Orion (ONL) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 10:28 AM CDT 17 min read

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DATE

Friday, May 8, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Paul H. McDowell

• Chief Financial Officer — Gavin B. Brandon

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Full Conference Call Transcript

Paul H. McDowell: [inaudible] and afloat committed to pursuing immoderate enactment proposals that maximize shareholder value. We are conducting this process successful a customary and thorough mode and it volition instrumentality clip to conclude. While we person made important advancement truthful far, we are not yet successful a presumption to remark connected immoderate specifics. We besides cannot remark connected erstwhile the process volition conclude, though we are moving arsenic expeditiously arsenic possible. I besides privation to stress that the execution of our concern program continues to beryllium positive. Our improving results bespeak ongoing assurance successful our standalone prospects should the strategical reappraisal find that is the champion way forward.

We admit your patience portion we enactment done the strategical options and volition person much to accidental astatine the due time. The remainder of today's telephone volition absorption connected our operating show and the meaningful advancement we proceed to marque connected our concern plan. Our strategy remains centered connected the stabilization of the portfolio done accrued leasing activity, the timely disposition of noncore assets, managing leverage, and precise selective superior recycling into caller DUA assets. We expect these efforts to effect successful halfway FFO per stock maturation successful 2026 and beyond.

During the archetypal quarter, we continued to physique connected the 2 cardinal quadrate feet we leased implicit the past 2 years by completing 355 1000 quadrate feet of leasing activity. The leasing item for this 4th is simply a 172 thousand-square-foot afloat gathering lease of 12 years astatine our antecedently vacant Irving, Texas property. During 2024 and 2025, we strategically invested superior of astir $5 per quadrate ft to heighten the communal areas and amended the wide quality of this halfway property, importantly enabling america to motorboat an assertive leasing effort and unafraid a afloat gathering tenant. Our weighted mean lease term, oregon WALT, averaged astir 12 years connected caller leases signed during the quarter.

Overall, the mean WALT for the consolidated portfolio continues to determination successful the close absorption and is approaching six years. Cash rent spreads connected the archetypal 4th renewals were up for the 4th consecutive 4th astatine 2.5%. As we person said galore times before, rent spreads tin and volition beryllium volatile 4th implicit quarter, though we consciousness affirmative astir existent trends overall. Our leasing efforts and noncore plus dispositions person resulted successful our consolidated portfolio occupancy complaint rising to 83.1% astatine the extremity of the archetypal quarter, up from 73.7% successful the archetypal 4th of past year.