Quarterly report pursuant to Section 13 or 15(d)

Orion Office REIT, Fair Value Measures (Tables)

v3.22.2.2
Orion Office REIT, Fair Value Measures (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements, Recurring
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, 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 September 30, 2022
Assets:
Derivative assets $ —  $ 7,057  $ —  $ 7,057 
Level 1 Level 2 Level 3
Balance as of December 31, 2021
Assets:
Derivative assets $ —  $ 299  $ —  $ 299 
Schedule of Provisions for Impairment The following table summarizes our provisions for impairment during the periods indicated below (dollars in thousands):
Nine Months Ended September 30,
2022
Number of properties 10 
Carrying value of impaired properties $ 98,633 
Provisions for impairment (54,161)
Estimated fair value $ 44,472 
Schedule of Assets Measured at Fair Value on a Non-recurring Basis
The following table presents certain of the Company’s assets measured at fair value on a non-recurring basis as of September 30, 2022, 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 September 30, 2022
Assets of properties held and used $ —  $ 1,000  $ 22,339  $ 23,339 
Assets of properties held for sale(2)
—  4,782  —  4,782 
$ —  $ 5,782  $ 22,339  $ 28,121 
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(1)The fair value of the level 2 category was derived using negotiated sales prices and the fair value of the level 3 category was derived using discounted cash flow analysis and management estimates of selling prices.
(2)An additional property is included in real estate assets held for sale, net on the balance sheets at a carrying value of $1.6 million.
Schedule of Fair Value, by Balance Sheet Grouping The fair values of the Company’s financial instruments are reported below (dollar amounts in thousands):
Level
Carrying Amount at September 30, 2022
Fair Value at September 30, 2022
Carrying Amount at December 31, 2021
Fair Value at December 31, 2021
Liabilities (1):
Bridge facility 2 —  —  $ 355,000  $ 355,000 
Mortgages payable 2 355,000  334,473  —  — 
Credit facility term loan 2 175,000  175,000  175,000  175,000 
Credit facility revolver 2 31,000  31,000  90,000  90,000 
Total $ 561,000  $ 540,473  $ 620,000  $ 620,000 
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(1)Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs.