Orion Office REIT Inc
For the period ended Dec 31, 2024. Filed Mar 5, 2025.
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FY2024 · Filed Mar 5, 2025
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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, 2024, the Company owned 69 operating properties with an aggregate of 7.9 million leasable square feet located in 29 states, with an occupancy rate of 73.0% and a weighted-average remaining lease term of 5.2 years. Including the Company’s proportionate share of leasable square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.1 million leasable square feet, with an occupancy rate of 73.7%, or 73.1% adjusted for two operating properties that are currently under agreements to be sold, and a weighted-average remaining lease term of 5.2 years as of December 31, 2024. 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.
During the year ended December 31, 2024, we split the properties located in Amherst, New York and Denver, Colorado, each containing two buildings, into four separate properties for reporting purposes. Also during the year ended December 31, 2024, we commenced classifying certain of our properties which are being repositioned, redeveloped, developed or held for sale as non-operating properties rather than operating properties, resulting in seven properties being removed from the presentation of the Company’s portfolio of operating properties as of December 31, 2024.
Tenant Industry Diversification
The following table sets forth certain information regarding the tenant industry concentrations in our operating 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, 2024 (dollars and square feet in thousands):
| Industry | Number of Leases (1) | Occupied Square Feet | % of Total Rentable Square Feet | Annualized Base Rent | % of Total Annualized Base Rent |
|---|---|---|---|---|---|
| Government & Public Services | 17 | 769 | 9.5% | $20,179 | 16.8% |
| Health Care Equipment & Services | 10 | 846 | 10.4% | 16,158 | 13.4% |
| Financial Institutions | 2 | 546 | 6.7% | 13,772 | 11.4% |
| Capital Goods | 10 | 846 | 10.4% | 13,207 | 11.0% |
| Consumer Durables & Apparel | 3 | 375 | 4.6% | 8,971 | 7.5% |
| Materials | 5 | 462 | 5.7% | 8,378 | 7.0% |
| Telecommunication Services | 5 | 420 | 5.2% | 7,202 | 6.0% |
| Energy | 1 | 309 | 3.8% | 5,866 | 4.9% |
| Commercial & Professional Services | 10 | 281 | 3.5% | 5,516 | 4.6% |
| Software & Services | 3 | 263 | 3.3% | 5,056 | 4.2% |
| Top Ten Tenant Industries | 66 | 5,117 | 63.1% | 104,305 | 86.8% |
| Remaining Tenant Industries: | |||||
| Transportation | 4 | 279 | 3.5% | 4,536 | 3.8% |
| Media & Entertainment | 2 | 264 | 3.3% | 3,803 | 3.2% |
| Insurance | 1 | 116 | 1.4% | 3,671 | 3.0% |
| Retailing | 3 | 157 | 1.9% | 3,368 | 2.8% |
| Utilities | 1 | 25 | 0.3% | 394 | 0.3% |
| Restaurant | 4 | 15 | 0.2% | 168 | 0.1% |
| Real Estate | 1 | 2 | —% | 48 | —% |
| Total | 82 | 5,975 | 73.7% | $120,293 | 100.0% |
(1)The Company has certain operating properties that are subject to multiple leases.
