Key Points – Orion raised its 2026 outlook, narrowing Core FFO guidance to $0.72–$0.77 per share from $0.69–$0.76, while lowering its expected net debt-to-adjusted EBITDA range to 6.0x–6.8x.
Second-quarter Core FFO was stable at $0.20 per share. – The company continued reducing leverage through asset sales, generating nearly $84 million in gross proceeds during the first half and repaying about $61 million of debt
Net debt to annualized adjusted EBITDA fell to 5.4x from 6.4x a year earlier, with approximately $177 million in liquidity. – Orion’s strategic review remains ongoing, with multiple parties conducting due diligence, although management cautioned that no transaction is assured. Leasing activity improved, with 673,000 square feet completed year to date and dedicated-use properties growing to 38.7% of annualized base rent. Orion Office REIT (NYSE:ONL) reported second-quarter 2026 results that included stable Core FFO per share, lower leverage and updated full-year guidance, while the company continued its strategic review process and advanced portfolio repositioning efforts.
Chief Executive Officer Paul McDowell said the strategic options review, announced in late January, remains underway with financial advisers Wells Fargo and JPMorgan. The company has conducted broad outreach to interested parties and made property and corporate information available through a virtual data room to parties that executed non-disclosure agreements. “With several parties continuing to conduct diligence, we believe it is in shareholders’ interest to see that work through to its reasonable conclusion rather than set arbitrary deadlines,” McDowell said. He added that Orion cannot assure investors that the process will result in any particular transaction.