Greetings. Welcome to Orion Properties Inc.'s third quarter 2026 financial results. As a reminder, this conference is being recorded. I would now like to turn the call over to Paul Hughes, General Counsel. Thank you. You may begin.

Thank you and good morning, everyone. Yesterday, Orion released its results for the quarter ended September 30th, 2026, filed its Form 10-Q with the Securities and Exchange Commission, and posted its earnings supplement to its website at onlreit.com. During the call today, we will be discussing Orion's guidance estimates for calendar year 2026 and other forward-looking statements, 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. These risks are discussed in our earnings release as well as in our form 10Q and other SEC filings. And Orion undertakes no duty to update any forward-looking statements made during this call. We will also be discussing non-GAAP financial measures such as funds from operations or FFO and core funds from operations or core FFO. These non-GAAP financial measures are not a substitute for financial information presented in accordance with GAAP and Orion's earnings release and supplement include a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measure. Posting the call today are Orion's Chief Executive Officer, Paul McDowell, and Chief Financial Officer, Gavin Brandon. Joining us for the Q&A session will be Chris Day, our Chief Operating Officer. With that, I will turn the call over to Paul McDowell.

Good morning, everyone. Thank you for joining us on Orion's third quarter earnings call. I will start with an update on our strategic options process. The process is ongoing, and despite the length of time of the review to date, we continue to believe it is in shareholders' interest to see that work through to its reasonable conclusion. In addition to the ongoing challenges surrounding our asset class, macro events, including the significant rise in treasury rates, have made that work more challenging and have further slowed the process. We are moving as expeditiously as possible to ensure we have explored all potentially viable options available to the company. However, we can offer no assurance that this process will result in Orion concluding any particular transaction. Beyond the strategic review, our team is focused on driving improvement in our key financial and operating metrics nearly all of which are improved year over year. Our strategy remains centered on the same priorities we have discussed all year, stabilizing the portfolio through increased leasing activity, the timely disposition of non-core assets, and proven leverage management. We continue to expect these efforts to drive core FFO per share growth in 2026 and beyond. From a leasing perspective, we are on track to lease over 1 million square feet for the third consecutive year despite materially smaller portfolio and have increased the weighted average lease term of the portfolio in the process. In attributing to these results, we completed approximately 143,000 square feet of leasing in the third quarter and an additional 222,000 square feet subsequent to quarter end bringing our year-to-date total to approximately 922,000 square feet. Our leasing pipeline stood at about 1 million square feet at quarter end. To give some additional color to our continued leasing momentum, subsequent to quarter end, we entered into a 57,000 square foot 10-year lease and a 17,000 square foot 10.8-year lease at our 209,000 square foot Plano, Texas property, bringing the lease rate to 85%, significantly driving value. We also completed a 10.3-year lease extension for 65,000 square feet at our 156,000 square foot property in Milwaukee, Wisconsin, and a two-year full building renewal at our 83,000 square foot Indianapolis, Indiana property. We are also close to finalizing another large lease in our approximately 405,000 square foot renovated Class A property in downtown Buffalo, New York. With one large tenant already as a 161,000 square foot anchor, we expect to finalize a 93,000 square foot lease for 15 years in the fourth quarter, which will bring this property to 64% lease from zero just over a year ago. We are confident that this lease will be completed, though as always, we will not count it until it is signed. Our weighted average lease term for the consolidated portfolio was 6.1 years, continuing to build on the progress we have made this year, and up from 5.8 years at the end of the third quarter in 2025. Cash rent spreads on third quarter renewals were up 25% when comparing ending rents in the current term to starting rents in the new term. Here today, rent spreads are up 1.8% when comparing ending rents in the current term to starting rents in the new term and up 8.6% when comparing ending rents in the previous term to ending rents in the new term. As always, we caution that rent spreads can be volatile from quarter to quarter, though we remain encouraged by the overall trend. It is also worth noting that we have seen tenant retention rates continuing to improve, reflecting both a healthier leasing environment and our strengthening portfolio quality. Our consolidated portfolio occupancy rate was 78.3% at the end of the third quarter compared to 72.1% at the end of the third quarter of last year. As we've said many times, occupancy will continue to also show some volatility quarter to quarter given our largely single-tenant portfolio, though we expect the overall trend to keep improving as our leasing efforts, including the aforementioned opportunity in Buffalo, continue to play out. Turning to dispositions, year-to-date, we have generated gross proceeds of almost $84 million on the sale of four properties plus the 37-acre Deerfield, Illinois campus. Additionally, we have two properties under contract to be sold for total gross sales price of $9.5 million. Since our spin, we have sold 39 properties totaling more than 4.2 million square feet. At quarter end, dedicated use assets, or DUA, represented 40.6% of annualized base rent of our consolidated portfolio, compared to 33.9% at the end of the third quarter 2025. We expect this percentage to continue increasing over time through disposition activity of traditional office and potential targeted acquisitions of DUA properties. As we discussed last quarter, our longer-term target remains to have more than a majority of the portfolio in dedicated use assets. Within our existing portfolio and absent broader access to outside capital, we expect that progress to continue, albeit in an opportunistic manner. To the extent our access to outside cost-effective capital improves, we would expect that transition to occur significantly more rapidly. As we communicated to start the year, we have a stabilized portfolio that will continue to benefit from ongoing return to office and our strong leasing efforts. Through the first three quarters of the year, nearly all of our key financial and operational metrics have shown meaningful and sustained improvement, including our critical per share metrics supported by a balance sheet marked by prudent leverage. For the rest of 2026 and into 2027, our focus remains consistent. Continue to grow Core FFO, improve portfolio quality, lengthen Walt, renew tenants, fill or sell vacant space, and continue to manage expenses and leverage as we work to maximize Orion's value for investors and potential strategic partners. We believe that consistent ongoing execution will allow the market to start to recognize and appreciate the intrinsic value of this company. With that, I will turn the call over to Gavin.