Geographic Diversification
The following table sets forth certain information regarding the geographic concentrations (by state) in our operating 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, 2024 (dollars and square feet in thousands):
| Location | Number of Properties | Rentable Square Feet | % of Total Rentable Square Feet | Annualized Base Rent | % of Total Annualized Base Rent |
|---|---|---|---|---|---|
| Texas | 15 | 1,352 | 16.7% | $19,910 | 16.5% |
| New Jersey | 3 | 714 | 8.8% | 15,023 | 12.5% |
| Kentucky | 2 | 458 | 5.6% | 10,470 | 8.7% |
| Colorado | 4 | 452 | 5.6% | 8,581 | 7.1% |
| California | 4 | 341 | 4.2% | 8,144 | 6.8% |
| Oklahoma | 3 | 585 | 7.2% | 7,017 | 5.8% |
| New York | 6 | 781 | 9.6% | 6,151 | 5.1% |
| Maryland | 2 | 236 | 2.9% | 4,756 | 4.0% |
| Tennessee | 4 | 240 | 3.0% | 4,708 | 3.9% |
| Georgia | 3 | 284 | 3.5% | 4,669 | 3.9% |
| Top Ten States | 46 | 5,443 | 67.1% | 89,429 | 74.3% |
| Remaining States: | |||||
| Virginia | 2 | 240 | 3.0% | 4,623 | 3.8% |
| Missouri | 2 | 207 | 2.5% | 2,981 | 2.5% |
| South Carolina | 1 | 64 | 0.8% | 2,513 | 2.1% |
| Ohio | 2 | 169 | 2.1% | 2,463 | 2.0% |
| Rhode Island | 2 | 206 | 2.5% | 2,446 | 2.0% |
| Wisconsin | 1 | 155 | 1.9% | 2,357 | 2.0% |
| Illinois | 2 | 163 | 2.0% | 2,240 | 1.9% |
| Iowa | 2 | 92 | 1.1% | 2,001 | 1.7% |
| West Virginia | 1 | 63 | 0.8% | 1,457 | 1.2% |
| Nebraska | 2 | 180 | 2.2% | 1,411 | 1.2% |
| Pennsylvania | 2 | 233 | 2.9% | 1,345 | 1.1% |
| Oregon | 1 | 69 | 0.9% | 1,165 | 1.0% |
| Kansas | 2 | 196 | 2.4% | 1,075 | 0.9% |
| Massachusetts | 2 | 378 | 4.7% | 742 | 0.6% |
| Idaho | 1 | 35 | 0.4% | 741 | 0.6% |
| Indiana | 1 | 83 | 1.0% | 581 | 0.5% |
| Minnesota | 1 | 39 | 0.5% | 493 | 0.4% |
| Florida | 1 | 6 | 0.1% | 230 | 0.2% |
| Arizona | 1 | 91 | 1.1% | — | —% |
| Total | 75 | 8,112 | 100.0% | $120,293 | 100.0% |
Tenant Diversification
The following table sets forth certain information regarding tenants comprising over one percent of annualized base rent in our operating 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, 2024 (dollars and square feet in thousands):
| Tenant | Number of Leases | Occupied Square Feet | % of Total Rentable Square Feet | Annualized Base Rent | % of Total Annualized Base Rent |
|---|---|---|---|---|---|
| General Services Administration | 15 | 725 | 8.9% | $19,631 | 16.3% |
| Bank of America | 1 | 482 | 5.9% | 11,260 | 9.4% |
| Coterra Energy | 1 | 309 | 3.8% | 5,866 | 4.9% |
| Cigna/Express Scripts | 2 | 274 | 3.4% | 4,770 | 4.0% |
| MDC Holdings Inc. | 1 | 144 | 1.8% | 4,473 | 3.7% |
| T-Mobile | 3 | 217 | 2.7% | 4,065 | 3.4% |
| Charter Communications | 2 | 264 | 3.3% | 3,803 | 3.2% |
| Banner Life Insurance | 1 | 116 | 1.4% | 3,670 | 3.1% |
| Encompass Health | 1 | 65 | 0.8% | 3,575 | 3.0% |
| Collins Aerospace | 1 | 207 | 2.6% | 3,440 | 2.9% |
| Top Ten Tenants | 28 | 2,803 | 34.6% | 64,553 | 53.9% |
