May 27, 2024.

Equity in loss of the unconsolidated joint venture, net remained relatively consistent during the three months ended September 30, 2025 as compared to the same period in 2024.

**Non-GAAP Measures**

Our results are presented in accordance with U.S. GAAP. We also disclose certain non-GAAP measures, as discussed further below. Management uses these non-GAAP financial measures in our internal analysis of results and believes these measures are useful to investors for the reasons explained below. These non-GAAP financial measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP.

***Funds From Operations ("FFO") and Core Funds From Operations ("Core FFO") Attributable to Orion***

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of the Company. FFO is not equivalent to our net income (loss) as determined under U.S. GAAP.

Nareit defines FFO as net income (loss) computed in accordance with U.S. GAAP adjusted for gains or losses from disposition of real estate assets, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our proportionate share of FFO adjustments related to the unconsolidated joint venture. We calculate FFO in accordance with Nareit's definition described above.

In addition to FFO, we use Core FFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. Core FFO, as defined by the Company, excludes from FFO items that we believe do not reflect the ongoing operating performance of our business such as transaction related expenses, amortization of deferred financing costs, amortization of deferred lease incentives, net, equity-based compensation, amortization of premiums and discounts on debt, net and gains or losses on extinguishment of swaps and/or debt, and our proportionate share of Core FFO adjustments related to the unconsolidated joint venture.

We believe that FFO and Core FFO allow for a comparison of the performance of our operations with other publicly-traded REITs, as FFO and Core FFO, or a substantially similar measure, are routinely reported by publicly-traded REITs, each adjust for items that we believe do not reflect the ongoing operating performance of our business and we believe are often used by analysts and investors for comparison purposes.

For all of these reasons, we believe FFO and Core FFO, in addition to net income (loss), as determined under U.S. GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and Core FFO the same way, so comparisons with other REITs may not be meaningful. FFO and Core FFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs.

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Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate Core FFO and its use as a non-GAAP financial performance measure.

The table below presents a reconciliation of FFO and Core FFO to net loss attributable to common stockholders, the most directly comparable U.S. GAAP financial measure, for the periods indicated below (in thousands, except per share amounts):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net loss attributable to common stockholders | $(69035) | $(10217) | $(103499) | $(70250) |
| Depreciation and amortization of real estate assets | 14681 | 19875 | 45566 | 82929 |
| Gain on disposition of real estate assets | (3265) |  | (4156) |  |
| Impairment of real estate | 63698 |  | 84910 | 25365 |
| Proportionate share of adjustments for unconsolidated joint venture | 474 | 464 | 1418 | 1392 |
| &nbsp;&nbsp;FFO attributable to common stockholders | $6553 | $10122 | $24239 | $39436 |
| Transaction related | 114 | 105 | 253 | 382 |
| Amortization of deferred financing costs | 933 | 920 | 2767 | 2758 |
| Amortization of deferred lease incentives | 175 | 126 | 394 | 373 |
| Equity-based compensation | 852 | 725 | 2378 | 2450 |
| Loss on extinguishment of debt, net |  |  |  | 1078 |
| Other adjustments, net <sup>(1)</sup> | 2366 |  | 3045 |  |
| Proportionate share of adjustments for unconsolidated joint venture | 14 | 29 | 42 | 86 |
| &nbsp;&nbsp;Core FFO attributable to common stockholders | $11007 | $12027 | $33118 | $46563 |
| Weighted average shares of common stock outstanding - basic | 56313 | 55948 | 56204 | 55887 |
| Effect of weighted average dilutive securities <sup>(2)</sup> | 530 | 236 | 56 | 19 |
| Weighted average shares of common stock outstanding - diluted | 56843 | 56184 | 56260 | 55906 |
| FFO attributable to common stockholders per diluted share | $0.12 | $0.18 | $0.43 | $0.71 |
| Core FFO attributable to common stockholders per diluted share | $0.19 | $0.21 | $0.59 | $0.83 |

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(1)Other adjustments, net includes demolition costs of $1.3 million and $1.8 million during the three and nine months ended September 30, 2025, respectively, in relation to the ongoing demolition of the six buildings on the Deerfield, Illinois campus. These demolition costs are presented in property operating expenses on the consolidated statements of operations. Other adjustments, net also includes $0.3 million in connection with the retirement of Gary Landriau as Chief Investment Officer, and $0.6 million of previously deferred equity offering costs in connection with the scheduled expiration of the Company's universal shelf registration statement on Form S-3 with the SEC during November 2025, which are presented in other (expense) income, net on the consolidated statements of operations. Each of the above items have been included as "other adjustments" to Core FFO and Adjusted EBITDA as they do not reflect the ongoing operating performance of the Company.

(2)Dilutive securities include unvested restricted stock units net of assumed repurchases in accordance with the treasury stock method and exclude Performance-Based RSUs for which the performance thresholds have not been met by the end of the applicable reporting period. Such dilutive securities are not included when calculating net loss per diluted share applicable to the Company for the three and nine months ended September 30, 2025 and 2024 as the effect would be antidilutive.

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**Liquidity and Capital Resources**

***General***

Our principal liquidity needs for the next twelve months are to: (i) fund operating expenses; (ii) pay interest on our debt; (iii) pay dividends to our stockholders; (iv) fund capital expenditures and leasing costs at properties we own; (v) fund capital contributions to the Arch Street Joint Venture; (vi) fund new acquisitions and (vii) extend, refinance or repay debt at or prior to maturity. We believe that our principal sources of short-term liquidity, which are our cash and cash equivalents on hand, cash flows from operations, proceeds from real estate dispositions, and borrowings under the Revolving Facility (as defined below) as it may be extended or refinanced, are sufficient to meet our liquidity needs for the next twelve months, other than the impending maturity of the Revolving Facility, as further discussed below. As of September 30, 2025, we had $32.6 million of cash and cash equivalents and $240.0 million of borrowing capacity under the Revolving Facility.

