Orion Office REIT Inc
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
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FY2023 · Filed Feb 27, 2024
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Item 2. Properties
The Company leases its corporate office space, including its corporate headquarters, which is located in Phoenix, Arizona. As of December 31, 2023, the Company owned 75 office properties with an aggregate of 8.7 million square feet located in 29 states, with an occupancy rate of 80.0% and a weighted-average remaining lease term of 3.9 years as of December 31, 2023. Including the Company’s pro rata share of square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.9 million square feet, with an occupancy rate of 80.4%, or 87.2% adjusted for properties that are currently under agreement to be sold, and a weighted-average remaining lease term of 4.0 years as of December 31, 2023. See Schedule III – Real Estate and Accumulated Depreciation for more information about the Company’s properties and see Note 6 – Debt, Net for more information about mortgages and other indebtedness related to the Company’s properties.
Tenant Industry Diversification
The following table sets forth certain information regarding the tenant industry concentrations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
| Industry | Number of Leases (1) | Leased Square Feet | Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio |
|---|---|---|---|---|---|
| Health Care Equipment & Services | 12 | 1,109 | 12.5% | $21,601 | 15.3% |
| Government & Public Services | 17 | 769 | 8.7% | 19,657 | 13.9% |
| Financial Institutions | 3 | 616 | 6.9% | 15,720 | 11.1% |
| Insurance | 3 | 600 | 6.7% | 13,292 | 9.4% |
| Capital Goods | 10 | 846 | 9.5% | 12,656 | 9.0% |
| Software & Services | 6 | 609 | 6.9% | 12,390 | 8.8% |
| Consumer Durables & Apparel | 3 | 375 | 4.2% | 8,632 | 6.1% |
| Telecommunication Services | 5 | 419 | 4.7% | 6,892 | 4.9% |
| Materials | 4 | 366 | 4.1% | 5,852 | 4.1% |
| Energy | 1 | 309 | 3.5% | 5,762 | 4.1% |
| Top Ten Tenant Industries | 64 | 6,018 | 67.7% | 122,454 | 86.7% |
| Remaining Tenant Industries: | |||||
| Commercial & Professional Services | 10 | 293 | 3.3% | 4,746 | 3.4% |
| Transportation | 4 | 279 | 3.1% | 4,496 | 3.2% |
| Media & Entertainment | 2 | 264 | 3.0% | 3,745 | 2.6% |
| Retailing | 3 | 157 | 1.8% | 3,247 | 2.3% |
| Food, Beverage & Tobacco | 1 | 96 | 1.1% | 2,022 | 1.4% |
| Utilities | 1 | 26 | 0.3% | 394 | 0.3% |
| Real Estate | 1 | 4 | —% | 86 | 0.1% |
| Consumer Services | 2 | 5 | 0.1% | 54 | —% |
| Retail/Restaurant | 1 | 2 | —% | 49 | —% |
| Total | 89 | 7,144 | 80.4% | $141,293 | 100.0% |
(1)The Company has certain properties that are subject to multiple leases.
Geographic Diversification
The following table sets forth certain information regarding the geographic concentrations (by state) in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
| Location | Number of Properties | Rentable Square Feet | Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio |
|---|---|---|---|---|---|
| Texas | 15 | 1,353 | 15.2% | $24,313 | 17.2% |
| New Jersey | 3 | 724 | 8.2% | 14,445 | 10.2% |
| New York | 5 | 781 | 8.8% | 14,407 | 10.2% |
| Kentucky | 2 | 458 | 5.2% | 10,354 | 7.3% |
| Colorado | 4 | 571 | 6.4% | 8,103 | 5.7% |
| Massachusetts | 2 | 378 | 4.3% | 7,947 | 5.6% |
| Oklahoma | 3 | 585 | 6.6% | 6,811 | 4.8% |
| California | 3 | 244 | 2.8% | 5,532 | 3.9% |
| Missouri | 3 | 303 | 3.4% | 4,917 | 3.5% |
| Maryland | 2 | 236 | 2.7% | 4,646 | 3.3% |
| Top Ten States | 42 | 5,633 | 63.6% | 101,475 | 71.7% |
| Remaining States: | |||||
| Tennessee | 4 | 240 | 2.7% | 4,641 | 3.3% |
| Georgia | 3 | 284 | 3.2% | 4,635 | 3.3% |
| Virginia | 2 | 240 | 2.7% | 4,523 | 3.2% |
