Orion Properties Inc. 10-K

Item 9A. Controls and Procedures. Disclosure Controls and Procedures We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance of achieving the desired control objectives. As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of December 31, 2025, were effective at a reasonable assurance level. Management’s Report on Internal Controls Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. In connection with the preparation of our Form 10-K, our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making that assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013). Based on its assessment, our management concluded that, as of December 31, 2025, our internal control over financial reporting was effective. 56 Table of Contents This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting, due to an exemption established by the rules of the SEC for “emerging growth companies.” Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information. Rule 10b5-1 Trading Agreements During the three months ended December 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(c) of Regulation S-K. 2026 Annual Bonus Program On March 4, 2026, the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Company, approved a new annual incentive program for the Company’s 2026 fiscal year (the “2026 Bonus Program”). Under the 2026 Bonus Program, each of the Company’s named executive officers, namely, Paul McDowell and Gavin Brandon (the “Executives”), are eligible to earn an annual incentive bonus based on the applicable Executive’s individual performance and the Company’s achievement of performance goals relating to (1) Core FFO per share, (2) total general and administrative expenses (“G&A expenses”), and (3) Net Debt to Adjusted EBITDA. The term Executives excludes Gary Landriau, who retired from the Company during 2025 and is not eligible to participate in the 2026 Bonus Program. The weighting of each component of the 2026 Bonus Program is as follows: Bonus Component Weighting Individual Performance 30% Core FFO per share 30% G&A expenses 20% Net Debt to Adjusted EBITDA 20% Under the 2026 Bonus Program, 50% of each target bonus component will be earned for performance at the threshold level, 100% of each target bonus component will be earned for performance at the target level and 150% of each target bonus component will be earned for performance at the maximum level (or above). Performance between threshold and target and between target and maximum performance levels will be interpolated on a straight-line basis. Pursuant to their respective employment agreements, in 2026 each of the executives will be eligible to earn an annual cash bonus targeted at a percentage of the executive’s base salary as follows: 100% for Mr. McDowell and 100% for Mr. Brandon. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 57 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance. The information required by this Item will be included in our Proxy Statement, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2025, and is incorporated herein by reference. Item 11. Executive Compensation. The information required by this Item will be included in the Proxy Statement, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2025, and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by this Item will be included in the Proxy Statement, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2025, and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by this Item will be included in the Proxy Statement, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2025, and is incorporated herein by reference. Item 14. Principal Accounting Fees and Services. The information required by this Item will be included in the Proxy Statement, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2025, and is incorporated herein by reference. 58 Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules. Financial Statements The Financial Statements are included herein beginning on page F-1 . Financial Statement Schedules Schedule III – Real Estate and Accumulated Depreciation is included herein beginning on page F-36 . All other schedules have been omitted as the required information is either presented in the consolidated financial statements or is not applicable. Exhibits The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the period ended December 31, 2025 (and are numbered in accordance with Item 601 of Regulation S-K): Exhibit No. Description 3.1 Articles of Amendment and Restatement of Orion Office REIT Inc. (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K, filed on November 15, 2021 and incorporated herein by reference). 3.2 Articles of Amendment to Articles of Amendment and Restatement, as amended through March 5, 2025 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K, filed on March 5, 2025 and incorporated herein by reference). 3.3 Second Amended and Restated Bylaws of Orion Office REIT Inc. (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K, filed on September 8, 2023 and incorporated herein by reference). 3.4 First Amendment to Second Amended and Restated Bylaws (filed as Exhibit 3.2 to the Company's Current Report on Form 8-K, filed on March 5, 2025 and incorporated herein by reference). 4.1 Form of Warrant (filed as Exhibit 4.1 to the Company's Registration Statement on Form S-3 (File No. 333-268121), filed on November 2, 2022 and incorporated herein by reference). 4.2 Description of Securities (filed as Exhibit 4.2 to the Company's Annual Report on Form 10-K, filed on March 24, 2022 and incorporated herein by reference). 10.1 Agreement of Limited Partnership of Orion Office REIT LP (filed as Exhibit 2.2 to the Company’s Registration Statement on Form 10, filed on October 4, 2021 and incorporated herein by reference). 10.2 First Amendment to Agreement of Limited Partnership (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on March 5, 2025 and incorporated herein by reference). 10.3 Credit Agreement, dated November 12, 2021, by and among Orion Office REIT Inc., Orion Office REIT LP, the financial institutions party thereto, and Wells Fargo Bank, National Association, as administrative agent (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on November 15, 2021 and incorporated herein by reference). 10.4 First Amendment to Credit Agreement, dated as of December 1, 2022, among Orion Office REIT LP, as Borrower, Orion Office REIT Inc., as Parent, Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on December 5, 2022 and incorporated herein by reference). 10.5 Second Amendment to Credit Agreement, dated as of June 29, 2023, among Orion Office REIT LP, as Borrower, Orion Office REIT Inc., as Parent, Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on June 29, 2023 and incorporated herein by reference). 10.6 Third Amendment to the Credit Agreement, dated as of May 3, 2024, among Orion Office REIT LP, as Borrower, Orion Office REIT, Inc., as Parent, Wells Fargo Bank, National Association, as Administrative Agent, and the Lenders party thereto (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed May 8, 2024 and incorporated herein by reference). 10.7 Guaranty, dated November 12, 2021, by and among Orion Office REIT Inc. and certain subsidiaries of Orion Office REIT LP in favor of Wells Fargo Bank, National Association, as administrative agent (filed as Exhibit 10.3 to the Company's Current Report on Form 8-K, filed on November 15, 2021 and incorporated herein by reference). 59 Table of Contents 10.8 Credit Agreement, dated February 18, 2026, by and among Orion Properties Inc., as Parent, Orion Properties LP, as Borrower, the financial institutions party thereto, as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent (filed as Exhibit 10.2 to the Company’s Form 8-K filed on February 19, 2026 and incorporated herein by reference). 10.9 Parent Guaranty, dated February 18, 2026, by Orion Properties Inc. in favor of Wells Fargo Bank, National Association, as Administrative Agent (filed as Exhibit 10.3 to the Company’s Form 8-K filed on February 19, 2026 and incorporated herein by reference). 10.10 Loan Agreement, dated February 10, 2022, by and between the entities identified on Schedule I thereto, as Borrower, and Wells Fargo Bank, National Association, as Lender (filed as Exhibit 10.1 to the Company's Form 8-K, filed on February 14, 2022 and incorporated herein by reference). 10.11 Guaranty of Recourse Obligations, dated February 10, 2022, made by Orion Office REIT Inc. in favor of Wells Fargo Bank, National Association, as Lender (filed as Exhibit 10.2 to the Company’s Form 8-K filed on February 14, 2022 and incorporated herein by reference). 10.12 Loan Extension and Modification Agreement, dated February 17, 2026, by and among the entities identified as Borrower on the signature page attached thereto, as Borrower, Orion Properties Inc. (solely with respect to specified sections), as Guarantor, and Computer share Trust Company, National Association, as Trustee, for the benefit of holders of Wells Fargo Commercial Mortgage Trust 2022-ONL, Commercial Mortgage Pass-Through Certificates, Series 2022-ONL, as Lender (filed as Exhibit 10.1 to the Company’s Form 8-K filed on February 19, 2026 and incorporated herein by reference). 10.13 Amended & Restated Limited Liability Company Agreement of OAP/VER Venture, LLC, dated November 12, 2021 (filed as Exhibit 10.5 to the Company's Current Report on Form 8-K, filed on November 15, 2021 and incorporated herein by reference). 10.14† Orion Properties Inc. 2021 Amended and Restated Equity Incentive Plan (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on May 14, 2025 and incorporated herein by reference). 10.15† Form of Employment Agreement, by and among Orion Services, LLC, Orion Office REIT Inc. and each named executive officer of Orion Office REIT Inc. (filed as Exhibit 10.1 to the Company's Registration Statement on Form 10, filed on October 4, 2021 and incorporated herein by reference). 10.16† Form of Indemnification Agreement entered into between Orion Office REIT Inc. and each of its directors and executive officers (filed as Exhibit 10.3 to the Company's Registration Statement on Form 10, filed on October 4, 2021 and incorporated herein by reference). 10.17† Form of Restricted Stock Unit Award for Non-Employee Directors under the Orion Office REIT Inc. 2021 Equity Incentive Plan (filed as Exhibit 10.11 to the Company’s Form 10-Q, filed on December 2, 2021 and incorporated herein by reference). 10.18† Form of Restricted Stock Unit Award for Employees under the Orion Office REIT Inc. 2021 Equity Incentive Plan (filed as Exhibit 10.12 to the Company’s Form 10-Q, filed on December 2, 2021 and incorporated herein by reference). 10.19† Form of Performance-Based Restricted Stock Unit Agreement pursuant to the Orion Office REIT Inc. 2021 Equity Incentive Plan (March 2022 Awards) (filed as Exhibit 10.15 to the Company’s Form 10-K filed on March 24, 2022 and incorporated herein by reference). 10.20† Form of Performance-Based Restricted Stock Unit Agreement pursuant to the Orion Office REIT Inc. 2021 Equity Incentive Plan (March 2023 Awards) (filed as Exhibit 10.14 to the Company’s Form 10-K filed on March 8, 2023 and incorporated herein by reference). 10.21† Form of Performance-Based Restricted Stock Unit Agreement pursuant to the Orion Office REIT Inc. 2021 Equity Incentive Plan (March 2024 Awards) (filed as E xhibit 10.15 to the Company’s Form 10-K filed on February 27, 2024 and incorporated herein by reference). 10.22† Retirement and Consultancy Agreement by and between Gary E. Landriau and Orion Properties Inc. dated March 5, 2025 (filed as Exhibit 10.20 to the Company ’ s Form 10-K filed on March 5, 2025 a nd incorporated her ein by reference) . 10.23† Form of Performance-Based Restricted Stock Unit Agreement pu rsuant to the Orion Office REIT Inc. 2021 Equity Incentive Plan (Ma rch 2025 Awards) ( filed as Exhi bit 10.2 to the Company ’ s Form 10-Q , filed on May 7, 2025 and incorporated her ein by reference ). 10.24† Form of Time-Based Restricted Stock Unit Agreement pursuant to the Orion Office REIT Inc. 2021 Equity Incentive Plan (March 2025 Awards) (filed as Exhibit 10.3 to the Company’s Form 10-Q, filed on May 7, 2025 and incorporated herein by reference). 60 Table of Contents 10.25 Cooperation Agreement, dated January 26, 2026, among Orion Properties Inc., The Kawa Fund Limited and Kawa Capital Management, Inc. (filed as Exhibit 10.1 to the Company’s Form 8-K filed on January 26, 2026 and incorporated herein by reference). 19.1* The Company's Insider Trading Compliance Policy 21.1* Subsidiaries of the Company 23.1* Consent of KPMG LLP 31.1* Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2* Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1* Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2* Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 97.1* Policy for Recoupment of Incentive Compensation 101.SCH* Inline XBRL Taxonomy Extension Schema Document. 101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB* Inline XBRL Taxonomy Extension Label Linkbase Document. 101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document. 104* Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101). ____________________________________ * Filed herewith † Management contract or compensatory plan or arrangement. Item 16. Form 10-K Summary. Not Applicable. 