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PHOENIX - Orion Properties Inc. (NYSE: ONL), formerly known as Orion Office REIT Inc., announced strategic changes and financial results, reflecting a shift in its investment strategy and a focus on dedicated use assets that include an office component. With a market capitalization of $52 billion and a "GREAT" financial health rating according to InvestingPro, this move is part of the company’s broader effort to transition away from traditional office properties.
The company reported a net loss of $(32.8) million, or $(0.59) per share, for the fourth quarter of 2024, compared to a net loss of $(16.2) million, or $(0.29) per share, for the same period in 2023. Despite these losses, the company maintains impressive gross profit margins of 92.85% and achieved notable revenue growth of 29.34% over the last twelve months. For the full year 2024, Orion Properties Inc. recorded a net loss of $(103.0) million, or $(1.84) per share, compared to $(57.3) million, or $(1.02) per share, in 2023.
Despite the net loss, the company completed significant leasing activity, securing 1.1 million square feet across 12 properties in 2024, marking a substantial increase from the previous year. Orion Properties Inc. also acquired a 97,000 square foot flex/laboratory/R&D facility in California for $34.6 million and sold two vacant properties for an aggregate gross sales price of $5.3 million.
The company’s CEO, Paul McDowell, expressed confidence in the new strategy, citing the potential for a more stable portfolio with higher renewal prospects as tenants require in-person operations. McDowell also highlighted efforts to reduce general and administrative costs, anticipating approximately $1.0 million in annualized savings starting in the second half of 2025.
Orion Properties Inc. 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. With a current dividend yield of 5.57%, this new dividend rate is part of the company’s financial strategy to retain more cash for future growth and debt refinancing. InvestingPro analysis indicates the company is currently trading slightly above its Fair Value, with additional insights available in the comprehensive Pro Research Report.
The company has provided guidance estimates for fiscal year 2025, with Core FFO per share expected to be between $0.61 and $0.70, and General and Administrative Expenses projected at $19.5 million to $20.5 million. The Net Debt to Adjusted EBITDA is estimated to range from 8.0x to 8.8x.
This article is based on a press release statement from Orion Properties Inc. and reflects the company’s financial condition and results as of December 31, 2024. For deeper insights into Orion Properties’ financial health, valuation metrics, and expert analysis, visit InvestingPro, which offers comprehensive research reports and real-time financial data for over 1,400 US stocks. The forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially.
In other recent news, Realty Income Corp announced its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.23, which fell short of the analyst forecast of $0.37. Despite this, the company’s revenue exceeded expectations, reaching $1.28 billion compared to the projected $1.27 billion. Realty Income maintains a strong portfolio occupancy rate of 98.7%, and its AFFO per share guidance for 2025 is projected between $4.22 and $4.28. The company invested $3.9 billion in 2024, achieving a 7.4% weighted average initial cash yield. Analysts from firms like Bank of America and Wells Fargo discussed Realty Income’s earnings, focusing on the company’s share repurchase program and tenant credit reserves. Realty Income plans to invest $4 billion in 2025, with a balanced focus on U.S. and international markets. The company remains optimistic about its strategic acquisitions and market stability despite potential headwinds.
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