EX-99.2 3 exhibit992orionsupplementa.htm EX-99.2 Document
Exhibit 99.2                                                
orion_supplemental-coverxma.jpg



Q1 2022 SUPPLEMENTAL INFORMATION
Orion Supplemental Information
March 31, 2022

SectionPage
Company Overview
Balance Sheet
Statements of Operations
Funds From Operations (FFO), Core Funds From Operations (Core FFO) and Funds Available for Distribution (FAD)
EBITDA, EBITDAre and Adjusted EBITDA
Capital Structure
Debt Detail
Ratio Analysis
Credit Facility Covenants
Net Operating Income
Diversification Statistics
Top 10 Concentrations
Tenants Comprising Over 1% of Annualized Base Rent
Tenant Industry Diversification
Property Geographic Diversification
Lease Expirations
Lease Summary
Full Portfolio
Unconsolidated Joint Venture Investment Summary
Definitions



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Q1 2022 SUPPLEMENTAL INFORMATION
About the Data
This data and other information described herein are as of and for the three months ended March 31, 2022, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in Orion Office REIT Inc.'s (the "Company," "Orion," "us," "our" and "we") Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and Annual Report on Form 10-K for the year ended December 31, 2021.





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Q1 2022 SUPPLEMENTAL INFORMATION
Forward-Looking Statements

Information set forth herein contains “forward-looking statements” which reflect the Company's expectations and projections regarding future events and plans, the Company's future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, the payment of future dividends, the Company’s future growth and the impact of the coronavirus (COVID-19) on the Company's business. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," "guidance", variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to the Company and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which may be difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections.

The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements:
the risk of rising interest rates, including that our borrowing costs may increase and we may be unable to refinance our debt obligations on favorable terms or at all;
the risk of inflation, including that our operating costs, such as insurance premiums, utilities, real estate taxes and capital expenditures and repair and maintenance costs, may rise;
conditions associated with the global market, including an oversupply of office space, tenant credit risk and general economic conditions;
the extent to which the ongoing COVID-19 pandemic or any future pandemic or outbreak of a highly infectious or contagious disease or fear of such pandemics or outbreaks impacts our business, operating results, financial condition and prospects, which is highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the COVID-19 pandemic and its impact on the U.S. economy and potential changes in tenant behavior that could adversely affect the use of and demand for office space;
our ability to acquire new properties and sell non-core assets on favorable terms and in a timely manner, or at all;
our ability to comply with the terms of our credit agreements or to meet the debt obligations on certain of our properties;
our ability to access the capital markets to raise additional equity or refinance maturing debt on favorable terms or at all;
changes in the real estate industry and in performance of the financial markets and interest rates and our ability to effectively hedge against interest rate changes;
the risk of tenant defaults on their lease obligations, which are heightened due to our focus on single tenant properties;
our ability to renew leases with existing tenants or re-let space to new tenants on favorable terms or at all;
the cost of rent concessions, tenant improvement allowances and leasing commissions;
the potential for termination of existing leases pursuant to tenant termination rights;
the amount, growth and relative inelasticity of our expenses;
risks associated with the ownership and development of real property;
risks associated with our joint venture with an affiliate of Arch Street Capital Partners and any potential future equity investments;
our ability to close pending real estate transactions, which may be subject to conditions that are outside of our control;
risks associated with acquisitions, including the integration of the office portfolios of Realty Income Corporation (“Realty Income”) and VEREIT Inc. into Orion;
Realty Income’s inability or failure to perform under the various transaction agreements effecting the Separation and the Distribution;
risks associated with the fact that we have a limited operating history and our future performance is difficult to predict;
our properties may be subject to impairment charges;



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Q1 2022 SUPPLEMENTAL INFORMATION
risks resulting from losses in excess or insured limits or uninsured losses; and
risks associated with the potential volatility of our common stock.

Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available at the SEC’s website at www.sec.gov. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.




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Q1 2022 SUPPLEMENTAL INFORMATION
Company Overview
(unaudited)
Orion is a real estate company incorporated in the state of Maryland on July 1, 2021, which intends to qualify and elect to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes, commencing with our initial taxable year ended December 31, 2021.

Orion is a full-service real estate operating company which owns and operates a portfolio of 92 office properties totaling approximately 10.5 million leasable square feet located within 29 states and Puerto Rico. In addition, the Company owns a 20% equity interest in one unconsolidated joint venture with an affiliate of Arch Street Capital Partners, which owns a portfolio consisting of six office properties totaling approximately 1.0 million leasable square feet located within six states. As of March 31, 2022, approximately 67.0% of the Company's Annualized Base Rent was from Investment Grade Tenants, the Company's Occupancy Rate was 88.3% and the Weighted Average Remaining Lease Term was 4.1 years.

The Company's Annualized Base Rent as of March 31, 2022 was approximately $172.2 million. See "Top Ten Concentrations" and "Tenants Comprising Over 1% of Annualized Base Rent" below.

During the three months ended March 31, 2022 our rent collection was approximately 98.5% of base rent and reimbursements.

Tenants, Trademarks and Logos
Orion is not affiliated or associated with, is not endorsed by, does not endorse, and is not sponsored by or a sponsor of the tenants or of their products or services pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.