61 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned thereunto duly authorized. Orion Properties Inc. By: /s/ Gavin B. Brandon Gavin B. Brandon Chief Financial Officer, Executive Vice President and Treasurer Dated: March 5, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Name Capacity Date /s/ Paul H. McDowell Chief Executive Officer, President and Director March 5, 2026 Paul H. McDowell (Principal Executive Officer) /s/ Gavin B. Brandon Executive Vice President, Chief Financial Officer and Treasurer March 5, 2026 Gavin B. Brandon (Principal Financial Officer) /s/ Revea L. Schmidt Chief Accounting Officer March 5, 2026 Revea L. Schmidt (Principal Accounting Officer) /s/ Reginald H. Gilyard Director, Non-Executive Chairman March 5, 2026 Reginald H. Gilyard /s/ Kathleen R. Allen Director March 5, 2026 Kathleen R. Allen /s/ Richard J. Lieb Director March 5, 2026 Richard J. Lieb /s/ Gregory J. Whyte Director March 5, 2026 Gregory J. Whyte 62 Table of Contents INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Financial Statements Report of Independent Registered Public Accounting Firm ( KPMG LLP , San Diego, CA , Firm ID 185 ) F-2 Consolidated Balance Sheets as of December 31, 202 5 and 202 4 F-3 Consolidated Statements of Operations for the Years Ended December 31, 202 5 , 202 4 and 202 3 F-4 Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 202 5 , 202 4 and 202 3 F-5 Consolidated Statements of Equity for the Years Ended December 31, 202 5 , 202 4 and 202 3 F-6 Consolidated Statements of Cash Flows for the Years Ended December 31, 202 5 , 202 4 and 202 3 F-7 Notes to Consolidated Financial Statements F-9 Schedule III – Real Estate and Accumulated Depreciation F-36 F-1 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Orion Properties Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Orion Properties Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. /s/ KPMG LLP We have served as the Company’s auditor since 2021. San Diego, California March 5, 2026 F-2 Table of Contents ORION PROPERTIES INC. CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) December 31, 2025 December 31, 2024 ASSETS Real estate investments, at cost: Land $ 176,532 $ 227,145 Buildings, fixtures and improvements 976,676 1,055,307 Total real estate investments, at cost 1,153,208 1,282,452 Less: accumulated depreciation 195,042 177,906 Total real estate investments, net 958,166 1,104,546 Accounts receivable, net 35,333 22,833 Intangible lease assets, net 75,947 95,944 Cash and cash equivalents 22,362 15,600 Restricted cash 38,277 41,570 Real estate assets held for sale, net 12,803 9,671 Other assets, net 27,614 46,258 Total assets $ 1,170,502 $ 1,336,422 LIABILITIES AND EQUITY Mortgages payable, net $ 371,957 $ 371,222 Credit facility revolver 92,000 119,000 Accounts payable and accrued expenses 40,219 31,585 Below-market lease liabilities, net 18,449 20,596 Distributions payable 1,208 5,633 Other liabilities, net 22,154 23,130 Total liabilities 545,987 571,166 Common stock, $ 0.001 par value, 100,000,000 shares authorized 56,314,634 and 55,951,876 shares issued and outstanding as of each of December 31, 2025 and December 31, 2024, respectively 56 56 Additional paid-in capital 1,151,644 1,148,223 Accumulated other comprehensive loss ( 5 ) ( 15 ) Accumulated deficit ( 528,482 ) ( 384,348 ) Total stockholders’ equity 623,213 763,916 Non-controlling interest 1,302 1,340 Total equity 624,515 765,256 Total liabilities and equity $ 1,170,502 $ 1,336,422 The accompanying notes are an integral part of these statements. F-3 Table of Contents ORION PROPERTIES INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) Year Ended December 31, 2025 2024 2023 Rental $ 146,827 $ 164,055 $ 194,241 Fee income from unconsolidated joint venture 820 807 800 Total revenues 147,647 164,862 195,041 Operating expenses: Property operating 64,828 65,151 60,783 General and administrative 20,313 20,094 18,720 Depreciation and amortization 58,746 100,820 109,111 Impairments 99,376 47,552 33,112 Transaction related 898 539 504 Total operating expenses 244,161 234,156 222,230 Other (expenses) income: Interest expense, net ( 31,525 ) ( 32,637 ) ( 29,669 ) Gain on disposition of real estate assets 7,058 — 31 Loss on extinguishment of debt, net — ( 1,078 ) ( 504 ) Other income 1,286 987 911 Other expenses ( 1,584 ) — — Reserve on member loan to unconsolidated joint venture ( 5,926 ) — — Equity in loss and impairment of investment in unconsolidated joint venture, net ( 11,822 ) ( 740 ) ( 435 ) Total other (expenses) income, net ( 42,513 ) ( 33,468 ) ( 29,666 ) Loss before taxes ( 139,027 ) ( 102,762 ) ( 56,855 ) Provision for income taxes ( 259 ) ( 214 ) ( 456 ) Net loss ( 139,286 ) ( 102,976 ) ( 57,311 ) Net (income) loss attributable to non-controlling interest ( 23 ) ( 36 ) 9 Net loss attributable to common stockholders $ ( 139,309 ) $ ( 103,012 ) $ ( 57,302 ) Weighted average shares outstanding - basic and diluted 56,232 55,903 56,410 Basic and diluted net loss per share attributable to common stockholders $ ( 2.48 ) $ ( 1.84 ) $ ( 1.02 ) The accompanying notes are an integral part of these statements. F-4 Table of Contents ORION PROPERTIES INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) Year Ended December 31, 2025 2024 2023 Net loss $ ( 139,286 ) $ ( 102,976 ) $ ( 57,311 ) Total other comprehensive income (loss): Unrealized gain on interest rate derivatives 21 249 127 Reclassification of previous unrealized gain on interest rate derivatives into net loss ( 11 ) — ( 6,699 ) Total other comprehensive income (loss) 10 249 ( 6,572 ) Total comprehensive loss ( 139,276 ) ( 102,727 ) ( 63,883 ) Comprehensive (income) loss attributable to non-controlling interest ( 23 ) ( 36 ) 9 Total comprehensive loss attributable to common stockholders $ ( 139,299 ) $ ( 102,763 ) $ ( 63,874 ) The accompanying notes are an integral part of these statements. F-5 Table of Contents ORION PROPERTIES INC. CONSOLIDATED STATEMENTS OF EQUITY (In thousands, except for share data) Common Stock Number of Shares Par Value Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity Non-Controlling Interest Total Equity Balance, January 1, 2023 56,639,040 $ 57 $ 1,147,014 $ 6,308 $ ( 178,910 ) $ 974,469 $ 1,389 $ 975,858 Net loss — — — — ( 57,302 ) ( 57,302 ) ( 9 ) ( 57,311 ) Distributions — — — — ( 22,593 ) ( 22,593 ) — ( 22,593 ) Repurchases of common stock under Share Repurchase Program ( 915,637 ) ( 1 ) ( 5,017 ) — — ( 5,018 ) — ( 5,018 ) Repurchases of common stock to settle tax obligations ( 15,411 ) — ( 89 ) — — ( 89 ) — ( 89 ) Equity-based compensation, net 75,556 — 2,728 — — 2,728 — 2,728 Other comprehensive loss, net — — — ( 6,572 ) — ( 6,572 ) — ( 6,572 ) Balance, December 31, 2023 55,783,548 56 1,144,636 ( 264 ) ( 258,805 ) 885,623 1,380 887,003 Net (loss) income — — — — ( 103,012 ) ( 103,012 ) 36 ( 102,976 ) Distributions — — — — ( 22,531 ) ( 22,531 ) ( 76 ) ( 22,607 ) Repurchases of common stock to settle tax obligations ( 48,700 ) — ( 170 ) — — ( 170 ) — ( 170 ) Equity-based compensation, net 217,028 — 3,757 — — 3,757 — 3,757 Other comprehensive income, net — — — 249 — 249 — 249 Balance, December 31, 2024 55,951,876 56 1,148,223 ( 15 ) ( 384,348 ) 763,916 1,340 765,256 Net (loss) income — — — — ( 139,309 ) ( 139,309 ) 23 ( 139,286 ) Distributions — — — — ( 4,825 ) ( 4,825 ) ( 61 ) ( 4,886 ) Repurchases of common stock to settle tax obligations ( 135,759 ) — ( 475 ) — — ( 475 ) — ( 475 ) Equity-based compensation, net 498,517 — 3,896 — — 3,896 — 3,896 Other comprehensive income, net — — — 10 — 10 — 10 Balance, December 31, 2025 56,314,634 $ 56 $ 1,151,644 $ ( 5 ) $ ( 528,482 ) $ 623,213 $ 1,302 $ 624,515 The accompanying notes are an integral part of these statements. F-6 Table of Contents ORION PROPERTIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net loss $ ( 139,286 ) $ ( 102,976 ) $ ( 57,311 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 58,746 100,820 109,111 Straight-line rental revenue and other non-cash revenue adjustments, net ( 13,334 ) 180 ( 5,977 ) Impairments 99,376 47,552 33,112 Gain on disposition of real estate assets ( 7,058 ) — ( 31 ) Loss on extinguishment of debt, net — 1,078 504 Amortization of deferred financing costs 3,699 3,686 3,974 Loss on deferred offering costs 576 — — Equity-based compensation 3,896 3,757 2,728 Equity in loss and impairment of investment in unconsolidated joint venture, net 11,822 740 435 Reserve on member loan to unconsolidated joint venture 5,926 — — Changes in assets and liabilities: Accounts receivable, net and other assets, net 1,285 2,546 1,340 Accounts payable, accrued expenses and other liabilities, net ( 2,072 ) ( 3,123 ) 1,203 Net cash provided by operating activities 23,576 54,260 89,088 Cash flows from investing activities: Investment in real estate assets — ( 34,734 ) — Capital expenditures and leasing costs ( 51,692 ) ( 22,576 ) ( 18,442 ) Proceeds from disposition of real estate, net 71,526 5,069 21,032 Return of investment from unconsolidated joint venture — 987 1,840 Origination of member loan to unconsolidated joint venture ( 8,328 ) ( 1,400 ) — Principal repayments received on member loan to unconsolidated joint venture 3,124 — — Principal repayments received on notes receivable 2,500 1,200 — Deposits for real estate assets ( 775 ) ( 1,350 ) ( 2,340 ) Uses and refunds of deposits for real estate assets 425 1,350 2,340 Proceeds from the settlement of property-related insurance claims — 191 859 Net cash provided by (used in) investing activities 16,780 ( 51,263 ) 5,289 Cash flows from financing activities: Proceeds from mortgages payable — 18,000 — Repayment of credit facility term loan — — ( 175,000 ) Proceeds from credit facility revolver 13,000 36,000 175,000 Repayments of credit facility revolver ( 40,000 ) ( 33,000 ) ( 59,000 ) Payments of deferred financing costs ( 8 ) ( 1,302 ) ( 5,663 ) Repurchases of common stock under Share Repurchase Program — — ( 5,018 ) Repurchases of common stock to settle tax obligations ( 475 ) ( 170 ) ( 89 ) Payments of deferred equity offering costs ( 94 ) — ( 41 ) Distributions paid ( 8,972 ) ( 22,355 ) ( 22,578 ) Other financing activities ( 338 ) ( 198 ) ( 101 ) Net cash used in financing activities ( 36,887 ) ( 3,025 ) ( 92,490 ) F-7 Table of Contents ORION PROPERTIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In thousands) Net change in cash and cash equivalents and restricted cash 3,469 ( 28 ) 1,887 Cash and cash equivalents and restricted cash, beginning of year 57,170 57,198 55,311 Cash and cash equivalents and restricted cash, end of year $ 60,639 $ 57,170 $ 57,198 Reconciliation of Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents at beginning of year $ 15,600 $ 22,473 $ 20,638 Restricted cash at beginning of year 41,570 34,725 34,673 Cash and cash equivalents and restricted cash at beginning of year $ 57,170 $ 57,198 $ 55,311 Cash and cash equivalents at end of year $ 22,362 $ 15,600 $ 22,473 Restricted cash at end of year 38,277 41,570 34,725 Cash and cash equivalents and restricted cash at end of year $ 60,639 $ 57,170 $ 57,198 The accompanying notes are an integral part of these statements. F-8 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Note 1 – Organization Organization Orion Properties Inc. (the “Company”, “Orion”, “we” or “us”) is an internally managed real estate investment trust (“REIT”) engaged in the ownership, acquisition, and management of a diversified portfolio of office properties located in high-quality suburban markets across the United States and leased primarily on a single-tenant net lease basis to creditworthy tenants. The Company’s portfolio is comprised of traditional office properties, as well as governmental, medical office, flex/laboratory and R&D and flex/industrial properties. As part of its investment strategy, the Company intends to shift its portfolio concentration over time away from traditional office properties, towards more dedicated use assets with specialized uses that include an office component. The Company was initially formed as a wholly owned subsidiary of Realty Income Corporation (“Realty Income”). Following completion of the merger transaction involving Realty Income and VEREIT, Inc. (“VEREIT”) on November 1, 2021, Realty Income contributed the combined business comprising certain office real properties and related assets previously owned by subsidiaries of Realty Income, and certain office real properties and related assets previously owned by subsidiaries of VEREIT (the “Separation”), to the Company and its operating partnership, Orion Properties LP (“Orion OP”), and on November 12, 2021, effected a special distribution to Realty Income’s stockholders of all the outstanding shares of common stock of the Company (the “Distribution”). Following the Distribution, the Company became an independent and publicly traded company and its common stock, par value $ 0.001 per share, trades on the New York Stock Exchange (the “NYSE”) under the symbol “ONL.” The Company has elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with its initial taxable year ended December 31, 2021. As of December 31, 2025, the Company owned and operated 58 operating properties with an aggregate of 6.5 million leasable square feet located in 26 states, and eight properties designated as non-operating properties. The Company owned an equity interest in OAP/VER Venture, LLC (the “Arch Street Joint Venture”), an unconsolidated joint venture with an affiliate of Arch Street Capital Partners, LLC (“Arch Street Capital Partners”). As of December 31, 2025, the Arch Street Joint Venture owned a portfolio consisting of six properties totaling approximately 1.0 million leasable square feet located within six states. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements of the Company presented herein include the accounts of the Company and its consolidated subsidiaries, including Orion OP, and a consolidated joint venture. All intercompany transactions have been eliminated upon consolidation. The consolidated financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) assuming the Company will continue as a going concern. The going concern assumption contemplates continuity of operations, the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Principles of Consolidation The portion of the consolidated joint venture not owned by the Company is presented as non-controlling interest in the accompanying consolidated balance sheets, statements of operations, statements of comprehensive income (loss) and statements of equity. For legal entities being evaluated for consolidation, the Company must first determine whether the interests that it holds and fees it receives qualify as variable interests in the entity. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. The Company’s evaluation includes consideration of fees paid to the Company where the Company acts as a decision maker or service provider to the entity being evaluated. If the Company determines that it holds a variable interest in an entity, it evaluates whether that entity is a variable interest entity (“VIE”). VIEs are entities where investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one or more of the following characteristics: (a) the power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of the entity; or (c) the right to receive the expected returns of the entity. The Company consolidates entities that are not VIEs if it has a majority voting interest or other rights that result in effectively controlling the entity. F-9 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The Company then qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE, which is generally defined as the party who has a controlling financial interest in the VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. The Company continually evaluates the need to consolidate VIEs based on standards set forth in U.S. GAAP. Reclassification During the year ended December 31, 2025, the Company elected to separately present restricted cash, which was previously presented in other assets, net, on the consolidated balance sheets to provide greater visibility in future periods of changes in restricted cash in connection with the February 2026 modification of the CMBS Loan. As a result of this change in presentation, the Company has reclassified restricted cash amounts from other assets, net to restricted cash on the consolidated balance sheets for the prior period presented. Additionally, the Company elected to separate other income and other expenses, which were previously consolidated as other income (expenses), net, on the consolidated statements of operations. These reclassifications had no impact on the reported total assets, net loss or cash flows in the accompanying consolidated financial statements. Per Share Data Income (loss) per basic share of common stock is calculated by dividing net income (loss) by the weighted average number of shares of common stock issued and outstanding during such period. Diluted income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding real estate impairments, other than temporary equity method investment impairments, notes receivable reserves and purchase price allocations. Leases Lessor At the inception of a new lease arrangement for which the Company is the lessor, including new leases that arise from amendments, the Company assesses the terms and conditions to determine the proper lease classification. When the terms of a lease effectively transfer control of the underlying asset, the lease is classified as a sales-type lease. When a lease does not effectively transfer control of the underlying asset to the lessee, but the Company obtains a guarantee for the value of the asset from a third party, the Company