Orion Properties Inc (ONL) 2024 Q4 法說會逐字稿

Greetings, and welcome to Orion Properties fourth quarter and full-year 2024 earnings call. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Counsel for Orion. Thank you. You may begin.

大家好，歡迎參加 Orion Properties 2024 年第四季和全年財報電話會議。提醒一下，本次會議正在錄音。現在我想將電話轉給 Orion 總法律顧問 Paul Hughes。謝謝。你可以開始了。

Thank you, and good morning, everyone. Yesterday, Orion released its financial results for the quarter and year ended December 31, 2024, filed its annual report on Form 10-K with the Securities and Exchange Commission and posted its earnings supplement to its website at onlreit.com.

謝謝大家，早安。昨日，Orion 公佈了截至 2024 年 12 月 31 日的季度和年度財務業績，向美國證券交易委員會提交了 10-K 表年度報告，並將其收益補充文件發佈在其網站 onlreit.com 上。

During the call today, we will be discussing certain forward-looking statements such as the company's guidance estimates for calendar year 2025, which are based on management's current expectations and are subject to certain risks that could cause actual results to differ materially from our estimates. The risks are discussed in our earnings release as well as in our Form 10-K and other SEC filings. And Orion undertakes no duty to update any forward-looking statements made during this call.

在今天的電話會議中，我們將討論某些前瞻性陳述，例如公司對 2025 日曆年的指導估計，這些陳述基於管理層當前的預期，並受某些風險的影響，可能導致實際結果與我們的估計存在重大差異。我們在收益報告、10-K 表格以及其他 SEC 文件中討論了這些風險。Orion 不承擔更新本次電話會議中所做的任何前瞻性聲明的義務。

Today on the call, we will be discussing certain non-GAAP financial measures, which are not a substitute for financial information presented in accordance with GAAP, such as funds from operations or FFO, and core funds from operations or core FFO. Orion's earnings release and supplement include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure.

在今天的電話會議上，我們將討論某些非 GAAP 財務指標，這些指標不能替代按照 GAAP 呈現的財務信息，例如營運資金或 FFO，以及核心營運資金或核心 FFO。Orion 的收益報告和補充報告包括這些非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整表。

Hosting the call today are Orion's Chief Executive Officer, Paul McDowell; and Chief Financial Officer, Gavin Brandon. And joining us for the Q&A session are Gary Landriau, our Chief Investment Officer; and Chris Day, our Chief Operating Officer.

今天主持電話會議的是 Orion 的執行長 Paul McDowell；也是財務長加文布蘭登（Gavin Brandon）。參加問答環節的還有我們的首席投資長 Gary Landriau；以及我們的營運長 Chris Day。

With that, I am now going to turn the call over to Paul McDowell.

說完這些，我現在將把電話轉給保羅·麥克道爾 (Paul McDowell)。

Good morning, everyone, and thank you for joining us on Orion Properties fourth quarter earnings call. Today, I will provide a recap on the quarter and full year 2024 and then speak to the business and the direction we plan to take the company.

大家早安，感謝您參加 Orion Properties 第四季財報電話會議。今天，我將回顧本季和 2024 年全年的情況，然後談談業務以及我們計劃帶領公司發展的方向。

Following my remarks, Gavin will review our financial results and provide our outlook for 2025. The highlight of the year was leasing. As we exited 2024, there is no question that the overall market tone was improving, which was reflected in our leasing performance, which totaled about 1.1 million square feet. This was more than 4 times the leasing we delivered in 2023. A great example of this positive momentum was our approximately 136,000 square foot Hasbro property in downtown Providence, Rhode Island.

在我發言之後，加文將回顧我們的財務表現並提供 2025 年的展望。本年度的亮點是租賃。當我們退出 2024 年時，毫無疑問整體市場基調正在改善，這反映在我們的租賃業績上，總計約 110 萬平方英尺。這是我們在 2023 年交付的租賃量的 4 倍以上。這一積極勢頭的一個很好的例子就是我們位於羅德島普羅維登斯市中心約 136,000 平方英尺的孩之寶地產。

Last year, Hasbro notified us that they were moving out of this Class A building, and after a brief but intensive marketing effort, we were able to backfill the entire building almost immediately with a long-term 11-year lease to Rhode Island's largest health system Lifespan Corporation, now called Brown University Health. Hasbro's lease expired in early February, and we expect Life Span's lease to commence roughly 60 days thereafter.

去年，孩之寶通知我們他們要搬出這座甲級建築，在經過短暫但密集的營銷努力後，我們幾乎立即就將整棟建築租了出去，並簽訂了一份為期 11 年的長期租約，租給了羅德島最大的醫療系統 Lifespan Corporation（現稱為布朗大學健康中心）。Hasbro 的租約於 2 月初到期，我們預計 Life Span 的租約將在約 60 天後開始。

Overall, we signed 287,000 square feet of new leases in 2024, which is more than 13 times the new leases signed in 2023 at 21,000 square feet.

