Orion Office REIT (ONL) AI Stock Analysis

• Market Cap: $122.77M
• Dividend Yield: 6.61%
• Average Volume (3M): 218.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -11.41%
• EPS Growth: -56.73%
• Country: US
• Employees: 40
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.23
• Shares Outstanding: 56,314,632
• 10 Day Avg. Volume: 234,251
• 30 Day Avg. Volume: 218,343
• PEG Ratio: -0.03
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 6.55
• Enterprise Value/Market Cap: 4.82
• Enterprise Value/Revenue: 3.92
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: -14.63
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $147.40M

• Rating: 49 Neutral
• Price Target: $2.50 ▼(-1.96% Downside)

Orion Office REIT's overall stock score is primarily impacted by its financial instability, with declining revenues and consistent net losses. Technical indicators suggest a bearish trend, and the negative P/E ratio highlights profitability issues. While the earnings call provided some positive guidance, challenges remain significant.

Positive Factors

Leasing Activity

Strong leasing activity with long-term leases enhances revenue stability and reduces vacancy risk, supporting long-term growth.

Portfolio Transformation

Strategic property sales streamline operations and focus on core assets, potentially improving profitability and operational efficiency.

Financial Guidance Improvement

Improved financial guidance indicates better-than-expected performance, suggesting potential for sustained earnings growth.

Negative Factors

Revenue Decline

Declining revenue signals challenges in maintaining tenant occupancy and rental income, impacting long-term financial stability.

Decreased Property Occupancy

Lower occupancy rates reduce rental income potential and increase vacancy costs, affecting profitability and cash flow.

Increased CapEx and Leasing Costs

Rising capital expenditures and leasing costs strain financial resources, potentially limiting future investment and growth opportunities.

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 generates revenue primarily through leasing its office properties to tenants, collecting rental income on long-term leases. The company's revenue model is built on the consistent cash flow from these leases, which are often structured to include annual rent escalations. Additionally, ONL may benefit from ancillary revenue streams such as parking fees or service charges. The REIT may also realize capital appreciation through the appreciation of its property values over time, which can enhance total returns for shareholders. Strategic partnerships with property management firms and real estate advisors may also contribute to operational efficiencies and tenant retention, further stabilizing revenue streams.

Orion Office REIT Financial Statement Overview

Summary

Orion Office REIT exhibits financial instability, with declining revenues and consistent net losses impacting profitability. High leverage and negative returns signal financial stress, although cash flow management remains relatively stable. The company faces significant challenges in improving operational efficiency and achieving growth.

Income Statement

The company's revenue growth is erratic with recent declines, and it has been unable to generate positive net income, leading to negative net profit margins. Gross profit margin remains stable, but negative EBIT and EBITDA margins reflect operational challenges.

Balance Sheet

Orion Office REIT maintains a high level of debt, reflected in a significant debt-to-equity ratio. The equity ratio indicates a reasonable level of equity financing, but the negative return on equity is concerning, driven by consistent net losses.

Cash Flow

Cash flow analysis shows a decrease in operating cash flow and free cash flow over time. The company has a solid free cash flow to net income ratio, but fluctuations in free cash flow growth reflect potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.79M	164.86M	195.04M	208.12M	79.73M	53.47M
Gross Profit	84.41M	99.71M	134.26M	146.60M	66.32M	47.70M
EBITDA	-40.42M	30.70M	81.92M	64.28M	882.00K	26.98M
Net Income	-136.26M	-103.01M	-57.30M	-97.49M	-47.48M	-1.90M
Balance Sheet
Total Assets	1.22B	1.34B	1.42B	1.57B	1.76B	546.43M
Cash, Cash Equivalents and Short-Term Investments	32.64M	15.60M	22.47M	20.64M	29.32M	0.00
Total Debt	0.00	510.82M	476.93M	540.05M	809.95M	44.27M
Total Liabilities	562.68M	571.17M	536.93M	595.22M	671.19M	49.31M
Stockholders Equity	658.82M	763.92M	885.62M	974.47M	1.09B	497.12M
Cash Flow
Free Cash Flow	-3.74M	31.68M	70.65M	102.61M	46.19M	41.86M
Operating Cash Flow	21.82M	54.26M	89.09M	114.23M	56.11M	42.33M
Investing Cash Flow	-4.82M	-51.26M	5.29M	22.48M	-12.26M	-464.00K
Financing Cash Flow	-15.13M	-3.02M	-92.49M	-110.72M	-18.44M	-41.67M

Orion Office REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.55 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.51, and above the 200-day MA of 2.42, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.34 is Neutral, 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%
PDM	55 Neutral	$1.03B	―	-4.45%	5.73%	-1.23%	9.10%
BDN	54 Neutral	$574.91M	-3.07	-19.17%	15.45%	-5.52%	40.27%
ONL	49 Neutral	$122.77M	―	-18.67%	6.61%	-11.41%	-56.73%
CIO	45 Neutral	$274.88M	―	-17.91%	5.88%	-5.61%	-651.25%
OPI	41 Neutral	―	―	―	―	―	―
FSP	40 Neutral	$107.84M	―	-7.21%	4.00%	-14.68%	-13.53%

Orion Office REIT Corporate Events

Orion Office Reit: Mixed Sentiment in Q3 Earnings Call

The recent earnings call for Orion Office Reit, Inc. presented a balanced sentiment, highlighting significant achievements in leasing activity and improved financial guidance, while also addressing challenges such as declining revenues, decreased property occupancy, and increased CapEx costs.

Orion Properties Inc. Reports Increased Losses Amid Strategic Shift

Orion Properties Inc., a real estate investment trust (REIT), specializes in owning, acquiring, and managing a diversified portfolio of office properties across the United States, focusing on high-quality suburban markets with single-tenant net leases. Recently, the company has been shifting its portfolio towards more specialized use assets, including medical, governmental, and R&D properties.

Orion Office REIT Unveils Strategic Business Shift

On September 22, 2025, Orion Properties Inc. released an updated Investor Presentation detailing its business plan and strategic focus. The company aims to stabilize and reduce exposure to traditional office spaces by recycling capital into dedicated use assets, such as government buildings and medical offices, to support growth objectives and maintain a strong, liquid balance sheet. This strategic shift is expected to enhance Orion’s market positioning and potentially impact stakeholders by aligning with market trends favoring specialized property use.

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.