See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
Company Overview (cont.)
Senior ManagementBoard of Directors
Paul H. McDowell, Chief Executive Officer, PresidentReginald H. Gilyard, Non-Executive Chairman
Gavin B. Brandon, Executive Vice President, Chief Financial Officer and TreasurerKathleen R. Allen, Ph.D., Independent Director
Paul C. Hughes, General Counsel and SecretaryRichard J. Lieb, Independent Director
Christopher H. Day, Executive Vice President, Chief Operating OfficerGregory J. Whyte, Independent Director
Gary E. Landriau, Executive Vice President, Chief Investment OfficerPaul H. McDowell, Chief Executive Officer and Director
Revea L. Schmidt, Senior Vice President, Chief Accounting Officer

Corporate Offices and Contact Information
2325 E. Camelback Road, Suite 85019 West 44th Street, Suite 1401
Phoenix, AZ 85016New York, NY 10036
602-698-1002
www.ONLREIT.com
 
Trading Symbol: ONL
 
Stock Exchange Listing: New York Stock Exchange
 
Transfer Agent
Computershare Trust Company, N.A.
462 South 4th Street, Suite 1600
Louisville, KY 40202
855-866- 0787


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Q1 2022 SUPPLEMENTAL INFORMATION
Balance Sheet
(unaudited, in thousands)

March 31, 2022December 31, 2021
Assets
Real estate investments, at cost:
Land$254,786 $250,194 
Buildings, fixtures and improvements1,231,469 1,231,551 
Total real estate investments, at cost1,486,255 1,481,745 
Less: accumulated depreciation and amortization137,217 128,109 
Total real estate investments, net1,349,038 1,353,636 
Accounts receivable, net22,032 17,916 
Intangible lease assets, net272,623 298,107 
Cash and cash equivalents18,585 29,318 
Other assets, net92,671 60,501 
Total assets$1,754,949 $1,759,478 
Liabilities and Equity
Bridge facility, net$— $354,357 
Mortgages payable, net351,648 — 
Credit facility term loan, net172,793 172,490 
Credit facility revolver91,000 90,000 
Accounts payable and accrued expenses17,929 17,379 
Below-market lease liabilities, net18,993 20,609 
Distributions payable5,663 — 
Other liabilities, net19,897 16,355 
Total liabilities677,923 671,190 
Common stock57 57 
Additional paid-in capital1,145,548 1,145,278 
Accumulated other comprehensive income (loss)4,356 299 
Accumulated deficit(74,328)(58,715)
Total stockholders' equity1,075,633 1,086,919 
Non-controlling interests1,393 1,369 
Total equity1,077,026 1,088,288 
Total liabilities and equity$1,754,949 $1,759,478 


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Q1 2022 SUPPLEMENTAL INFORMATION
Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended
March 31, 2022
Revenues:
Rental$53,017 
Fee income from unconsolidated joint venture189 
Total revenues53,206 
Operating expenses:
Property operating15,314 
General and administrative 3,517 
Depreciation and amortization34,353 
Impairments1,602 
Acquisition-related63 
Transaction costs756 
Total operating expenses55,605 
Other (expense) income:
Interest expense(6,847)
(Loss) gain on extinguishment and forgiveness of debt, net(468)
Other income, net39 
Equity in income of unconsolidated joint venture(41)
Total other (expenses) income, net(7,317)
(Loss) income before taxes(9,716)
Provision for income taxes(166)
Net (loss) income(9,882)
Net (income) loss attributable to non-controlling interest(24)
Net (loss) income attributable to common stockholders$(9,906)
Weighted-average shares outstanding - basic and diluted56,626 
Basic and diluted net (loss) income per share attributable to common stockholders$(0.17)




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Q1 2022 SUPPLEMENTAL INFORMATION
Funds From Operations (FFO), Core Funds From Operations (Core FFO) and Funds Available for Distribution (FAD)
(unaudited, in thousands, except share and per share data)
Three Months Ended
March 31, 2022
Net (loss) income$(9,906)
Depreciation and amortization of real estate assets34,337 
Impairment of real estate1,602 
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable680 
FFO attributable to common stockholders$26,713 
Adjustments:
Acquisition-related expenses63 
Transaction costs756 
Loss on extinguishment of debt, net468 
Core funds from operations attributable to common stockholders$28,000 
Adjustments:
Amortization of deferred financing costs1,171 
Amortization of above and below market leases and deferred lease incentives, net of amortization of below-market lease liabilities(320)
Straight-line rental revenue(896)
Equity-Based Compensation270 
Equity in income of Unconsolidated Joint Venture41 
Capital expenditures and leasing costs(2,401)
Other adjustments, net63 
Proportionate share of Unconsolidated Joint Venture adjustments for the items above, as applicable
Funds available for distribution$25,937 
Weighted-average shares outstanding - basic and diluted56,626 
FFO attributable to common stockholders per share
$0.47 
Core FFO attributable to common stockholders per share$0.49 
FAD per share$0.46 
___________________________________
(1) Refer to the Statements of Operations section for basic and diluted net income (loss) per share attributable to common stockholders.
See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
EBITDA, EBITDAre and Adjusted EBITDA
(unaudited, in thousands)
Three Months Ended
March 31, 2022
 Net (loss) income$(9,906)
 Adjustments:
Interest expense6,847 
Depreciation and amortization 34,353 
Provision for income taxes166 
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable862 
 EBITDA$32,322 
Impairment of real estate1,602 
EBITDAre$33,924 
Acquisition related63 
Transaction costs756 
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities(320)
Loss on extinguishment and forgiveness of debt, net468 
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable(7)
Adjusted EBITDA$34,884 
___________________________________

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
Capital Structure
(unaudited, dollars and shares in thousands, except per share amounts)




chart-2d39119170c3493ab02a.jpg
Common equity55.0%
Mortgages payable, net (2)
24.7%
Credit facility term loan12.1%
Credit facility revolver6.3%
Proportionate share of Unconsolidated Joint Venture Debt1.9%
                            