classifies the lease as a direct financing lease. All other leases are classified as operating leases. As of December 31, 2025, none of the Company’s leases were classified as sales-type leases or direct financing leases. Lessee To account for leases for which the Company is the lessee, contracts must be analyzed upon inception to determine if the arrangement is, or contains, a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification tests and measurement procedures are performed at the lease commencement date. When the terms of a lease effectively transfer control of the underlying asset, the lease is classified as a finance lease, otherwise it is classified as an operating lease. The lease liability is initially measured as the present value of the lease payments over the lease term, discounted using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the lessee’s incremental borrowing rate is used. The incremental borrowing rate is determined based on the estimated rate of interest that the lessee would pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The lease term is the noncancelable period of the lease and includes any renewal and termination options the Company is reasonably certain to exercise. The lease liability balance is amortized using the effective interest method. The lease liability is remeasured when the contract is modified, upon the resolution of a contingency such that variable payments become fixed or if the assessment of exercising an extension, termination or purchase option changes. F-10 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The right-of-use asset balance is initially measured as the lease liability amount, adjusted for any lease payments made prior to the commencement date, initial direct costs, estimated costs to dismantle, remove, or restore the underlying asset and incentives received. Revenue Recognition Rental Revenue For operating leases with minimum scheduled rent increases, the Company recognizes rental revenue on a straight-line basis, including the effect of any free rent periods, over the lease term when collectability of lease payments is probable. Variable lease payments are recognized as rental revenue in the period when the changes in facts and circumstances on which the variable lease payments are based occur. Certain of the Company’s leases also contain provisions for tenants to reimburse the Company for real estate taxes, insurance and maintenance and other property operating expenses. Such reimbursements are included in rental revenue on a gross basis. Property operating expenses paid directly by tenants are recorded on a net basis (i.e., treated as fully offset by an identical amount of assumed reimbursement revenue) and, therefore, are not included in the accompanying consolidated financial statements. The Company continually reviews receivables related to rent, straight-line rent and property operating expense reimbursements and determines collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. The review includes a binary assessment of whether or not substantially all of the amounts due under a tenant’s lease agreement are probable of collection. For leases that are deemed probable of collection, revenue continues to be recorded on a straight-line basis over the lease term. For leases that are deemed not probable of collection, revenue is recorded as cash is received and the Company reduces rental revenue for any straight-line rent receivables. The Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue. During the years ended December 31, 2024 and 2023, the Company recorded a reduction to rental revenue of less than $ 0.1 million for income not probable of collection. No such amounts were recorded for the year ended December 31, 2025. Periodically the Company receives reimbursements from previous tenants for certain end of lease obligations that are recognized in rental revenue on a cash basis or when the amounts are definitively agreed upon. The Company recognized $ 3.3 million of such reimbursements during the year ended December 31, 2024. No such reimbursements were recognized during the years ended December 31, 2025 and 2023. Rental revenue also includes lease termination income collected from tenants to allow for the tenants to settle their lease obligations and/or to vacate their space prior to their scheduled termination dates, and recognized over the remaining or modified terms of the respective lease. The Company recognized lease termination income of $ 5.2 million, $ 2.0 million and $ 4.3 million during the years ended December 31, 2025, 2024 and 2023, respectively. Amortization of above and below-market leases and lease incentives is also included in rental revenue and is discussed further in Note 3 – Real Estate Investments and Related Intangibles. Fee Income from Unconsolidated Joint Venture The Company provides various services to the Arch Street Joint Venture in exchange for market-based fees. Total asset and property management fees earned in connection with this entity was $ 0.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. See Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture for discussion regarding the recognition of these fees on a cash basis beginning in 2026. Real Estate Investments The Company records acquired real estate at cost when such acquisitions qualify as asset acquisitions and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 35 years for buildings, five to 20 years for building fixtures and improvements and the remaining lease term for intangible lease assets and liabilities. F-11 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Allocation of Purchase Price of Real Estate Assets For acquisitions that qualify as asset acquisitions, the Company allocates the purchase price or total consideration exchanged, inclusive of acquisition costs of acquired properties to tangible and intangible assets and liabilities based on their relative estimated fair values. Tangible assets consist of land, buildings, fixtures and improvements on an as-if-vacant basis. The Company utilizes various estimates, processes and information to determine the as-if vacant property value. Identifiable intangible assets and liabilities consist of any above-market and below-market leases, acquired in-place leases and other identified intangible assets and assumed liabilities (including ground leases, if applicable). The Company’s purchase price allocations are developed utilizing third-party appraisal reports, industry standards and management experience. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed. The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by the Company in its analysis of the in-place leases include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period. The Company also estimates costs to execute similar leases, including leasing commissions and tenant improvement allowances. The value of in-place leases is amortized over the remaining non-cancelable term of the respective leases at acquisition. If a tenant terminates its lease, then the unamortized portion of the in-place lease value is charged to expense. Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease, including any bargain renewal periods. A bargain renewal period is a provision in a lease which allows a lessee, at its option, to renew a lease at a rate that is sufficiently lower than fair market lease rates at the date such option is exercisable such that exercise of the option appears, at the inception of the lease, to be reasonably certain. Above-market leases are amortized as a reduction to rental revenue over the remaining terms of the respective leases. Below-market leases are amortized as an increase to rental revenue over the remaining terms of the respective leases, including any bargain renewal periods. The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations. Assets Held for Sale The Company classifies a real estate investment as held for sale when certain criteria are met in accordance with U.S. GAAP. Upon classifying a real estate investment as held for sale, the Company will no longer recognize depreciation or amortization expense related to the depreciable assets of the property. Assets held for sale are recorded at the lower of carrying value or estimated fair value, less the estimated cost to dispose of the assets. See Note 3 – Real Estate Investments and Related Intangibles for further discussion regarding properties held for sale. If circumstances arise that the Company previously considered unlikely and, as a result, the Company decides not to sell a property previously classified as held for sale, the Company will reclassify the property as held and used. The Company measures and records a property that is classified as held and used at the lower of (i) its carrying value before the property was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the property been continuously classified as held and used or (ii) the estimated fair value at the date of the subsequent decision not to sell. Investment in Unconsolidated Joint Venture The Company accounts for its investment in the Arch Street Joint Venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over the operating and financing policies of the investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the joint venture’s reported earnings, distributions received, and F-12 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 other-than-temporary impairments. The Company records its proportionate share of net income (loss) from the Arch Street Joint Venture and other-than-temporary impairments in equity in loss and impairment of investment in unconsolidated joint venture, net in the consolidated statements of operations. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Arch Street Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate its investment in the Arch Street Joint Venture for potential impairment and determine if the carrying value of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the intent and ability to hold the investment until the carrying value is fully recovered. The evaluation of an investment in an unconsolidated joint venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. See Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture for further discussion on the Company’s investment in the Arch Street Joint Venture. Notes Receivable The Company presents notes receivable at cost, adjusted for a provision for expected credit losses, if any. Interest income on notes receivable is recognized using the effective interest rate method and is included in other income in the consolidated statements of operations. Direct costs incurred in origination of the notes, along with any premium or discount, are deferred and amortized as an adjustment to interest income over the term of the note using the effective interest rate method. Notes receivable are included in other assets, net in the consolidated balance sheets. Lifetime expected losses are estimated and recognized on notes receivable rather than incurred losses. The Company assesses its reserve for expected credit losses and adjusts its estimates as needed, which are presented in reserve on member loan to unconsolidated joint venture in the consolidated statements of operations. See Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture and Note 4 – Receivables and Other Assets for further discussion of reserves against outstanding member loan to the Arch Street Joint Venture as of December 31, 2025. Impairments Real Estate Assets The Company performs impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate the carrying value of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, decrease in a property’s net operating cash flows, bankruptcy or other credit concerns of a property’s major tenant or tenants, such as history of late payments, rental concessions and other factors, as well as significant decreases in a property’s revenues due to lease terminations, vacancies or reduced lease rates. When impairment indicators are identified or if a property is considered to have a more likely than not probability of being disposed, the Company assesses the recoverability of the assets by determining whether the carrying value of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. U.S. GAAP requires the use of the expected holding period of the properties when assessing recoverability. In the event that such expected undiscounted future cash flows do not exceed the carrying value, the Company will adjust the real estate assets to their respective fair values and recognize any impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales or leasing transactions. The assumptions and uncertainties utilized in the evaluation of the impairment of real estate assets are discussed in Note 5 – Fair Value Measures. Right-of-Use Assets The Company’s impairment assessment for right-of-use assets is consistent with the impairment analysis for the Company’s other long-lived assets. No impairments of right-of-use assets were identified during the years ended December 31, 2025, 2024 or 2023. See Note 5 – Fair Value Measures for further discussion. F-13 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid funds with original maturities of three months or less. Restricted cash as of December 31, 2025 was primarily comprised of reserves held by the lender under the CMBS Loan (as defined in Note 6 – Debt, Net) principally for future rent concessions and tenant improvement allowances. In connection with the February 2026 modification of the CMBS Loan discussed in Note 6 – Debt, Net, the Company funded an additional $ 7.74 million to an all-purpose reserve which may be used for leasing costs and has agreed that a portion of all future excess cash flows from the 19 properties collateralizing the CMBS Loan will be used to continue to fund the all-purpose reserve. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash and cash equivalents and restricted cash may exceed federally insured levels. Although the Company bears risk on amounts in excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the institutions where the deposits are held. Deferred Financing Costs Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining commitments for financing. D eferred financing costs, other than those associated with the Revolving Facility (as defined in Note 6 – Debt, Net ), are presented in the accompanying consolidated balance sheets as a direct deduction from the carrying value of the related debt liability rather than as an asset . Deferred financing costs related to the Revolving Facility are included in other assets, net in the accompanying consolidated balance sheets. Deferred financing costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are written off when the associated debt is refinanced or repaid before maturity. Costs incurred in connection with potential financial transactions that are not completed are expensed in the period in which it is determined the financing will not be completed. Derivative Instruments The Company may use derivative financial instruments, including interest rate swaps, caps, collars, treasury locks, options and forwards to hedge all or a portion of the interest rate risk associated with its borrowings. The Company’s interest rate management objectives are intended to limit the impact of interest rate fluctuations on earnings and cash flows and to manage the Company’s overall borrowing costs. To accomplish this objective, the Company has used and intends to continue to use derivative financial instruments as part of its cash flow hedging strategy. The Company does not intend to utilize derivatives for trading or speculative purposes or for purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. The Company records all derivatives in the accompanying consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary under U.S. GAAP to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designated and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments is recognized immediately in other expenses in the accompanying consolidated statements of operations and consolidated statements of comprehensive income (loss). If the derivative is designated and qualifies for cash flow hedge accounting treatment, the change in fair value of the derivative is recorded in other comprehensive income (loss). Unrealized gains and losses in other comprehensive income (loss) are reclassified to interest expense when the related hedged items impact earnings. F-14 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Loss Contingencies The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount is reasonably estimable. