Orion Properties Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Real Estate Investments and Related Intangibles (Tables)

Real Estate Investments and Related Intangibles (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Intangible Lease Assets and Liabilities

Intangible lease assets and liabilities consisted of the following (in thousands, except weighted average useful life):


	Weighted Average Useful Life (Years)	March 31, 2025		December 31, 2024
Intangible lease assets:
In-place leases, net of accumulated amortization of $169,857 and $169,898, respectively	9.7	$	61,545	$	68,099
Leasing commissions, net of accumulated amortization of $5,688 and $4,508, respectively	12.5	22,765		21,834
Above-market lease assets, net of accumulated amortization of $12,303 and $12,831, respectively	10.7	1,789		2,041
Deferred lease incentives, net of accumulated amortization of $1,032 and $927, respectively	10.6	3,426		3,970
Total intangible lease assets, net		$	89,525	$	95,944

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $18,672 and $24,877, respectively	15.0	$	19,988	$	20,596

Schedule of Future Amortization Expense of Intangible Lease Assets and Liabilities

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 March 31, 2025 (in thousands):


	Remainder of 2025		2026		2027		2028		2029		2030
In-place leases:
Total projected to be included in amortization expense	$	15,902	$	16,157	$	8,262	$	5,517	$	2,797	$	2,377
Leasing commissions:
Total projected to be included in amortization expense	$	1,931	$	2,312	$	2,157	$	1,936	$	1,647	$	1,627
Above-market lease assets:
Total projected to be deducted from rental revenue	$	595	$	680	$	237	$	115	$	63	$	63
Deferred lease incentives:
Total projected to be deducted from rental revenue	$	366	$	395	$	372	$	359	$	348	$	345
Below-market lease liabilities:
Total projected to be added to rental revenue	$	1,539	$	1,928	$	1,766	$	1,682	$	1,500	$	1,425

Schedule of Company's Investment in Joint Venture

The following is a summary of the Company’s investment in the Arch Street Joint Venture, as of and for the periods indicated below (dollars in thousands):


	Ownership % (1)	Number of Properties	Carrying Value of Investment				Equity in Loss, Net
							Three Months Ended
Investment	March 31, 2025		March 31, 2025		December 31, 2024		March 31, 2025		March 31, 2024
Arch Street Joint Venture (2)	20%	6	$	11,576	$	11,822	$	(246)	$	(116)

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(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.

(2)The total carrying value of the Company’s investment in the Arch Street Joint Venture was less than the underlying equity in net assets by $0.1 million and less than $0.1 million as of March 31, 2025 and December 31, 2024, respectively. This difference is related to the recognition of the fair value of the investment in the Arch Street Joint Venture in connection with the Separation and the Distribution. The difference in fair value and carrying value of the investment was allocated based on the underlying assets and liabilities of the Arch Street Joint Venture and is being amortized over the estimated useful lives of the respective assets and liabilities in accordance with the Company’s accounting policies.