The non-recourse mortgage notes associated with the Arch Street Joint Venture are scheduled to mature on November 27, 2025, with one remaining option to extend the maturity for an additional 12 months until November 27, 2026. As of September 30, 2025, there was $129.5 million outstanding under the mortgage notes and our proportionate share was $25.9 million. During September 2025, the Arch Street Joint Venture exercised the remaining option to extend the maturity date of the mortgage notes until November 27, 2026, and the lenders are working to confirm all extension conditions are met, including a maximum loan-to-value of 60% which may require the Arch Street Joint Venture to partially repay the mortgage notes to satisfy this condition. We cannot provide any assurance that the Arch Street Joint Venture will be able to satisfy the conditions to extend the maturity date of this debt obligation, including that our joint venture partner will be able to contribute its share of capital requirements to partially repay the mortgage notes if required to satisfy the loan-to-value condition, or otherwise extend or refinance this debt obligation prior to maturity. If the Arch Street Joint Venture is unable to extend or refinance the mortgage notes, our investment in the Arch Street Joint Venture could be materially adversely affected.

The Arch Street Joint Venture mortgage notes have a variable interest rate and the spread on a SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York) loan is 2.60%, and the spread on a base rate loan is 0.50%. The Arch Street Joint Venture has entered into an interest rate cap agreement that caps the SOFR rate at 5.50%.

During November 2024, we provided a member loan to the Arch Street Joint Venture of $1.4 million in connection with the partial repayment of the Arch Street Joint Venture mortgage notes to satisfy the maximum 60% loan-to-value extension condition. During February 2025, we made an additional member loan of $8.3 million to fund leasing costs related to a lease extension that was completed for one of the properties in the Arch Street Joint Venture portfolio. Our member loan to the Arch Street Joint Venture, which had $6.7 million receivable as of September 30, 2025, earns interest at 15% and is non-recourse and unsecured, structurally subordinate to the Arch Street Joint Venture mortgage notes and matures on November 27, 2026. Interest and principal are payable monthly solely out of the excess cash from the joint venture after payment of property operating expenses, interest and principal on the Arch Street mortgage notes and other joint venture expenses and excess proceeds from the sale of any of the joint venture properties.

Substantial doubt about our ability to continue as a going concern exists for at least one year from the issuance of the consolidated financial statements included in this Quarterly Report on Form 10-Q due to uncertainty with regard to our ability to extend or refinance the Revolving Facility. The Revolving Facility is scheduled to mature on May 12, 2026 and has no remaining extension options. We do not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility, which was $110.0 million as of September 30, 2025 and $92.0 million as of November 6, 2025, on this scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance all or a portion of the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing its leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and, therefore, there can be no assurance the Company will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all.

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Our principal liquidity needs beyond the next twelve months are to: (i) extend, refinance or repay debt at or prior to maturity; (ii) pay dividends to our stockholders; (iii) fund capital expenditures and leasing costs at properties we own; and (iv) fund new acquisitions. We generally believe we will be able to satisfy these liquidity needs by a combination of cash flows from operations, borrowings under the Revolving Facility, as it may be extended or refinanced, proceeds from real estate dispositions, new borrowings such as bank term loans or other secured or unsecured debt, and issuances of equity securities. We believe we will be successful in either repaying or refinancing our debt obligations at or prior to maturity, but we cannot provide any assurance we will be able to do so. Our ability to extend, refinance or repay debt, raise capital and/or sell assets will be affected by various factors existing at the relevant time, such as capital and credit market conditions, the state of the national and regional economies, commercial real estate market conditions, available interest rate levels, the lease terms for and equity in and value of any related collateral, our financial condition and the operating history of the collateral, if any.

***Credit Agreements***

*Summary* 

As of September 30, 2025, we had $483.0 million of total consolidated debt outstanding, consisting of a $355.0 million fixed rate mortgage note collateralized by 19 properties (the "CMBS Loan"), $110.0 million borrowed under our $350.0 million senior revolving credit facility (the "Revolving Facility") and an $18.0 million fixed rate mortgage note secured by our San Ramon, California property (the "San Ramon Loan"). The following is a summary of the interest rate and scheduled maturities of our consolidated debt obligations as of September 30, 2025 (in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Principal Amounts Due During the Years Ending December 31,** | **Principal Amounts Due During the Years Ending December 31,** | **Principal Amounts Due During the Years Ending December 31,** | **Principal Amounts Due During the Years Ending December 31,** | **Principal Amounts Due During the Years Ending December 31,** |
| |<br>**Weighted Average Interest Rate** <sup>(1)</sup> |<br>**Weighted Average Years to Maturity** | **Total** | **2025** | **2026** | **2027** | **Thereafter** |
| Credit facility revolver <sup>(2)</sup>  | 7.47% | 0.6 | $110000 | $— | $110000 | $— | $— |
| Mortgages payable <sup>(3) (4)</sup> | 5.02% | 1.6 | 373000 |  |  | 355000 | 18000 |
| &nbsp;&nbsp;Total |  |  | $483000 | $— | $110000 | $355000 | $18000 |

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(1)The weighted average interest rate represents the interest rate in effect as of September 30, 2025.

(2)Includes interest rate margin of 3.25% plus SOFR adjustment of 0.10%. As of September 30, 2025, a total of $75.0 million of the debt outstanding under the Revolving Facility was subject to an interest rate collar agreement to hedge against interest rate volatility. Under the agreement, the benchmark rate for the Revolving Facility will float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026.

(3)Includes $355.0 million securitized mortgage note secured by 19 of our properties which bears interest at a fixed rate of 4.971% and matures on February 11, 2027. Also includes $18.0 million fixed rate mortgage note entered into on November 7, 2024 and secured by the San Ramon, California property, which bears interest at a fixed rate of 5.90% and matures on December 1, 2031.