總體而言，我們在 2024 年簽署了 287,000 平方英尺的新租約，是 2023 年簽署的 21,000 平方英尺新租約的 13 倍多。

This year has started with a robust pipeline of potential new and renewal leasing transactions. We exited 2024 with a portfolio weighted average lease term or WALT that now stands at 5.2 years, up from 4 years at the same time last year, which reflects our stabilizing portfolio.

今年年初，潛在的新租賃和續租交易強勁。截至 2024 年，我們的投資組合加權平均租賃期間 (WALT) 目前為 5.2 年，高於去年同期的 4 年，這反映了我們的投資組合趨於穩定。

Renewal rent spreads for 2024 leasing activity were down 6.6%, primarily because of one lease renewed in the fourth quarter with significant rent roll down. These pressures on rent spreads reflect the significant competition we face to retain and find new tenants in specific markets. However, renewal rent spreads on a GAAP or average rent basis due to annual rent bumps over the lease terms are positive by just over 2%.

2024 年租賃活動的續約租金利差下降了 6.6%，主要是因為第四季續約了一份租約，租金大幅下降。這些租金差價壓力反映了我們在特定市場留住和尋找新租戶時所面臨的激烈競爭。然而，由於租賃期間每年的租金上漲，以 GAAP 或平均租金計算的續約租金利差略高於 2%。

Given the smaller size of our portfolio, this figure will be quite volatile quarter-to-quarter and even year-to-year as we lease individual properties. Another key accomplishment I want to highlight is that Orion has weathered the intensive lease rollover of the past three years. Particularly in 2024 when we [had] close to $40 million in annualized base rents scheduled to expire.

鑑於我們的投資組合規模較小，由於我們租賃的是單一房產，因此這個數字在每個季度甚至每年都會有很大波動。我想要強調的另一個重要成就是 Orion 經受住了過去三年密集的租約展期考驗。特別是在 2024 年，我們有近 4000 萬美元的年度基本租金即將到期。

Looking ahead, while we will still face significant lease expirations and rollover risk, we anticipate the combined pace of lease-up and disposition of vacant properties will exceed the pace of tenant move-outs and our portfolio occupancy will begin to rise after this year. We have made significant progress in reorienting our portfolio since our spin, and we believe that 2025 and into 2026 will be the [nature] of our revenue and core FFO earnings declines followed by accelerating revenue and earnings growth as we move into 2027 and thereafter.

展望未來，雖然我們仍將面臨重大的租約到期和展期風險，但我們預計租賃和空置物業處置的總速度將超過租戶遷出的速度，並且我們的投資組合入住率將在今年後開始上升。自分拆以來，我們在調整投資組合方面取得了重大進展，我們相信，2025 年和 2026 年將是我們收入和核心 FFO 收益下降的階段，而進入 2027 年及以後，收入和收益將加速增長。

Overall, we have delivered against our strategic plan even as the broader office markets have seen a historic collapse in demand. However, as we have observed the events of the past three years and their impacts on our portfolio, we have noted a significant trend that we believe we can capitalize on over time to build a more stable, long-duration property mix.

整體而言，儘管整體辦公市場需求出現歷史性下滑，但我們仍履行了策略計畫。然而，透過觀察過去三年的事件及其對我們投資組合的影響，我們注意到一個重要的趨勢，我們相信我們可以隨著時間的推移利用這一趨勢來建立更穩定、期限更長的房地產組合。

During this period, we have experienced historically high nonrenewals in many of our traditional or generic office properties as tenant space needs have shrunk due to the work from home and other phenomenon. While at the same time, we have had good success renewing tenants who occupy our dedicated use assets that have an office component.

在此期間，由於在家工作等現象導致租戶空間需求減少，我們許多傳統或普通辦公大樓的未續約率達到歷史最高水準。同時，我們也成功地續簽了擁有辦公室部分的專用資產的租戶。

We believe that owning properties where our tenants conduct business that cannot be replicated from home or other generic office locations will have higher usage, stronger rents and higher likelihood of lease renewal thus stabilizing cash flows and increasing our growth profile.

我們相信，擁有我們的租戶開展無法從家庭或其他普通辦公地點複製的業務的物業將具有更高的使用率，更高的租金和更高的租約續約可能性，從而穩定現金流並提高我們的成長前景。

These dedicated use assets, or DUA have other attractive features that we believe enhance tenant stability, such as significant tenant investment in FF&E and strategic placement near dedicated workforces in addition to other attributes. Our DUA property focus will include medical, lab, R&D, flex and non-CBD government, all property types we already own.