Fixed vs. Variable Rate Debt
Fixed and Swapped to Fixed81.7 %
Variable18.3 %



Orion Capitalization Table
March 31, 2022
Diluted shares outstanding56,626
Stock price$14.00
Implied Equity Market Capitalization$792,764
Wtd. Avg. Maturity
(Years)
Interest Rate (1)
March 31, 2022
Proportionate share of Unconsolidated Joint Venture Debt0.81.89 %27,332
Mortgages payable, net (2)
4.94.97 %355,000
Total secured debt4.64.75 %$382,332
Credit facility term loan (3) (4)
1.63.19 %175,000
Credit facility revolver (4)
2.62.90 %91,000
Total unsecured debt2.03.09 %266,000
Total Principal Outstanding3.54.07 %$648,332
Total Capitalization$1,441,096
Cash and cash equivalents18,585
Proportionate share of Unconsolidated Joint Ventures' cash and cash equivalents652
Enterprise Value$1,421,859
Net Debt/Enterprise Value44.2 %
Fixed Charge Coverage Ratio6.02x
Liquidity (5)
$353,237
___________________________________
(1)Weighted average interest rate for variable rate debt represents the interest rate in effect as of March 31, 2022.
(2)On February 10, 2022, the $355.0 million bridge facility was repaid in full and replaced by a $355.0 million CMBS loan at a fixed rate of 4.97%. The CMBS loan matures on February 11, 2027.
(3)The term loan is a floating rate facility, however, the Company has entered into an interest rate swap transaction which effectively fixes the interest rate on the term loan indebtedness at 3.19% per annum.
(4)Under the related loan agreements, these borrowings which are secured only by a pledge of equity interests are treated as unsecured indebtedness.
(5)Liquidity represents cash and cash equivalents of $19.2 million and approximately $334.0 million available capacity on our $425 million revolving credit facility as of March 31, 2022.


See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION

Debt Detail
(unaudited, dollars in thousands)
Principal Payments DueTotal202220232024Thereafter
Credit facility revolver$91,000 $— $— $91,000 $— 
Credit facility term loan175,000 — 175,000 — — 
Mortgages payable (1)
355,000 — — — 355,000 
Proportionate share of Unconsolidated Joint Venture debt27,332 — 27,332 — — 
Total Principal Outstanding$648,332 $— $202,332 $91,000 $355,000 

Debt TypePercentage of Principal OutstandingInterest RateWeighted-Average Years to Maturity
Credit facility revolver14.0 %2.90 %2.6 
Credit facility term loan27.0 %3.19 %1.6 
Mortgages payable (1)
54.8 %4.97 %4.9 
Proportionate share of Unconsolidated Joint Venture debt4.2 %1.94 %0.8 
Total (1)
100.0 %4.07 %3.5 

Debt TypePercentage of Principal OutstandingWeighted-Average Interest RateWeighted-Average Years to Maturity
Total unsecured debt41.0 %3.09 %2.0 
Total secured debt59.0 %4.75 %4.6 
Total (1)
100.0 %4.07 %3.5 
Total fixed-rate and swapped to fixed-rate debt81.7 %4.38 %3.8 
Total variable-rate debt18.3 %2.67 %2.2 
Total (1)
100.0 %4.07 %3.5 
___________________________________

(1)On February 10, 2022, the bridge facility was repaid in full and replaced by a $355.0 million CMBS loan at a fixed rate of 4.97%. The CMBS loan matures on February 11, 2027.











See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
Ratio Analysis
(unaudited, dollars in thousands)
Interest Coverage RatioMarch 31, 2022
Interest Expense, excluding non-cash amortization (1)
$5,791
Adjusted EBITDA (2)
34,884
Interest Coverage Ratio6.02x
Fixed Charge Coverage Ratio
Interest Expense, excluding non-cash amortization (1)
$5,791
Secured debt principal amortization
Total fixed charges5,791
Adjusted EBITDA (2)
34,884
Fixed Charge Coverage Ratio6.02x
March 31, 2022
Net Debt Ratios
Net Debt (3)
$629,095
Adjusted EBITDA annualized139,536
Net Debt to Adjusted EBITDA annualized ratio4.51x
Net Debt (3)
$629,095
Gross Real Estate Investments (3)
1,867,581
Net Debt Leverage Ratio33.7 %
Unencumbered Assets/Real Estate Assets
Unencumbered Gross Real Estate Investments (3)
$1,267,128
Gross Real Estate Investments (3)
1,867,581
Unencumbered Asset Ratio67.8 %
___________________________________
(1)Refer to the Statements of Operations section for interest expense calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.
(2)Refer to the Statements of Operations section for net income calculated in accordance with GAAP and to the EBITDAre and Adjusted EBITDA section for the required reconciliation to the most directly comparable GAAP financial measure.
(3)Refer to the Balance Sheet section for total debt and real estate investments, at cost calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.


See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
Credit Facility Covenants
(unaudited)
The following is a summary of key financial covenants for the Company's term loan and revolving credit facility as defined and calculated per the terms of the facility's credit agreement. These calculations, which are not based on GAAP measurements, are presented to investors to show the Company's compliance with the financial covenants and are not measures of our liquidity or performance. As of March 31, 2022, the Company believes it is in compliance with these covenants based on the covenant limits and calculations in place at that time.

Credit Facility Key CovenantsRequiredMarch 31, 2022
Ratio of total indebtedness to total asset value≤ 60%32.3%
Ratio of adjusted EBITDA to fixed charges≥ 1.5x5.92x
Ratio of secured indebtedness to total asset value≤ 45%19.1%
Ratio of unsecured indebtedness to unencumbered asset value≤ 60%18.7%
Ratio of unencumbered adjusted NOI to unsecured interest expense≥ 2.00x12.35x



See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION

Net Operating Income
(unaudited, dollars in thousands)

NOI and Cash NOI
Three Months Ended
March 31, 2022
 Rental revenue$53,017 
 Property operating expense(15,314)
NOI37,703 
Adjustments:
Straight-line rent(896)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities (320)
Other non-cash adjustments51 
Proportionate share of Unconsolidated Joint Venture NOI849 
 Cash NOI$37,387 
___________________________________
See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION
Diversification Statistics: Real Estate Portfolio
(unaudited, percentages based on portfolio Annualized Base Rent as of March 31, 2022, other than occupancy rate which is based on square footage as of March 31, 2022)

chart-c714f25f84104e7eb52a.jpg
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Statistics
(square feet in thousands)
Operating Properties92 
Unconsolidated Joint Venture Properties
Rentable Square Feet10,646 
Occupancy Rate88.3 %
Weighted Average Remaining Lease Term4.1 
Investment-Grade Tenants67.0 %
NN leases63.8 %
NNN leases17.5 %

