Orion Office REIT (ONL)
NYSE:ONL
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Orion Office REIT
(NYSE:ONL)
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Rating:53Neutral
Price Target:
$3.00
â–²(19.52% Upside)
Action:ReiteratedDate:04/15/26
Overall score is held back primarily by deteriorating fundamentals (revenue contraction, losses, and weakening cash flows) and continued leverage/JV uncertainty highlighted in the latest call. Technicals are supportive with the stock trading above key moving averages, while valuation support is limited by negative earnings and only modestly helped by the dividend yield and recent debt-refinancing improvements.
Positive Factors
Improved liquidity & extended maturities
Orion materially reduced near‑term refinancing risk by extending CMBS maturities and securing a lower‑spread $215M revolver, leaving roughly $146M liquidity. This structural improvement supports continued leasing, required CapEx and selective acquisitions, giving time to execute portfolio repositioning without urgent funding pressure.
Negative Factors
Revenue contraction and negative EBITDA
A sustained revenue decline and weakened operating performance led to negative EBITDA and persistent net losses, undermining core earnings sustainability. Shrinking revenue and eroding margins reduce internal funding for CapEx and dividends, increasing reliance on dispositions and external capital to support operations and strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & extended maturities
Orion materially reduced near‑term refinancing risk by extending CMBS maturities and securing a lower‑spread $215M revolver, leaving roughly $146M liquidity. This structural improvement supports continued leasing, required CapEx and selective acquisitions, giving time to execute portfolio repositioning without urgent funding pressure.
Read all positive factors
Orion Office REIT (ONL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$168.22M
Dividend Yield7.34%
Average Volume (3M)339.81K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-10.43%
EPS Growth-34.31%
CountryUS
Employees40
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-2.49
Shares Outstanding56,830,067
10 Day Avg. Volume296,470
30 Day Avg. Volume339,810
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 Cap3.73
Enterprise Value/Revenue4.26
Enterprise Value/Gross Profit7.59
Enterprise Value/Ebitda-12.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.49
Revenue Forecast (FY)$138.50M
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:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call highlighted meaningful operational progress — notably large leasing volumes, longer WALT on new leases, improved leased rates and occupancy, substantial disposition proceeds and liquidity improvements, and a targeted shift toward higher-quality dedicated use assets. Offsetting these positives were material year-over-year declines in revenue, core FFO and adjusted EBITDA, a sharp increase in CapEx as leasing is executed, sustained high leverage ratios, and a significant impairment/uncertainty related to a joint venture. Management presented a credible path to stabilization and core FFO growth in 2026, but near-term financial headwinds and JV risk temper the outlook.Positive Updates
Strong Leasing Activity and Long Lease Terms
Leased ~900,000 sq ft in 2025 (vs 1,100,000 sq ft in 2024) plus an additional 183,000 sq ft signed after year-end; weighted average lease term (WALT) on new 2025 leases nearly 10 years and average WALT for all 2025 leasing activity 7.5 years, moving portfolio WALT toward ~6 years.
Negative Updates
YoY Revenue and EBITDA Declines
Total revenues decreased to $147.6M in 2025 from $164.9M in 2024 (≈ -10.5%); adjusted EBITDA fell to $69.0M from $82.8M (≈ -16.7%).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Leasing Activity and Long Lease Terms
Leased ~900,000 sq ft in 2025 (vs 1,100,000 sq ft in 2024) plus an additional 183,000 sq ft signed after year-end; weighted average lease term (WALT) on new 2025 leases nearly 10 years and average WALT for all 2025 leasing activity 7.5 years, moving portfolio WALT toward ~6 years.
Read all positive updates
Company Guidance
Orion guided 2026 core FFO of $0.69–$0.76 per diluted share (noting 2025 core FFO would have been $0.69 excluding $0.09 of lease‑termination income), with G&A expected to be $19.8M–$20.8M (excluding noncash compensation roughly in line or slightly better than 2025) and net debt to adjusted EBITDA targeted at 6.5x–7.3x (year‑end 2025 was 6.8x, ~6.2x net of restricted cash). At year‑end 12/31/2025 liquidity totaled $145.9M (including $22.9M cash and $123M revolver capacity), restricted cash was $39.9M, the new $215M secured revolver (matures Feb 2029) reduced spread to SOFR+2.75%, and the CMBS balance was $353M (4.971% fixed) with $37.7M in an all‑purpose reserve. Management expects to generate roughly $130M from 2025 and near‑term dispositions (reducing vacant carry costs by ~$10.3M annually), has taken >10% headcount cuts to realize ~$1.8M of annualized G&A savings, declared a $0.02 per‑share quarterly dividend for 2026, and plans to selectively recycle a modest portion of proceeds into acquisitions while allocating more capital to leasing/CapEx to drive core FFO growth.Orion Office REIT Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| 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
Positive
2.51
Price Trends
2.35
Positive
2.25
Positive
2.40
Positive
Market Momentum
0.07
Negative
64.18
Neutral
91.04
Negative
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 above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.35, and above the 200-day MA of 2.40, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 91.04 is Negative, 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 52 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 | $1.04B | -15.87 | -5.45% | 6.09% | -0.50% | -40.17% | |
54 Neutral | $526.17M | -2.42 | -24.69% | 17.55% | -2.12% | 3.11% | |
53 Neutral | $168.22M | -0.91 | -20.16% | 7.34% | -10.43% | -34.31% | |
46 Neutral | $62.73M | -1.81 | -5.41% | 4.71% | -8.09% | 50.44% |
* Real Estate Sector Average
ONL
Orion Office REIT
2.96
1.04
54.25%
FSP
Franklin Street Properties
0.61
-0.87
-58.93%
PDM
Piedmont Office
8.33
1.84
28.35%
BDN
Brandywine Realty
3.02
-0.60
-16.64%
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.