(4)Does not include non-recourse mortgage notes associated with the Arch Street Joint Venture of $129.5 million, of which our proportionate share was $25.9 million, as of September 30, 2025.

*Credit Agreement Obligations*

In connection with the Separation and the Distribution, on November 12, 2021, we, as parent, and Orion OP, as borrower, entered into a credit agreement (the "Credit Agreement") providing for a three-year, $425.0 million senior revolving credit facility (the "Revolving Facility"), including a $25.0 million letter of credit sub-facility, and a two-year, $175.0 million senior term loan facility (the "Term Loan Facility") with Wells Fargo Bank, National Association, as administrative agent, and the lenders and issuing banks party thereto. In June 2023, as further described below, the Term Loan Facility was repaid and retired with borrowings under the Revolving Facility.

We have entered into three amendments to the Credit Agreement. The purpose of the first amendment entered into in December 2022 was to change the benchmark rate for borrowings under the Credit Agreement from LIBOR (the London interbank offered rate as administered by the ICE Benchmark Administration) to SOFR (the secured overnight financing rate as administered by the Federal Reserve Bank of New York). The purpose of the second amendment entered into in June 2023 was to repay and retire $175.0 million of outstanding borrowings under the Term Loan Facility with borrowings from the Revolving Facility (which was undrawn at the time of the second amendment), provide us with the option to extend the maturity of the Revolving Facility for an additional 18 months to May 12, 2026 from November 12, 2024 and to effect certain other modifications. On May 3, 2024, we entered into the third amendment, which resulted in a permanent $75.0 million reduction in the capacity of the Revolving Facility to $350.0 million from $425.0 million, while making a proportional reduction in the minimum value of the unencumbered asset pool required under the Credit Agreement to $500.0 million from $600.0 million

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and certain other modifications to financial covenants. On May 16, 2024, we exercised the option under the Credit Agreement to extend the maturity of the Revolving Facility to May 12, 2026. Substantial doubt exists about our ability to continue as a going concern for at least one year from the issuance of the consolidated financial statements included in this Quarterly Report on Form 10-Q due to uncertainty with regard to our ability to extend or refinance the Revolving Facility. The Revolving Facility has no remaining extension options and the Company does not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility on its scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance all or a portion of the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing its leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and, therefore, there can be no assurance the Company will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all.

The interest rate applicable to the loans under the Revolving Facility may be determined, at the election of Orion OP, on the basis of Daily Simple SOFR, Term SOFR or a base rate, in the case of a SOFR loan, plus a SOFR adjustment of 0.10%, and in the case of a SOFR loan or a base rate loan, plus an applicable margin of 3.25% for SOFR loans and 2.25% for base rate loans. Loans under the Revolving Facility may be prepaid and reborrowed, and unused commitments under the Revolving Facility may be reduced, at any time, in whole or in part, by Orion OP, without premium or penalty (except for SOFR breakage costs).

In December 2022, we entered into interest rate swap agreements with an aggregate notional amount of $175.0 million, which effectively fixed the interest rate on $175.0 million of principal under the Revolving Facility at 3.92% until November 12, 2023. Upon the scheduled expiration of the interest rate swap agreements, we entered into interest rate collar agreements on a total notional amount of $60.0 million to hedge against interest rate volatility on the Revolving Facility. Under the agreements, the benchmark rate for the Revolving Facility floated between no higher than 5.50% and no lower than 4.20% on $25.0 million, and no higher than 5.50% and no lower than 4.035% on $35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into an interest rate collar agreement to hedge against interest rate volatility on the Revolving Facility. Under the agreement, the benchmark rate for the Revolving Facility will float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026. As of September 30, 2025, the weighted average effective interest rate of the Revolving Facility was 7.47%.

To the extent that amounts under the Revolving Facility remain unused, Orion OP is required to pay a quarterly commitment fee on the unused portion of the Revolving Facility in an amount equal to 0.25% of the unused portion of the Revolving Facility.

The Revolving Facility is guaranteed pursuant to a guaranty by us and, subject to certain exceptions, substantially all of Orion OP's existing and future subsidiaries (including substantially all of its subsidiaries that directly or indirectly own unencumbered real properties), other than certain joint ventures and subsidiaries that own real properties subject to certain other indebtedness (such subsidiaries of Orion OP, the "Subsidiary Guarantors").

The Revolving Facility is secured by, among other things, first priority pledges of the equity interests in the Subsidiary Guarantors.

*Revolving Facility Covenants*

The Revolving Facility requires that Orion OP comply with various covenants, including covenants restricting, subject to certain exceptions, liens, investments, mergers, asset sales and the payment of certain dividends. If, on any day, Orion OP has unrestricted cash and cash equivalents in excess of $25.0 million (excluding amounts that are then designated for application or use and are subsequently used for such purposes within 30 days), Orion OP will use such excess amount to prepay loans under the Revolving Facility, without premium or penalty and without any reduction in the lenders' commitment under the Revolving Facility.

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In addition, the Revolving Facility requires that Orion OP satisfy certain financial covenants. The following is a summary of financial covenants for the Company's Revolving Facility and the Company's compliance therewith as of September 30, 2025, as calculated per the terms of the Credit Agreement. These calculations are presented to show the Company's compliance with the financial covenants and are not measures of the Company's liquidity or performance.

