Orion Office Reit, Inc. (ONL)
NYSE:ONL
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Orion Office REIT
(NYSE:ONL)
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Rating:55Neutral
Price Target:
$3.00
â–²(19.52% Upside)
Action:Reiterated
Date:05/09/26
ONL scores mid-range primarily due to weak financial performance (sharp revenue declines, large losses, and negative free cash flow), which outweighs other factors. The score is supported by improving technical momentum (price above key moving averages with positive MACD) and a cautiously positive earnings-call backdrop (affirmed guidance and better leasing/occupancy), but tempered by high CapEx demands, elevated leverage targets, and one-time items impacting near-term comparability.
Positive Factors
Leasing momentum & long WALT
Sustained strong leasing activity and long average lease terms materially lengthen predictable cash flows and reduce vacancy risk. Multi-year WALT (new leases ~12 years, portfolio ~6 years) supports durable base rent, helps amortize tenant improvement spend and stabilizes income over the medium term.
Negative Factors
Severe revenue decline & losses
Deep and persistent revenue contraction and extremely negative margins point to structural demand or portfolio valuation issues. Such sustained profitability erosion undermines capital generation, weakens retained earnings, and limits the firm's ability to self-fund leasing and maintenance over a multi-quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing momentum & long WALT
Sustained strong leasing activity and long average lease terms materially lengthen predictable cash flows and reduce vacancy risk. Multi-year WALT (new leases ~12 years, portfolio ~6 years) supports durable base rent, helps amortize tenant improvement spend and stabilizes income over the medium term.
Read all positive factors
Orion Office REIT (ONL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.49M
Dividend Yield7.34%
Average Volume (3M)336.21K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-6.30%
EPS Growth-65.48%
CountryUS
Employees40
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-2.56
Shares Outstanding56,830,067
10 Day Avg. Volume343,190
30 Day Avg. Volume336,209
Financial Highlights & Ratios
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 Cap3.84
Enterprise Value/Revenue4.48
Enterprise Value/Gross Profit7.93
Enterprise Value/Ebitda-12.12
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.44
Revenue Forecast (FY)$139.58M
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 prim...
How the Company Makes Money
Orion Office REIT primarily makes money by leasing its office properties to tenants under commercial lease agreements. Its main revenue stream is rental income (base rent) paid by tenants for the right to occupy space. Depending on lease terms, it...
Orion Office REIT Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive operational narrative: clear signs of stabilization and progress (strong leasing velocity, meaningful occupancy improvement, disciplined disposals, increased DUA exposure, solid liquidity and affirmed guidance) are balanced against near-term pressures (revenue decline, widened net loss, sharply higher CapEx costs, elevated leverage and a full write-down of a JV investment). Management emphasizes a credible plan to reduce carry costs and recycle capital, but material risks remain related to leverage, the JV outcome, and timing of leasing converting to recurring earnings.Positive Updates
Strong Leasing Momentum and Long-Term Leases
Completed 355,000 sq ft of leasing activity in Q1; notable 172,000 sq ft full-building, 12-year lease in Irving, TX. New leases signed during the quarter averaged nearly 12 years WALT, and consolidated portfolio WALT is approaching six years.
Negative Updates
Revenue Decline
Total revenues decreased to $36.3 million from $38.0 million year-over-year, a decline of approximately 4.5%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Leasing Momentum and Long-Term Leases
Completed 355,000 sq ft of leasing activity in Q1; notable 172,000 sq ft full-building, 12-year lease in Irving, TX. New leases signed during the quarter averaged nearly 12 years WALT, and consolidated portfolio WALT is approaching six years.
Read all positive updates
Company Guidance
Orion affirmed its 2026 guidance, reiterating core FFO of $0.69–$0.76 per diluted share, G&A of $19.8M–$20.8M (excluding noncash comp roughly in line or slightly better than 2025), and net debt to adjusted EBITDA of 6.5x–7.3x. In Q1 the company reported revenues of $36.3M, net loss of $0.24 per share, core FFO of $0.21 per share (which included a $1.9M one‑time lease termination), adjusted EBITDA of $17.2M, G&A of $5.1M, and CapEx & leasing costs of $18.7M; annualized MRQ net debt to adjusted EBITDA was 6.36x. Liquidity stood at $148.5M (cash $60.5M, $88M revolver capacity; revolver outstanding $127M with $25M repaid post‑quarter leaving $113M capacity), CMBS outstanding was $352.3M (4.971% fixed) with $46.1M reserves, dividend was $0.02 per share, and operational metrics showed 83.1% occupancy, 355k SF leased this quarter, >1.0M SF pipeline, new‑lease WALT ~12 years (portfolio WALT ~6 years), and Q1 renewal cash rent spreads +2.5%.Orion Office REIT Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
47
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.95M | 147.65M | 164.86M | 195.04M | 208.12M | 79.73M |
| Gross Profit | 82.47M | 82.82M | 99.71M | 134.26M | 146.60M | 66.32M |
| EBITDA | -53.97M | -48.76M | 30.70M | 81.92M | 64.28M | 882.00K |
| Net Income | -143.55M | -139.31M | -103.01M | -57.30M | -97.49M | -47.48M |
Balance Sheet | ||||||
| Total Assets | 1.19B | 1.17B | 1.34B | 1.42B | 1.57B | 1.76B |
| Cash, Cash Equivalents and Short-Term Investments | 10.27M | 22.36M | 15.60M | 22.47M | 20.64M | 29.32M |
| Total Debt | 493.93M | 482.41M | 510.82M | 476.93M | 540.05M | 809.95M |
| Total Liabilities | 578.50M | 545.99M | 571.17M | 536.93M | 595.22M | 671.19M |
| Stockholders Equity | 608.52M | 623.21M | 763.92M | 885.62M | 974.47M | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | -44.78M | -28.12M | 31.68M | 70.65M | 102.61M | 46.19M |
| Operating Cash Flow | 18.10M | 23.58M | 54.26M | 89.09M | 114.23M | 56.11M |
| Investing Cash Flow | 13.21M | 16.78M | -51.26M | 5.29M | 22.48M | -12.26M |
| Financing Cash Flow | -19.25M | -36.89M | -3.02M | -92.49M | -110.72M | -18.44M |
Orion Office REIT Technical Analysis
Positive
2.51
Price Trends
2.50
Positive
2.42
Positive
2.44
Positive
Market Momentum
0.12
Positive
67.51
Neutral
74.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONL, the sentiment is Positive. The current price of 2.51 is below the 20-day moving average (MA) of 2.87, above the 50-day MA of 2.50, and above the 200-day MA of 2.44, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONL.
Orion Office REIT Risk Analysis
Orion Office REIT disclosed 53 risk factors in its most recent earnings report. Orion Office REIT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion Office REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $1.03B | -15.87 | -5.70% | 6.09% | -0.50% | -40.17% | |
55 Neutral | $170.49M | -2.24 | -21.93% | 7.34% | -6.30% | -65.48% | |
54 Neutral | $522.68M | -2.42 | -24.69% | 17.55% | -2.12% | 3.11% | |
47 Neutral | $52.16M | -1.81 | -5.41% | 4.71% | -8.09% | 50.44% |
* Real Estate Sector Average
ONL
Orion Office REIT
3.00
1.29
75.75%
FSP
Franklin Street Properties
0.50
-1.27
-71.68%
PDM
Piedmont Office
8.20
1.45
21.48%
BDN
Brandywine Realty
3.00
-0.66
-18.01%
Orion Office REIT Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Orion Office REIT Refinances Debt and Extends Maturities
Positive
Feb 19, 2026
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 fin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.