這些專用資產或 DUA 具有其他有吸引力的特點，我們認為這些特點可以提高租戶的穩定性，例如，除了其他屬性之外，租戶對 FF&E 的大量投資以及靠近專用勞動力的戰略位置。我們的 DUA 房地產重點將包括醫療、實驗室、研發、彈性和非 CBD 政府，所有類型的房地產我們都已經擁有。

A good example of this property type is the [valid lab] and office property that we added in San Ramon, California during the third quarter. As we execute on this shift in strategy, we intend to continue to move away from generic office properties that has already been well underway as we have aggressively sold these types of properties as they have become vacant. At year-end, approximately 32% of our properties measured by annualized base rent or 25% as measured by total square footage, our dedicated use.

這種物業類型的一個很好的例子是我們在第三季在加州聖拉蒙增加的[有效實驗室]和辦公室物業。在執行這項策略轉變的過程中，我們打算繼續擺脫已經在建的普通辦公大樓，因為我們已經積極出售空置的此類物業。截至年底，我們約有 32% 的房產以年度基本租金衡量，約有 25% 的房產以總面積衡量，這是我們的專用房產。

As we move ahead, we intend to gradually increase this percentage over time through property sales of traditional office, including both vacant and stabilized assets and selectively adding DUA properties in their place. In connection with this strategy shift, as we announced earlier today, we are re-branding the company name to Orion Properties, which we believe better reflects the company's current portfolio mix and the direction away from traditional office toward our focus on dedicated use assets as we move forward.

隨著我們的前進，我們打算透過出售傳統辦公大樓的物業（包括空置資產和穩定資產）並選擇性地在其位置添加 DUA 物業來逐步提高這一比例。與這一策略轉變相關，正如我們今天早些時候宣布的那樣，我們將公司名稱重新命名為 Orion Properties，我們認為這更好地反映了公司目前的投資組合結構以及我們未來從傳統辦公室轉向專注於專用資產的方向。

We recognize as a smaller-sized REIT that G&A as a percentage of assets and revenues is of particular importance. Accordingly, together with our corporate re-branding and strategy shifts, we have made various changes to more effectively align our G&A costs. Examples of savings include restructuring the composition of the team and responsibilities to streamline operations and more effectively manage G&A.

我們認識到，作為一個規模較小的房地產投資信託基金 (REIT)，一般及行政開支佔資產和收入的百分比尤為重要。因此，結合企業品牌重塑和策略轉變，我們做出了各種改變，以更有效地協調我們的一般行政費用 (G&A) 成本。節省開支的例子包括重組團隊組成和職責，以簡化營運並更有效地管理一般及行政費用。

We will incur a restructuring charge in 2025 related to these changes. One of the changes I want to acknowledge directly is the retirement of Gary Landriau, our Chief Investment Officer, effective June 30. Gary and I have worked together closely for nearly 30 years at Orion and its predecessor companies, and I want to thank him personally for all his contributions, which have been immense. He is an outstanding professional, and we will miss him. Luckily, we have a strong bench here at Orion, and it is our intention to reallocate his responsibilities to the team already in place.

我們將在 2025 年承擔與這些變化相關的重組費用。我想直接承認的變化之一是我們的首席投資長加里·蘭德里奧 (Gary Landriau) 將於 6 月 30 日退休。加里和我在 Orion 及其前身公司密切合作了近 30 年，我要親自感謝他所做的所有巨大貢獻。他是一位傑出的專業人士，我們會懷念他。幸運的是，Orion 擁有強大的替補席，我們打算將他的職責重新分配給現有的球隊。

To allow for transition, following his retirement, Gary will remain in a consulting role at Orion through January 2026. We also expect to make additional changes to further streamline our efficiency and team as we move through the year, but none will be as impactful financially as the roughly $1 million of annualized savings we will be able to [realized] on Gary's retirement.

為了實現過渡，退休後，加里將繼續擔任 Orion 的顧問職務，直到 2026 年 1 月。我們也預計將在今年做出其他改變，以進一步精簡我們的效率和團隊，但從財務角度來看，沒有什麼比加里退休後我們將能夠[實現]的約 100 萬美元年度化節省更有影響力。

Further to our commitment to aligning G&A, Gavin and I have both foregone any salary increase for this year. We are severely limiting promotions and average salary increases for the remainder of Orion's employees in 2025 will be below inflation. Even with these measures, it is important to understand we need to maintain the team to both run a public company and manage our portfolio, which is increasingly becoming more management intensive as more properties become multi-tenant.

為了進一步協調一般及行政事務，Gavin 和我都放棄了今年的任何加薪。我們正在嚴格限制晉升，2025年Orion剩餘員工的平均薪資成長將低於通貨膨脹率。即使採取了這些措施，我們仍然需要明白，我們需要維持團隊來經營一家上市公司並管理我們的投資組合，隨著越來越多的物業成為多租戶，投資組合的管理變得越來越密集。

Importantly, these efforts should enable us to keep G&A flat year-over-year despite continued inflationary pressures on costs across the board. While market leasing tone is improving, it is from a very low base, and they remain a myriad of challenges ahead for all suburban office property owners, including Orion. We expect tenant concessions to remain high and rents to remain pressured on both renewals and re-tenanting.