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION

Top 10 Concentrations: Real Estate Portfolio
(unaudited, square feet and dollars in thousands as of March 31, 2022)
Tenant ConcentrationNumber of LeasesLeased Square FeetSquare Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total PortfolioCredit Rating
General Service Administration18 845 7.9 %$20,868 12.1 %AA+
Merrill Lynch482 4.5 %11,983 7.0 %A-
Highmark Western & Northeastern NY430 4.0 %8,208 4.8 %NR
RSA Security328 3.1 %7,221 4.2 %BBB
Cigna/Express Scripts365 3.4 %6,659 3.9 %A-
Walgreens574 5.4 %6,201 3.6 %BBB
Coterra Energy309 2.9 %5,554 3.2 %BBB
T-Mobile294 2.8 %5,431 3.2 %BB+
Teva Pharmaceuticals188 1.8 %5,254 3.1 %BB-
Novartis176 1.7 %4,995 2.9 %AA-
Total39 3,991 37.5 %$82,374 48.0 %

Tenant Industry ConcentrationNumber of LeasesLeased Square FeetSquare Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
Health Care Equipment & Services13 1,135 10.7 %$21,549 12.5 %
Government & Public Services20 889 8.3 %21,416 12.4 %
Insurance795 7.5 %16,478 9.6 %
Financial Institutions696 6.5 %16,211 9.4 %
Software & Services863 8.1 %14,597 8.5 %
Capital Goods10 798 7.5 %12,256 7.1 %
Pharmaceuticals, Biotechnology & Life Sciences364 3.4 %10,249 6.0 %
Consumer Durables & Apparel375 3.5 %8,362 4.9 %
Telecommunication Services497 4.7 %8,150 4.7 %
Energy468 4.4 %7,305 4.2 %
Total74 6,880 64.6 %$136,573 79.3 %

Geographic ConcentrationNumber of PropertiesRentable Square FeetSquare Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
Texas15 1,354 12.7 %$24,300 14.1 %
New Jersey829 7.8 %20,665 12.0 %
New York787 7.4 %13,406 7.8 %
Illinois12 1,322 12.4 %11,504 6.7 %
Kentucky458 4.3 %9,950 5.8 %
Oklahoma585 5.5 %9,411 5.5 %
Ohio650 6.1 %7,956 4.6 %
Massachusetts378 3.6 %7,920 4.6 %
Colorado570 5.4 %7,735 4.5 %
Pennsylvania336 3.2 %7,694 4.5 %
Total56 7,269 68.4 %$120,541 70.1 %



See the Definitions section for a description of the Company's non-GAAP and operating metrics.
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Q1 2022 SUPPLEMENTAL INFORMATION

Tenants Comprising Over 1% of Annualized Base Rent
(unaudited, square feet and dollars in thousands as of March 31, 2022)
TenantNumber of LeasesLeased Square FeetSquare Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total PortfolioCredit Rating
General Service Administration18 845 7.9 %$20,868 12.1 %AA+
Merrill Lynch482 4.5 %11,983 7.0 %A-
Highmark Western & Northeastern NY430 4.0 %8,208 4.8 %NR
RSA Security328 3.1 %7,221 4.2 %BBB
Cigna/Express Scripts365 3.4 %6,659 3.9 %A-
Walgreens574 5.4 %6,201 3.6 %BBB
Coterra Energy309 2.9 %5,554 3.2 %BBB
T-Mobile294 2.8 %5,431 3.2 %BB+
Teva Pharmaceuticals188 1.8 %5,254 3.1 %BB-
Novartis176 1.7 %4,995 2.9 %AA-
FedEx352 3.3 %4,469 2.6 %BBB
MDC Holdings Inc.144 1.4 %4,215 2.4 %BBB-
Charter Communications264 2.5 %3,689 2.1 %BB+
Inform Diagnostics172 1.6 %3,413 2.0 %NR
Banner Life Insurance116 1.1 %3,408 2.0 %A
Encompass Health65 0.6 %3,369 2.0 %BB-
Collins Aerospace207 1.9 %3,232 1.9 %A-
Home Depot/HD Supply153 1.4 %3,059 1.8 %A
Experian178 1.7 %2,915 1.7 %A-
AAA147 1.4 %2,847 1.7 %NR
Linde161 1.5 %2,781 1.6 %A
AT&T203 1.9 %2,718 1.6 %BBB
Citigroup64 0.6 %2,273 1.3 %BBB+
Hasbro136 1.3 %2,242 1.3 %BBB
NTT Data150 1.4 %2,237 1.3 %NR
Ingram Micro200 1.9 %2,197 1.3 %BB-
CVS/Aetna127 1.2 %2,193 1.3 %BBB
Novus International96 0.9 %2,022 1.2 %NR
Elementis66 0.6 %1,980 1.1 %NR
NetJets140 1.3 %1,941 1.1 %NR
Maximus196 1.8 %1,923 1.1 %BB+
Pulte Mortgage95 0.9 %1,905 1.1 %BBB-
Fiserv (1)
150 1.4 %1,800 1.0 %BBB
Ingersoll Rand105 1.0 %1,707 1.0 %BB+
Total68 7,678 72.1 %146,909 85.5 %
__________________________________
(1) This lease expired as scheduled on April 1, 2022.
See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 19


