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Orion Office Reit, Inc. (ONL)
NYSE:ONL
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Orion Office REIT
(NYSE:ONL)
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Rating:51Neutral
Price Target:
$2.00
â–¼(-8.68% Downside)
Orion Office REIT's overall score is primarily impacted by its financial instability, with declining revenues and consistent net losses. Technical analysis indicates bearish momentum, further weighing on the score. The strategic shift in business focus and improved financial guidance provide some positive outlook, but significant challenges remain.
Positive Factors
Strategic Business Shift
Orion's shift towards specialized assets like government buildings and medical offices aligns with market trends, potentially enhancing its market position and reducing exposure to traditional office space volatility.
Improved Financial Guidance
Raising the full-year core FFO guidance indicates confidence in future cash flow generation and operational improvements, supporting long-term financial stability.
Strong Liquidity Position
A strong liquidity position with significant cash reserves and credit capacity provides financial flexibility to manage debt and invest in growth opportunities.
Negative Factors
Declining Revenue
The decline in revenue reflects challenges in maintaining tenant occupancy and rental income, which could hinder long-term growth and profitability.
High Leverage
High leverage ratios can limit financial flexibility and increase risk, especially in a rising interest rate environment, impacting long-term financial health.
Decreased Property Occupancy
Decreased occupancy rates indicate challenges in tenant retention and space utilization, potentially affecting revenue stability and cash flow.
Orion Office REIT (ONL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$123.33M
Dividend Yield7.34%
Average Volume (3M)276.02K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-11.41%
EPS Growth-56.73%
CountryUS
Employees40
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-1.23
Shares Outstanding56,314,632
10 Day Avg. Volume230,782
30 Day Avg. Volume276,017
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.27
Price to Sales (P/S)1.26
P/FCF Ratio6.55
Enterprise Value/Market Cap4.79
Enterprise Value/Revenue3.92
Enterprise Value/Gross Profit7.01
Enterprise Value/Ebitda-14.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)$146.20M
Orion Office REIT Business Overview & Revenue Model
Company DescriptionOrion 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 MoneyOrion 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a balanced sentiment with notable achievements in leasing activity and improved financial guidance but also faced challenges with declining revenues, decreased property occupancy, and increased CapEx costs.Q3-2025 Updates
Positive Updates
Leasing Activity and Portfolio Improvement
303,000 square feet of space leased in Q3 with a weighted average lease term of over 10 years. The year-to-date leasing totals 919,000 square feet, improving the portfolio's weighted average lease term to 5.8 years from 3.5 years. Rent spreads on lease renewals were positive, up over 2% for renewals and over 4% for total leasing activity.
Successful Property Dispositions
Orion closed on the sale of 7 properties and has agreements to sell 4 more, totaling 1.3 million square feet with gross proceeds of more than $110 million. Since the spin, 27 properties have been sold, totaling 2.7 million square feet, saving an estimated $39 million in cumulative carry costs.
Improved Financial Guidance
Full-year core FFO guidance raised to $0.74 to $0.76 per share from $0.67 to $0.71 per share. The outlook for net debt to adjusted EBITDA improved to 6.7x to 7.2x, down from 7.3x to 8.3x.
Strong Liquidity Position
Total liquidity at quarter-end was $273 million, including $33 million in cash and cash equivalents and $240 million of available capacity on the credit facility revolver.
Negative Updates
Revenue and FFO Decline
Total revenues for the third quarter were $37.1 million, down from $39.2 million in the same quarter of the previous year. Core FFO decreased to $11 million ($0.19 per share) from $12 million ($0.21 per share) in Q3 2024.
Decreased Property Occupancy
Operating property occupancy rate was 72.8% at quarter-end, down from 73.7% at December 31, 2024, impacted by lease rollovers and resulting vacancies.
Increased CapEx and Leasing Costs
CapEx and leasing costs in Q3 were $18.3 million, significantly up from $6.1 million in the same quarter of 2024, driven by the acceleration in leasing activity.
Company Guidance
During Orion Properties' third quarter 2025 earnings call, the company provided updated guidance and metrics reflecting its ongoing strategic initiatives. Orion reported total revenues of $37.1 million for the quarter and core funds from operations (FFO) of $11 million or $0.19 per share. The company raised its full-year core FFO guidance to $0.74 to $0.76 per share, driven by lease termination income from property dispositions. Key metrics highlighted included a weighted average lease term (WALT) improvement to nearly 6 years from 3.5 years at the time of Orion's spin, and year-to-date leasing activity totaling 919,000 square feet. Additionally, Orion's property occupancy rate adjusted for properties under agreement for sale was 74.5%, with net debt to annualized adjusted EBITDA at a conservative 6.7x. The company anticipates further portfolio stabilization and earnings growth in 2026, with expectations for increased occupancy and reduced rollover risks compared to previous years.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 | 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
Negative
2.19
Price Trends
2.27
Negative
2.50
Negative
2.29
Negative
Market Momentum
<0.01
Negative
47.85
Neutral
34.08
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 2.19 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.27, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
55 Neutral | $1.06B | -14.99 | -4.45% | 6.09% | -1.23% | 9.10% | |
54 Neutral | $508.71M | -2.72 | -19.17% | 17.55% | -5.52% | 40.27% | |
51 Neutral | $123.33M | -0.90 | -18.67% | 7.34% | -11.41% | -56.73% | |
49 Neutral | $282.14M | -2.19 | -17.91% | 5.76% | -5.61% | -651.25% | |
40 Neutral | $95.09M | -2.00 | -7.21% | 4.71% | -14.68% | -13.53% |
* Real Estate Sector Average
ONL
Orion Office REIT
2.19
-1.53
-41.13%
FSP
Franklin Street Properties
0.89
-0.82
-47.96%
PDM
Piedmont Office
8.49
0.19
2.29%
BDN
Brandywine Realty
2.92
-1.55
-34.73%
CIO
City Office REIT
6.99
2.12
43.53%
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.