重要的是，儘管整體成本持續面臨通膨壓力，這些努力應該能夠讓我們的 G&A 費用保持同比持平。雖然市場租賃基數正在改善，但基數非常低，包括 Orion 在內的所有郊區辦公大樓業主仍面臨無數挑戰。我們預計租戶優惠仍將保持高位，續租和重新租賃的租金仍將面臨壓力。

Additionally, it remains to be seen how objectives of the new presidential administration will impact our [GSA] portfolio, though we remain cautiously optimistic as nearly our entire portfolio is in the firm term and none is in the immediate Washington, D.C. area.

此外，新總統政府的目標將如何影響我們的 [GSA] 投資組合仍有待觀察，但我們仍然保持謹慎樂觀，因為幾乎我們的整個投資組合都處於固定期限內，而且沒有一個位於華盛頓特區附近。

Accordingly, as we've been communicating for more than three years, Orion needs to maintain liquidity, although we will inevitably see debt levels rising on both an absolute and debt-to-EBITDA basis in coming years, offset by anticipated earnings growth in the out years. We expect to further pay our portfolio through accelerating asset sales in 2025 focused on traditional office.

因此，正如我們三年多來一直在傳達的信息一樣，Orion 需要保持流動性，儘管我們不可避免地會看到未來幾年債務水平在絕對值和債務與 EBITDA 之比上都會上升，但會被未來幾年預期的盈利增長所抵消。我們預計在 2025 年透過加速以傳統辦公室為重點的資產銷售來進一步支付我們的投資組合。

We are continuing to evaluate our best exit strategy for the former Walgreen campus in Deerfield, Illinois and expect to demolish the outdated office buildings this spring to lower our cost of carry, should we decide to continue to own the land in anticipation of future development. In the fourth quarter, we also extended the mortgage loan financing on our [Art Street] joint venture portfolio for one year until November 2025.

我們正在繼續評估位於伊利諾伊州迪爾菲爾德的前沃爾格林園區的最佳退出策略，並預計今年春天拆除過時的辦公大樓以降低持有成本，如果我們決定繼續擁有土地以備未來的發展。第四季度，我們也將[藝術街]合資企業投資組合的抵押貸款融資延長一年，至2025年11月。

We have also recently extended the [Sysmex] lease in the joint venture portfolio by 10 years and made a member loan to the joint venture at 15% annual interest to fund a modest pay down of the mortgage loan and the Sysmex leasing costs in connection with the extension.

我們最近還將合資企業組合中的 [Sysmex] 租約延長了 10 年，並以年利率 15% 的價格向合資企業提供了一筆成員貸款，用於適度償還抵押貸款和與延期相關的 Sysmex 租賃成本。

We had $9.2 million receivable under the member loan as of March 5, 2025. We structured this loan to pay interest and principal monthly from excess cash flows from the six properties in the joint venture portfolio, thus reducing our repayment risk. As part of our ongoing efforts to retain capital to execute on the business plan and accelerate our pathway to earnings growth, we are constantly evaluating our sources and uses of capital, including our dividend, which is our cheapest source of capital.

截至 2025 年 3 月 5 日，我們的會員貸款應收款為 920 萬美元。我們對這筆貸款進行了結構化，利用合資投資組合中六處房產的剩餘現金流每月支付利息和本金，從而降低了我們的還款風險。作為我們持續努力保留資本以執行業務計劃並加速獲利成長進程的一部分，我們不斷評估我們的資本來源和用途，包括我們的股息，這是我們最便宜的資本來源。

While the current dividend is well covered on a core FFO basis, the Board of Directors has approved a new dividend of $0.02 per share beginning with the first quarter. The change to the dividend payout is consistent with the strategic change we are announcing today as we seek the lowest cost of funds to help us maintain and grow existing tenancy, continue to shift towards more dedicated use assets and efficiently refinance our debt obligations as they come due in 2026 and 2027.

雖然當前股息在核心 FFO 基礎上已充分覆蓋，但董事會已批准從第一季開始派發每股 0.02 美元的新股息。股息支付的變化與我們今天宣布的策略變化一致，因為我們尋求最低的資金成本來幫助我們維持和發展現有租賃，繼續轉向更專用的資產，並在 2026 年和 2027 年到期時有效地為我們的債務進行再融資。

As we enter 2025, we will continue to invest capital in well-located properties we believe will generate strong sustained cash flow in our target growth markets and property type. During the year and in the coming years, we will need to fund capital expenditures to enhance the long-term value and to ensure we can continue to lease our properties and keep current tenants and attract new companies. This strategy is the reason we have remained highly disciplined in reducing debt and maintaining a low leverage balance sheet over the past three years.