Q1 2022 SUPPLEMENTAL INFORMATION

Diversification: Tenant Industry
(unaudited, square feet and dollars in thousands as of March 31, 2022)
IndustryNumber of LeasesLeased Square FeetLeased Square Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
Health Care Equipment & Services13 1,135 10.7 %$21,549 12.5 %
Government & Public Services20 889 8.3 %21,416 12.4 %
Insurance795 7.5 %16,478 9.6 %
Financial Institutions696 6.5 %16,211 9.4 %
Software & Services863 8.1 %14,597 8.5 %
Capital Goods10 798 7.5 %12,256 7.1 %
Pharmaceuticals, Biotechnology & Life Sciences364 3.4 %10,249 6.0 %
Consumer Durables & Apparel375 3.5 %8,362 4.9 %
Telecommunication Services497 4.7 %8,150 4.7 %
Energy468 4.4 %7,305 4.2 %
Transportation541 5.1 %7,143 4.1 %
Commercial & Professional Services10 505 4.7 %7,007 4.1 %
Food & Staples Retailing574 5.4 %6,201 3.6 %
Materials352 3.3 %5,894 3.4 %
Media & Entertainment264 2.5 %3,689 2.1 %
Retailing157 1.5 %3,131 1.8 %
Food, Beverage & Tobacco96 0.9 %2,022 1.2 %
Utilities25 0.2 %394 0.2 %
Real Estate— %86 — %
Consumer Services— %54 — %
Total110 9,403 88.2 %$172,194 100.0 %

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 20


Q1 2022 SUPPLEMENTAL INFORMATION
Diversification: Property Geographic
(unaudited, square feet and dollars in thousands as of March 31, 2022)

LocationNumber of PropertiesRentable Square FeetSquare Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
United States
Arizona239 2.2 %$2,151 1.2 %
California262 2.5 %5,275 3.1 %
Colorado570 5.4 %7,735 4.5 %
Florida53 0.5 %221 0.1 %
Georgia284 2.7 %4,493 2.6 %
Idaho45 0.4 %1,019 0.6 %
Illinois12 1,322 12.4 %11,504 6.7 %
Indiana83 0.8 %549 0.3 %
Iowa137 1.3 %2,632 1.5 %
Kansas196 1.8 %1,923 1.1 %
Kentucky458 4.3 %9,950 5.8 %
Maryland236 2.2 %4,452 2.6 %
Massachusetts378 3.6 %7,920 4.6 %
Minnesota39 0.4 %493 0.3 %
Missouri529 5.0 %4,868 2.8 %
Nebraska180 1.7 %2,739 1.6 %
New Jersey829 7.8 %20,665 12.0 %
New York787 7.4 %13,406 7.8 %
Ohio650 6.1 %7,956 4.6 %
Oklahoma585 5.5 %9,411 5.5 %
Oregon69 0.6 %1,120 0.7 %
Pennsylvania336 3.2 %7,694 4.5 %
Rhode Island206 1.9 %3,016 1.8 %
South Carolina64 0.6 %2,273 1.3 %
Tennessee240 2.3 %4,490 2.6 %
Texas15 1,354 12.7 %24,300 14.1 %
Virginia240 2.3 %4,331 2.5 %
West Virginia64 0.6 %1,086 0.6 %
Wisconsin155 1.5 %2,243 1.3 %
Territories
Puerto Rico57 0.5 %2,282 1.3 %
Total98 10,647 100.0 %$172,197 100.0 %





See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 21


Q1 2022 SUPPLEMENTAL INFORMATION

Lease Expirations
(unaudited, square feet and dollars in thousands as of March 31, 2022)
Year of Expiration (1)
Number of Leases
Expiring
(2)
Leased
Square Feet
Leased Square Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
2022707 6.6 %$13,243 7.7 %
202322 2,156 20.3 %32,630 18.9 %
202418 1,978 18.6 %39,497 22.9 %
202512 1,049 9.9 %18,394 10.7 %
202612 741 7.0 %16,256 9.4 %
202712 962 9.0 %15,158 8.8 %
2028348 3.3 %6,961 4.0 %
2029392 3.7 %5,707 3.3 %
203098 0.9 %4,468 2.6 %
203111 0.1 %399 0.2 %
Thereafter888 8.3 %18,645 10.8 %
Total107 9,330 87.6 %$171,358 99.3 %
__________________________________
(1) Includes the Company's pro rata share of properties owned by the Unconsolidated Joint Venture.    
(2) The Company has certain properties that are subject to multiple leases.





See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 22


Q1 2022 SUPPLEMENTAL INFORMATION

Lease Summary
(unaudited)

Rent Escalations
(square feet and dollars in thousands as of March 31, 2022)
Number of LeasesLeased
Square Feet
Leased Square Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
Fixed dollar or percent increase89 8,154 76.6 %$147,260 85.5 %
Flat17 977 9.2 %20,106 11.7 %
CPI272 2.6 %4,829 2.8 %
Total 110 9,403 88.4 %$172,195 100.0 %



Tenant Expense Obligation
(square feet and dollars in thousands as of March 31, 2022)
Number of LeasesLeased
Square Feet
Leased Square Feet as a % of Total PortfolioAnnualized Base RentAnnualized Base Rent as a % of Total Portfolio
NN64 6,010 56.4 %$109,866 63.8 %
Modified Gross21 1,203 11.3 %32,187 18.7 %
NNN23 2,185 20.5 %30,087 17.5 %
Gross— %55 — %
Total110 9,403 88.2 %$172,195 100.0 %

