Want to see ONL full AI Analyst Report?
Top Page
Orion Office REIT
(NYSE:ONL)
Select Model
Select Model
Rating:49Neutral
Price Target:
$2.50
▼(-3.85% Downside)
Action:Reiterated
Date:08/07/26
ONL scores below average primarily due to weak financial performance: declining revenue, persistent losses, and a sharp deterioration in free cash flow. The score is partially supported by improved leverage/liquidity and a more constructive earnings call (raised core FFO guidance and continued deleveraging progress). Technicals are soft (below key short-term moving averages and negative MACD), while valuation support is limited by negative earnings despite a moderate dividend yield.
Positive Factors
Improved Leverage & Liquidity
Orion's reported net-debt/EBITDA of 5.4x, $177M liquidity and lower outstanding debt materially reduce solvency risk. Durable deleveraging improves financial flexibility to fund required CapEx, absorb leasing timing gaps, and lower interest burden, supporting steadier operations over coming months.
Negative Factors
Declining Revenue & Losses
Revenue contraction from $208M to ~$143M TTM and deeply negative operating/net margins (~-65%) indicate the core leasing business is not covering costs. Persistent top-line decline and structural negative margins impair FFO conversion and damage prospects for sustainable profitability absent secular demand recovery or structural repositioning.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage & Liquidity
Orion's reported net-debt/EBITDA of 5.4x, $177M liquidity and lower outstanding debt materially reduce solvency risk. Durable deleveraging improves financial flexibility to fund required CapEx, absorb leasing timing gaps, and lower interest burden, supporting steadier operations over coming months.
Read all positive factors
Orion Office REIT (ONL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.87M
Dividend Yield2.89%
Average Volume (3M)469.83K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-6.53%
EPS Growth-20.91%
CountryUS
Employees37
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-1.68
Shares Outstanding57,044,716
10 Day Avg. Volume190,408
30 Day Avg. Volume469,833
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$137.47M
Orion Office REIT Business Overview & Revenue Model
Company Description
Orion Properties Inc. is an investment firm concentrating its expertise on acquiring, owning, and managing a varied collection of essential corporate headquarters and vital office properties situated in premier suburban markets nationwide. This po...
How the Company Makes Money
Orion Office REIT primarily makes money by leasing its office properties to tenants and collecting contractual rental income. A significant portion of its leases have historically been structured as net leases (often single-tenant), meaning tenant...
Orion Office REIT Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress: meaningful leasing velocity, extended WALT, disciplined dispositions that generated substantial proceeds, measurable expense and interest cost savings, improved liquidity and leverage metrics, and a modest upward revision to core FFO guidance. Offsetting these positives were declining GAAP revenues and slightly lower adjusted EBITDA, renewal rent pressure (Q2 renewals down 7.7%), quarter-to-quarter occupancy volatility, continued reliance on one-time sale gains to boost net income, and near-term CapEx variability. On balance the company appears to be making steady, tangible progress toward portfolio stabilization and deleveraging, but some core operating metrics remain under near-term pressure.Positive Updates
Strong Leasing Velocity and Pipeline
Completed 673,000 sq ft of leasing year-to-date, including 202,000 sq ft in Q2 and 116,000 sq ft post-quarter (includes first new lease at Tulsa). Pipeline exceeds 1.1 million sq ft (~17% of portfolio) in discussion or documentation. Weighted average lease term (WALT) improved to 6.2 years from 5.5 years a year ago (up ~12.7%). Cash rent spreads comparing current ending rents to new ending rents: +2.1% in Q2 and +7.1% year-to-date. Leasing concessions trending lower on a per-square-foot basis versus last year.
Negative Updates
Revenue and EBITDA Declines
Total revenues in Q2 2026 were $34.3 million versus $37.3 million in Q2 2025, a decline of approximately 8.6%. Adjusted EBITDA declined to $17.2 million from $18.0 million year-over-year (down ~4.4%). Core FFO was flat at $11.8 million ($0.20 per share) versus the same quarter in 2025, indicating limited near-term operating earnings growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Leasing Velocity and Pipeline
Completed 673,000 sq ft of leasing year-to-date, including 202,000 sq ft in Q2 and 116,000 sq ft post-quarter (includes first new lease at Tulsa). Pipeline exceeds 1.1 million sq ft (~17% of portfolio) in discussion or documentation. Weighted average lease term (WALT) improved to 6.2 years from 5.5 years a year ago (up ~12.7%). Cash rent spreads comparing current ending rents to new ending rents: +2.1% in Q2 and +7.1% year-to-date. Leasing concessions trending lower on a per-square-foot basis versus last year.