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|:---|:---|:---|
| **Revolving Facility Financial Covenants** | **Required** | **September 30, 2025** |
| Ratio of total indebtedness to total asset value | ≤ 60% | 44.0% |
| Ratio of adjusted EBITDA to fixed charges | ≥ 1.5x | 1.92x |
| Ratio of secured indebtedness to total asset value | ≤ 40% | 35.8% |
| Ratio of unsecured indebtedness to unencumbered asset value | ≤ 60% <sup>(1)</sup> | 14.5% |
| Ratio of unencumbered adjusted NOI to unsecured interest expense | ≥ 2.00x | 4.73x |
| Unencumbered asset value | ≥ $500.0 million | $634.6 million |

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(1)If the ratio of unsecured debt to unencumbered asset value exceeds 35% as of the end of two consecutive fiscal quarters, Orion OP will be required, within 90 days and subject to cure rights, to grant the administrative agent a first priority lien on all the properties included in the pool of unencumbered assets (other than properties identified for disposition by us so long as such properties are sold within one year of such identification).

As of September 30, 2025, Orion OP was in compliance with these financial covenants.

The Revolving Facility includes customary representations and warranties of us and Orion OP, which must be true and correct in all material respects as a condition to future extensions of credit under the Revolving Facility. The Revolving Facility also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of Orion OP under the Revolving Facility to be immediately due and payable and foreclose on the collateral securing the Revolving Facility.

*CMBS Loan* 

On February 10, 2022, certain indirect subsidiaries of the Company (the "Mortgage Borrowers") obtained a $355.0 million fixed rate mortgage note (the "CMBS Loan") from Wells Fargo Bank, National Association (together with its successor, the "Lender"), which is secured by the Mortgage Borrowers' fee simple or ground lease interests in 19 properties owned indirectly by the Company (collectively, the "Mortgaged Properties"). During March 2022, Wells Fargo effected a securitization of the CMBS Loan. The CMBS Loan bears interest at a fixed rate of 4.971% and matures on February 11, 2027.

The CMBS Loan requires monthly payments of interest only and all principal is due at maturity. Upon closing of the CMBS Loan, the Mortgage Borrowers funded $35.5 million of loan reserves primarily for future rent concessions and tenant improvement allowances under the leases with respect to the 19 Mortgaged Properties. These amounts, as well as the transaction expenses incurred in connection with the CMBS Loan, were funded with cash on hand and borrowings under the Company's Revolving Facility. During March 2025 and December 2024, the Mortgage Borrowers funded an additional $1.5 million and $9.4 million, respectively, of loan reserves for future rent concessions and tenant improvement allowances agreed to as part of the extension of certain leases in the CMBS collateral pool.

The CMBS Loan is secured by, among other things, first priority mortgages and deeds of trust granted by the Mortgage Borrowers and encumbering the Mortgaged Properties.

The CMBS Loan is generally not freely prepayable by the Mortgage Borrowers without payment of certain prepayment premiums and costs. The CMBS Loan may be prepaid in whole, but not in part, except as provided in the loan agreement governing the CMBS Loan (the "CMBS Loan Agreement"), at any time, subject to the payment of a yield maintenance premium and the satisfaction of other terms and conditions set forth in the CMBS Loan Agreement. Further, releases of individual properties are permitted in connection with an arm's length third party sale upon repayment of the Release Price (as defined in the CMBS Loan Agreement) for the applicable individual property and subject to payment of the applicable yield maintenance premium and the satisfaction of other terms and conditions set forth in the CMBS Loan Agreement. The CMBS Loan may be prepaid in full without premium or penalty beginning in May 2026 (nine months prior to maturity).

The CMBS Loan Agreement also contains customary cash management provisions, including certain trigger events (such as failure of the Mortgage Borrowers to satisfy a minimum debt yield test of 8.0%) which allow the Lender to retain any excess cash flow as additional collateral for the Loan, until such trigger event is cured.

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In connection with the CMBS Loan Agreement, the Company (as the guarantor) delivered a customary non-recourse carveout guaranty to the Lender (the "Guaranty"), under which the Company guaranteed the obligations and liabilities of the Mortgage Borrowers to the Lender with respect to certain non-recourse carveout events and the circumstances under which the CMBS Loan will be fully recourse to the Mortgage Borrowers, and which includes requirements for the Company to maintain a net worth of no less than $355.0 million and liquid assets of no less than $10.0 million, in each case, exclusive of the values of the collateral for the CMBS Loan. As of September 30, 2025, the Company was in compliance with these financial covenants.

The Mortgage Borrowers and the Company also provided a customary environmental indemnity agreement, pursuant to which the Mortgage Borrowers and the Company agreed to protect, defend, indemnify, release and hold harmless the Lender from and against certain environmental liabilities relating to the Mortgaged Properties.

The CMBS Loan Agreement includes customary representations, warranties and covenants of the Mortgage Borrowers and the Company. The CMBS Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the Mortgage Borrowers to be immediately due and payable and foreclose on the Mortgaged Properties.

*San Ramon Loan*

On November 7, 2024, an indirect subsidiary of the Company (the "San Ramon Borrower") obtained an $18.0 million fixed rate mortgage note (the "San Ramon Loan") from RGA Americas Investments LLC (the "San Ramon Lender") secured by the fee simple interest in the San Ramon, California property acquired in September 2024 (the "San Ramon Property"). The San Ramon Loan bears interest at a fixed rate of 5.90% and matures on December 1, 2031.

The San Ramon Loan requires monthly payments of interest only and all principal is due at maturity and is generally not freely prepayable by the San Ramon Borrower until December 2026, and thereafter without payment of certain prepayment premiums and costs. In connection with the San Ramon Loan, the Company (as guarantor) delivered a customary non-recourse carveout guaranty, under which the Company guaranteed the obligations and liabilities of the San Ramon Borrower under the San Ramon Loan with respect to certain non-recourse carveout events and the circumstances under which the San Ramon Loan will be fully recourse to the San Ramon Borrower. The San Ramon Borrower and the Company also provided a customary environmental indemnity agreement, pursuant to which the San Ramon Borrower and the Company agreed to protect, defend, indemnify and hold harmless the San Ramon Lender from and against certain environmental liabilities related to the San Ramon Property.