進入 2025 年，我們將繼續投資於位置優越的房產，我們相信這些房產將在我們的目標成長市場和房產類型中產生強勁的持續現金流。在今年及未來幾年，我們將需要資助資本支出以提高長期價值，並確保我們能夠繼續租賃我們的物業、留住現有租戶並吸引新公司。這項策略是我們在過去三年中一直嚴格遵守減少債務和維持低槓桿資產負債表的原因。

Given last year's strong leasing in our growing pipeline this year, we are beginning to realize the benefits of some of our past investments. That said, in 2025, the impact of the rise in interest rates, the 19 properties we have sold and the vacancy we carry from lease [rollover over] the last few years, will pressure cash flow as we have previously communicated.

鑑於去年我們今年不斷成長的專案租賃表現強勁，我們開始意識到過去的一些投資帶來的收益。話雖如此，但正如我們之前所說的，到 2025 年，利率上升、我們已售出的 19 處房產以及過去幾年租賃（展期）產生的空置率的影響將給現金流帶來壓力。

Importantly, we remain profitable from an FFO and core FFO per share basis. As I shared earlier, we believe that 2025 and into 2026 will be at the bottom. And beyond this year and in 2027, we will start to show flat-to-modest growth in many key metrics as newly leased space begins generating income and as associated vacant carry cost decline.

重要的是，我們仍然從 FFO 和每股核心 FFO 角度保持獲利。正如我之前所分享的，我們認為 2025 年和 2026 年將達到最低點。今年以後到 2027 年，隨著新租賃空間開始產生收入以及相關空置成本下降，我們將開始在許多關鍵指標中呈現平穩至溫和的成長。

We are quite energized that this transformation will position the company to grow meaningfully in the future and encouraged that the leasing momentum will continue to contribute to stabilization of our portfolio.

我們非常高興，此次轉型將使公司在未來實現有意義的成長，並鼓勵租賃動能繼續有助於穩定我們的投資組合。

With that, I will pass the call to Gavin.

說完，我將把電話轉給加文。

Thanks, Paul. I will start by discussing Orion results for the fourth quarter and full year and then provide our 2025 financial outlook. Orion generated total revenues of $38.4 million in the fourth quarter as compared to $43.8 million in the same quarter of the prior year.

謝謝，保羅。我將首先討論 Orion 第四季和全年的業績，然後提供我們的 2025 年財務展望。獵戶座第四季總營收為 3,840 萬美元，而去年同期為 4,380 萬美元。

We reported a net loss attributable to common stockholders of $32.8 million or $0.59 per share as compared to a net loss of $16.2 million or $0.29 per share reported in the fourth quarter of 2023. Core FFO for the quarter was $10.2 million or $0.18 per share as compared to $18.5 million or $0.33 per share in the same quarter of 2023.

我們報告歸屬於普通股股東的淨虧損為 3,280 萬美元或每股 0.59 美元，而 2023 年第四季報告的淨虧損為 1,620 萬美元或每股 0.29 美元。本季核心 FFO 為 1,020 萬美元或每股 0.18 美元，而 2023 年同期為 1,850 萬美元或每股 0.33 美元。

Adjusted EBITDA was $16.6 million versus $24.6 million in the same quarter of 2023. The changes year-over-year are primarily related to vacancies and the timing of leasing activity. For the full year, Orion's revenues were $164.9 million and a net loss attributable to common stockholders was $103 million, or a net loss of $1.84 per share. Core FFO was $56.8 million or $1.01 per share. Adjusted EBITDA for the full year was $82.8 million.

調整後 EBITDA 為 1,660 萬美元，而 2023 年同期為 2,460 萬美元。與去年同期相比的變化主要與空置率和租賃活動的時間有關。全年而言，Orion 的營收為 1.649 億美元，歸屬於普通股股東的淨虧損為 1.03 億美元，即每股淨虧損 1.84 美元。核心 FFO 為 5,680 萬美元，即每股 1.01 美元。全年調整後 EBITDA 為 8,280 萬美元。

G&A in the fourth quarter came in as expected at $6.1 million compared to $5.5 million in the same quarter of 2023. The change was primarily due to higher compensation expenses as a result of annual merit increases at the beginning of 2024, the hiring of one additional headcount during the year to support our leasing efforts, along with an additional year of noncash equity-based compensation expense. As it relates to equity-based compensation expenses, our awards have a three-year vesting period.

