Orion Office REIT (ONL) AI Stock Analysis

• Market Cap: $123.59M
• Dividend Yield: 7.34%
• Average Volume (3M): 227.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -11.41%
• EPS Growth: -56.73%
• Country: US
• Employees: 40
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.64
• Shares Outstanding: 56,436,054
• 10 Day Avg. Volume: 211,376
• 30 Day Avg. Volume: 227,856
• PEG Ratio: -0.03
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -4.52
• Enterprise Value/Market Cap: 4.73
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 7.06
• Enterprise Value/Ebitda: -11.99
• 1Y Price Target: $3.00
• Price Target Upside: 36.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.49
• Revenue Forecast (FY): $138.50M

• Rating: 54 Neutral
• Price Target: $2.00 ▼(-8.68% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by weak financial performance (shrinking revenue, negative EBITDA, ongoing net losses, and weakening cash flow versus prior years). Offsetting this are improving technical trends (above key moving averages) and constructive earnings-call/corporate updates focused on liquidity, leasing momentum, dispositions, and extended debt maturities, though elevated leverage and JV uncertainty remain meaningful risks.

Positive Factors

Long lease terms and robust leasing volumes

Significantly longer weighted-average lease terms and high leasing volumes materially reduce rollover risk and revenue volatility. Multi-year contracted income improves predictability of cash flows and supports a recovery in core FFO as renewed rents stabilize over the 2–6 month horizon and beyond.

Extended maturities and improved liquidity

Meaningful extension of debt maturities and a lower‑cost revolver reduce near‑term refinancing risk and interest expense pressure. Enhanced liquidity and longer runway give management durable flexibility to execute leasing, dispositions, and capex programs without forced fire sales or immediate capital raises.

Material dispositions and capital recycling

Large disposition proceeds and capital recycling materially strengthen the balance sheet and reduce vacant carry costs, freeing funds to invest in leasing and higher-quality dedicated-use assets. This supports sustainable cash flow improvement and a portfolio tilt that better matches tenant demand over the medium term.

Negative Factors

Revenue decline and negative EBITDA

Sharp revenue contraction and deteriorating EBITDA signal structural pressure on operating performance and margin sustainability. Persistently negative profitability reduces internal capital to fund leasing/CapEx, increases reliance on asset sales or borrowing, and makes recovery contingent on sustained leasing gains.

Weakened cash generation versus prior years

Declining operating and free cash flow curtails the REIT's ability to self-fund tenant improvements, leasing costs, and dividends. Over time this increases dependency on external financing or dispositions, and reduces the margin for execution errors if leasing momentum falters or capex needs remain elevated.

Elevated leverage and JV impairment uncertainty

Sustained high leverage limits financial flexibility and amplifies downside from operating shortfalls. Concurrent JV impairment and partner capital issues introduce potential future write‑downs or cash shortfalls, while lender covenants and cash sweep/reserve provisions can restrict reinvestment and prolong recovery.

Orion Office REIT Business Overview & Revenue Model

Company Description

Orion Properties Inc. specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

How the Company Makes Money

Orion Office REIT makes money primarily by leasing office properties to tenants and collecting contractual rental payments. Its core revenue stream is rental revenue generated from its portfolio of office buildings, typically structured through multi-year lease agreements in which tenants pay base rent and, depending on lease terms, may also reimburse certain property-level operating costs (such as taxes, insurance, and maintenance) through expense reimbursements or similar recoveries. Additional revenue can come from items tied to leasing activity and property operations (e.g., fees or other property-related income), but the dominant driver is recurring rent collected from tenants occupying its properties. Key factors that influence earnings include occupancy levels, tenant credit quality, lease rollover/renewal outcomes, contractual rent escalations, the ability to re-lease vacant space, and property operating expenses; acquisitions and dispositions of properties can also affect revenue by changing the size and composition of the portfolio. Significant partnerships: null.

Orion Office REIT Financial Statement Overview

Summary

Financials are pressured by sharply contracting revenue, negative EBITDA in 2025, and persistent net losses with heavily negative margins. Positives include improved leverage in the latest period (debt reported at zero in 2025) and still-positive operating/free cash flow, though cash generation has weakened materially versus prior years.

Income Statement

Revenue has contracted sharply over time (2025 vs. 2024 down, and the reported growth rate is deeply negative in 2025), while profitability has deteriorated meaningfully. Gross margin remains relatively solid, but operating performance is weak with negative EBITDA in 2025 and persistent net losses across all years shown. Net margins are heavily negative in 2024–2025, signaling ongoing earnings pressure and limited near-term earnings stability.

Balance Sheet

Leverage improved materially in the most recent year with total debt reported at zero in 2025 and a debt-to-equity ratio of 0.0, which reduces refinancing and interest-rate risk. However, equity and total assets have declined versus prior years, and returns on equity remain negative throughout the period, indicating the balance sheet is getting smaller while profitability is still not supporting shareholder returns.