The loan agreement governing the San Ramon Loan (the "San Ramon Loan Agreement") includes customary representations, warranties and covenants of the San Ramon Borrower and the Company. The San Ramon Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the San Ramon Borrower to be immediately due and payable and foreclose on the San Ramon Property.

***Arch Street Warrants***

On November 12, 2021, in connection with the Distribution, Orion OP entered into an amendment and restatement of the limited liability agreement (the "LLCA") for the Arch Street Joint Venture with the Arch Street Partner, an affiliate of Arch Street Capital Partners, pursuant to which the Arch Street Partner consented to the transfer of the equity interests of the Arch Street Joint Venture previously held by VEREIT Real Estate, L.P. to Orion OP.

Also on November 12, 2021, in connection with the entry into the LLCA, we granted the Arch Street Partner and Arch Street Capital Partners warrants to purchase up to 1,120,000 shares of our common stock (the "Arch Street Warrants"). The Arch Street Warrants entitle the respective holders to purchase shares of our common stock at a price per share equal to $22.42, at any time. The Arch Street Warrants may be exercised, in whole or in part, through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of our common stock determined according to the formula set forth in the Arch Street Warrants. The Arch Street Warrants expire on the earlier of (a) ten years after issuance and (b) if the Arch Street Joint Venture is terminated, the later of the termination of the Arch Street Joint Venture and seven years after issuance.

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In accordance with our obligation under the Arch Street Warrants, on November 2, 2022, we filed with the SEC a registration statement on Form S-3 for the registration, under the Securities Act, of the shares of our common stock issuable upon exercise of the Arch Street Warrants, and the registration statement was declared effective by the SEC on November 14, 2022. We will use our commercially reasonable efforts to maintain the effectiveness of the registration statement, and a current prospectus relating thereto, until the earlier of (a) the expiration of the Arch Street Warrants, or (b) the shares issuable upon such exercise become freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144 under the Securities Act (or any successor rule)) of us. The holders of the Arch Street Warrants will also remain subject to the ownership limitations pursuant to our organizational documents.

***Derivatives and Hedging Activities***

During the year ended December 31, 2021, we entered into interest rate swap agreements with an aggregate notional amount of $175.0 million, effective on December 1, 2021 and terminating on November 12, 2023, which were designated as cash flow hedges, in order to hedge interest rate volatility. During the year ended December 31, 2022, in connection with the transition of the benchmark rate for borrowings under the Credit Agreement from LIBOR to SOFR, we terminated the interest rate swap agreements that had been entered into during the year ended December 31, 2021, and entered into new interest rate swap agreements with an aggregate notional amount of $175.0 million, effective on December 1, 2022 and terminating on November 12, 2023, which were designated as cash flow hedges, to hedge interest rate volatility with respect to our borrowings under the Term Loan Facility. These swap agreements remained in effect for the $175.0 million of borrowings under the Revolving Facility used to pay down the Term Loan Facility until November 12, 2023. Upon the scheduled expiration of the interest rate swap agreements, we entered into interest rate collar agreements on a total notional amount of $60.0 million to hedge against interest rate volatility on the Revolving Facility. Under the agreements, the benchmark rate for the Revolving Facility floated between no higher than 5.50% and no lower than 4.20% on $25.0 million, and no higher than 5.50% and no lower than 4.035% on $35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into an interest rate collar agreement to hedge against interest rate volatility on the Revolving Facility. Under the agreement, the benchmark rate for the Revolving Facility would float between no higher than 4.29% and no lower than 3.28% on a total notional amount of $75.0 million, effective from May 12, 2025 to May 12, 2026. As of September 30, 2025, the weighted average effective interest rate of the Revolving Facility was 7.47%.

***Distributions***

We have elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our taxable year ended December 31, 2021. We intend to make distributions to our stockholders to satisfy the requirements to maintain our qualification as a REIT.

During the nine months ended September 30, 2025, the Company's Board of Directors declared quarterly cash dividends on shares of the Company's common stock as follows:

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|:---|:---|:---|:---|
| **Declaration Date** | **Record Date** | **Paid Date** | **Distributions Per Share** |
| March 4, 2025 | March 31, 2025 | April 15, 2025 | $0.02 |
| May 6, 2025 | June 30, 2025 | July 15, 2025 | $0.02 |
| August 5, 2025 | September 30, 2025 | October 15, 2025 | $0.02 |

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On November 5, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2025, payable on January 15, 2026, to stockholders of record as of December 31, 2025.

Our dividend policy is established at the discretion of the Company's Board of Directors and the amount and timing of dividends will depend upon cash generated by operating activities, the Company's business, financial condition, results of operations, capital requirements, annual distribution requirements under the REIT provisions of the Code, and such other factors as the Company's Board of Directors deems relevant. The Company's Board of Directors may change our dividend policy at any time, and there can be no assurance as to the manner in which future dividends will be paid or that the current dividend level will be maintained in future periods.

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***Universal Shelf Registration Statement***

On November 2, 2022, the Company filed a universal shelf registration statement on Form S-3 (the "Universal Shelf") with the SEC, which expires in November 2025. Pursuant to the Universal Shelf, the Company is able to offer and sell from time to time in multiple transactions, up to $750.0 million of the Company's securities, including through "at the market" offering programs or firm commitment underwritten offerings. These securities may include shares of the Company's common stock, shares of the Company's preferred stock, depository shares representing interests in shares of the Company's preferred stock, debt securities, warrants to purchase shares of the Company's common stock or shares of the Company's preferred stock and units consisting of two or more shares of common stock, shares of preferred stock, depository shares, debt securities and warrants.

We expect to file a new universal registration statement on Form S-3 prior to the expiration of the current registration statement.

