NYSE$ONL

Orion Office Reit Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported total revenues of $51.8 million and core FFO of $24.0 million, while experiencing a net loss attributable to common stockholders of $(53.0) million, or $(0.94) per share.

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.

Headline financials

Total Revenue

$51.8M

Previous: $13.3M+288.8%
EPS (adj)

$0.42

Previous: -$0.03+1500.0%
Core FFO

$24M

No prior period
Occupancy Rate

88.2%

No prior period
Capital Expenditures

$0.00

No prior period
Free Cash Flow

-$53M

No prior period
Net Income

-$53M

Previous: $1.37M-3960.8%
Operating Income

-$74.1M

No prior period
Gross Profit

-$15.3M

Previous: $11.7M-231.3%
Cash & Equivalents

$23.3M

No prior period
Total Assets

$1.62B

Previous: $1K+162155300.0%
Stock-Based Comp

$444K

No prior period

Revenue & EPS history

Orion Office REIT · Revenue · Quarterly

$51.8M

Q3 2022+288.8%vs Q3 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2022

Historical avgQ3 2022

-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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