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a material loss is reasonably possible but not known or probable, and is reasonably estimable, the estimated loss or range of loss is disclosed. Income Taxes The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code, as amended (the “Code”), commencing with the taxable year ended December 31, 2021. To maintain the Company’s qualification as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute annually at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain to its stockholders. However, the Company is still subject to certain state and local income, franchise, property, and other taxes in the various jurisdictions in which it operates. The Company may also be subject to federal income taxes on certain income and federal excise taxes on its undistributed income. The Company provides for income taxes in accordance with current authoritative accounting and tax guidance. The tax provision or benefit related to significant or unusual items is recognized in the quarter in which those items occur. In addition, the effect of changes in enacted tax laws, rates or tax status is recognized in the quarter in which the change occurs. The accounting estimates used to compute the provision for or benefit from income taxes may change as new events occur, additional information is obtained or the tax environment changes. During the years ended December 31, 2025, 2024 and 2023, the Company recognized state and local income and franchise tax expense of $ 0.3 million, $ 0.2 million and $ 0.5 million, respectively. State and local income and franchise tax expense is included in provision for income taxes in the accompanying consolidated statements of operations. The Company regularly analyzes its income tax positions in the jurisdictions in which it operates and only recognizes the income tax effect in the financial statements when certain criteria regarding uncertain tax positions have been met. The Company believes that its material income tax positions would more likely than not be sustained upon examination by the relevant taxing authorities. Therefore, no provisions related to material uncertain income tax positions have been recognized in the accompanying consolidated financial statements during the years ended December 31, 2025, 2024 and 2023. Any interest and penalties related to unrecognized tax benefits would be recognized in provision for income taxes in the accompanying consolidated statements of operations. Segment Reporting The Company operates in one business segment: commercial real estate. This segment is characterized as owning, managing and leasing commercial real estate assets under long-term agreements. The chief operating decision maker (“CODM”) of the Company is the chief executive officer. The CODM reviews net loss in the accompanying consolidated statements of operations, when assessing performance and making operating decisions, including the allocation of resources. The CODM uses net loss as it informs comparative period trends for the forecasting process and is the baseline measurement for any additional measures of profit or loss of the Company’s consolidated financial results. Additionally, the CODM reviews the following significant expenses when measuring segment performance: property operating expenses for properties that were substantially vacant or became substantially vacant during the reporting period (“Vacant Property Operating Expenses”) and general and administrative expenses. A property is considered to be substantially vacant with an occupancy rate of 15% or less. Segment revenues, profit or loss, and general and administrative expenses are all disclosed in the accompanying consolidated statements of operations. Vacant Property Operating Expenses included in property operating expenses of the accompanying consolidated statements of operations were $ 18.9 million, $ 16.3 million and $ 9.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Asset information for the segment is not used by the CODM to measure performance but is disclosed in the accompanying consolidated balance sheets as of December 31, 2025 and 2024. The Company does not have intra-entity sales or transfers, and its revenues have been generated in and all long-lived assets are located within the United States. F-15 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures). ASU 2024-03 serves to improve disclosures about a public business entity’s expenses and provide detailed information about expense categories commonly presented in cost of sales, research and development and selling, general, and administrative expenses, including but not limited to purchases of inventory, employee compensation, depreciation, amortization and depletion. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2024-03 on its consolidated financial statements. Note 3 – Real Estate Investments and Related Intangibles Property Acquisitions During the years ended December 31, 2025 and 2023, the Company had no acquisitions. During February 2026 the Company acquired one property, see Note 15 – Subsequent Events, below. During the year ended December 31, 2024, the Company acquired fee simple, controlling financial interest in one real property and the improvements thereon including an approximate 97,000 square foot flex/laboratory and R&D facility located in San Ramon, California for a gross purchase price of $ 34.6 million and external acquisition-related expenses of $ 0.1 million that were capitalized. The property was fully leased to a single tenant with a remaining lease term of 15.0 years as of the acquisition date. The following table presents the allocation of the purchase consideration and capitalized transaction costs to the assets acquired and liabilities assumed based on their relative fair values during the year ended December 31, 2024 (in thousands): Real estate investment, at cost: Land $ 12,250 Building, fixtures and improvements 25,269 Total real estate investment, at cost 37,519 Acquired intangible assets: Intangible lease asset 13,847 Assumed intangible liabilities: Below-market lease liability ( 16,632 ) Net assets acquired $ 34,734 Additionally, during the year ended December 31, 2024, the Company acquired for no consideration, the fee simple interest in one parcel of land in connection with the maturity of the tax advantaged bond and ground lease structure. As a result of the transaction, $ 3.5 million that was previously classified as a finance lease right-of-use asset with respect to such land parcel previously subject to the ground lease was reclassified from other assets, net to land in the accompanying consolidated balance sheet as of December 31, 2024. F-16 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Property Dispositions and Real Estate Assets Held for Sale The following table summarizes the Company’s property dispositions during the periods indicated below (dollars in thousands) : Year Ended December 31, 2025 2024 2023 Total dispositions 10 2 6 Aggregate gross sales price $ 80,660 $ 5,260 $ 25,425 Gain on disposition of real estate assets $ 7,058 $ — $ 31 Property count 6 — 3 Impairments on disposition of real estate assets $ 8,728 $ 2,720 $ 575 Property count 4 2 3 As of December 31, 2025, the Company had two properties classified as held for sale with a carrying value of $ 12.8 million, primarily comprised of land of $ 3.8 million and building, fixtures and improvements, net, of $ 9.0 million, included in real estate assets held for sale, net in the accompanying consolidated balance sheets. During January 2026, the Company closed on the sale of both held for sale properties, see Note 15 – Subsequent Events, below. During the years ended December 31, 2025, 2024 and 2023, the Company recorded losses of $ 19.8 million, $ 8.6 million and $ 4.4 million, respectively, related to properties that were classified as held for sale, which are included as part of impairments in the accompanying consolidated statements of operations. Intangible Lease Assets and Liabilities Intangible lease assets and liabilities consisted of the following as of the dates indicated below (in thousands, except weighted average useful life as of December 31, 2025): Weighted Average Useful Life (Years) December 31, 2025 December 31, 2024 Intangible lease assets: In-place leases, net of accumulated amortization of $ 152,989 and $ 169,898 , respectively 11.0 $ 43,906 $ 68,099 Leasing commissions, net of accumulated amortization of $ 7,522 and $ 4,508 , respectively 12.6 25,171 21,834 Above-market lease assets, net of accumulated amortization of $ 12,451 and $ 12,831 , respectively 11.8 1,194 2,041 Deferred lease incentives, net of accumulated amortization of $ 1,295 and $ 927 , respectively 11.6 5,676 3,970 Total intangible lease assets, net $ 75,947 $ 95,944 Intangible lease liabilities: Below-market leases, net of accumulated amortization of $ 20,211 and $ 24,877 , respectively 15.2 $ 18,449 $ 20,596 The aggregate amount of amortization of above-market and below-market leases included as a net increase to rental revenue in the accompanying statements of operations was $ 1.3 million, $ 1.1 million and $ 1.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. The aggregate amount of amortization of deferred lease incentives included as a net decrease to rental revenue was $ 0.5 million, $ 0.5 million and $ 0.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. The aggregate amount of in-place leases, leasing commissions and other lease intangibles amortized and included in depreciation and amortization expense in the accompanying statements of operations was $ 26.0 million, $ 51.4 million and $ 75.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. F-17 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible lease assets and liabilities for the next five years as of December 31, 2025 (in thousands) : 2026 2027 2028 2029 2030 In-place leases: Total projected to be included in amortization expense $ 14,873 $ 7,810 $ 5,517 $ 2,797 $ 2,377 Leasing commissions: Total projected to be included in amortization expense $ 2,764 $ 2,565 $ 2,272 $ 1,980 $ 1,955 Above-market lease assets: Total projected to be deducted from rental revenue $ 680 $ 237 $ 115 $ 63 $ 63 Deferred lease incentives: Total projected to be deducted from rental revenue $ 462 $ 439 $ 425 $ 415 $ 412 Below-market lease liabilities: Total projected to be added to rental revenue $ 1,928 $ 1,766 $ 1,682 $ 1,500 $ 1,425 Consolidated Joint Venture The Company had an interest in one consolidated joint venture that owned one property as of December 31, 2025 and 2024. The consolidated joint venture had total assets of $ 24.0 million, including $ 21.8 million of real estate investments, net of accumulated depreciation and amortization as of December 31, 2025, and total assets of $ 24.5 million, including $ 22.6 million of real estate investments, net as of December 31, 2024. The Company’s joint venture partner is the managing member of the joint venture. However, in accordance with the joint venture agreement, the Company has the ability to control the operating and financing policies of the consolidated joint venture and the joint venture partner must obtain the Company’s approval for any major transactions. The Company and the joint venture partner are subject to the provisions of the joint venture agreement, which includes provisions for when additional contributions may be required to fund certain cash shortfalls. Investment in Unconsolidated Joint Venture The following is a summary of the Company’s investment in the Arch Street Joint Venture, as of the dates and for the periods indicated below (dollars in thousands): Ownership % (1) Number of Properties Carrying Value of Investment Equity in Loss and Impairment of Investment in Unconsolidated Joint Venture, Net Year Ended Investment December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2023 Arch Street Joint Venture 20 % 6 $ — $ 11,822 $ ( 11,822 ) $ ( 740 ) $ ( 435 ) ____________________________________ (1) The Company’s ownership interest reflects its legal ownership interest. The Company’s legal ownership interest 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. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interest. The non-recourse mortgage notes associated with the Arch Street Joint Venture were scheduled to mature on November 27, 2025, subject to one remaining one-year borrower option to extend the maturity until November 27, 2026. The Arch Street Joint Venture exercised the extension option during September 2025. However, in order to extend the debt, the Arch Street Joint Venture is required to make an approximately $ 16.0 million prepayment of loan principal outstanding to satisfy the 60 % loan-to-value extension condition. Due to capital constraints of the Company’s joint venture partner, the joint venture has been unable to make this prepayment. The loan was temporarily extended until February 26, 2026 and the joint venture remains in discussions with the lenders about next steps which may include an additional short-term extension and restructuring of the debt with a lender excess cash flow sweep, and the requirement to sell one or more properties and utilize the net proceeds to prepay principal outstanding under the debt. The Company cannot provide any assurance that the Arch Street Joint Venture will be able to satisfy the loan-to-value condition or otherwise extend or refinance this debt obligation or that the lenders will not seek to enforce their remedies due to the existing payment default. During November 2024, the Company provided a member loan to the Arch Street Joint Venture of $ 1.4 million in connection with a partial repayment of the Arch Street Joint Venture mortgage notes to satisfy the maximum 60 % loan-to-value F-18 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 extension condition. During February 2025, the Company made an additional member loan of $ 8.3 million to fund leasing costs related to a lease extension that was completed for one of the properties in the Arch Street Joint Venture portfolio. The Company’s member loan to the Arch Street Joint Venture, which had $ 6.6 million receivable as of December 31, 2025, is legally entitled to receive interest at 15 %, matures on November 27, 2026, and is non-recourse and unsecured, structurally subordinate to the Arch Street Joint Venture mortgage notes. However, interest and principal are payable monthly solely out of the excess cash from the joint venture after payment of property operating expenses, interest and principal on the Arch Street mortgage notes and other joint venture expenses and excess proceeds from the sale of any of the joint venture properties. Due to the uncertainties with regard to recovery of the Company’s Arch Street Joint Venture investments, the Company recorded an other-than-temporary impairment loss on its investment in the Arch Street Joint Venture, which is included in equity in loss and impairment of investment in unconsolidated joint venture, net in the accompanying consolidated statements of operations, thereby reducing the carrying value of the investment to zero , and recorded a loan loss reserve of $ 5.9 million against the $ 6.6 million member loan to the Arch Street Joint Venture during the year ended December 31, 2025. Beginning in 2026, the Company will record management fees from the Arch Street Joint Venture and interest income on the member loan on a cash basis rather than accrual basis. Note 4 – Receivables and Other Assets Accounts receivable, net consisted of the following as of the dates indicated below (in thousands): December 31, 2025 December 31, 2024 Accounts receivable, net $ 4,899 $ 5,852 Straight-line rent receivable, net (1) 30,434 16,981 Total $ 35,333 $ 22,833 ____________________________________ (1) The change in straight-line rent receivable, net as of December 31, 2025 compared to December 31, 2024 includes the impact of a $ 10.8 million decrease in cash rental revenue from the tenant at our Hopewell, New Jersey property due to a scheduled one-year rent concession period beginning in December 2024. Other assets, net consisted of the following as of the dates indicated below (in thousands): December 31, 2025 December 31, 2024 Right-of-use assets, net (1) $ 21,260 $ 22,216 Prepaid expenses 2,130 2,133 Other assets, net 2,038 1,591 Deferred costs, net (2) 1,158 4,596 Notes receivable (3) 678 3,900 Restricted escrow deposits 350 — Investment in unconsolidated joint venture — 11,822 Total $ 27,614 $ 46,258 ____________________________________ (1) Includes right-of-use finance leases of $ 5.6 million, right-of-use operating leases of $ 9.4 million and a below-market right-of-use asset, net of $ 6.3 million as of December 31, 2025. Includes right-of-use finance leases of $ 5.6 million, right-of-use operating leases of $ 10.2 million and a below-market right-of-use asset, net of $ 6.4 million as of December 31, 2024. Amortization expense for below market right-of-use asset was $ 0.2 million for the years ended December 31, 2025, 2024 and 2023. (2) Includes accumulated amortization for deferred costs related to the Original Revolving Facility of $ 10.0 million and $ 7.0 million as of December 31, 2025 and 2024, respectively. Amortization expense for deferred costs related to the Original Revolving Facility was $ 3.0 million, $ 3.0 million and $ 2.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. Deferred costs, net as of December 31, 2024 also includes outstanding deferred equity offering costs of $ 0.6 million, which were expensed against other expenses in the accompanying consolidated statements of operations during the year ended December 31, 2025 in connection with the scheduled expiration of the Company’s universal shelf registration statement during year ended December 31, 2025. (3) Notes receivable includes a member loan, net of reserves, to the Arch Street Joint Venture discussed in Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture of $ 0.7 million and $ 1.4 million as of December 31, 2025 and 2024, respectively. Notes receivable as of December 31, 2024 also includes one $ 2.5 million long-term seller financed promissory note for one property sold during the year ended December 31, 2023. This loan was structured as a first mortgage loan on the property sold with an unsecured recourse guaranty from the buyer principal and was repaid in full during the year ended December 31, 2025. F-19 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Note 5 – Fair Value Measures Items Measured at Fair Value on a Recurring Basis The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated below, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands): Level 1 Level 2 Level 3 Balance as of December 31, 2025 Derivative liabilities $ — $ 5 $ — $ 5 Level 1 Level 2 Level 3 Balance as of December 31, 2024 Derivative liabilities $ — $ 15 $ — $ 15 Derivative Liabilities – The Company’s derivative financial instruments comprise interest rate collar agreements entered into in order to hedge interest rate volatility with respect to the Company’s borrowings under the Original Revolving Facility and subsequently the New Revolving Facility with an aggregate notional amount of $ 75.0 million and $ 60.0 million as of December 31, 2025 and 2024, respectively (as described in Note 6 – Debt, Net). The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential non-performance risk and the performance risk of the counterparties. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2025 and 2024, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company’s derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Items Measured at Fair Value on a Non-Recurring Basis Certain financial and non-financial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Real Estate and Other Investments – The Company performs quarterly impairment review procedures for real estate investments, right-of-use assets and its investment in the Arch Street Joint Venture, primarily through continuous monitoring of events and changes in circumstances that could indicate the carrying value of such assets may not be recoverable. See Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture for discussion of an other-than-temporary impairment recognized on the Company’s investment in the Arch Street Joint Venture during the year ended December 31, 2025. The following table summarizes the Company’s provisions for real estate asset impairment during the periods indicated below (dollars in thousands). The impairment charges reflect changes in the Company’s future cash flow assumptions for agreed-upon or estimated sales proceeds with respect to real estate assets that were expected to be sold as well as changes to assumptions with regard to management’s intent to sell or lease the real estate assets. Year Ended December 31, 2025 2024 2023 Number of properties 12 12 8 Carrying value of impaired properties $ 183,770 $ 120,469 $ 68,215 Provisions for impairment ( 99,376 ) ( 47,552 ) ( 33,112 ) Estimated fair value $ 84,394 $ 72,917 $ 35,103 F-20 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The Company estimates fair values using Level 2 and Level 3 inputs and uses a combined income and market approach, specifically using discounted cash flow analysis and/or recent comparable sales transactions. The evaluation of real estate assets for potential impairment requires the Company’s management to exercise significant judgment and make certain key assumptions, including the following: (1) capitalization rates; (2) discount rates; (3) number of years the property will be held; (4) property operating expenses; and (5) re-leasing assumptions including the number of months to re-lease, market rental revenue and required tenant improvements. There are inherent uncertainties in making these estimates such as market conditions and performance and sustainability of the Company’s tenants. For the Company’s impairment tests over the real estate assets during the year ended December 31, 2025, the fair value measurements for nine properties were determined based on sales prices under definitive agreements, one property was determined by using a discount rate of 8.9 % and a capitalization rate of 8.6 %, and two properties were determined based on estimated sales prices based on market data. During the year ended December 31, 2025, the Company recognized impairment charges of $ 20.6 million for held and used properties, $ 59.0 million for held for sale properties, and $ 19.8 million for disposed properties. For the Company’s impairment tests over the real estate assets during the year ended December 31, 2024, the fair value measurements for nine properties were determined based on sales prices under definitive agreements, two properties were determined by using a weighted average discount rate of 9.3 % and a weighted average capitalization rate of 8.8 %, and one was determined based on an estimated sales price based on market data. During the year ended December 31, 2024, the Company recognized impairment charges of $ 33.0 million for held and used properties, $ 8.6 million for held for sale properties, and $ 6.0 million for disposed properties. For the Company’s impairment tests over the real estate assets during the year ended December 31, 2023, the fair value measurements for seven properties were determined based on sales prices under definitive agreements and one property was determined by using a discount rate of 9.0 % and a capitalization rate of 8.5 %. During the year ended December 31, 2023, the Company recognized impairment charges of $ 5.9 million for held and used properties and $ 27.2 million for disposed properties. The following tables present certain of the Company’s assets which were subject to impairment as of the dates indicated below and therefore, have been measured at fair value on a non-recurring basis, aggregated by the level in the fair value hierarchy within which those assets fall (in thousands): Level 1 Level 2 (1) Level 3 (1) Balance as of December 31, 2025 Assets of properties held for sale — 12,803 — 12,803 Level 1 Level 2 (1) Level 3 (1) Balance as of December 31, 2024 Assets of properties held and used $ — $ — $ 22,903 $ 22,903 Assets of properties held for sale — 9,671 — 9,671 Total $ — $ 9,671 $ 22,903 $ 32,574 ____________________________________ (1) The fair value of the level 2 category was derived using negotiated sales prices with third parties and the fair value of the level 3 category was derived using discounted cash flow analysis and management estimates of selling prices. F-21 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Fair Value of Financial Instruments The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable approximates their carrying value in the accompanying consolidated balance sheets due to their short-term nature. The following table presents carrying values and fair values of the Company’s long-term financial instruments as of the dates indicated below (dollars in thousands): Level Carrying Value at December 31, 2025 Fair Value at December 31, 2025 Carrying Value at December 31, 2024 Fair Value at December 31, 2024 Assets: Notes receivable 3 $ 678 $ 678 $ 3,900 $ 3,900 Liabilities (1) : Mortgages payable 2 $ 373,000 $ 365,853 $ 373,000 $ 352,476 Derivative liabilities 2 5 5 15 15 Total $ 373,005 $ 365,858 $ 373,015 $ 352,491 ____________________________________ (1) Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs. Notes Receivable – The carrying value of the Company’s long-term promissory notes receivable, net of loan loss reserves, were determined to be at fair value based on management’s estimates of credit spreads and observable market interest rates, representing level 3 on the fair value hierarchy. Debt – The fair value is estimated by an independent third party using a discounted cash flow analysis, based on management’s estimates of credit spreads and observable market interest rates, representing level 2 on the fair value hierarchy. Note 6 – Debt, Net As of December 31, 2025, the Company had debt outstanding of $ 464.0 million, including net deferred financing costs, with a weighted average years to maturity of 1.2 years and a weighted average effective interest rate for the year ended December 31, 2025 of 5.62 %. The following table summarizes the carrying value of debt as of the date and the debt activity for the periods indicated below (in thousands): Year Ended December 31, 2025 Balance as of December 31, 2024 Debt Issuances Repayments, Extinguishment and Assumptions Accretion and Amortization Balance as of December 31, 2025 Mortgages payable: Outstanding balance $ 373,000 $ — $ — $ — $ 373,000 Deferred costs ( 1,778 ) — — 735 ( 1,043 ) Mortgages payable, net 371,222 — — 735 371,957 Original Revolving Facility 119,000 13,000 ( 40,000 ) — 92,000 Total debt $ 490,222 $ 13,000 $ ( 40,000 ) $ 735 $ 463,957 F-22 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The following table summarizes the scheduled aggregate principal repayments due on the Company’s debt outstanding as of December 31, 2025 (in thousands): Total 2026 (1) $ 92,000 2027 (1) 355,000 Thereafter 18,000 Total $ 465,000 ____________________________________ (1) As described below, the Original Revolving Facility was scheduled to mature on May 12, 2026 and the CMBS Loan was scheduled to mature on February 11, 2027 as of December 31, 2025. As described in more detail below, during February 2026, the Company entered into the New Revolving Facility. Also as described in more detail below, during February 2026, the Company entered into an amendment to the CMBS Loan which among other things extended the maturity date two years until February 11, 2029, subject to two borrower extension options for an aggregate of 18 months until August 11, 2030. Credit Agreement As of December 31, 2025, $ 92.0 million of principal amount was outstanding under the Original Revolving Facility, and the Original Revolving Facility was scheduled to mature on May 12, 2026. As described in more detail below, the Original Revolving Facility was refinanced with a new $ 215.0 million senior secured revolving credit facility during February 2026 (the “New Revolving Facility”). On February 18, 2026, the Company, as parent, and Orion OP, as borrower, entered into a credit agreement for the New Revolving Facility. The credit agreement for the New Revolving Facility includes the following terms and conditions, among others: • The Original Revolving Facility has been terminated and the indebtedness thereunder has been discharged and paid in full with borrowings under the New Revolving Facility. • The lenders have agreed to make revolving loans in an aggregate principal balance of up to $ 215.0 million to Orion OP (a reduction in the lenders’ commitment from $ 350.0 million pursuant to the Original Revolving Facility). Consistent with the Original Revolving Facility, proceeds from the New Revolving Facility may be used for general corporate purposes and loans under the New Revolving Facility may be prepaid and reborrowed, and unused commitments under the New Revolving Facility may be reduced, at any time, in whole or in part, by Orion OP, without premium or penalty (except for SOFR breakage costs). • The maturity date of the New Revolving Facility is February 18, 2028, subject to Orion OP’s right to further extend the maturity date for two additional option periods of six months each, upon satisfaction of certain conditions. • The interest rate applicable to the loans under the New Revolving Facility may be determined, at the election of Orion OP, on the basis of Daily Simple SOFR, Term SOFR or a base rate, plus an applicable margin of 2.75 % for SOFR loans and 1.75 % for base rate loans (representing a 50 -basis point reduction in the applicable margins under the Original Revolving Facility and the 10 -basis point SOFR adjustment under the Original Revolving Facility has been eliminated). To the extent that amounts under the New Revolving Facility remain unused, consistent with the