Orion Properties outperforms U.S. REITs in 2026 despite challenges, eyes growth beyond office sector.

Orion Properties Inc. has outperformed its U.S. REIT peers in 2026 by recovering some losses from 2025, driven by solid Q1 core funds from operations and occupancy growth. However, the company still faces negative funds available for distribution due to high capital expenditures and lease incentives. Post-quarter disposals have reduced its net debt to enterprise value to 71%, but further deleveraging is needed. With lower interest costs from recent refinancing, Orion's outlook remains cautious, and it may need to expand its non-office portfolio to counteract the impact of AI on office demand if it stays independent.