NYSE$ONL

Orion Office Reit Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Orion Office REIT announced second quarter results, highlighting leasing momentum, asset sales, debt repayment, and dividend declaration.

Orion Office REIT Inc. reported total revenues of $40.1 million and a net loss attributable to common stockholders of $(33.8) million, or $(0.60) per share, for the second quarter ended June 30, 2024. The company completed 470,000 square feet of leasing, sold one vacant property, repaid $9.0 million in debt, and declared a dividend of $0.10 per share.

  • Completed 470,000 square feet of leasing in Q2 2024, and an additional 55,000 square feet subsequent to quarter end.
  • Sold one vacant property, bringing the total properties sold since the spin to 18.
  • Repaid $9.0 million in debt obligations during the quarter.
  • Declared a dividend of $0.10 per share for the second quarter 2024.

Headline financials

Total Revenue

$40.1M

Previous: $52M-22.9%
EPS

-$0.60

Previous: $0.48-225.0%
Core FFO

$14.2M

Previous: $26.9M-47.2%
Occupancy Rate

79.7%

No prior period
Capital Expenditures

$0.00

Previous: $0.00
Free Cash Flow

-$33.8M

Previous: -$15.7M-114.9%
Net Income

-$33.8M

Previous: -$15.7M-114.9%
Operating Income

-$11.6M

Previous: -$32M+63.8%
Gross Profit

$24.2M

Previous: -$15.5M+256.0%
Cash & Equivalents

$24.2M

Previous: $42.2M-42.6%
Total Assets

$1.34B

Previous: $1.53B-12.3%
Stock-Based Comp

$935K

Previous: $689K+35.7%

Revenue & EPS history

Orion Office REIT · Revenue · Quarterly

$40.1M

Q2 2024-22.9%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The Company is narrowing its 2024 Core FFO and Net Debt to Adjusted EBITDA guidance ranges to reflect greater certainty in its estimates for the remainder of the year. The Company’s 2024 General and Administrative Expenses guidance range is unchanged from last quarter.

Tailwinds

  • Core FFO per share between $0.97 and $1.01
  • General and Administrative Expenses between $19.5 million and $20.5 million
  • Net Debt to Adjusted EBITDA between 6.2x and 6.6x
  • Focus on rent receipts and property operating expense reimbursements
  • Assumptions on the amount and timing of acquisitions, dispositions and leasing transactions

Headwinds

  • Uncertainty and difficulty in accurately predicting assumptions
  • Actual results may differ materially from estimates
  • Subject to risks and uncertainties described in the Company's filings with the SEC
  • Assumptions with regard to capital expenditures
  • Assumptions with regard to interest rate fluctuations and expected borrowings

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-4.8%

Avg return

Earnings day

-6.1%

Avg return

5 days after

-9.1%

Avg return

30 days after

32%

7 / 22 earnings

Positive

+6.1%

Q3 2025

Best reaction

-29.4%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%+0.3%-2.4%
Q4 2025-3.1%-5.9%-14.5%
Q3 2025+6.1%-0.4%-15.9%
Q1 2025-2.5%+8.5%+5.5%
Q4 2024-29.4%-36.9%-51.9%
Q3 2024+1.8%-3.0%+1.3%
Q2 2024+0.3%-1.3%+8.8%
Q1 2024+0.6%+10.4%+3.0%
Q4 2023-14.8%-17.1%-18.8%
Q3 2023-1.2%+1.4%+10.5%
Q2 2023+4.2%+4.6%-10.7%
Q1 2023-2.7%-10.0%+3.5%
Q4 2022-0.7%-11.3%-12.2%
Q3 2022-1.7%-2.7%+1.7%
Q2 2022+0.3%+1.4%-8.2%
Q1 2022-2.4%-5.5%-4.9%
Q1 2021-2.4%-5.5%-4.9%
Q2 2021-14.1%-16.5%-24.1%
Q4 2020-14.1%-16.5%-24.1%
Q4 2021-14.1%-16.5%-24.1%
Q4 2019-14.1%-16.5%-24.1%
Q3 2021+0.8%+4.3%+5.7%
Q3 2020
Q2 2020
Q1 2020

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