Original Revolving Facility, Orion OP is required to pay a quarterly commitment fee on the unused portion of the New Revolving Facility in an amount equal to 0.25 % of the unused portion of the New Revolving Facility. • Orion OP and the Company have agreed to grant the lenders first priority mortgages and deeds of trust on a pool of 28 of the Company’s properties and on any additional properties acquired in the future by the Company and approved by the administrative agent (the “Collateral Properties”), and to provide other customary collateral associated with a first lien on commercial office properties. Collateral Properties may only be released from the applicable lien in connection with a sale of such property to a third party or qualified financing and 100 % of the net cash proceeds must be applied to repay borrowings under the New Revolving Facility. • Consistent with the Original Revolving Facility, Orion OP’s borrowings are also secured by, among other things, first priority pledges of the equity interest in our subsidiaries that own the Collateral Properties (the “Subsidiary Guarantors”). • Consistent with the Original Revolving Facility, Orion OP’s borrowings under the New Revolving Facility are guaranteed pursuant to a guaranty by each of the Company, Orion Properties Holdings I LLC and the Subsidiary Guarantors. F-23 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 • As described further below, Orion OP and the lenders agreed that certain financial covenants must be satisfied by Orion OP. • Consistent with the Original Revolving Facility, the New Revolving Facility requires that Orion OP comply with various covenants, including covenants restricting, subject to certain exceptions, liens, investments, mergers, asset sales and the payment of certain dividends. If, on any day, Orion OP has unrestricted cash and cash equivalents in excess of $ 25.0 million (excluding amounts that are then designated for application or use and are subsequently used for such purposes within 30 days), Orion OP will use such excess amount to prepay loans under the New Revolving Facility, without premium or penalty and without any reduction in the lenders’ commitment under the New Revolving Facility. Consistent with the Original Revolving Facility, the New Revolving Facility includes customary representations and warranties of the Company and Orion OP, which must be true and correct in all material respects as a condition to future extensions of credit under the New Revolving Facility. The New Revolving Facility also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of Orion OP under the New Revolving Facility to be immediately due and payable and foreclose on the collateral securing the New Revolving Facility. The Company entered into interest rate collar agreements on a total notional amount of $ 60.0 million to hedge against interest rate volatility on the Original Revolving Facility. Under the agreements, the benchmark rate for the Original Revolving Facility floated between no higher than 5.50 % and no lower than 4.20 % on $ 25.0 million, and no higher than 5.50 % and no lower than 4.035 % on $ 35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into a new interest rate collar agreement to hedge against interest rate volatility on the Original Revolving Facility and subsequently the New Revolving Facility. Under the agreement, the benchmark rate for the Original Revolving Facility or subsequently the New Revolving Facility will float between no higher than 4.29 % and no lower than 3.28 % on a total notional amount of $ 75.0 million, effective from May 12, 2025 to May 12, 2026. As of December 31, 2025, the weighted average effective interest rate of the Original Revolving Facility was 7.01 %. The New Revolving Facility requires that Orion OP satisfy certain financial covenants. The Original Revolving Facility has been terminated and replaced by the New Revolving Facility, and therefore the financial covenants under the Original Revolving Facility are no longer relevant or applicable. The following are the financial covenants applicable to the New Revolving Facility: • The ratio of total debt to total asset value must be not more than 0.60 to 1.00. • The ratio of adjusted EBITDA to fixed charges must be not less than 1.50 to 1.00. • Orion OP’s consolidated tangible net worth must be not less than $ 740.6 million plus 75 % of the net proceeds from any equity offering after the date of the New Revolving Facility. • Collateral Property Availability must be at least $ 215.0 million. For this purpose, Collateral Property Availability means 60 % of the aggregate as-is appraised value of all Collateral Properties. • Collateral Property Debt Yield must be at least 13 %. As of December 31, 2025, Orion OP was in compliance with the New Revolving Facility financial covenants. CMBS Loan On February 10, 2022, certain indirect subsidiaries of the Company (the “Mortgage Borrowers”) obtained a $ 355.0 million fixed rate mortgage note (the “CMBS Loan”) from Wells Fargo Bank, National Association (together with its successor, the “Lender”), which is secured by the Mortgage Borrowers’ fee simple or ground lease interests in 19 properties owned indirectly by the Company (collectively, the “Mortgaged Properties”). During March 2022, Wells Fargo effected a securitization of the CMBS Loan. The CMBS Loan bears interest at a fixed rate of 4.971 % and upon issuance was scheduled to mature on February 11, 2027. The CMBS Loan requires monthly payments of interest only and, except as described below under “Loan Extension and Modification Agreement”, all principal is due at maturity. The CMBS Loan is secured by, among other things, first priority mortgages and deeds of trust granted by the Mortgage Borrowers and encumbering the Mortgaged Properties. F-24 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The CMBS Loan may be prepaid in whole, but not in part, at any time, upon the satisfaction of certain terms and conditions set forth in the loan agreement governing the CMBS Loan (the “CMBS Loan Agreement”). Further, releases of individual properties are permitted in connection with an arm’s length third party sale upon repayment of the Release Price (as defined in the CMBS Loan Agreement) for the applicable individual property and subject to the satisfaction of other terms and conditions set forth in the CMBS Loan Agreement. Pursuant to the Loan Modification Agreement described below, the lender is entitled to 100% of the net proceeds of any sale to prepay the outstanding principal balance of the CMBS Loan. In connection with the CMBS Loan Agreement, the Company (as the guarantor) delivered a customary non-recourse carveout guaranty to the Lender (the “Guaranty”), under which the Company guaranteed the obligations and liabilities of the Mortgage Borrowers to the Lender with respect to certain non-recourse carveout events and the circumstances under which the CMBS Loan will be fully recourse to the Mortgage Borrowers, and which includes requirements for the Company to maintain a net worth of no less than $ 355.0 million and liquid assets of no less than $ 10.0 million, in each case, exclusive of the values of the collateral for the CMBS Loan. As of December 31, 2025, the Company was in compliance with these financial covenants. The Mortgage Borrowers and the Company also provided a customary environmental indemnity agreement, pursuant to which the Mortgage Borrowers and the Company agreed to protect, defend, indemnify, release and hold harmless the Lender from and against certain environmental liabilities relating to the Mortgaged Properties. The CMBS Loan Agreement includes customary representations, warranties and covenants of the Mortgage Borrowers and the Company. The CMBS Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the Mortgage Borrowers to be immediately due and payable and foreclose on the Mortgaged Properties. Loan Extension and Modification Agreement On February 17, 2026, the Company, through certain of its subsidiaries (the “Mortgage Borrowers”), entered into a loan extension and modification agreement with the lender under the CMBS Loan (“Loan Modification Agreement”). The Loan Modification Agreement includes the following terms and conditions, among others: • The maturity date of the CMBS Loan has been extended two years until February 11, 2029, subject to two borrower extension options, with the first giving the Mortgage Borrowers the right to further extend the maturity date for an additional one year until February 11, 2030, and the second giving the Mortgage Borrowers the right to further extend the maturity date for an additional six months , until August 11, 2030, each upon satisfaction of certain conditions, including prepayment of the outstanding principal balance of the CMBS Loan by $ 2.5 million for the initial one-year additional extension and $ 10.0 million for the six-month additional extension. • The fixed annual interest rate on the CMBS Loan of 4.971 % is unchanged during all extension terms. • Upon closing of the Loan Modification Agreement, the Mortgage Borrowers made a $ 2.05 million partial prepayment of the CMBS Loan. • A new all-purpose reserve was established by the lender into which all existing tenant improvement, leasing commission and other borrower reserve amounts were funded (a total of $ 37.7 million on the loan modification date) and the Mortgage Borrowers deposited an additional $ 7.74 million into the all-purpose reserve which was funded from borrowings under the Original Revolving Facility and such borrowings were refinanced with borrowings under the New Revolving Facility. • The all-purpose reserve will be used to pay leasing costs and capital expenditures associated with the 19 properties that serve as collateral for the CMBS Loan, as well as to pay any property operating expenses not otherwise fully covered by revenues from the 19 properties. • The Mortgage Borrowers have agreed that until maturity, the lender will sweep all monthly excess cash flows from the 19 properties, after payment of interest and property operating expenses. During the initial two -year extension period, the lender will apply one-half of such excess funds to prepay the outstanding principal balance of the CMBS Loan, and the other half to fund the all-purpose reserve. During any additional extension period, the lender will apply 75 % of such excess funds to prepay the outstanding principal balance of the CMBS Loan, and the remaining 25 % of such excess funds to fund the all-purpose reserve. The all-purpose reserve is subject to a cap of $ 15.0 million during the one-year additional extension period and $ 5.0 million during the six-month additional extension period. If the reserve cap has been reached, all additional or excess amounts will be utilized to prepay the outstanding principal balance of the CMBS Loan. F-25 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 • The Company agreed to certain additional obligations that are recourse to the Company pursuant to the non-recourse carveout Guaranty described above. San Ramon Loan On November 7, 2024, an indirect subsidiary of the Company (the “San Ramon Borrower”) obtained an $ 18.0 million fixed rate mortgage note (the “San Ramon Loan”) from RGA Americas Investments LLC (the “San Ramon Lender”) secured by the fee simple interest in the San Ramon, California property acquired in September 2024 (the “San Ramon Property”). The San Ramon Loan bears interest at a fixed rate of 5.90 % and matures on December 1, 2031. The San Ramon Loan requires monthly payments of interest only and all principal is due at maturity and is generally not freely prepayable by the San Ramon Borrower until December 2026, and thereafter without payment of certain prepayment premiums and costs. In connection with the San Ramon Loan, the Company (as guarantor) delivered a customary non-recourse carveout guaranty, under which the Company guaranteed the obligations and liabilities of the San Ramon Borrower under the San Ramon Loan with respect to certain non-recourse carveout events and the circumstances under which the San Ramon Loan will be fully recourse to the San Ramon Borrower. The San Ramon Borrower and the Company also provided a customary environmental indemnity agreement, pursuant to which the San Ramon Borrower and the Company agreed to protect, defend, indemnify and hold harmless the San Ramon Lender from and against certain environmental liabilities related to the San Ramon Property. The loan agreement governing the San Ramon Loan (the “San Ramon Loan Agreement”) includes customary representations, warranties and covenants of the San Ramon Borrower and the Company. The San Ramon Loan Agreement also includes customary events of default, the occurrence of which, following any applicable grace period, would permit the Lender to, among other things, declare the principal, accrued interest and other obligations of the San Ramon Borrower to be immediately due and payable and foreclose on the San Ramon Property. The Company’s mortgages payable consisted of the following as of December 31, 2025 (dollars in thousands): Encumbered Properties Net Carrying Value of Collateralized Properties (1) Outstanding Balance Weighted Average Interest Rate Weighted Average Years to Maturity (2) Fixed-rate debt 20 $ 425,431 $ 373,000 5.02 % 1.3 ____________________________________ (1) Net carrying value is real estate assets, including right-of-use assets, net of real estate liabilities. (2) During February 2026, the Company entered into an amendment to the CMBS Loan which among other things extended the maturity date two years until February 11, 2029, subject to two borrower extension options for an aggregate of 18 months until August 11, 2030. The table above does not include non-recourse mortgage notes associated with the Arch Street Joint Venture of $ 128.8 million, of which the Company’s proportionate share was $ 25.8 million, as of December 31, 2025. Note 7 – Derivatives and Hedging Activities Cash Flow Hedges of Interest Rate Risk As of December 31, 2025 and 2024, the Company had outstanding derivative agreements with aggregate notional amounts of $ 75.0 million and $ 60.0 million, respectively, which were designated as cash flow hedges under U.S. GAAP. The interest rate derivative agreements comprise interest rate collar agreements entered into in order to hedge interest rate volatility with respect to the Company’s borrowings under the Original Revolving Facility. Under the agreements, the benchmark rate for the Original Revolving Facility floated between no higher than 5.50 % and no lower than 4.20 % on $ 25.0 million, and no higher than 5.50 % and no lower than 4.035 % on $ 35.0 million, effective from November 13, 2023 until May 12, 2025. Upon the scheduled expiration of the interest rate collar agreements, the Company entered into a new interest rate collar agreement to hedge against interest rate volatility on the Original Revolving Facility and subsequently the New Revolving Facility. Under the agreement, the benchmark rate for the Original Revolving Facility or subsequently the New Revolving Facility will float between no higher than 4.29 % and no lower than 3.28 % on a total notional amount of $ 75.0 million, effective from May 12, 2025 to May 12, 2026. F-26 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The table below presents the fair value of the Company’s derivative financial instruments designated as a cash flow hedges as well as their classification in the accompanying consolidated balance sheets as of the dates indicated