Orion Office REIT (ONL) AI Stock Analysis

• Market Cap: $127.00M
• Dividend Yield: 3.54%
• Average Volume (3M): 676.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -18.92%
• EPS Growth: -15.81%
• Country: US
• Employees: 40
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): -0.17
• Shares Outstanding: 56,193,665
• 10 Day Avg. Volume: 795,724
• 30 Day Avg. Volume: 676,422
• PEG Ratio: -0.04
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.71
• Enterprise Value/Market Cap: 11.22
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 15.82
• Enterprise Value/Ebitda: 7.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $2.50 ▲(15.21%Upside)

Orion Office REIT's overall stock score is influenced by financial instability and ongoing losses, which weigh heavily on valuation. Despite short-term bullish technical indicators and strategic initiatives to improve market position, challenges in revenue generation and high leverage remain a concern. The company's strong liquidity and dividend yield offer some positives, but economic uncertainties and increased vacancies limit the upside potential.

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. The company's income is derived from rental payments made by these tenants under long-term lease agreements. Orion's revenue model is supported by maintaining high occupancy rates and securing rental agreements with creditworthy tenants, ensuring a steady stream of income. Additionally, Orion may engage in strategic property acquisitions and sales to optimize its portfolio and enhance value. The company's earnings are also influenced by market conditions, property management efficiencies, and any cost-saving initiatives implemented across its operations.

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	155.67M	164.86M	195.04M	208.12M	79.73M	53.47M
Gross Profit	90.06M	99.71M	133.75M	146.60M	66.32M	47.70M
EBITDA	39.08M	30.70M	115.54M	130.69M	62.49M	44.85M
Net Income	-86.14M	-103.01M	-57.30M	-97.47M	-44.67M	-4.83M
Balance Sheet
Total Assets	1.33B	1.34B	1.42B	1.57B	1.76B	546.43M
Cash, Cash Equivalents and Short-Term Investments	9.38M	15.60M	22.47M	20.64M	29.32M	0.00
Total Debt	523.39M	510.82M	476.93M	540.05M	637.46M	37.05M
Total Liabilities	573.07M	571.17M	536.93M	595.22M	671.19M	49.31M
Stockholders Equity	753.48M	763.92M	885.62M	974.47M	1.09B	497.12M
Cash Flow
Free Cash Flow	17.20M	31.68M	70.65M	102.61M	46.19M	41.86M
Operating Cash Flow	40.99M	54.26M	89.09M	114.23M	56.11M	42.33M
Investing Cash Flow	-60.63M	-51.26M	5.29M	22.48M	-12.26M	-464.00K
Financing Cash Flow	9.47M	-3.02M	-92.49M	-110.72M	-18.44M	-41.67M

Orion Office REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.17
• 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 2.17 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 1.94, and below the 200-day MA of 3.12, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 62.07 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
CIO	64 Neutral	$218.74M	―	-2.51%	7.31%	-4.92%	-128.59%
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.72%	-24.75%
ONL	55 Neutral	$127.00M	―	-10.71%	3.54%	-18.92%	-15.81%
PDM	52 Neutral	$905.69M	―	-3.79%	6.92%	-6.23%	18.07%
FSP	51 Neutral	$176.06M	―	-9.96%	2.34%	-18.97%	-14.57%
NYC	47 Neutral	$32.93M	―	-96.16%	―	-6.36%	-26.04%
OPI	45 Neutral	$14.89M	―	-15.03%	17.54%	-11.91%	-80.43%

Orion Office REIT Corporate Events

Orion Office REIT Approves Equity Plan Amendment

On May 14, 2025, Orion Properties Inc., a real estate investment trust, held its Annual Meeting where stockholders approved an amendment to the 2021 Equity Incentive Plan, increasing the number of shares issuable from 3,700,000 to 8,300,000. Additionally, stockholders elected five directors and ratified KPMG as the independent registered public accounting firm for the fiscal year ending December 31, 2025, reflecting strong shareholder support for the company’s strategic decisions.

Orion Office REIT Announces Leasing and Sales Achievements

On April 10, 2025, Orion Properties Inc. announced significant leasing and property sales achievements for the year to date. The company completed 425,000 square feet of leasing, including a notable 15.7-year lease in New Jersey, and sold three vacant properties for $19.1 million. Orion maintains strong liquidity with $243.9 million available and continues to focus on shifting its portfolio towards more dedicated use assets such as flex and laboratory spaces. This strategic initiative aims to enhance the company’s market position and attract more stable, long-term tenants.