Read all positive updates
Company Guidance
Orion narrowed and raised its 2026 guidance, now forecasting core FFO of $0.72–$0.77 per diluted share (up from $0.69–$0.76), lowering expected net debt to adjusted EBITDA to 6.0–6.8x (from 6.5–7.3x) while keeping G&A guidance unchanged at $19.8M–$20.8M; the board also declared a Q3 cash dividend of $0.02 per share (payable Oct 15, record Sep 30). At quarter end the company reported net debt/annualized adjusted EBITDA of 5.4x, total liquidity of $177M (cash/restricted $63.5M and $113M revolver capacity), $436.6M of outstanding debt, net debt/gross real estate assets of 27.9%, and expects incremental CapEx of roughly $30–$40M for the remainder of 2026 while remaining on track to lease ~1.0M sq ft this year and to continue increasing dedicated‑use assets (38.7% of ABR at quarter end) over time.Orion Office REIT Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 142.94M | 147.65M | 164.86M | 195.04M | 208.12M | 79.73M |
| Gross Profit | 82.89M | 82.82M | 99.71M | 134.26M | 146.60M | 66.32M |
| EBITDA | -6.37M | -48.76M | 30.70M | 81.92M | 64.28M | 882.00K |
| Net Income | -93.87M | -139.31M | -103.01M | -57.30M | -97.49M | -47.48M |
Balance Sheet | ||||||
| Total Assets | 1.14B | 1.17B | 1.34B | 1.42B | 1.57B | 1.76B |
| Cash, Cash Equivalents and Short-Term Investments | 16.87M | 22.36M | 15.60M | 22.47M | 20.64M | 29.32M |
| Total Debt | 451.23M | 482.41M | 510.82M | 476.93M | 540.05M | 809.95M |
| Total Liabilities | 506.05M | 545.99M | 571.17M | 536.93M | 595.22M | 671.19M |
| Stockholders Equity | 632.75M | 623.21M | 763.92M | 885.62M | 974.47M | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | -47.11M | -28.12M | 31.68M | 70.65M | 102.61M | 46.19M |
| Operating Cash Flow | 22.61M | 23.58M | 54.26M | 89.09M | 114.23M | 56.11M |
| Investing Cash Flow | 47.71M | 16.78M | -51.26M | 5.29M | 22.48M | -12.26M |
| Financing Cash Flow | -60.27M | -36.89M | -3.02M | -92.49M | -110.72M | -18.44M |
Orion Office REIT Technical Analysis
Positive
2.60
Price Trends
2.76
Positive
2.65
Positive
2.46
Positive
Market Momentum
>-0.01
Negative
54.66
Neutral
43.75
Neutral
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 2.6 is below the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.76, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, 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 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% | |
60 Neutral | $1.16B | -14.41 | -5.39% | ― | 0.70% | -17.55% | |
52 Neutral | $539.28M | -3.78 | -18.69% | 10.09% | 0.51% | 56.07% | |
49 Neutral | $156.87M | -1.65 | -14.88% | 3.08% | -6.53% | -20.91% | |
46 Neutral | $107.22K | -4.32 | ― | ― | ― | ― | |
44 Neutral | $45.28M | -1.09 | -6.97% | 9.09% | -5.02% | 21.97% |
* Real Estate Sector Average
ONL
Orion Office REIT
2.77
0.29
11.47%
FSP
Franklin Street Properties
0.44
-1.13
-71.99%
PDM
Piedmont Office
9.35
1.62
20.96%
BDN
Brandywine Realty
3.10
-0.47
-13.17%
OPI
Office Properties Income Trust
18.95
-14.90
-44.01%
Orion Office REIT Corporate Events
Executive/Board ChangesShareholder Meetings
Orion Office REIT Stockholders Approve Directors and Auditor
Neutral
May 13, 2026
On May 13, 2026, Orion Properties Inc. held its 2026 Annual Meeting of Stockholders, at which investors voted on the election of five directors and the ratification of the company’s external auditor for the current fiscal year. Stockholders ...
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.