NYSE$ONL

Orion Office Reit Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Orion Office REIT reported its Q3 2023 results, including revenue of $49.1 million and Core FFO of $0.43 per share. The company sold three properties for $15.4 million and has agreements in place to sell nine properties for $46.6 million.

Orion Office REIT Inc. announced its Q3 2023 financial results, with total revenues of $49.1 million. The company reported a net loss attributable to common stockholders of $(16.5) million, or $(0.29) per share. Core FFO was $24.1 million, or $0.43 per share. The company is updating its 2023 Core FFO and Net Debt to Adjusted EBITDA guidance ranges to reflect solid performance for the first nine months of 2023 and greater certainty in its estimates for the remainder of the year.

  • Total Revenues of $49.1 million
  • Net Loss Attributable to Common Stockholders of $(16.5) million, or $(0.29) per share
  • Core FFO of $24.1 million, or $0.43 per share
  • EBITDA of $18.9 million and Adjusted EBITDA of $30.0 million

Headline financials

Total Revenue

$49.1M

Previous: $51.8M-5.2%
EPS (adj)

$0.43

Previous: $0.42+2.4%
Core FFO

$24.1M

Previous: $24M+0.4%
Occupancy Rate

80.5%

Previous: 88.2%-8.7%
Adjusted EBITDA

$30M

No prior period
Capital Expenditures

$0.00

Previous: $0.00
Free Cash Flow

-$16.5M

Previous: -$53M+68.9%
Net Income

-$16.5M

Previous: -$53M+68.9%
Operating Income

-$31.4M

Previous: -$74.1M+57.6%
Gross Profit

-$15.5M

Previous: -$15.3M-1.3%
Cash & Equivalents

$32.3M

Previous: $23.3M+38.7%
Total Assets

$1.5B

Previous: $1.62B-7.2%
Stock-Based Comp

$687K

Previous: $444K+54.7%

Revenue & EPS history

Orion Office REIT · Revenue · Quarterly

$49.1M

Q3 2023-5.2%vs Q3 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The Company is updating its 2023 Core FFO and Net Debt to Adjusted EBITDA guidance ranges to reflect solid performance for the first nine months of 2023 and greater certainty in its estimates for the remainder of the year. The Company’s Core FFO is now expected to range from $1.65 to $1.68 per share, up from $1.59 to $1.63 per share last quarter. The Company’s Net Debt to Adjusted EBITDA is now expected to range from 4.0x to 4.7x, down from 4.3x to 5.0x. The Company’s 2023 General and Administrative Expenses guidance range of $18.25 million to $18.75 million is unchanged from last quarter.

Tailwinds

  • Core FFO per diluted share to be in a range between $1.65 and $1.68.
  • General & Administrative Expenses: $18.25 million to $18.75 million
  • Net Debt to Adjusted EBITDA: 4.0x to 4.7x
  • Reflect solid performance for the first nine months of 2023
  • Greater certainty in its estimates for the remainder of the year

Headwinds

  • Rising interest rates may increase borrowing costs.
  • Inflation may increase operating costs.
  • Changes in workplace practices may impact demand for office space.
  • Tenants defaulting on their lease obligations.
  • Potential volatility of common stock.

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 2023

Historical avgQ3 2023

-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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