***ATM Program***

In November 2022, the Company established, as part of its Universal Shelf, an "at the market" offering program for its common stock (the "ATM Program"). Pursuant to the ATM Program, the Company may from time to time offer and sell shares of its common stock, having an aggregate offering price of up to $100.0 million. Such offers or sales of shares of the Company's common stock may be made in privately negotiated transactions, including block trades, brokers' transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act, including sales made directly on the New York Stock Exchange, or through forward transactions under separate master forward sale confirmations and related supplemental confirmations for the sale of shares of the Company's common stock on a forward basis. As of September 30, 2025, we had not sold any shares of common stock pursuant to the ATM Program and as part of the expiration and replacement of the Company's Universal Shelf, the Company intends to terminate the ATM Program, although it may establish a new ATM Program at any time in the future.

***Share Repurchase Program***

On November 1, 2022, the Company's Board of Directors authorized the repurchase of up to $50.0 million of the Company's outstanding common stock until December 31, 2025, as market conditions warrant (the "Share Repurchase Program"). Repurchases may be made through open market purchases, privately negotiated transactions, structured or derivative transactions, including accelerated stock repurchase transactions, or other methods of acquiring shares in accordance with applicable securities laws and other legal requirements. The Share Repurchase Program does not obligate the Company to make any repurchases at a specific time or in a specific situation. Repurchases are subject to prevailing market conditions, the trading price of the Company's common stock, the Company's liquidity and anticipated liquidity needs, financial performance and other conditions. Shares of common stock repurchased by the Company under the Share Repurchase Program, if any, will be returned to the status of authorized but unissued shares of common stock. The Company did not repurchase any shares under the Share Repurchase Program during the nine months ended September 30, 2025 and 2024. As of September 30, 2025, the approximate dollar value of shares that remain available for repurchase under the Share Repurchase Program was $45.0 million.

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***Cash Flow Analysis***

The following table summarizes the changes in cash flows for the periods indicated below (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **2025 vs 2024 Increase/(Decrease)** |
| | **2025** | **2024** | **2025 vs 2024 Increase/(Decrease)** |
| Net cash provided by operating activities | $15057 | $41761 | $(26704) |
| Net cash provided by (used in) investing activities | $8204 | $(42955) | $51159 |
| Net cash used in financing activities | $(17666) | $(4400) | $13266 |

---

Net cash provided by operating activities decreased $26.7 million during the nine months ended September 30, 2025, compared to the same period in 2024, driven in part by the tenant at our Hopewell, New Jersey property entering a scheduled one-year rent concession period in December 2024, resulting in a decrease in cash revenue receipts of $9.2 million during the nine months ended September 30, 2025, compared to the same period in 2024. The total abated rent for this one-year rent concession period is included in the reserves we have funded with the lender of the CMBS Loan and will be released to us over the rent concession period. The decrease in net cash provided by operating activities is also due to the decrease in revenues and increase in property operating expenses as a result of property dispositions and vacancies.

Net cash from investing activities increased $51.2 million during the nine months ended September 30, 2025, compared to the same period in 2024. Net cash provided by investing activities during the nine months ended September 30, 2025 includes proceeds from the sale of real estate assets of $44.0 million, payments received on the Arch Street Joint Venture member loan of $3.0 million and on the seller financing note receivable of $2.5 million, offset by cash paid for capital expenditures and leasing costs of $32.6 million and the funding of an additional member loan of $8.3 million to the Arch Street Joint Venture. Net cash used in investing activities during the nine months ended September 30, 2024 includes the acquisition of one real estate asset for $34.7 million, and cash paid for capital expenditures and leasing costs of $12.6 million, offset by proceeds from the sale of real estate assets of $2.1 million and payments received on seller financing notes receivable of $1.2 million and distributions received from the Arch Street Joint Venture.

Net cash used in financing activities increased $13.3 million during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to net repayments on the Revolving Facility of $9.0 million during the 2025 period, compared to net draws of $14.0 million during the 2024 period, offset by a decrease in distributions paid to stockholders of $8.9 million during the nine months ended September 30, 2025, compared to the same period in 2024 as a result of the change in cash dividend policy of $0.02 per share from $0.10 per share effective for the first quarter 2025, and payments of deferred financing costs of less than $0.1 million during the nine months ended September 30, 2025, compared to $1.4 million during the same period in 2024.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

See information appearing under the caption "Liquidity and Capital Resources" appearing in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q.

***Market Risk***

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. Our market risk arises primarily from interest rate risk relating to variable-rate borrowings. To meet our short and long-term liquidity requirements, we borrow funds at a combination of fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to manage our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, caps, collars, treasury locks, options and forwards in order to mitigate our interest rate risk with respect to various debt instruments. We would not hold or issue these derivative contracts for trading or speculative purposes.

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***Interest Rate Risk***

As of September 30, 2025, our debt included fixed-rate debt, with a fair value and carrying value of $363.8 million and $373.0 million, respectively. Changes in market interest rates on our fixed-rate debt impact the fair value of the debt, but they have no impact on interest incurred or cash flow. For instance, if interest rates rise 100 basis points, and the fixed-rate debt balance remains constant, we expect the fair value of our debt to decrease, the same way the price of a bond declines as interest rates rise. The sensitivity analysis related to our fixed-rate debt assumes an immediate 100 basis point move in interest rates from September 30, 2025 levels, with all other variables held constant. A 100 basis point increase in market interest rates would result in a decrease in the fair value of our fixed-rate debt of $5.2 million. A 100 basis point decrease in market interest rates would result in an increase in the fair value of our fixed-rate debt of $5.4 million.

