Orion Office REIT Q3 2022 Earnings Report
Key Takeaways
Orion Office REIT Inc. announced its Q3 2022 results, featuring total revenues of $51.8 million. However, the company reported a net loss attributable to common stockholders of $(53.0) million, or $(0.94) per share. Core FFO stood at $24.0 million, or $0.42 per share. The company sold six properties for $24.8 million and has agreements in place to sell four additional properties for $15.9 million. The Board of Directors approved a $50 million share repurchase program.
Total revenues reached $51.8 million.
Net loss attributable to common stockholders was $(53.0) million, or $(0.94) per share.
Core FFO amounted to $24.0 million, or $0.42 per share.
Six properties were sold for $24.8 million, with agreements to sell four more for $15.9 million.
Orion Office REIT
Orion Office REIT
Forward Guidance
The Company is raising the lower end of its 2022 Core FFO guidance range to reflect solid performance for the first nine months of 2022 and greater certainty in its estimates for the remainder of the year. The Company’s Core FFO is now expected to range from $1.76 to $1.78 per share, up from $1.74 to $1.78 per share last quarter. The Company’s 2022 General and Administrative Expense guidance range of $16 million to $16.5 million, and its 2022 year-end Net Debt to Adjusted EBITDA guidance range of 4.7x to 5.0x, are unchanged from last quarter.
Positive Outlook
- Core FFO per diluted share is expected to be in the range of $1.76 to $1.78.
- General & Administrative Expenses are projected to be $16 million to $16.5 million.
- Net Debt to Adjusted EBITDA is guided to be 4.7x to 5.0x.
- The company is raising the lower end of its 2022 Core FFO guidance range to reflect solid performance for the first nine months of 2022
- Company has greater certainty in its estimates for the remainder of the year.
Challenges Ahead
- Rising interest rates may increase borrowing costs and hinder debt refinancing.
- Inflation could lead to higher operating costs, such as insurance premiums, utilities, and real estate taxes.
- An oversupply of office space and tenant credit risk may impact the company's performance.
- The ongoing COVID-19 pandemic continues to present uncertainty and could affect the use of and demand for office space.
- The company's ability to acquire new properties and sell non-core assets on favorable terms is subject to market conditions.