Orion Office REIT (ONL) AI Stock Analysis

• Market Cap: $125.58M
• Dividend Yield: 7.34%
• Average Volume (3M): 255.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• 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: 355,024
• 30 Day Avg. Volume: 255,345
• 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: 4.73
• Enterprise Value/Revenue: 3.94
• Enterprise Value/Gross Profit: 7.03
• Enterprise Value/Ebitda: -14.69
• 1Y Price Target: $3.00
• Price Target Upside: 34.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $138.50M

• Rating: 57 Neutral
• Price Target: $2.50 ▲(12.11% Upside)

The score is primarily constrained by weak financial performance (persistent losses, revenue pressure, and high leverage). Offsetting support comes from a moderately positive earnings-call update (raised core FFO guidance, leasing progress, and strong liquidity) and a reasonable dividend yield, while technical signals are mixed with only moderate momentum.

Positive Factors

Recurring rental revenue model

Orion’s core business derives from multi‑year lease contracts and expense recoveries, creating predictable, recurring cash flows that support operating income and dividends. That rental income base provides durable revenue visibility versus transactional businesses, stabilizing cash generation over time.

Improving leasing activity and longer WALT

Substantial leasing (919k sqft YTD) and a near‑doubling of WALT materially reduce near‑term rollover risk and smooth future cash flows. Longer average lease terms plus positive rent spreads improve revenue predictability and lower vacancy re‑lease exposure, aiding mid‑term portfolio stability and underwriting.

Strong liquidity and credit capacity

Large liquidity and available revolver capacity provide flexibility to fund leasing CapEx, cover operating shortfalls, and manage maturities without immediate asset sales. This reduces short‑term refinancing risk and gives management optionality to execute stabilization or strategic transactions over the next several quarters.

Negative Factors

High leverage and debt intensity

Material debt levels increase interest and refinancing risk, especially given office sector uncertainty. High leverage constrains financial flexibility, raises carrying costs, and amplifies downside if occupancy or rents weaken, making capital structure a persistent vulnerability for sustaining earnings and distributions.

Declining occupancy and revenue pressures

Sequential revenue and core FFO declines alongside sub‑75% occupancy indicate ongoing leasing drag. Lower occupancy reduces contractual cash receipts and increases lease‑up costs; if sustained, it will pressure FFO, reduce free cash flow available for reinvestment, and limit dividend support over the medium term.

Rising CapEx and leasing expense burden

A marked increase in capital and leasing spend compresses free cash flow and inflates the cost to stabilize vacancies. Persistently higher CapEx to reposition older office assets can erode margins and prolong the payback period on leasing, weakening the sustainability of cash generation until occupancy and rents recover.

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

Financials show instability: erratic/declining revenue trends and persistent net losses (weak profitability), alongside high leverage and negative ROE. Cash flow is comparatively steadier but has been declining over time, limiting the overall financial strength.

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	500.73M	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: Neutral
• Last Price: 2.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONL, the sentiment is Neutral. The current price of 2.23 is above the 20-day moving average (MA) of 2.18, above the 50-day MA of 2.17, and below the 200-day MA of 2.32, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 60.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	57 Neutral	$125.58M	―	-18.67%	7.34%	-11.41%	-56.73%
PDM	55 Neutral	$1.05B	-14.87	-4.45%	6.09%	-1.23%	9.10%
BDN	54 Neutral	$493.03M	-2.64	-19.17%	17.55%	-5.52%	40.27%
FSP	40 Neutral	$87.10M	-1.89	-7.21%	4.71%	-14.68%	-13.53%

Orion Office REIT Corporate Events

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.