As of September 30, 2025, our debt included variable-rate debt with a fair value and carrying value of $110.0 million. As a result, we are subject to the potential impact of rising interest rates, which could negatively impact our results of operations and cash flows. The sensitivity analysis related to our variable-rate debt assumes an immediate 100 basis point move in interest rates from September 30, 2025 levels and excludes the impact of the derivative instrument, with all other variables held constant. A 100 basis point increase or decrease in variable interest rates would result in a decrease or increase in the fair value of our variable-rate debt of less than $0.1 million and would increase or decrease our interest expense by $1.1 million annually.

As of September 30, 2025, the Company had interest rate collar agreements in place on a total notional amount of $75.0 million to hedge against interest rate volatility on the Revolving Facility. See Note 6 – Debt, Net to our consolidated financial statements.

As of September 30, 2025, our outstanding derivative agreements had a fair value that resulted in net liabilities of less than $0.1 million. See Note 7 – Derivatives and Hedging Activities to our consolidated financial statements for further discussion.

As the information presented above includes only those exposures that existed as of September 30, 2025, it does not consider exposures or positions arising after that date. The information presented herein has limited predictive value. Future actual realized gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and the magnitude of the fluctuations.

These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs and assume no other changes in our capital structure.

***Credit Risk***

Concentrations of credit risk arise when a number of tenants are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. The Company is subject to tenant, geographic and industry concentrations. See "Item 1. Business" and "Item 2. Properties" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Any downturn of the economic conditions in one or more of these tenants, geographies or industries could result in a material reduction of our cash flows or material losses to us. During the nine months ended September 30, 2025, the Company delivered possession of approximately 160,000 rentable square feet at the Buffalo, New York property to the tenant for purposes of the tenant performing certain tenant work prior to commencement of the lease term as defined by the lease agreement, and therefore, the Company began recognizing rental revenue at this property in accordance with U.S. GAAP. Including annualized base rent from this property, our annualized base rent from properties located in New York as a percentage of total portfolio annualized base rent was 9.6% as of September 30, 2025, compared to 5.1% as of December 31, 2024.

The factors we consider in determining the credit risk of our tenants include, but are not limited to: payment history; credit status and change in status (credit ratings for public companies are used as a primary metric); change in tenant space needs (*i.e.*, expansion/downsize); tenant financial performance; economic conditions in a specific geographic region; and industry specific credit considerations. We believe that the credit risk of our portfolio is reduced by the high quality and diversity of our existing tenant base, reviews of prospective tenants' risk profiles prior to lease execution and consistent monitoring of our portfolio to identify potential problem tenants.

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**Item 4. Controls and Procedures.**

***Disclosure Controls and Procedures***

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance of achieving the desired control objectives.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2025. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of September 30, 2025, were effective at a reasonable assurance level.

***Changes in Internal Control Over Financial Reporting***

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act of 1934) during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.** 

As of the end of the period covered by this Quarterly Report on Form 10-Q, we are not a party to, and none of our properties are subject to, any material pending legal proceedings.

**Item 1A. Risk Factors.**

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as updated in the Company's subsequent Quarterly Reports on Form 10-Q previously filed during the year ending December 31, 2025, except as set forth below.

***We have existing debt and refinancing risks that could have a material adverse effect on our business, financial condition and results of operations, including the risk that we will be unable to extend or refinance some or all of our debt, including substantial doubt about our ability to continue as a going concern due to uncertainty with regard to our ability to extend or refinance the Revolving Facility which matures on May 12, 2026.***

We have both fixed and variable rate indebtedness and may incur additional indebtedness in the future, including borrowings under our Revolving Facility. Our Revolving Facility under which we had $119.0 million borrowed as of December 31, 2024 is scheduled to mature on May 12, 2026. We are dependent upon the Revolving Facility, which is a fully recourse borrowing facility guaranteed in full by us, for liquidity to execute our business strategies. When preparing the consolidated financial statements for each annual and interim reporting period, management evaluates whether there are conditions or events that, when considered in aggregate, raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the accompanying consolidated financial statements are issued as set forth in Accounting Standards Codification ("ASC") 205-40, "Presentation of Financial Statements - Going Concern." Substantial doubt exists about our ability to continue as a going concern for at least one year from the issuance of the consolidated financial statements included in this Quarterly Report on Form 10-Q due to uncertainty with regard to our ability to extend or refinance the Revolving Facility. The Revolving Facility has no remaining extension options and we do not expect to generate sufficient cash from operations to repay the principal outstanding under the Revolving Facility on its scheduled maturity date. Management is evaluating strategies to extend or refinance the borrowings under the Revolving Facility and has had preliminary discussions with the administrative agent of the Revolving Facility to potentially amend the Credit Agreement to extend the maturity date and/or refinance all or a portion of the Revolving Facility with replacement debt. If an agreement is not reached with one or more of the lenders to extend and/or refinance the Revolving Facility, management's plans include, but are not limited to, obtaining funding through alternative debt or equity instruments, disposing of properties and continuing our leasing efforts on existing properties. As of November 6, 2025, no such agreements have been reached and there can be no assurance we will be able to extend the Revolving Facility maturity date and/or refinance all or a portion of the Revolving Facility or obtain additional liquidity when needed or under acceptable terms, if at all. Because no agreements have been reached, such outcomes are not within the control of the Company; therefore, for accounting purposes, management is unable to conclude that such an outcome is probable. Accordingly, ASC 205-40 requires management to disclose that there is substantial doubt about the Company's ability to continue as a going concern for at least one year following the date of issuance of the consolidated financial statements accompanying this Quarterly Report on Form 10-Q.

If we are unable to extend or refinance the Revolving Facility, we might be forced to sell assets to generate cash, which might be on unfavorable terms, if at all, or we might not be able to make all required payments of principal and interest on our debt, which could result in default, result in our lenders foreclosing on our assets, or otherwise have a material adverse effect on our financial condition and results of operations. Any inability to continue to operate as a going concern or the occurrence of an event of default under our outstanding indebtedness would be expected to have a material adverse effect on the price of our common stock.

