Dec 31, 2021

Orion Office REIT Q4 2021 Earnings Report

Orion Office REIT Announced Q4 2021 Operating Results

Key Takeaways

Orion Office REIT Inc. reported fourth-quarter 2021 operating results, including revenues of $40.8 million and a net loss attributable to common stockholders of $(54.9) million, or $(0.97) per share. Core FFO was $26.8 million, or $0.47 per share.

Completed spin-off from Realty Income.

Net loss attributable to common stockholders of $(54.9) million, or $(0.97) per share

Core FFO of $26.8 million, or $0.47 per share.

Signed 11-year extension with Merrill Lynch at the property in Hopewell, NJ.

Total Revenue
$40.5M
Previous year: $53.5M
-24.2%
EPS
$0.47
Previous year: -$0.03
-1666.7%
Core FFO
$26.8M
Gross Profit
$32M
Previous year: $11.9M
+168.3%
Cash and Equivalents
$29.3M
Total Assets
$1.76B
Previous year: $546M
+222.0%

Orion Office REIT

Orion Office REIT

Forward Guidance

Orion is providing the following guidance for fiscal year 2022: Core FFO per share between $1.66 and $1.74, General and Administrative Expenses between $17 million and $18 million and Net Debt to Adjusted EBITDA between 4.7x and 5.5x.

Positive Outlook

  • Core FFO per share between $1.66 and $1.74
  • General & Administrative Expenses: $17 million to $18 million
  • Net Debt to Adjusted EBITDA: 4.7x to 5.5x
  • The loan matures on February 11, 2027.
  • Company's Unencumbered Gross Real Estate Investments would have been approximately $1,262,031

Challenges Ahead

  • rising interest rates
  • risk of inflation
  • an oversupply of office space
  • client credit risk and general economic conditions
  • potential changes in client behavior that could adversely affect the use of and demand for office space