below (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location December 31, 2025 December 31, 2024 Interest rate collars Other liabilities, net $ ( 5 ) $ ( 15 ) During the years ended December 31, 2025, 2024 and 2023, the Company recorded net unrealized gains of less than $ 0.1 million, $ 0.2 million and $ 0.1 million, respectively, for changes in the fair value of its cash flow hedges in accumulated other comprehensive loss. During the years ended December 31, 2025 and 2023, the Company reclassified previous net gains of less than $ 0.1 million and $ 6.7 million from accumulated other comprehensive income (loss) into interest expense, net as a result of the hedged transactions impacting earnings. No such amounts were reclassified from accumulated other comprehensive loss into interest expense during the year ended December 31, 2024. During the next twelve months, the Company estimates that there will be no amounts reclassified from accumulated other comprehensive loss as an increase to interest expense, net. Derivatives Not Designated as Hedging Instruments As of each of December 31, 2025 and 2024, the Company had no derivatives that were not designated as qualifying hedging relationships. Tabular Disclosure of Offsetting Derivatives The table below details a gross presentation, the effects of offsetting and a net presentation of the Company’s derivatives as of the dates indicated below (in thousands). The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. Offsetting of Derivative Assets and Liabilities Gross Amounts of Recognized Assets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount December 31, 2025 $ — $ ( 5 ) $ — $ — $ ( 5 ) $ — $ — $ ( 5 ) December 31, 2024 $ — $ ( 15 ) $ — $ — $ ( 15 ) $ — $ — $ ( 15 ) Note 8 – Supplemental Cash Flow Disclosures Supplemental cash flow information was as follows during the periods indicated below (in thousands): Year Ended December 31, 2025 2024 2023 Supplemental disclosures: Cash paid for interest, net (1) $ 27,891 $ 28,955 $ 25,283 Cash paid for income taxes, net of refunds $ 198 $ 207 $ 463 Non-cash investing and financing activities: Accrued capital expenditures and leasing costs $ 15,170 $ 5,804 $ 6,484 Accrued deferred financing costs $ 12 $ — $ — Establishment of right-of-use assets and lease liabilities $ — $ — $ 1,232 Distributions declared and unpaid $ 1,208 $ 5,633 $ 5,578 Land acquired upon finance lease termination $ — $ 3,470 $ — Origination of seller financed notes receivable $ — $ — $ 3,700 ____________________________________ F-27 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 (1) Net of capitalized interest of $ 0.5 million for the year ended December 31, 2025. No interest was capitalized during the years ended December 31, 2024 and 2023. Note 9 – Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following as of the dates indicated below (in thousands): December 31, 2025 December 31, 2024 Accrued capital expenditures and leasing costs $ 15,224 $ 8,040 Accrued operating and other 10,650 9,141 Accrued real estate and other taxes 9,686 11,228 Accounts payable 2,807 1,159 Accrued interest 1,852 2,017 Total $ 40,219 $ 31,585 Note 10 – Commitments and Contingencies Leasing As part of its ordinary re-leasing activities, the Company has agreed and anticipates that it will continue to agree to provide rent concessions to tenants and incur leasing costs with respect to its properties, including amounts paid directly to tenants to improve their space and/or building systems, or tenant improvement allowances, landlord agreements to perform and pay for certain improvements, and leasing commissions. These commitments could be significant and are expected to vary due to factors such as competitive market conditions for leasing of commercial office space and the volume of square footage subject to re-leasing by the Company. As of December 31, 2025, the Company had the following estimated total outstanding leasing cost commitments (in thousands): Total (1) Tenant improvement allowances (2) $ 39,098 Reimbursable landlord work (3) 3,640 Non-reimbursable landlord work (3) 8,630 Total $ 51,368 ____________________________________ (1) Outstanding commitments do not include rent concessions as such amounts are recorded as a component of straight-line rent receivable, net, in accordance with U.S. GAAP. (2) Includes additional allowances of $ 3.6 million provided within the respective lease agreements, which require election by the tenant in exchange for additional rental income through the remaining term of the lease. (3) Landlord work represents specific improvements agreed to within the lease agreement to be performed by the Company, as landlord, as a new and non-recurring obligation and in order to induce the tenant to enter into a new lease or lease renewal or extension. Outstanding commitments for reimbursable and non-reimbursable landlord work include estimates and are subject to change. The actual amount the Company pays for tenant improvement allowances may be lower than the amount agreed upon in the applicable lease and will depend upon the tenant’s use of the capital on the agreed upon timeline. The timing of the Company’s cash outlay for tenant improvement allowances is significantly uncertain and will depend upon the applicable tenant’s schedule for the improvements and corresponding use of capital, if any. For assets financed on the CMBS Loan, the Company has funded reserves with the lender for tenant improvement allowances and rent concessions. As of December 31, 2025, total cash of $ 38.2 million was reserved for outstanding leasing F-28 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 costs, including $ 25.5 million for tenant improvement allowances and $ 12.7 million for rent concession commitments, and is included in restricted cash in the accompanying consolidated balance sheets. Litigation From time to time, the Company may be party to various legal proceedings which it believes are routine in nature and incidental to the ordinary operation of its business. As of December 31, 2025, the Company does not believe that any such legal proceedings will have a material adverse effect, individually or in aggregate, upon its consolidated position or results of operations. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition, in each case, that it believes will have a material adverse effect upon its consolidated position or results of operations. Note 11 – Leases Lessor As of December 31, 2025, the Company’s operating leases have non-cancelable lease terms ranging from 0.2 years to 15.6 years. Certain leases with tenants include tenant options to extend or terminate the lease agreements or to purchase the underlying assets. Lease agreements may also contain rent increases that are based on an index or rate (e.g., the consumer price index). The components of rental revenue from the Company’s operating leases during the periods indicated below were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Fixed: Cash rental revenue $ 88,373 $ 117,953 $ 141,471 Straight-line rental revenue 13,125 ( 210 ) 5,649 Lease intangible amortization 769 637 894 Fixed property operating cost reimbursements 6,100 5,881 5,956 Other fixed rental revenue 4,810 1,128 865 Total fixed 113,177 125,389 154,835 Variable: Variable property operating cost reimbursements 31,314 35,897 36,010 Other variable rental revenue 2,336 2,769 3,396 Total variable 33,650 38,666 39,406 Total rental revenue $ 146,827 $ 164,055 $ 194,241 F-29 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The following table presents future minimum base rent payments due to the Company under the terms of its operating lease agreements, excluding expense reimbursements, over the next five years and thereafter as of December 31, 2025 (in thousands). Future Minimum Base Rent Payments 2026 $ 85,124 2027 76,919 2028 67,923 2029 51,859 2030 49,840 Thereafter 259,054 Total $ 590,719 Lessee The Company is the lessee under ground lease arrangements and corporate office leases, which meet the criteria under U.S. GAAP for an operating lease. As of December 31, 2025, the Company’s operating leases had remaining lease terms ranging from 0.1 years to 59.0 years, which includes options to extend. Under the operating leases, the Company pays rent and may also pay variable costs, including property operating expenses and common area maintenance. The weighted average discount rate used to measure the lease liability for the Company’s operating leases was 3.57 % as of December 31, 2025. As the Company’s leases do not provide an implicit rate, the Company used an estimated incremental borrowing rate based on the information available at the lease commencement date or the lease guidance adoption date, as applicable, in determining the present value of lease payments. Operating lease costs were $ 1.2 million, $ 1.2 million and $ 1.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. No cash paid for operating lease liabilities was capitalized during the years ended December 31, 2025, 2024 and 2023. The following table reflects the maturity analysis of payments due from the Company over the next five years and thereafter for ground and corporate office lease obligations as of December 31, 2025 (in thousands). Future Minimum Lease Payments 2026 $ 778 2027 752 2028 761 2029 473 2030 447 Thereafter 11,597 Total 14,808 Less: imputed interest 5,170 Total $ 9,638 Note 12 – Stockholders’ Equity Common Stock The Company was initially capitalized on July 15, 2021 with the issuance of 100,000 shares of common stock to Realty Income for a total of $ 1,000 . On November 10, 2021, the Company issued 56,525,650 additional shares of common stock to Realty Income, such that Realty Income owned 56,625,650 shares of the Company’s common stock. On November 12, 2021, Realty Income effected the Distribution. F-30 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Distributions During the years ended December 31, 2025, 2024 and 2023, the Company’s Board of Directors declared quarterly cash dividends on shares of the Company’s common stock as follows: Declaration Date Record Date Paid Date Distributions Per Share March 4, 2025 March 31, 2025 April 15, 2025 $ 0.02 May 6, 2025 June 30, 2025 July 15, 2025 $ 0.02 August 5, 2025 September 30, 2025 October 15, 2025 $ 0.02 November 5, 2025 December 31, 2025 January 15, 2026 $ 0.02 Declaration Date Record Date Paid Date Distributions Per Share February 27, 2024 March 29, 2024 April 15, 2024 $ 0.10 May 7, 2024 June 28, 2024 July 15, 2024 $ 0.10 August 7, 2024 September 30, 2024 October 15, 2024 $ 0.10 November 6, 2024 December 31, 2024 January 15, 2025 $ 0.10 Declaration Date Record Date Paid Date Distributions Per Share March 7, 2023 March 31, 2023 April 17, 2023 $ 0.10 May 8, 2023 June 30, 2023 July 17, 2023 $ 0.10 August 8, 2023 September 29, 2023 October 16, 2023 $ 0.10 November 9, 2023 December 29, 2023 January 16, 2024 $ 0.10 On March 4, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $ 0.02 per share for the first quarter of 2026, payable on April 15, 2026 to stockholders of record as of March 31, 2026. The following table sets forth the federal income tax characterization of dividends paid on a percentage basis on the Company’s common stock for the periods indicated below: Year Ended December 31, 2025 2024 2023 Ordinary dividends — % — % — % Capital gain distributions — % — % — % Nondividend distributions 100.00 % 100.00 % 100.00 % Total 100.00 % 100.00 % 100.00 % Arch Street Warrants On November 12, 2021, in connection with the Distribution, Orion OP entered into an Amended and Restated Limited Liability Company Agreement (the “LLCA”) of the Arch Street Joint Venture, by and between Orion OP and OAP Holdings LLC (the “Arch Street Partner”), an affiliate of Arch Street Capital Partners, pursuant to which the Arch Street Partner consented to the transfer of the equity interests of the Arch Street Joint Venture previously held by VEREIT Real Estate, L.P. to Orion OP. Also on November 12, 2021, in connection with the entry into the LLCA, the Company granted certain affiliates of the Arch Street Partner warrants to purchase up to 1,120,000 shares of the Company’s common stock (the “Arch Street Warrants”). The Arch Street Warrants entitle the respective holders to purchase shares of the Company’s common stock at a price per share equal to $ 22.42 , at any time. The Arch Street Warrants may be exercised, in whole or in part, through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of Company common stock determined according to the formula set forth in the Arch Street Warrants. The Arch Street Warrants expire on the earlier of (a) ten years after issuance and (b) if the Arch Street Joint Venture is terminated, the later of the termination of the Arch Street Joint Venture and seven years after issuance. F-31 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Share Repurchase Program On November 1, 2022, the Company’s Board of Directors authorized the repurchase of up to $ 50.0 million of the Company’s outstanding common stock until December 31, 2025, as market conditions warrant (the “Share Repurchase Program”). The Company did not purchase any shares under the Share Repurchase Program during the year ended December 31, 2025, and the Share Repurchase Program expired by its terms on December 31, 2025. While the Share Repurchase Program was active, the Company repurchased approximately 0.9 million shares of common stock in multiple open market transactions, at a weighted average share price of $ 5.46 for an aggregate purchase price of $ 5.0 million. Note 13 – Equity-Based Compensation The Company has an equity-based incentive award plan (the “Equity Plan”) for officers, other employees, non-employee directors and consultants who provide services to the Company. Awards under the Equity Plan are accounted for under U.S. GAAP as share-based payments. The expense for such awards is recognized over the requisite service period, which is generally the vesting period. Under the Equity Plan, the Company may grant various types of awards, including restricted stock units that will vest if the recipient maintains employment with the Company over the requisite service period (the “Time-Based RSUs”) and restricted stock units that may vest in a number ranging from 0 % to 100 % of the total number of units granted, based on the Company’s total shareholder return measured on an absolute basis (“TSR-Based RSUs”) and based on certain operational performance metrics (“Metrics-Based RSUs” and collectively with the TSR-Based RSUs, “Performance-Based RSUs”), in each case for officers and other employees during a three-year performance period. The Company also granted Time-Based RSUs to its non-employee directors which are scheduled to vest on the earlier of the one-year anniversary of the grant date and the next annual meeting, subject to the recipient’s continued service with the Company. Failure to satisfy the performance conditions for the Metrics-Based RSUs will result in the forfeiture of the units and, in the case of awards where the performance conditions were previously determined to be likely of achieving, a reversal of any previously recognized equity-based compensation expense. Failure to satisfy the market conditions for the TSR-Based RSUs will result in the forfeiture of the units but does not result in a reversal of previously recognized equity-based compensation expense, provided that the requisite service has been rendered. Forfeiture of Time-Based RSUs or Performance-Based RSUs due to the failure to meet the service