Our $355.0 million CMBS Loan is scheduled to mature on February 11, 2027. Our CMBS Loan provides cross-collateralized financing for a total of 19 properties in our portfolio, and therefore the lender will have recourse to any and all of the assets that secure the debt in the event we default. We cannot provide assurance we will be able to extend, refinance or repay these debt obligations at maturity. Our ability to extend or refinance debt will be affected by our financial condition and various other factors existing at the relevant time, including factors beyond our control, such as capital and credit market conditions, the state of the national and regional economies, local real estate conditions and the equity in and value of the related collateral. We may be required to make significant principal repayments to extend or refinance our debt obligations. Following the Arch Street Joint Venture's exercise of the first extension option and satisfaction of the related conditions in

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November 2024, the non-recourse mortgage notes associated with the Arch Street Joint Venture of $131.6 million as of December 31, 2024 are scheduled to mature on November 27, 2025, and the Arch Street Joint Venture has one remaining one-year option to extend the maturity until November 27, 2026. Our proportionate share of the mortgage notes was $25.9 million as of September 30, 2025. During September 2025, the Arch Street Joint Venture exercised the remaining option to extend the maturity date of the mortgage notes until November 27, 2026, and the lenders are working to confirm all extension conditions are met, including a maximum loan-to-value of 60% which may require the Arch Street Joint Venture to partially repay the mortgage notes to satisfy this condition. We cannot provide any assurance that the Arch Street Joint Venture will be able to satisfy the conditions to extend the maturity date of this debt obligation, including that our joint venture partner will be able to contribute its share of capital requirements to partially repay the mortgage notes if required to satisfy the loan-to-value condition, or otherwise extend or refinance this debt obligation prior to maturity. If the Arch Street Joint Venture is unable to extend or refinance the mortgage notes, our investment in the Arch Street Joint Venture could be materially adversely affected.

As a result of the indebtedness we incur, we are, and expect to be, subject to the risks normally associated with debt financing including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we will be unable to extend, refinance or repay our debt as it becomes due or increase the availability of overall debt on terms as favorable as those of our existing debt, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that interest rates may rise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that our cash flow could be insufficient to make required payments of principal and interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that required payments on mortgages and on our other debt are not reduced if the economic performance of any property declines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that debt service obligations will reduce funds available for distribution to our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that any default on our debt, due to non-compliance with financial covenants or otherwise, could result in acceleration of those obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that we may be unable to extend, refinance or repay the debt as it becomes due; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• that if our degree of leverage is viewed unfavorably by lenders or potential joint venture partners, it could affect our ability to obtain additional financing.

If we are unable to extend, refinance or repay our indebtedness as it becomes due, we may need to sell assets or to seek protection from our creditors under applicable law, which may have a material adverse effect on our business, financial condition and results of operations.

**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.**

**Recent Sales of Unregistered Securities** 

None.

**Use of Proceeds from Sales of Registered Securities**

Not applicable.

**Issuer Purchases of Equity Securities**

None.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

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**Item 5. Other Information.**

***Rule 10b5-1 Trading Agreements***

During the three months ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(c) of Regulation S-K.

**Item 6. Exhibits.** 

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the period ended September 30, 2025 (and are numbered in accordance with Item 601 of Regulation S-K):

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 31.1\* | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit311-orionchiefexecu.htm)</u> |
| 31.2\* | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit312-orionchieffinan.htm)</u> |
| 32.1\* | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit321-orionchiefexecu.htm)</u> |
| 32.2\* | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit322-orionchieffinan.htm)</u> |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.\*). |

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____________________________________

\* &nbsp;&nbsp;&nbsp;&nbsp;Filed herewith

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| **Orion Properties Inc.** | **Orion Properties Inc.** |
| By: | /s/ Gavin B. Brandon |
| Gavin B. Brandon | Gavin B. Brandon |
| Chief Financial Officer, Executive Vice President and Treasurer | Chief Financial Officer, Executive Vice President and Treasurer |

---

Dated: November 6, 2025

## Exhibit 31.1

**Exhibit 31.1**

**ORION PROPERTIES INC.**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO RULES 13a-14(a) AND 15d-14(a)** 

**OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Paul H. McDowell, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Orion Properties Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | November 6, 2025 | /s/ Paul H. McDowell |
| | | Paul H. McDowell |
| | | Chief Executive Officer and President |
| | | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**ORION PROPERTIES INC.**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER** 

**PURSUANT TO RULES 13a-14(a) AND 15d-14(a)** 

**OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AS ADOPTED PURSUANT TO** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Gavin B. Brandon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Orion Properties Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | November 6, 2025 | /s/ Gavin B. Brandon |
| | | Gavin B. Brandon |
| | | Chief Financial Officer, Executive Vice President and Treasurer |
| | | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**ORION PROPERTIES INC.** 

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER** 

**PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report on Form 10-Q of Orion Properties Inc. (the "Company") for the period ended September 30, 2025 (the "Report"), I, Paul H. McDowell, Chief Executive Officer of the Company, certify to my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: | November 6, 2025 | /s/ Paul H. McDowell |
| | | Paul H. McDowell |
| | | Chief Executive Officer and President |
| | | (Principal Executive Officer) |

---

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**ORION PROPERTIES INC.** 

**CERTIFICATION OF CHIEF FINANCIAL OFFICER** 

**PURSUANT TO 18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report on Form 10-Q of Orion Properties Inc. (the "Company") for the period ended September 30, 2025 (the "Report"), I, Gavin B. Brandon, Executive Vice President and Chief Financial Officer of the Company, certify to my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: | November 6, 2025 | /s/ Gavin B. Brandon |
| | | Gavin B. Brandon |
| | | Chief Financial Officer, Executive Vice President and Treasurer |
| | | (Principal Financial Officer) |

---

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>