第四季的 G&A 費用達到預期的 610 萬美元，而 2023 年同期為 550 萬美元。這項變更主要是由於 2024 年初年度績效加薪導致的薪酬費用增加、年內額外招聘一名員工以支持我們的租賃工作以及額外一年的非現金股權薪酬費用。由於它與股權激勵費用有關，我們的獎勵有三年的歸屬期。

In 2023, there are only two years' worth of equity grounds being expensed. And at the end of 2024, the company had three years' worth of equity grants being expensed. As a result, the future year-over-year variances are not expected to be significant. CapEx in the fourth quarter was $8.2 million compared to $7.4 million in the same quarter of 2023, and as we have previously discussed, CapEx timing is dependent on when leases are signed and work is completed on properties.

2023年，只有兩年的股權理由被費用化。截至 2024 年底，該公司已有三年的股權授予被計入費用。因此，預計未來年比差異不會很大。第四季的資本支出為 820 萬美元，而 2023 年同期的資本支出為 740 萬美元，正如我們之前討論過的，資本支出時間取決於簽署租約的時間以及房產工程的完成時間。

CapEx will likely increase over time as leases roll and new and existing tenants draw upon tenant improvement allowances. G&A for the full year was $20.1 million, building updates, tenant improvements and leasing costs were $24.1 million. Turning to the balance sheet.

隨著租約的延長以及新舊租戶利用租戶改善津貼，資本支出可能會隨著時間的推移而增加。全年一般及行政開支為 2,010 萬美元，建築更新、租戶改善及租賃成本為 2,410 萬美元。轉向資產負債表。

We ended the year with total liquidity of $247 million, comprised of $16 million of cash and cash equivalents, including the company's pro rata share of cash from the [Art Street] joint venture and $231 million available capacity on the credit facility revolver. As Paul discussed, we intend to maintain significant liquidity on the balance sheet for the foreseeable future to fund expected capital commitments to support our leasing efforts and provide the financial flexibility needed to execute on our business plan over the next several years.

截至年底，我們的總流動資金為 2.47 億美元，其中包括 1,600 萬美元的現金和現金等價物，包括公司從 [Art Street] 合資企業按比例獲得的現金和 2.31 億美元的信用額度循環信貸可用容量。正如保羅所討論的，我們打算在可預見的未來在資產負債表上保持大量流動性，以資助預期的資本承諾，支持我們的租賃工作，並提供在未來幾年執行我們的業務計劃所需的財務靈活性。

During the fourth quarter of 2024, the company financed the San Ramon [and] California property acquired for $34.6 million in September 2024, with an $18 million seven-year 5.9% per annum fixed rate mortgage loan. In addition, the (inaudible) joint venture elected its first option to extend maturity date on its mortgage debt an additional 12 months until November 27, 2025.

2024 年第四季度，該公司以 1,800 萬美元的七年期 5.9% 年利率固定利率抵押貸款為 2024 年 9 月以 3,460 萬美元收購的聖拉蒙 [和] 加州房產提供融資。此外，該合資企業選擇了其第一個選擇，將其抵押債務的到期日再延長 12 個月至 2025 年 11 月 27 日。

We ended the year with $518.3 million of outstanding debt, including a $355 million CMBS loan [that] a securitized mortgage loan collateralized by 19 properties, $119 million of floating rate debt on the credit facility revolver, $18 million of the mortgage loan for the San Ramon property and $26.3 million, representing our share of the [Arch Street] joint venture mortgage debt.

截至年底，我們的未償還債務為 5.183 億美元，其中包括 3.55 億美元的 CMBS 貸款（即由 19 處房產抵押的證券化抵押貸款）、1.19 億美元的信貸額度循環信貸浮動利率債務、1800 萬美元的聖拉蒙房產抵押貸款以及 2630 萬美元（代表我們在債務中的合資企業中的合資企業 [Arch Street）。

During 2024, the company elected its option to extend the maturity date on the credit facility revolver for an additional 18 months until May 12, 2026. At year-end, our net debt to adjusted EBITDA was 6.06 times. And since the spin, we have repaid $146 million of the outstanding balance on the credit facility.

2024 年，該公司選擇將信貸額度循環信貸的到期日延長 18 個月，至 2026 年 5 月 12 日。截至年底，我們的淨債務與調整後 EBITDA 的比率為 6.06 倍。自分拆以來，我們已償還了 1.46 億美元的信貸額度未償還餘額。

On March 4, 2025, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the first quarter of 2025, payable on April 15, 2025, to stockholders of record as of March 31, 2025. Turning to the 2025 outlook.

