Orion Properties Inc. (NYSE: ONL)

Orion Properties Inc. is an internally managed real estate investment trust specializing in the ownership, acquisition, and management of a diversified portfolio of office properties across the United States. The company focuses on high-quality suburban markets, primarily leasing properties on a single-tenant net lease basis to creditworthy tenants. Orion’s portfolio includes traditional office spaces alongside specialized assets such as governmental, medical office, flex/laboratory, research and development, and flex/industrial properties. As a publicly traded REIT, the company operates with a long-term strategy to shift its portfolio toward dedicated-use assets that incorporate an office component, aiming to enhance stability and tenant retention.

Orion Properties Inc. generates revenue primarily through leasing its office properties under long-term net lease agreements. These leases typically shift operating expenses, such as maintenance, taxes, and insurance, to the tenant, providing the company with stable and predictable cash flows. The majority of its income is derived from annualized base rent, with additional revenue streams including lease renewals, property sales, and its proportional share of income from joint venture investments. The company’s focus on creditworthy tenants and inflation-protected lease structures further supports consistent revenue generation.

The company operates as a single, integrated real estate investment platform without distinct operational segments.

Orion Properties Inc. occupies a niche position within the U. S. office real estate sector, distinguishing itself through its focus on suburban markets and single-tenant net lease structures. The company competes with other REITs specializing in office, medical, and flex properties, as well as private real estate investors and institutional funds. Its competitive advantages include a vertically integrated management structure, which allows for direct tenant engagement and operational efficiencies, and a strategic emphasis on dedicated-use assets that are less susceptible to remote work trends. The company’s experienced management team, with over 25 years of industry expertise, further strengthens its ability to identify value-creating opportunities and navigate market cycles.

Orion Properties Inc. serves a diverse customer base, primarily consisting of creditworthy tenants across government, healthcare, financial services, and capital goods industries. As of December 31, 2025, two tenants accounted for a significant portion of its annualized base rent: the General Services Administration, representing 17.8%, and Merrill Lynch, contributing 10%. The company’s tenant roster includes investment-grade and non-investment-grade entities, with a weighted average remaining lease term of 5.7 years, providing a balance of stability and growth potential.