Orion Properties Reports $13.6 Million Net Loss in Q1 2026, Revenue Declines

Orion Properties Inc. reported a net loss of $13.6 million for the first quarter of 2026, compared to a net loss of $9.4 million in the same period of 2025. Total revenues decreased to $36.3 million from $38.0 million year-over-year, primarily driven by a decline in rental income, which fell to $36.1 million from $37.8 million. The decrease in rental revenue was attributed to the expiration of leases and the sale of non-core assets, which collectively reduced revenue by approximately $4.8 million. The company’s basic and diluted net loss per share attributable to common stockholders was $(0.24), compared to $(0.17) in the prior year.

In terms of operational metrics, Orion Properties owned and operated 59 properties as of March 31, 2026, with a total of 6.6 million leasable square feet and an occupancy rate of 83.1%, up from 78.1% at the end of 2025. The company completed approximately 355,000 square feet of lease extensions and new leases during the quarter, with a weighted average lease term of 7.8 years. However, the company also recorded impairment charges of $6.3 million, significantly higher than the $1.7 million recorded in the same quarter of the previous year, reflecting management's estimates regarding lease renewal probabilities and property valuations.

Strategically, Orion Properties made notable changes during the quarter, including the acquisition of a 75,000 square foot flex/R&D facility in Northbrook, Illinois, for $15 million, which is fully leased until December 2036. The company also sold two non-operating properties for a total of $13.1 million. Following the quarter, Orion completed the sale of additional properties, including a 37.4-acre site in Deerfield, Illinois, for $13.1 million and a 120,000 square foot property in Glen Burnie, Maryland, for $22.5 million.

Financially, as of March 31, 2026, Orion Properties had total consolidated debt of $497.3 million, with a weighted average interest rate of 5.39%. The company refinanced its previous revolving credit facility with a new $215 million facility, extending the maturity date to February 2028. The company reported compliance with all financial covenants associated with its debt agreements. Looking ahead, Orion Properties aims to continue its strategic shift away from traditional office properties towards more specialized assets, while managing its liquidity needs through cash flows from operations and proceeds from property sales.