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 23


Q1 2022 SUPPLEMENTAL INFORMATION

Full Portfolio (1)
IndustryAddressCityState
Vacant1625 W. Main StreetEl CentroCA
Software & Services6000 Perimeter DriveDublinOH
Food, Beverage & Tobacco20 Missouri Research Park DriveSt. CharlesMO
Telecommunication Services4335 Paredes Line RoadBrownsvilleTX
Telecommunication Services3750 Wheeler RoadAugustaGA
Telecommunication Services4080 27th Court SESalemOR
Insurance1100 Technology ParkwayCedar FallsIA
Financial Institutions11 Ewall StreetMount PleasantSC
Health Care Equipment & Services8455 University Place DriveSt. LouisMO
Transportation1475 Boettler RoadUniontownOH
Financial Institutions483 Main StreetHarleysvillePA
Government & Public Services2305 Hudson BoulevardBrownsvilleTX
Government & Public Services257 Bosley Industrial ParkParkersburgWV
Government & Public Services2805 Pine Mill RoadParisTX
Government & Public Services4521 Thomas Jefferson StreetCaldwellID
Government & Public Services3381 U.S. Highway 277Eagle PassTX
Vacant354 S Hwy 92Sierra VistaAZ
Government & Public Services2475 Cliff Creek Crossing DriveDallasTX
Government & Public Services3644 Avtech ParkwayReddingCA
Government & Public Services5100 W 36th StreetMinneapolisMN
Government & Public Services4551 State Route 11 (E)MaloneNY
Government & Public Services2600 Voyager AvenueSioux CityIA
Government & Public Services135 Circle LaneKnoxvilleTN
Government & Public Services9912 & 9934 Little RoadNew Port RicheyFL
Health Care Equipment & Services2304 State Highway 121BedfordTX
Vacant5411 E. Williams BoulevardTucsonAZ
Government & Public Services3369 U.S. Highway 277Eagle PassTX
Transportation942 S. Shady Grove RoadMemphisTN
Transportation4151 Bridgeway AvenueColumbusOH
Food & Staples Retailing1411 Lake Cook RoadDeerfieldIL
Food & Staples Retailing1415 Lake Cook RoadDeerfieldIL
Food & Staples Retailing1417 Lake Cook RoadDeerfieldIL
Food & Staples Retailing1419 Lake Cook RoadDeerfieldIL
Food & Staples Retailing1425 Lake Cook RoadDeerfieldIL
Food & Staples Retailing1435 Lake Cook RoadDeerfieldIL
Capital Goods601 Third Street SECedar RapidsIA
Consumer Durables & Apparel15 LaSalle SquareProvidenceRI
Vacant887 Deerfield ParkwayBuffalo GroveIL
Materials100 Sci Park BoulevardEast WindsorNJ
Media & Entertainment6005 Fair Lakes RoadEast SyracuseNY
Government & Public Services310 Canaveral Groves BoulevardCocoaFL
Vacant8640 Evans AvenueBerkeleyMO
Government & Public Services103 & 104 Airport RoadGrangevilleID
Government & Public Services2901 Alta Mesa BoulevardFort WorthTX
Government & Public Services59 Dunning WayPlattsburghNY
Financial Institutions480 Jefferson BoulevardWarwickRI
Energy1800 Nelson RoadLongmontCO
Health Care Equipment & Services1850 Norman Drive NorthWaukeganIL
See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 24


Q1 2022 SUPPLEMENTAL INFORMATION

IndustryAddressCityState
Health Care Equipment & Services1333 - 1385 East Shaw AvenueFresnoCA
Telecommunication Services2270 Lakeside BoulevardRichardsonTX
Various5859 Farinon DriveSan AntonioTX
Energy202 S. CheyenneTulsaOK
Vacant7475 S. Joliet StreetEnglewoodCO
Vacant8 and 10 Morton AvenueRidley ParkPA
Government & Public ServicesLot37, Santiago De Los CaballerosPoncePR
Consumer Durables & Apparel4340 & 4350 South Monaco StreetDenverCO
Vacant2250 Lakeside BoulevardRichardsonTX
Commercial & Professional Services3833 Greenway DriveLawrenceKS
Commercial & Professional Services2201 Noria RoadLawrenceKS
Materials1585 Sawdust RoadThe WoodlandsTX
Consumer Durables & Apparel7390 S. Iola StreetEnglewoodCO
Pharmaceuticals, Biotechnology & Life Sciences41 Moores RoadMalvernPA
Media & Entertainment1320 N. Dr. MLK Jr. DriveMilwaukeeWI
Telecommunication Services695 Grassmere ParkNashvilleTN
Various1575 Sawdust RoadThe WoodlandsTX
Retailing101 Riverview ParkwaySanteeCA
Materials6752 Baymeadow DriveGlen BurnieMD
Health Care Equipment & Services6655 North MacArthur BoulevardIrvingTX
Capital Goods1467 Route 31AnnandaleNJ
Capital Goods2087 East 71st StreetTulsaOK
Government & Public Services333 Scott StreetCovingtonKY
Software & Services1759 Wehrle DrAmherstNY
Commercial & Professional Services6377 Emerald DriveDublinOH
Capital Goods22640 Davis DriveSterlingVA
Capital Goods1100 Atwater Drive, Lot 11AMalvernPA
Vacant930 National ParkwaySchaumburgIL
Health Care Equipment & Services7353 Company DriveIndianapolisIN
Various1640 Dallas ParkwayPlanoTX
Capital Goods1705 Kellie DriveBlairNE
Commercial & Professional Services955 American Lane Unit 1SchaumburgIL
Insurance3100 Quail Springs ParkwayOklahoma CityOK
Software & Services777 Research RoadLincolnNE
Insurance249-257 West Genesee StreetBuffaloNY
Insurance3275 Bennett Creek AvenueUrbanaMD
Health Care Equipment & Services100 Airpark Center Drive EastNashvilleTN
Retailing3074 Chastain Meadows Parkway NWKennesawGA
Vacant2211 Sanders RoadNorthbrookIL
Capital Goods4205 River Green ParkwayDuluthGA
Pharmaceuticals, Biotechnology & Life Sciences8 Sylvan wayParsippanyNJ
Software & Services174 & 176 Middlesex TurnpikeBedfordMA
Financial Institutions1500-1600 Merrill Lynch DriveHopewellNJ
Health Care Equipment & Services3003 N. 3rd StreetPhoenixAZ
Capital Goods70 Mechanic StreetFoxboroMA
Health Care Equipment & Services577 Aptakisic RoadLincolnshireIL
Transportation360 Westar BoulevardWestervilleOH
Software & Services12975 Worldgate DriveHerndonVA
Transportation580 Atlas Air WayErlangerKY
Utilities700 Market StreetSt. LouisMO
__________________________________
(1)Includes the properties owned by the Company's unconsolidated joint venture.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 25


Q1 2022 SUPPLEMENTAL INFORMATION

Unconsolidated Joint Venture Investment Summary
(unaudited, square feet and dollars in thousands)


The following table summarizes the Company's investments in the Arch Street Unconsolidated Joint Venture as of March 31, 2022.