2025 年 3 月 4 日，Orion 董事會宣布 2025 年第一季的季度現金股利為每股 0.02 美元，將於 2025 年 4 月 15 日支付給截至 2025 年 3 月 31 日登記在冊的股東。展望2025年。

As Paul stated, over the last few years, our financial results have been significantly impacted by significant lease expirations, and we have incurred increased vacant carry cost as a result. We expect vacancies to continue throughout 2025, and we believe we will be in the bottom in 2025 and into 2026 as it relates to vacancies while we continue to focus on reducing vacant carry costs by leasing of vacant assets or disposing of the assets we no longer want to own. \

正如保羅所說，在過去幾年中，我們的財務表現受到大量租約到期的嚴重影響，並因此導致空置持有成本增加。我們預計空置狀況將持續到 2025 年，我們相信空置率將在 2025 年至 2026 年處於最低點，同時我們將繼續專注於透過租賃空置資產或處置我們不再想擁有的資產來降低空置持有成本。\

Turning to our guidance. Our core FFO for 2025 is expected to range from $0.61 to $0.70 per diluted share. Additionally, our G&A for 2025 is anticipated to range from $19.5 million to $20.5 million, which is the same range we provided in our 2024 outlook.

轉向我們的指導。我們預計 2025 年的核心 FFO 將在每股攤薄收益 0.61 美元至 0.70 美元之間。此外，我們預計 2025 年的 G&A 將在 1950 萬美元至 2050 萬美元之間，這與我們在 2024 年展望中提供的範圍相同。

Net debt to adjusted EBITDA is expected to range from 8.0x to 8.8x. Excluding noncash compensation, we expect 2025 G&A will be in line or slightly better than 2024. We also do not expect G&A to rise significantly in the outer years, including noncash compensation. As a percentage of revenue and total assets, our G&A remains in line with other similarly sized public REITs.

淨債務與調整後 EBITDA 比率預計在 8.0 倍至 8.8 倍之間。不包括非現金薪酬，我們預計 2025 年的 G&A 將與 2024 年持平或略好。我們也不認為未來幾年 G&A 費用（包括非現金薪酬）會大幅增加。作為收入和總資產的百分比，我們的 G&A 與其他規模相似的公共房地產投資信託基金保持一致。

With that, I will open the line for questions.

現在，我將開始回答大家的提問。

Operator?

操作員？

(Operator Instructions) Mitch Germain, Citizens Capital Markets.

（操作員指示） Mitch Germain，公民資本市場。

Paul, what gives you the confidence that 2026 is going to start a rebound?

保羅，什麼讓你有信心 2026 年將會反彈？

Well, as you might imagine, we work intensively with the portfolio and then looking at our trends in leasing and where we expect we can sell vacancy and a variety of other factors. And when we look at our results looking backwards in 2025, the leasing momentum in '24 rather, and the leasing momentum we have going into [2020.] We're starting to see the portfolio stabilize.

嗯，正如你可能想像的那樣，我們密切關注投資組合，然後研究我們的租賃趨勢以及我們預計可以出售空屋的地方以及各種其他因素。當我們回顧 2025 年的業績、24 年的租賃勢頭以及進入 [2020 年] 的租賃勢頭時，我們開始看到投資組合趨於穩定。

We have disposed of or continue to dispose of the generic or traditional office properties that we don't think have got strong re-leasing opportunities. And so the core portfolio we have left, we think is stable and that stability is increasing over time. And as that stability increases and we leased up some more vacancy we expect to see revenues and then, of course, bottom line core FFO turn the corner in '25 or during '26 depending on a variety of factors.

我們已經處置或繼續處置那些我們認為沒有太多轉租機會的普通或傳統辦公大樓。因此，我們認為剩下的核心投資組合是穩定的，並且這種穩定性會隨著時間的推移而增強。隨著這種穩定性的增強以及我們出租了更多的空屋，我們預計收入以及核心 FFO 將在 25 年或 26 年出現轉機，這取決於多種因素。

Got you. If I think about your strategic shift that you referenced on the call in your press release, I'm trying to understand, you said about a third of the portfolio now fits that category. So is the thought that over the next 36 months to the extent whether it's vacant or occupied, you're going to be pursuing a pretty significant amount of asset sales. Is that the way to think about how the plan is going to evolve over the course of the next couple of years?

明白了。如果我考慮您在新聞稿中提到的策略轉變，我試圖理解，您說現在大約三分之一的投資組合符合這個類別。因此，我們的想法是，在接下來的 36 個月內，無論是空置還是被佔用，你都將進行相當數量的資產出售。我們是不是這樣思考這個計畫在未來幾年會如何發展？

Yes. I think that's exactly right, Mitch. Of course, it will be dependent upon where capital markets, where this rather give us opportunity. But our goal is, over time, as we've been doing, by the way, over the past couple of years, we've been pretty aggressive about trying to sell some of the outdated office properties, traditional office properties that we own, and we've had quite good success in renewing what we call dedicated use assets, whether they be government or flex. So we expect that trend to continue.

