Annual report pursuant to Section 13 and 15(d)

Orion Office REIT, Fair Value Measures (Tables)

v3.22.4
Orion Office REIT, Fair Value Measures (Tables)
 12 Months Ended
Dec. 31, 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 December 31, 2022 and 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 December 31, 2022
Derivative assets $ —  $ 6,308  $ —  $ 6,308 
Level 1 Level 2 Level 3
Balance as of December 31, 2021
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):
Year Ended December 31,
2022 2021 2020
Number of properties 18  10  1 
Carrying value of impaired properties $ 142,748  $ 109,197  $ 29,129 
Provisions for impairment (66,359) (49,859) (18,671)
Estimated fair value $ 76,389  $ 59,338  $ 10,458 
Schedule of Assets Measured at Fair Value on a Non-recurring Basis
The following tables present certain of the Company’s assets measured at fair value on a non-recurring basis as of December 31, 2022 and 2021, 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, 2022
Assets of properties held and used $ —  $ 38,900  $ 11,957  $ 50,857 
Assets of properties held for sale —  2,502  —  2,502 
$ —  $ 41,402  $ 11,957  $ 53,359 
Level 1
Level 2 (1)
Level 3 (1)
Balance as of December 31, 2021
Assets of properties held and used $ —  $ —  $ 59,339  $ 59,339 
Assets of properties held for sale —  —  —  — 
$ —  $ —  $ 59,339  $ 59,339 
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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.
Schedule of Fair Value, by Balance Sheet Grouping The fair values of the Company’s long-term financial instruments are reported below (dollars in thousands):
Level
Carrying Value at December 31, 2022
Fair Value at December 31, 2022
Carrying Value at December 31, 2021
Fair Value at December 31, 2021
Liabilities (1):
Bridge facility 2 —  —  $ 355,000  $ 355,000 
Mortgages payable 2 355,000  332,323  —  — 
Credit facility term loan 2 175,000  175,000  175,000  175,000 
Credit facility revolver (2)
2 —  —  90,000  90,000 
Total $ 530,000  $ 507,323  $ 620,000  $ 620,000 
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(1)Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs.
(2)As of December 31, 2022, the Company did not have any amounts outstanding under its $425.0 million Revolving Facility.