| Remaining Tenants: | |||||
| Home Depot/HD Supply | 2 | 153 | 1.9% | 3,292 | 2.7% |
| AT&T | 1 | 203 | 2.5% | 3,137 | 2.6% |
| Ingram Micro | 1 | 170 | 2.1% | 2,985 | 2.5% |
| Linde | 1 | 175 | 2.2% | 2,800 | 2.3% |
| Maximus | 2 | 168 | 2.1% | 2,610 | 2.2% |
| Citigroup | 1 | 64 | 0.8% | 2,513 | 2.1% |
| Hasbro | 1 | 136 | 1.7% | 2,446 | 2.0% |
| Valent U.S.A. | 1 | 97 | 1.2% | 2,417 | 2.0% |
| CVS/Aetna | 1 | 127 | 1.6% | 2,403 | 2.0% |
| GE Vernova | 1 | 152 | 1.9% | 2,055 | 1.7% |
| Pulte Mortgage | 1 | 95 | 1.2% | 2,053 | 1.7% |
| NetJets | 1 | 140 | 1.7% | 2,015 | 1.7% |
| Elementis | 1 | 66 | 0.8% | 1,980 | 1.6% |
| Day Pitney | 1 | 56 | 0.7% | 1,783 | 1.5% |
| FedEx | 1 | 90 | 1.1% | 1,744 | 1.4% |
| AGCO | 1 | 126 | 1.6% | 1,607 | 1.3% |
| Intermec | 1 | 81 | 1.0% | 1,503 | 1.2% |
| Abbott Laboratories | 1 | 131 | 1.6% | 1,412 | 1.2% |
| Becton Dickinson | 1 | 72 | 0.9% | 1,397 | 1.2% |
| Ifm Efector | 1 | 45 | 0.6% | 1,345 | 1.1% |
| Peraton | 1 | 33 | 0.4% | 1,184 | 1.0% |
| Total | 51 | 5,183 | 64.2% | $109,234 | 90.9% |
Lease Expirations
The following table sets forth certain information regarding scheduled lease expirations in our operating 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, 2024 (dollars and square feet in thousands):
| Year of Expiration | Number of LeasesExpiring (1) | OccupiedSquare Feet | % of Total Rentable Square Feet | Annualized Base Rent | % of Total Annualized Base Rent |
|---|---|---|---|---|---|
| 2025 | 9 | 859 | 10.6% | $16,200 | 13.5% |
| 2026 | 15 | 688 | 8.5% | 15,572 | 12.9% |
| 2027 | 13 | 973 | 12.0% | 16,524 | 13.7% |
| 2028 | 12 | 992 | 12.2% | 21,091 | 17.5% |
| 2029 | 5 | 398 | 4.9% | 6,174 | 5.1% |
| 2030 | 6 | 214 | 2.7% | 7,094 | 5.9% |
| 2031 | 1 | 11 | 0.1% | 431 | 0.4% |
| 2032 | 3 | 300 | 3.7% | 3,875 | 3.2% |
| 2033 | 3 | 358 | 4.4% | 6,364 | 5.3% |
| 2034 | 4 | 172 | 2.1% | 2,532 | 2.1% |
| Thereafter | 11 | 1,010 | 12.5% | 24,436 | 20.4% |
| Total | 82 | 5,975 | 73.7% | $120,293 | 100.0% |
(1)The Company has certain operating properties that are subject to multiple leases.
Operating Property Type
The following table sets forth certain information regarding property types in our operating 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, 2024 (dollars and square feet in thousands):
| Property Type | Number of Properties | Rentable Square Feet | % of Total Rentable Square Feet | Annualized Base Rent | % of Total Annualized Base Rent |
|---|---|---|---|---|---|
| Traditional Office | 46 | 6,081 | 75.0% | 82,001 | 68.2% |
| Governmental | 16 | 789 | 9.7% | 20,269 | 16.8% |
| Flex/Industrial | 7 | 819 | 10.1% | 8,238 | 6.8% |
| Flex/Laboratory and R&D | 4 | 268 | 3.3% | 6,210 | 5.2% |
| Medical Office | 2 | 155 | 1.9% | 3,575 | 3.0% |
| Total | 75 | 8,112 | 100.0% | 120,293 | 100.0% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.