Cash Flow

Cash generation is still positive, with operating cash flow and free cash flow positive in 2025, which is a key support for a REIT during a difficult earnings period. That said, cash flow has weakened materially versus prior years (operating cash flow and free cash flow both down sharply from 2022–2024 levels), and free cash flow growth in 2025 is significantly negative, highlighting declining cash-producing capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	147.65M	164.86M	195.04M	208.12M	79.73M
Gross Profit	82.82M	99.71M	134.26M	146.60M	66.32M
EBITDA	-48.77M	30.70M	81.92M	64.28M	882.00K
Net Income	-139.31M	-103.01M	-57.30M	-97.49M	-47.48M
Balance Sheet
Total Assets	1.17B	1.34B	1.42B	1.57B	1.76B
Cash, Cash Equivalents and Short-Term Investments	22.36M	15.60M	22.47M	20.64M	29.32M
Total Debt	482.41M	510.82M	476.93M	540.05M	809.95M
Total Liabilities	545.99M	571.17M	536.93M	595.22M	671.19M
Stockholders Equity	623.21M	763.92M	885.62M	974.47M	1.09B
Cash Flow
Free Cash Flow	-28.12M	31.68M	70.65M	102.61M	46.19M
Operating Cash Flow	23.58M	54.26M	89.09M	114.23M	56.11M
Investing Cash Flow	16.78M	-51.26M	5.29M	22.48M	-12.26M
Financing Cash Flow	-36.89M	-3.02M	-92.49M	-110.72M	-18.44M

Orion Office REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONL, the sentiment is Negative. The current price of 2.19 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.37, and below the 200-day MA of 2.42, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 3.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONL.

Orion Office REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ONL	54 Neutral	$123.59M	-0.91	-20.16%	7.34%	-11.41%	-56.73%
PDM	51 Neutral	$845.23M	-6.00	-4.45%	6.09%	-1.23%	9.10%
BDN	51 Neutral	$507.00M	-2.82	-20.40%	17.55%	-5.52%	40.27%
FSP	45 Neutral	$60.13M	-3.35	-7.25%	4.71%	-14.68%	-13.53%

Orion Office REIT Corporate Events

Orion Office REIT Refinances Debt and Extends Maturities

On February 17–18, 2026, Orion Properties Inc. executed a two-part refinancing that extends key debt maturities and reshapes its balance sheet. The company amended a $355 million fixed-rate CMBS loan secured by 19 properties, pushing its final maturity out from February 2027 to as late as August 2030 through staged extension options, while keeping the 4.971% interest rate intact and implementing ongoing cash sweeps and reserve funding for capital expenditures and operating costs.

As part of the CMBS modification, Orion made a partial prepayment, created an all-purpose reserve initially capitalized with more than $45 million, and agreed that excess cash flows from the collateral properties will be used to both amortize the mortgage and bolster reserves, with increasing proportions directed to principal over time and certain obligations now becoming recourse to the company. This structure prioritizes debt paydown and property investment while tightening lender control over cash flows.

On February 18, 2026, Orion also closed a new $215 million senior secured revolving credit facility with a syndicate led by Wells Fargo, replacing and terminating its prior $350 million revolver without material early termination penalties. The new facility, secured by 28 properties and guaranteed by Orion and key subsidiaries, runs to February 2028 with two six‑month extension options, and as of signing the company had $113 million drawn and $102 million of remaining capacity.

The revolver carries a lower interest margin than the previous facility and maintains a 0.25% commitment fee on unused capacity, reducing borrowing costs while preserving flexibility for general corporate purposes, prepayments and re‑borrowings. In exchange, Orion is subject to leverage, coverage, net worth, collateral availability and debt yield covenants, as well as restrictions on liens, investments, asset sales and certain dividends, and must use excess unrestricted cash over $25 million to pay down the facility.

Taken together, the CMBS loan extension and new revolver meaningfully extend Orion’s debt maturity profile, cut interest spreads on its primary credit line and more closely align its liquidity with its business plan. Management highlighted that the transactions remove near-term refinancing risk, support continued investment in its office portfolio and are expected to lower interest expense, leaving the company with approximately $119.9 million of liquidity following the deals and potentially strengthening its position in a challenging suburban office market.

The most recent analyst rating on (ONL) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Orion Office REIT stock, see the ONL Stock Forecast page.

Orion Office REIT Begins Strategic Review After Kawa Pact

On January 26, 2026, Orion Properties Inc. announced it had entered into a cooperation agreement with The Kawa Fund Limited and Kawa Capital Management and simultaneously launched a strategic options review process aimed at maximizing shareholder value. Under the agreement, Kawa withdrew its plan to nominate five director candidates at Orion’s 2026 annual meeting and agreed to standstill, voting and confidentiality commitments, while being granted the opportunity to participate in the strategic review on terms similar to other prospective bidders. The board has tasked management and external financial and legal advisers with evaluating a full range of alternatives—including potential acquisitions or mergers, a sale of the company, or remaining an independent REIT—though there is no assurance the review will result in a transaction or any change in Orion’s strategic direction, underscoring both ongoing shareholder activism and the pressure facing office-focused REITs in a challenging market for the sector.

The most recent analyst rating on (ONL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Orion Office REIT stock, see the ONL Stock Forecast page.