Thanks, Paul. For the third quarter of 2026 compared to the third quarter of 2025, Orion had total revenues of $35.4 million compared to $37.1 million. Net loss attributable to common stockholders was $3.3 million or $0.06 per share compared to $69 million or $1.23 per share in the same quarter of 2025. Core FFO was $11.4 million or $0.20 per share compared to $11 million or $0.19 per share in the same quarter of 2025. Adjusted EBITDA was $16.5 million versus 17.4 million in the same quarter of 2025, primarily related to having fewer assets. G&A in the third quarter came in at relatively flat 4.7 million compared to 4.6 million in the same quarter of 2025. G&A expense in 2026 includes the ongoing costs associated to the strategic review, which equate to approximately $266,000 in the third quarter and 454,000 year to date. The G&A expense in the 2026 period also reflects Orion's loss of emerging growth company status during 2026, which drove increased expenses related to SOX 404 compliance. We have reduced headcount so far this year by five. CapEx and leasing costs in the third quarter were 6.9 million compared to 18.3 million in the same quarter of 2025. CapEx and leasing costs for the nine months ended September 30th were 34.4 million compared to 42.2 million in the same 2025 period. As we have previously discussed, CapEx timing is dependent on when leases are executed and work is completed on properties. Property operating expenses in the third quarter materially improved to 14.3 million as compared to $17.3 million in the same quarter of 2025. Turning to the balance sheet, our net debt to annualized adjusted EBITDA showed meaningful improvement at 5.6 times at quarter end compared to 6.4 times at the end of the third quarter of 2025. We ended the quarter with $436.5 million of outstanding debt, excluding our proportionate share of the unconsolidated joint venture debt. which is a meaningful improvement when compared to $483 million of debt we had a year ago. Our debt reduction efforts have significantly reduced interest expense which has totaled $21.7 million this year down $2.4 million from $24.1 million in the same period a year ago. We remain well insulated from rising rates with 76.6% of our debt being fixed rate and 49% of the debt outstanding under our floating rate revolver is currently hedged. Our net debt to gross real estate assets was 27.8% at the end of the quarter compared to 31.2% a year ago. We have also been very successful this year managing and extending our maturities. Our next debt maturity is not until February of 2028, which we have an option to extend until February of 2029. As of September 30th, we had total liquidity of $177.2 million, comprised of $64.2 million of cash and cash equivalents and restricted cash, and $113 million of available capacity under our credit facility revolver. On November 4th, 2026, Orion's Board of Directors declared a quarterly cash dividend of $0.02 per share for the fourth quarter of 2026, unchanged from the fourth quarter of 2025. We are also announcing an improved outlook for 2026, primarily driven by the strong 2026 leasing activity we have discussed. Core FFO for the year is now expected to range from 75 cents to 78 cents per diluted share, up from our previous range of 72 cents to 77 cents per diluted share. Our net debt to adjusted EBITDA is now expected to range from 5.8 to 6.4 times, and improvement from our previous range of 6 times to 6.8 times. Our G&A range of 19.8 million to 20.8 million is unchanged. With that, we will open the line for questions. Operator?

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Our first question comes from Mitch Germain with Citizens Bank.

Please go ahead.

Good morning, guys, and congrats on the quarter. Pretty significant deceleration being contemplated in your guidance, even at the high end of the range. Why not put forth a number, given leasing and momentum in the business, why not put forth a number that's a little bit more maybe realistic? And what am I missing with regards to how for you could play out?