Legal Ownership Percentage (1)
Property TypePro Rata Share of Gross Real Estate InvestmentsPro Rata Share of Rentable Square FeetPro Rata Share of Annualized Base RentPro Rata Share of Principal Outstanding
Schneider Electric - Foxboro, MA20%Office$8,336 50 $699 $5,090 
Sysmex - Lincolnshire, IL20%Office9,239 33 779 5,448 
DHL - Westerville, OH20%Office6,676 29 422 3,972 
Peraton - Herndon, VA20%Office9,673 33 1,099 6,000 
Atlas Air - Erlanger, KY20%Office5,330 20 311 3,162 
Spire Energy - St. Louis, MO20%Office6,159 26 394 3,660 
$45,413 191 $3,704 $27,332 
__________________________________
(1)Legal ownership percentage may, at times, not equal the Company's economic interest because of various provisions in the joint venture agreement regarding capital contributions, distributions of cash flow based on capital account balances and allocations of profits and losses.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.
Orion Office REIT Inc. | WWW.ONLREIT.COM | 26



Q1 2022 SUPPLEMENTAL INFORMATION
Definitions
(unaudited, in thousands, except share and per share data)
Annualized Base Rent is the monthly aggregate cash amount charged to tenants under our leases (including monthly base rent receivables and certain contractually obligated reimbursements by our tenants), as of the final date of the applicable period, multiplied by 12, including the Company's pro rata share of such amounts related to the Unconsolidated Joint Venture. Annualized Base Rent is not indicative of future performance.

Cash Cap Rate for real estate properties equals the estimated future 12-month Cash NOI, excluding any rent concessions or abatements, at the time of the acquisition or disposition divided by the purchase or sale price. For any properties acquired or disposed of as a portfolio, the amount presented represents the portfolio cash cap rate. For certain properties, the Cash Cap Rate may be equal to future 12-month contractual rental revenue, excluding any rent concessions or abatements, divided by the purchase price or sale price, as the majority of the Company's properties are subject to Net Leases.

CPI refers to a lease in which base rent is adjusted based on changes in a consumer price index.
Double Net Lease ("NN") is a lease under which the tenant agrees to pay all operating expenses associated with the property (e.g., real estate taxes, insurance, maintenance), but excludes some or all major repairs (e.g., roof, structure, parking lot, in each case, as further defined in the applicable lease).

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") and Adjusted EBITDA
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to the Unconsolidated Joint Venture. We calculated EBITDAre in accordance with Nareit's definition described above.
In addition to EBITDAre, we use Adjusted EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Adjusted EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses and transaction costs. We also exclude certain non-cash items such as impairments of intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, amortization of intangibles, above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities and our pro rata share of Adjusted EBITDA adjustments related to the Unconsolidated Joint Venture. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Adjusted EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. The Company uses Adjusted EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Occupancy Rate equals the sum of Leased Square Feet divided by Rentable Square Feet and includes the Company's pro rata share of such amounts related to the Unconsolidated Joint Venture, in each case, as of an applicable date.

Enterprise Value equals the sum of the Implied Equity Market Capitalization and Net Debt, in each case, as of an applicable date.
Fixed Charge Coverage Ratio is (a) the sum of (i) Interest Expense, excluding non-cash amortization and (ii) secured debt principal amortization on Adjusted Principal Outstanding, divided by (b) Adjusted EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations.
Fixed Dollar or Percent Increase refers to a lease that requires contractual rent increases during the initial term of the lease agreement. A Fixed Dollar or Percent Increase lease may include a period of free rent at the beginning or end of the lease.

Orion Office REIT Inc. | WWW.ONLREIT.COM | 27



Q1 2022 SUPPLEMENTAL INFORMATION
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
Flat refers to a lease that requires equal rent payments, with no contractual increases, throughout the initial term of the lease agreement. A Flat Lease may include a period of free rent at the beginning or end of the lease.
Funds Available for Distribution ("FAD")
Funds available for distribution, as defined by the Company, represents Core FFO, as defined below, modified to exclude capital expenditures, as well as certain non-cash items such as amortization of deferred financing costs, amortization of above market leases and deferred lease incentives, net of amortization of below market lease liabilities, straight-line rental revenue, equity-based compensation, equity in income or losses of the Unconsolidated Joint Venture and our pro rata share of FAD adjustments related to the Unconsolidated Joint Venture. Management believes that adjusting these items from Core FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides useful information regarding the Company's ability to fund its dividend.
However, not all REITs calculate FAD and those that do may not calculate FAD the same way, so comparisons with other REITs may not be meaningful. FAD should not be considered as an alternative to net income (loss) or cash flow provided by operating activities as determined under GAAP.
Nareit Funds from Operations ("Nareit FFO" or "FFO") and Core Funds from Operations ("Core FFO")
Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of a REIT. FFO is not equivalent to our net income or loss as determined under GAAP.
Nareit defines FFO as net income or loss computed in accordance with GAAP adjusted for gains or losses from disposition of real estate assets, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to the Unconsolidated Joint Venture. We calculate FFO in accordance with Nareit's definition described above.
In addition to FFO, we use Core FFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. Core FFO, as defined by the Company, excludes from FFO non-recurring or infrequent items such as acquisition-related expenses, transaction costs and gains or losses on extinguishment of swaps and/or debt. Core FFO allows for a comparison of the performance of our operations with other publicly-traded REITs, as Core FFO, or an equivalent measure, is routinely reported by publicly-traded REITs, and we believe often used by analysts and investors for comparison purposes.
For all of these reasons, we believe FFO and Core FFO, in addition to net income (loss), as defined by GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and Core FFO the same way, so comparisons with other REITs may not be meaningful. FFO and Core FFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate Core FFO and its use as a non-GAAP financial performance measure.
GAAP is an abbreviation for generally accepted accounting principles in the United States.
Gross Lease is a lease under which the landlord is responsible for all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).
Gross Real Estate Investments represent total gross real estate and related assets of Operating Properties and the Company's pro rata share of such amounts related to properties owned by the Unconsolidated Joint Venture, net of gross intangible lease liabilities. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.


