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Orion Office REIT (ONL)
NYSE:ONL
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Orion Office REIT
(NYSE:ONL)
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Rating:51Neutral
Price Target:
$2.00
▼(-21.57% 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.
Orion Office REIT (ONL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.01M
Dividend Yield7.77%
Average Volume (3M)262.09K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-11.41%
EPS Growth-56.73%
CountryUS
Employees40
SectorN/A
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)-1.23
Shares Outstanding56,314,632
10 Day Avg. Volume292,019
30 Day Avg. Volume262,087
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 Cap5.10
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)N/A
Orion Office REIT Business Overview & Revenue Model
Company DescriptionOrion Office REIT (ONL) is a real estate investment trust (REIT) focused on acquiring and managing office properties located in key markets across the United States. The company specializes in providing high-quality office spaces, catering to a diverse range of tenants, including both established corporations and emerging businesses. Orion Office REIT aims to generate stable income and long-term capital appreciation through its portfolio of strategically located office assets, while also emphasizing operational efficiency and tenant satisfaction.
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
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
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Orion Office REIT Technical Analysis
Negative
2.55
Price Trends
2.34
Negative
2.53
Negative
2.30
Negative
Market Momentum
-0.09
Negative
39.42
Neutral
63.41
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 2.12, above the 50-day MA of 2.34, and above the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 63.41 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
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
55 Neutral | $1.04B | -14.77 | -4.45% | 5.98% | -1.23% | 9.10% | |
54 Neutral | $522.64M | -2.80 | -19.17% | 17.55% | -5.52% | 40.27% | |
51 Neutral | $116.01M | -0.85 | -18.67% | 7.77% | -11.41% | -56.73% | |
49 Neutral | $280.53M | -2.17 | -17.91% | 5.76% | -5.61% | -651.25% | |
41 Neutral | ― | ― | ― | ― | ― | ― | |
40 Neutral | $94.44M | -2.04 | -7.21% | 4.40% | -14.68% | -13.53% |
* Sector Average
ONL
Orion Office REIT
2.06
-1.62
-44.02%
FSP
Franklin Street Properties
0.91
-0.94
-50.81%
PDM
Piedmont Office
8.36
-0.26
-3.02%
BDN
Brandywine Realty
3.00
-1.81
-37.63%
OPI
―
0.06
-0.88
-93.62%
CIO
City Office REIT
6.95
1.86
36.54%
Orion Office REIT Corporate Events
Business Operations and Strategy
Orion Office REIT Unveils Strategic Business Shift
Positive
Sep 22, 2025
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.
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.