I think there's a couple things there, Mitch. First, the guidance we put out today is where we expect we'll come out for the course of the year. Looking forward into the fourth quarter, we see – well, let me say it this way. Looking back for the first three quarters, we have got some income that we get from one-time – Tax Savings, and sometimes from one time, Lease Termination Income, and so on and so forth. We've had that year over year, as you might recall. So that has an impact on the first three quarters of the year. We don't expect to have a significant impact of that in the fourth quarter. Looking into 2027, I think the dynamics still exist. We continue to think that we will be able to grow core FFO over time. but the rate of that acceleration will be dependent upon where we come out on leasing.

Okay. You guys seem to have great momentum on the leasing front and I appreciate all that commentary on the Buffalo asset. Is that the kind of situation where you lease it and sell it? I'm trying to gain some insight. I think you've got like 50 something properties now. 40% of your portfolio is dedicated use. The thought is to grow that to a higher percentage, obviously, or a majority of your cash flows. So is that asset like an example of something where you lease and then look to sell? Or is that considered a core asset for you?

No, I'd start by saying we like the asset a lot. You know, we've renovated the building. It's a Class A asset. So we like the building a lot. But I think your point is well taken. I think we are opportunistic sellers. I think if you take a look, we sold the NetJet property at a five-something cap rate out of the CMBS portfolio recently. So that gave us, you know, that was very opportunistic. And I think we would look at the Buffalo property much the same way if we got a very good price for that asset from potentially a local buyer or something like that once we've leased it up. You know, we'd be delighted to sell it and recycle that capital into dedicated use assets.

Great. Last one for me. When does there come a point in time in which the strategic alternatives are no longer relevant? And I ask it only because I know that that term strategic alternatives is kind of broad, right? There could be things in there, including investments from institutional partners to an outright sale to maybe a portfolio acquisition from that regard. So it's pretty broad. But when, I mean, I guess that could always be something that's part of the everyday of running public companies. So when does this process become kind of, and maybe we should at least kind of get rid of that terminology to expect that this should always be part of your thinking as a public CEO.

That's a very good question, Mitch. And, you know, I'll answer the last part first. That is, you're right. It always is a component of our running a public company. We've said so many times before we announced strategic options. So that you're right, you know, looking strategically is something we will do whether or not we have a process up and running. The reason the process is still continuing is we continue to engage with outside parties in sort of a quite a meaningful way. And so we'll see how that comes out. We're not sure where what the result of that will be. if the result of that is a strategic transaction, we will announce that in due time. If the result of that is not a strategic announcement, we would announce that and close down the process. But like I said at the beginning, whether or not we have a process open, we will always consider strategic opportunities but we're trying to wait to get through the process with respect to sort of the specific items we're working on once we decide once we figure whether those work or not we'll make an announcement.

Thank you.

Our next question comes from Matthew Erdner with Jones Trading. Please go ahead.

Hey, good morning, guys. Thanks for taking the question and appreciate the comments on the prior questions. That was really helpful. You know, as we look into kind of some of these leases rolling off, and in particular Richardson, Texas, how are you guys thinking about, one, the vacant building there, and then, you know, that AT&T lease that's got about 0.5 wall left?

I'll let Chris Day answer that for us. Good to talk to you this morning, Matt.

For that property, you know, we know AT&T will be vacating that asset. That one, Lakeside 1 and the adjacent Lakeside 2, it's actually out in the market right now for disposition. So we're, you know, it's going through the process. Some offers are coming in. We're evaluating everything. So I would expect for that to be a disposition in the first half of next year.

got it that's helpful and then could you just give a little more color on the market like who are some of the buyers that are out there what are they looking for you know obviously it's dependent asset to asset but you know I guess just kind of how are transactions moving right now just given the rise in rates well for the for that specific asset there's actually multiple different types of buyers looking at it you've got people looking at it for

Value Add Office. You have people looking at it from a redevelopment standpoint and to potentially multifamily or another use. So that property itself has various different outcomes. But just overall on the entire portfolio, we still have a lot of people, good interest in some of these properties that we have out on the market for sale. There's a little bit of uncertainty over the last month or so, but we're still positive we're going to be able to transact on these dispositions at numbers that we think are good numbers for those assets.

Got it. That's helpful there. And then looking into CapEx, you guys kind of guided to 30 to 40 on last quarter's call, and there was about 7 million call it this quarter, which leaves 23 to 33. Is that still the expectation for the first fourth quarter?

Yes, I think that's right. I think we've got, you know, we expect for the year to come out probably on just CapEx, probably about 40 something in the mid 40s million and then leasing commissions on top of that.

Okay, got it. That's helpful. Thank you guys.

We have reached the end of the question and answer session. I'd like to turn the floor back over to Paul McDowell for closing comments.

Thank you everyone for participating in our call and we look forward to updating you on the fourth quarter in the new year.

And this concludes today's teleconference. may disconnect your lines at this time. Thank you for your participation.