Orion Office REIT Inc. | WWW.ONLREIT.COM | 28



Q1 2022 SUPPLEMENTAL INFORMATION
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
The following table shows a reconciliation of Gross Real Estate Investments to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):
March 31,
2022
Total real estate investments, at cost - as reported$1,486,255 
Adjustments:
Gross intangible lease assets370,981 
Gross intangible lease liabilities(35,068)
Proportionate share of Unconsolidated Joint Venture Gross Real Estate Investments
45,413 
Gross Real Estate Investments$1,867,581 
Implied Equity Market Capitalization equals shares of common stock outstanding as of an applicable date, multiplied by the closing sale price of the Company's stock as reported on the New York Stock Exchange on such date.
Industry is derived from the Global Industry Classification Standard ("GICS") Methodology that was developed by Morgan Stanley Capital International ("MSCI") in collaboration with S&P Dow Jones Indices to establish a global, accurate, complete and widely accepted approach to defining industries and classifying securities by industry.
Interest Coverage Ratio equals Adjusted EBITDA divided by Interest Expense, excluding non-cash amortization. Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations.
Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of the Unconsolidated Joint Venture's interest expense incurred on its outstanding principal balance. This measure excludes the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP.
The following table shows a reconciliation of Interest Expense, excluding non-cash amortization to interest expense presented in accordance with GAAP on the statements of operations for the periods presented (dollar amounts in thousands):
Three Months Ended
March 31, 2022
Interest expense - as reported$6,847 
Adjustments:
Amortization of deferred financing costs and other non-cash charges(1,171)
Proportionate share of Unconsolidated Joint Venture Interest Expense, excluding non-cash amortization
115 
Interest Expense, excluding non-cash amortization$5,791 
Investment-Grade Tenants are those with a Standard & Poor’s credit rating of BBB- or higher or a Moody’s credit rating of Baa3 or higher. The ratings may reflect those assigned by Standard & Poor’s or Moody’s to the lease guarantor or the parent company, as applicable.
Leased Square Feet is Rentable Square Feet leased and includes such amounts related to the Unconsolidated Joint Venture.
Modified Gross Lease is a lease under which the landlord is responsible for most expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs), but passes through some operating expenses to the tenant.
Net Debt, Principal Outstanding and Adjusted Principal Outstanding 

Orion Office REIT Inc. | WWW.ONLREIT.COM | 29



Q1 2022 SUPPLEMENTAL INFORMATION
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the Unconsolidated Joint Venture's outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.
Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of the Unconsolidated Joint Venture's cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.
The following table shows a reconciliation of Net Debt, Principal Outstanding and Adjusted Principal Outstanding to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):
March 31,
2021
December 31,
2021
Bridge facility, net$— $354,357 
Mortgages payable, net351,648 — 
Credit facility term loan, net172,793 172,490 
Credit facility revolver91,000 90,000 
Total debt - as reported615,441 616,847 
Deferred financing costs, net5,559 3,153 
Principal Outstanding621,000 620,000 
Proportionate share of Unconsolidated Joint Venture Principal Outstanding
27,332 27,332 
Adjusted Principal Outstanding$648,332 $647,332 
Cash and cash equivalents(18,585)(29,318)
Proportionate share of Unconsolidated Joint Venture cash and cash equivalents
(652)(590)
Net Debt$629,095 $617,424 
Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments.
Net Operating Income ("NOI") and Cash NOI
NOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents total revenues less property operating expenses and excludes fee revenue earned for services to the Unconsolidated Joint Venture, impairment, depreciation and amortization, general and administrative expenses, acquisition-related expenses and transaction costs. Cash NOI excludes the impact of certain GAAP adjustments included in rental revenue, such as straight-line rent adjustments and amortization of above-market intangible lease assets and below-market lease intangible liabilities. Cash NOI includes the pro rata share of such amounts from properties owned by the Unconsolidated Joint Venture. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income in accordance with GAAP. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies.


Orion Office REIT Inc. | WWW.ONLREIT.COM | 30



Q1 2022 SUPPLEMENTAL INFORMATION
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
The following table shows the calculation of NOI and Cash NOI for the periods presented (dollar amounts in thousands):
Three Months Ended
March 31, 2022
Total revenues$53,206 
Less total operating expenses(55,605)
Fee income from unconsolidated joint venture(189)
Acquisition related63 
Transaction costs756 
General and administrative3,517 
Depreciation and amortization34,353 
Impairment of real estate1,602 
NOI37,703 
Straight-line rent(896)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities (320)
Other non-cash adjustments51 
Proportionate share of Unconsolidated Joint Venture Cash NOI
849 
 Cash NOI$37,387 
Operating Properties refers to all properties owned and consolidated by the Company as of the applicable date.
Property Operating Expense includes reimbursable and non-reimbursable costs to operate a property, including real estate taxes, utilities, insurance, repairs, maintenance, legal, property management fees, etc.
Rentable Square Feet is leasable square feet of Operating Properties and the Company's pro rata share of leasable square feet of properties owned by the Unconsolidated Joint Venture.
Triple Net Lease ("NNN") is a lease under which the tenant agrees to pay all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs in accordance with the lease terms).
Unconsolidated Joint Venture includes the Company's investment in the Arch Street unconsolidated joint venture formed to acquire and own real estate properties.
Unencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage.
Weighted Average Remaining Lease Term is the number of years remaining on each respective lease as of the applicable date, weighted based on Annualized Base Rent and includes the years remaining on each of the respective leases of the Unconsolidated Joint Venture, weighted based on the Company's pro rata share of Annualized Base Rent related to the Unconsolidated Joint Venture.

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