requirements results in the reversal of previously recognized equity-based compensation expense. The Company adjusts for forfeitures of Time-Based RSUs and Performance-Based RSUs as they occur. During the years ended December 31, 2025, 2024 and 2023, the Company granted Time-Based RSUs and/or Performance-Based RSUs to officers, other employees and non-employee directors of the Company. The fair value of the Time-Based RSUs is determined using the closing stock price on the grant date and is expensed over the requisite service period on a straight-line basis. The fair value of the TSR-Based RSUs is determined using a Monte Carlo simulation which takes into account multiple input variables that determine the probability of satisfying the required total shareholder return, and such fair value is expensed over the performance period. The fair value of the Metrics-Based RSUs is determined using the closing stock price on the grant date and is expensed over the requisite service period to the extent that the likelihood of achieving the performance metrics is probable. As of December 31, 2025, the Company determined that the likelihood of achieving some of the performance metrics was probable and, accordingly, the Company recognized compensation expense for such Metrics-Based RSUs and determined that the likelihood of achieving the remaining performance metrics was improbable and the Company recognized no compensation expense for the remaining Metrics-Based RSUs. Time-Based RSUs and Performance-Based RSUs do not provide for any rights of a common stockholder prior to the vesting of such restricted stock units. Equity-based compensation expense related to Time-Based RSUs and Performance-Based RSUs for the years ended December 31, 2025, 2024 and 2023 was $ 3.9 million, $ 3.7 million and $ 2.5 million, respectively. As of December 31, 2025, total unrecognized compensation expense related to Time-Based RSUs and Performance-Based RSUs was approximately $ 3.3 million with an aggregate weighted average remaining term of 1.6 years. F-32 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 The following table details the activity of the Time-Based RSUs for the periods indicated below: Time-Based RSUs Weighted Average Grant Date Fair Value per Share Unvested units, January 1, 2023 156,947 $ 17.12 Granted 363,745 $ 7.10 Vested ( 75,556 ) $ 16.17 Unvested units, December 31, 2023 445,136 $ 9.09 Granted 771,870 $ 3.37 Vested ( 217,028 ) $ 8.94 Forfeited ( 23,015 ) $ 4.89 Unvested units, December 31, 2024 976,963 $ 4.71 Granted 1,172,019 $ 2.06 Vested ( 467,437 ) $ 5.36 Forfeited ( 54,023 ) $ 4.07 Unvested units, December 31, 2025 1,627,522 $ 2.63 The following table details the activity of the Performance-Based RSUs for the periods indicated below: Performance-Based RSUs Weighted Average Grant Date Fair Value per Share Unvested units, January 1, 2023 212,154 $ 13.65 Granted 509,273 $ 5.83 Unvested units, December 31, 2023 721,427 $ 8.13 Granted 1,613,592 $ 2.41 Vested ( 31,080 ) $ 17.77 Forfeited ( 201,625 ) $ 16.33 Unvested units, December 31, 2024 2,102,314 $ 2.81 Granted 1,693,856 $ 1.30 Vested ( 104,125 ) $ 7.16 Forfeited ( 720,740 ) $ 5.16 Unvested units, December 31, 2025 2,971,305 $ 1.23 The Company was also required under U.S. GAAP to recognize equity-based compensation expense for awards to its employees who received grants of Realty Income time-based restricted stock units and stock options in connection with the Separation and the Distribution. As of December 31, 2025, there was no remaining unrecognized compensation expense related to Realty Income time-based restricted stock units and stock options and no equity-based compensation expense related to these awards during the during the year ended December 31, 2025. Equity-based compensation expense related to such Realty Income equity-based compensation awards was less than $ 0.1 million and $ 0.2 million for the years ended December 31, 2024 and 2023, respectively. F-33 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Note 14 – Net Loss Per Share The computation of basic and diluted earnings per share is as follows for the periods indicated below (in thousands, except per share data): Year Ended December 31, 2025 2024 2023 Net loss $ ( 139,286 ) $ ( 102,976 ) $ ( 57,311 ) Net (income) loss attributable to non-controlling interest ( 23 ) ( 36 ) 9 Net loss attributable to common stockholders and used in basic and diluted net loss per share ( 139,309 ) ( 103,012 ) ( 57,302 ) Weighted average shares of common stock outstanding - basic 56,232 55,903 56,410 Effect of dilutive securities (1) — — — Weighted average shares of common stock - diluted 56,232 55,903 56,410 Basic and diluted net loss per share attributable to common stockholders $ ( 2.48 ) $ ( 1.84 ) $ ( 1.02 ) ____________________________________ (1) There were no adjustments to the weighted average common shares outstanding used in the diluted calculation given that all potentially dilutive shares were antidilutive for the years ended December 31, 2025, 2024 and 2023. The following were excluded from diluted net loss per share attributable to common stockholders during the periods indicated below, as the effect would have been antidilutive (in thousands): Year Ended December 31, 2025 2024 2023 Weighted average unvested Time-Based RSUs and Performance-Based RSUs (1) 80 74 — Weighted average stock warrants 1,120 1,120 1,120 ____________________________________ (1) Net of assumed purchases in accordance with the treasury stock method and exclude Performance-Based RSUs for which the performance thresholds have not been met by the end of the applicable reporting period. Note 15 – Subsequent Events Distributions On March 4, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $ 0.02 per share for the first quarter of 2026, payable on April 15, 2026 to stockholders of record as of March 31, 2026. Dispositions In January 2026, the Company closed on the sale of two properties for an aggregate gross sales price of $ 13.1 million. Acquisition During February 2026, the Company acquired one 75,000 square foot property in Northbrook, Illinois for a gross purchase price of $ 15.0 million. The property is fully leased to a single tenant through December 2036. Leasing Activity During January 2026, the Company completed a 3.0 -year lease extension for approximately 160,000 square feet at its property in Buffalo, New York and a new 10.5 -year lease for approximately 23,000 square feet at its property in Phoenix, Arizona. F-34 Table of Contents ORION PROPERTIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Debt Obligations As discussed in Note 6 – Debt, Net above, during February 2026, the Company and Orion OP entered into the New Revolving Facility and the Mortgage Borrowers entered into the Loan Modification Agreement with respect to the CMBS Loan. F-35 Table of Contents ORION PROPERTIES INC. SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2025 (in thousands) Schedule III – Real Estate and Accumulated Depreciation Initial Costs (1) Adjustments Subsequent to Acquisition (2) Gross Amount Carried at December 31, 2025 (3) (4) Accumulated Depreciation (3) (5) Property Encumbrances at December 31, 2025 Land Buildings, Fixtures and Improvements Date Acquired Date of Construction Commercial & Professional Services - Brownsville, TX $ — $ 1,740 $ 11,571 $ 1,885 $ 15,196 $ ( 6,122 ) 4/1/2011 2007 Telecommunication Services - Augusta, GA — — 11,128 431 11,559 ( 5,810 ) 4/1/2011 2007 Telecommunication Services - Salem, OR — 1,722 10,074 676 12,472 ( 5,205 ) 6/22/2011 2000 Health Care Equipment & Services - St. Louis, MO 12,041 — 38,799 363 39,162 ( 14,459 ) 1/22/2013 2009 Government & Public Services - Brownsville, TX 1,345 321 6,803 172 7,296 ( 2,656 ) 1/22/2013 2008 Government & Public Services - Parkersburg, WV — 494 12,902 539 13,935 ( 4,865 ) 1/22/2013 2009 Government & Public Services - Paris, TX 2,292 274 5,392 246 5,912 ( 2,055 ) 1/22/2013 2010 Government & Public Services - Eagle Pass, TX — 146 2,086 398 2,630 ( 828 ) 1/22/2013 2002 Government & Public Services - Dallas, TX — 399 9,748 116 10,263 ( 3,687 ) 1/22/2013 2011 Government & Public Services - Redding, CA — 676 20,553 612 21,841 ( 7,788 ) 1/22/2013 2003 Government & Public Services - Minneapolis, MN — 1,046 8,588 — 9,634 ( 3,180 ) 1/22/2013 2005 Government & Public Services - Malone, NY 5,134 824 9,485 169 10,478 ( 3,641 ) 1/22/2013 2011 Government & Public Services - Sioux City, IA — 77 4,761 536 5,374 ( 1,926 ) 1/22/2013 2011 Government & Public Services - Knoxville, TN — 761 9,041 432 10,234 ( 3,535 ) 1/22/2013 2011 Health Care Equipment & Services - Bedford, TX 34,167 1,608 56,219 — 57,827 ( 20,814 ) 1/22/2013 2010 Government & Public Services - Eagle Pass, TX — 68 811 113 992 ( 309 ) 1/22/2013 2002 Transportation - Memphis, TN 17,114 3,570 16,601 1,086 21,257 ( 6,329 ) 2/27/2013 1999 Transportation - Columbus, OH 16,014 — 19,637 — 19,637 ( 7,037 ) 6/19/2013 2012 Vacant - Deerfield, IL — 4,093 11,511 ( 13,564 ) 2,040 — 8/27/2013 1984 Vacant - Deerfield, IL — 4,262 11,988 ( 14,125 ) 2,125 — 8/27/2013 1984 Vacant - Deerfield, IL — 4,082 11,484 ( 13,531 ) 2,035 — 8/27/2013 1984 Vacant - Deerfield, IL — 4,089 11,503 ( 13,553 ) 2,039 — 8/27/2013 1984 Vacant - Deerfield, IL — 2,586 7,275 ( 8,572 ) 1,289 — 8/27/2013 1976 Vacant - Deerfield, IL — 3,181 8,947 ( 10,543 ) 1,585 — 8/27/2013 1976 Capital Goods - Cedar Rapids, IA 7,000 1,000 12,981 — 13,981 ( 4,528 ) 10/10/2013 2013 Health Care Equipment & Services - Providence, RI — 2,550 21,779 — 24,329 ( 7,452 ) 1/31/2014 1985 Materials - East Windsor, NJ 10,391 240 13,446 205 13,891 ( 4,526 ) 4/30/2014 2008 Media & Entertainment - East Syracuse, NY 11,002 880 15,817 — 16,697 ( 5,291 ) 4/30/2014 2000 Government & Public Services - Cocoa, FL — 450 949 79 1,478 ( 141 ) 11/1/2021 2009 Government & Public Services - Grangeville, ID — 1,385 3,436 338 5,159 ( 657 ) 11/1/2021 2007 Government & Public Services - Fort Worth, TX — 572 3,985 ( 2,718 ) 1,839 ( 14 ) 11/1/2021 2010 Government & Public Services - Plattsburgh, NY — 1,136 2,486 158 3,780 ( 363 ) 11/1/2021 2008 Capital Goods - Longmont, CO — 2,106 12,543 707 15,356 ( 1,646 ) 11/1/2021 1993 Telecommunication Services - Richardson, TX — 1,187 21,037 ( 9,808 ) 12,416 ( 95 ) 11/1/2021 1986 Health Care Equipment & Services - San Antonio, TX — 2,125 15,425 471 18,021 ( 2,004 ) 11/1/2021 2008 F-36 Table of Contents ORION PROPERTIES INC. SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2025 (in thousands) Initial Costs (1) Adjustments Subsequent to Acquisition (2) Gross Amount Carried at December 31, 2025 (3) (4) Accumulated Depreciation (3) (5) Property Encumbrances at December 31, 2025 Land Buildings, Fixtures and Improvements Adjustments Subsequent to Acquisition (2) Gross Amount Carried at December 31, 2025 (3) (4) Accumulated Depreciation (3) (5) Date Acquired Date of Construction Restaurant - Tulsa, OK $ — $ 6,865 $ 34,716 $ 75 $ 41,656 $ ( 4,143 ) 11/1/2021 1995 Consumer Durables & Apparel - Denver, CO — 3,386 19,727 2,137 25,250 ( 2,627 ) 11/1/2021 2001 Vacant - Richardson, TX — 2,047 12,733 ( 10,791 ) 3,989 ( 31 ) 11/1/2021 2008 Commercial & Professional Services - Lawrence, KS — 3,576 2,996 862 7,434 ( 504 ) 11/1/2021 1997 Materials - The Woodlands, TX — 5,772 14,236 3,746 23,754 ( 2,313 ) 11/1/2021 2009 Vacant - Englewood, CO 20,537 3,354 14,714 553 18,621 ( 1,997 ) 11/1/2021 2009 Media & Entertainment - Milwaukee, WI — 2,727 18,083 77 20,887 ( 2,171 ) 11/1/2021 2001 Telecommunication Services - Nashville, TN 9,291 2,588 9,587 1,273 13,448 ( 1,391 ) 11/1/2021 2002 Commercial & Professional Services - The Woodlands, TX — 2,550 17,481 1,892 21,923 ( 2,317 ) 11/1/2021 2014 Retailing - Santee, CA — — 9,859 1,551 11,410 ( 1,427 ) 11/1/2021 2003 Materials - Glen Burnie, MD — 3,095 11,466 1,513 16,074 ( 1,742 ) 11/1/2021 1984 Vacant - Irving, TX — 9,267 19,853 1,168 30,288 ( 2,598 ) 11/1/2021 1997 Government & Public Services - Covington, KY — 4,087 56,991 7,506 68,584 ( 7,682 ) 11/1/2021 2002 Software & Services - Amherst, NY — 2,997 2,701 1,304 7,002 ( 569 ) 11/1/2021 1986 Capital Goods - Sterling, VA 29,094 10,515 25,393 — 35,908 ( 3,218 ) 11/1/2021 2011 Capital Goods - Malvern, PA 11,552 2,607 10,844 18 13,469 ( 1,480 ) 11/1/2021 2014 Health Care Equipment & Services - Indianapolis, IN — 1,430 4,386 271 6,087 ( 615 ) 11/1/2021 1993 Health Care Equipment & Services - Plano, TX — 9,834 35,893 3,476 49,203 ( 4,787 ) 11/1/2021 2009 Software & Services - Lincoln, NE — — 6,587 11,969 18,556 ( 1,064 ) 11/1/2021 2009 Software & Services - Buffalo, NY — 4,710 36,740 9,686 51,136 ( 4,476 ) 11/1/2021 2007 Insurance - Urbana, MD 23,165 4,028 19,888 — 23,916 ( 2,532 ) 11/1/2021 2011 Health Care Equipment & Services - Nashville, TN — 1,165 11,749 168 13,082 ( 1,558 ) 11/1/2021 2010 Retailing - Kennesaw, GA 11,430 — 11,141 3,700 14,841 ( 1,604 ) 11/1/2021 2012 Capital Goods - Duluth, GA 14,669 3,684 14,786 — 18,470 ( 1,875 ) 11/1/2021 1999 Commercial & Professional Services - Parsippany, NJ — 9,537 9,174 15,370 34,081 ( 1,711 ) 11/1/2021 2009 Financial Institutions - Hopewell, NJ 92,663 19,325 57,846 7,664 84,835 ( 7,671 ) 11/1/2021 2001 Vacant - Phoenix, AZ 26,099 4,786 21,346 844 26,976 ( 2,919 ) 11/1/2021 2012 Vacant - Amherst, NY — 564 486 — 1,050 ( 91 ) 11/1/2021 1988 Materials - San Ramon, CA 18,000 12,250 25,269 — 37,519 ( 966 ) 9/11/2024 1984 $ 373,000 $ 186,396 $ 977,462 $ ( 10,650 ) $ 1,153,208 $ ( 195,042 ) ____________________________________ (1) Initial costs exclude subsequent impairment charges. (2) Consists of capital expenditures and real estate development costs, net of condemnations, easements, impairment charges and other adjustments. (3) Gross intangible lease assets of $ 250.2 million and the associated accumulated amortization of $ 174.3 million are not reflected in the table above. (4) The aggregate cost for federal income tax purposes of land, buildings, fixtures and improvements as of December 31, 2025 was approximately $ 1.7 billion. (5) Depreciation is computed using the straight-line method over the estimated useful lives of up to 35 years for buildings and five to 20 years for building fixtures and improvements. F-37 Table of Contents ORION PROPERTIES INC. SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2025 (in thousands) The following is a reconciliation of the gross real estate activity for the periods indicated below (in thousands): Year Ended December 31, 2025 2024 2023 Balance, beginning of year $ 1,282,452 $ 1,320,396 $ 1,366,625 Additions: Acquisitions/improvements 50,009 54,405 17,476 Deductions/Other Sold or disposed of (1) ( 33,807 ) ( 20,955 ) ( 7,173 ) Impairments ( 112,619 ) ( 61,723 ) ( 41,467 ) Reclassified to real estate assets held for sale, net ( 32,827 ) ( 9,671 ) ( 15,065 ) Balance, end of year $ 1,153,208 $ 1,282,452 $ 1,320,396 The following is a reconciliation of the accumulated depreciation for the periods indicated below (in thousands): Year Ended December 31, 2025 2024 2023 Balance, beginning of year $ 177,906 $ 158,791 $ 133,379 Additions: Depreciation expense 32,659 49,254 34,037 Deductions/Other Sold or disposed of (1) ( 890 ) ( 15,887 ) — Impairments ( 14,480 ) ( 14,252 ) ( 8,625 ) Reclassified to real estate assets held for sale, net ( 153 ) — — Balance, end of year $ 195,042 $ 177,906 $ 158,791 ____________________________________ (1) Includes the full write-off of the buildings and associated accumulated depreciation of the six-property campus in Deerfield, Illinois during the year ended December 31, 2024. 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