| Ohio | 3 | 237 | 2.7% | 3,545 | 2.5% |
| Rhode Island | 2 | 206 | 2.3% | 3,040 | 2.2% |
| South Carolina | 1 | 64 | 0.7% | 2,459 | 1.8% |
| Wisconsin | 1 | 155 | 1.7% | 2,299 | 1.6% |
| Arizona | 1 | 91 | 1.0% | 2,282 | 1.6% |
| Illinois | 8 | 738 | 8.3% | 2,191 | 1.6% |
| Iowa | 2 | 92 | 1.0% | 1,955 | 1.4% |
| Nebraska | 2 | 180 | 2.0% | 1,584 | 1.1% |
| Pennsylvania | 2 | 233 | 2.6% | 1,316 | 0.9% |
| Oregon | 1 | 69 | 0.8% | 1,142 | 0.8% |
| West Virginia | 1 | 63 | 0.7% | 1,130 | 0.8% |
| Kansas | 2 | 196 | 2.2% | 1,044 | 0.7% |
| Idaho | 1 | 35 | 0.4% | 741 | 0.5% |
| Indiana | 1 | 83 | 0.9% | 570 | 0.4% |
| Minnesota | 1 | 39 | 0.4% | 493 | 0.4% |
| Florida | 1 | 6 | 0.1% | 228 | 0.2% |
| Total | 81 | 8,884 | 100.0% | $141,293 | 100.0% |
Tenant Diversification
The following table sets forth certain information regarding tenants comprising over one percent of annualized base rent in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
| Tenant | Number of Leases | Leased Square Feet | Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio |
|---|---|---|---|---|---|
| General Services Administration | 15 | 725 | 8.2% | $19,109 | 13.5% |
| Merrill Lynch | 1 | 482 | 5.4% | 12,465 | 8.8% |
| Highmark Western & Northeastern NY | 1 | 430 | 4.8% | 8,450 | 6.0% |
| RSA Security | 2 | 328 | 3.7% | 7,221 | 5.1% |
| Cigna/Express Scripts | 3 | 365 | 4.1% | 6,922 | 4.9% |
| Coterra Energy | 1 | 309 | 3.5% | 5,762 | 4.1% |
| MDC Holdings Inc. | 1 | 144 | 1.6% | 4,385 | 3.1% |
| T-Mobile | 3 | 217 | 2.4% | 3,971 | 2.8% |
| Charter Communications | 2 | 264 | 3.0% | 3,745 | 2.7% |
| Banner Life Insurance | 1 | 116 | 1.4% | 3,581 | 2.5% |
| Top Ten Tenants | 30 | 3,380 | 38.1% | 75,611 | 53.5% |
| Remaining Tenants: | |||||
| Inform Diagnostics | 1 | 172 | 1.9% | 3,551 | 2.5% |
| Encompass Health | 1 | 65 | 0.7% | 3,505 | 2.5% |
| Collins Aerospace | 1 | 207 | 2.3% | 3,369 | 2.4% |
| Home Depot/HD Supply | 2 | 153 | 1.8% | 3,173 | 2.2% |
| AT&T | 1 | 203 | 2.3% | 2,921 | 2.1% |
| Ingram Micro | 1 | 170 | 1.9% | 2,898 | 2.1% |
| Linde | 1 | 175 | 2.0% | 2,714 | 1.9% |
| Maximus | 2 | 168 | 1.9% | 2,549 | 1.8% |
| Citigroup | 1 | 64 | 0.7% | 2,459 | 1.7% |
| CVS/Aetna | 1 | 127 | 1.4% | 2,328 | 1.7% |
| Hasbro | 1 | 136 | 1.5% | 2,243 | 1.6% |
| Novus International | 1 | 96 | 1.1% | 2,022 | 1.4% |
| Pulte Mortgage | 1 | 95 | 1.1% | 2,005 | 1.4% |
| NetJets | 1 | 140 | 1.6% | 1,990 | 1.4% |
| Elementis | 1 | 66 | 0.7% | 1,980 | 1.4% |
| FedEx | 1 | 90 | 1.0% | 1,744 | 1.2% |
| General Electric | 1 | 152 | 1.7% | 1,713 | 1.2% |
| AGCO | 1 | 126 | 1.4% | 1,607 | 1.1% |
| Intermec | 1 | 81 | 0.9% | 1,459 | 1.0% |
| Abbott Laboratories | 1 | 131 | 1.5% | 1,379 | 1.0% |
| Becton Dickinson | 1 | 72 | 0.8% | 1,370 | 1.0% |
| Total | 53 | 6,069 | 68.3% | $124,590 | 88.1% |
Lease Expirations
The following table sets forth certain information regarding scheduled lease expirations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):
| Year of Expiration | Number of LeasesExpiring (1) | LeasedSquare Feet | Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio |
|---|---|---|---|---|---|
| 2024 | 15 | 1,907 | 21.5% | $39,432 | 27.9% |
| 2025 | 12 | 919 | 10.3% | 16,858 | 11.9% |
| 2026 | 15 | 801 | 9.0% | 18,834 | 13.3% |
| 2027 | 14 | 1,004 | 11.3% | 16,621 | 11.8% |
| 2028 | 11 | 594 | 6.7% | 10,981 | 7.8% |
| 2029 | 4 | 396 | 4.5% | 5,966 | 4.2% |
| 2030 | 3 | 138 | 1.6% | 5,153 | 3.7% |
| 2031 | 1 | 11 | 0.1% | 429 | 0.3% |
| 2032 | 3 | 300 | 3.4% | 3,808 | 2.7% |
| 2033 | 3 | 358 | 4.0% | 6,187 | 4.4% |
| Thereafter | 8 | 716 | 8.0% | 17,024 | 12.0% |
| Total | 89 | 7,144 | 80.4% | $141,293 | 100.0% |
(1)The Company has certain properties that are subject to multiple leases.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.