是的。我認為完全正確，米奇。當然，這將取決於資本市場在哪裡，反而會給我們機會。但我們的目標是，隨著時間的推移，正如我們在過去幾年中一直在做的那樣，我們一直非常積極地嘗試出售一些我們擁有的過時的辦公物業、傳統辦公物業，並且我們在更新我們所謂的專用資產方面取得了相當大的成功，無論是政府資產還是彈性資產。因此我們預計這一趨勢將會持續下去。

So we're going to look to sell vacancy to the extent that we have appetite to add additional properties will add additional dedicated use assets, and we'll also look at selling some of the stabilized assets we have and replacing those traditional stabilized office buildings with longer-dated dedicated use assets. And the goal is to grow the portfolio over time and shift the portfolio over time to one where we have a longer weighted average lease term and where we have greater confidence in the long-term durability of the cash flows from the assets.

因此，我們將考慮出售空置物業，只要我們有興趣增加額外的房產，將增加額外的專用資產，我們還將考慮出售我們擁有的一些穩定資產，並用較長期的專用資產取代那些傳統的穩定辦公大樓。我們的目標是隨著時間的推移擴大投資組合，並隨著時間的推移將投資組合轉變為擁有更長加權平均租賃期限的投資組合，並且我們對資產現金流的長期持久性更有信心。

Got you. Talk to me about the transaction with the joint venture. In reading the [K], it seemed like the partner had no capital. They're unwilling. I mean what's specifically happening there? And what gives me confidence about [Arch Street's] kind of commitment to that venture on a longer term?

明白了。跟我談談與合資企業的交易情況。在閱讀[K]時，看起來合夥人沒有資本。他們不願意。我是說那裡具體發生了什麼事？那麼什麼讓我對 Arch Street 對這項計畫的長期承諾充滿信心呢？

Right. [Well, we stress], we've maintained a very strong relationship with [Art Street,] and they have been a good partner to us. They are essentially a capital aggregator, and they have [aggregated] capital in Middle Eastern countries for the initial investments in these properties.

正確的。 [好吧，我們強調]，我們與[藝術街]保持著非常牢固的關係，他們一直是我們的好合作夥伴。他們本質上是一個資本聚合器，他們在中東國家已經聚集了資本，用於對這些房產進行初始投資。

With the initial expectation back when the joint venture was first put together at [Vari], would be that there would be no additional capital calls on those investors. I think that's what when [Art Street] or their partners [Statehouse] were selling it to their investors was essentially, let's invest in long-dated office properties, and you'll enjoy the capital returns associated with those and eventually a return of capital.

當 [Vari] 首次組成合資企業時，最初的預期是不會對這些投資者提出額外的資本要求。我認為這就是 [Art Street] 或其合作夥伴 [Statehouse] 將其出售給投資者時的本質意圖，讓我們投資長期辦公大樓，您將享受與之相關的資本回報，並最終獲得資本回報。

Markets have changed, and we're now entering a period where we need to renew leases in place, extend financing and it's difficult for them to access additional capital for those reasons. So rather than fire sale of the portfolio, which we think doesn't make any sense at all.

市場已經發生了變化，我們現在正進入一個需要續約租約、延長融資的時期，但由於這些原因，他們很難獲得額外資本。因此，我們認為，與其廉價出售投資組合，不如說這根本沒有任何意義。

We made a loan to the JV at a 15% interest rate. So we believe we're being appropriately compensated for the risk. And that loan amortizes quickly from the cash flows from the existing assets, which have a weighted average lease term now of about 6 years and are 100% occupied. So I think the loan amortizes at the rate of about $600,000-or-so per month. So we're getting our money back quite quickly, and we feel very comfortable with respect to that.

我們以 15% 的利率向合資企業提供貸款。因此我們相信我們得到了適當的風險補償。該筆貸款可從現有資產的現金流量中快速攤銷，這些資產的加權平均租賃期限目前約為 6 年，且佔用率為 100％。因此我認為貸款的攤銷速度約為每月 60 萬美元左右。因此，我們很快就收回了資金，我們對此感到非常滿意。

Got you. Okay. Last for me, maybe just some nuance on the economics surrounding the assumptions surrounding the outlook. Is the restructuring charge in the G&A? Or is that going to be smoothed out when you look at bottom line next year?

明白了。好的。對我來說，最後的可能只是圍繞前景假設的經濟學方面的一些細微差別。重組費用包含在一般及行政費用中嗎？或者當你看明年的底線時，這個問題會得到解決？

Mitch, this is Gavin. We're going to add that restructuring charge back into core FFO. So it will be smoothed out throughout the year.

米奇，這是加文。我們將把重組費用重新添加到核心 FFO 中。因此，全年都會平穩過渡。

There are no additional questions at this time. I'd like to turn the call back to Mr. McDowell for closing remarks.

目前沒有其他問題。我想請麥克道爾先生作最後發言。

Thank you, everyone. We appreciate the extended time today, and we look forward to updating you on our first quarter results in May.

謝謝大家。很感謝今天延長的時間，我們期待在五月向您通報第一季的業績。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。現在您可以斷開您的線路。感謝您的參與。