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Orion Office REIT (ONL)
NYSE:ONL
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Orion Office REIT
(NYSE:ONL)
51Neutral
Orion Office REIT (ONL) vs. S&P 500 (SPY)
Market Cap
$110.66M
Dividend Yield16.49%
Average Volume (3M)642.17K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-18.92%
EPS Growth-15.81%
CountryUS
Employees40
SectorReal Estate
Sector Strength81
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.17
Shares Outstanding56,170,807
10 Day Avg. Volume371,697
30 Day Avg. Volume642,172
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap6.45
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.15
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Orion Office REIT Business Overview & Revenue Model
Company DescriptionOrion Office REIT 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 makes money primarily through the rental income generated from its portfolio of office properties. The company leases its properties to tenants under long-term agreements, ensuring a steady stream of revenue. These leases often include periodic rent escalations and contractual obligations that enhance income stability. Additionally, Orion may engage in strategic property sales to realize gains, contributing to its overall profitability. The company's focus on single-tenant, net-leased properties ensures that tenants are responsible for most property-related expenses, allowing Orion to maintain a lean operational structure. Partnerships with real estate brokers and financial institutions also play a crucial role in identifying acquisition opportunities and securing financing at favorable terms, further supporting Orion's revenue generation.
Orion Office REIT Financial Statement Overview
Summary
Orion Office REIT faces financial challenges with declining revenues and profitability issues, as seen in its income statement. However, the company's balance sheet shows improved leverage with no debt by the end of 2024, which strengthens its financial position. Cash flow management remains a strength, with positive free cash flow despite earnings challenges. The company needs to focus on revenue growth and operational efficiency to enhance its overall financial health.Income Statement
Orion Office REIT's revenue has been declining over the past years, with a significant decrease from $208.1M in 2022 to $164.9M in 2024. The company's gross profit margin is relatively stable but has been accompanied by negative EBIT and net income margins, indicating operational inefficiencies and challenges in achieving profitability.45
Neutral
Balance Sheet
The company's debt-to-equity ratio improved significantly in 2024 due to the reduction in total debt to zero, enhancing financial stability. However, stockholders' equity has decreased over recent years, reflecting potential challenges in maintaining asset quality and financial health.55
Neutral
Cash Flow
Despite declining operating cash flow, Orion Office REIT has maintained positive free cash flow, indicating good cash management practices. The free cash flow to net income ratio is positive, but the operating cash flow to net income ratio reflects ongoing struggles with achieving profitability.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 164.86M | 195.04M | 208.12M | 79.73M | 53.47M | Gross Profit |
| 99.71M | 133.75M | 146.60M | 66.32M | 47.70M | EBIT |
| -69.29M | 6.43M | -977.00K | 18.51M | 19.70M | EBITDA |
| 30.70M | 115.54M | 130.69M | 62.49M | 44.85M | Net Income Common Stockholders |
| -103.01M | -57.30M | -97.47M | -44.67M | -4.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.60M | 22.47M | 20.64M | 29.32M | 0.00 | Total Assets |
| 1.34B | 1.42B | 1.57B | 1.76B | 546.43M | Total Debt |
| 510.82M | 476.93M | 540.05M | 637.46M | 37.05M | Net Debt |
| 495.22M | 454.46M | 519.41M | 608.14M | 37.05M | Total Liabilities |
| 571.17M | 536.93M | 595.22M | 671.19M | 49.31M | Stockholders Equity |
| 763.92M | 885.62M | 974.47M | 1.09B | 497.12M |
| Cash Flow | Free Cash Flow | |||
| 54.26M | 70.65M | 102.61M | 46.19M | 41.86M | Operating Cash Flow |
| 54.26M | 89.09M | 114.23M | 56.11M | 42.33M | Investing Cash Flow |
| -51.26M | 5.29M | 22.48M | -12.26M | -464.00K | Financing Cash Flow |
| -3.02M | -92.49M | -110.72M | -18.44M | -41.67M |
Orion Office REIT Technical Analysis
Negative
1.94
Price Trends
2.15
Negative
3.02
Negative
3.40
Negative
Market Momentum
-0.03
Negative
54.34
Neutral
81.59
Negative
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 1.94 is above the 20-day moving average (MA) of 1.78, below the 50-day MA of 2.15, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.59 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $2.80B | 11.09 | 0.20% | 8508.36% | 6.13% | -16.84% | |
60 Neutral | $196.14M | ― | -2.51% | 8.23% | -4.92% | -128.59% | |
52 Neutral | $154.31M | ― | -9.96% | 2.65% | -18.97% | -14.57% | |
51 Neutral | $110.66M | ― | -10.71% | 16.49% | -18.92% | -15.81% | |
48 Neutral | $809.90M | ― | -3.79% | 7.68% | -6.23% | 18.07% | |
42 Neutral | $20.01M | ― | -15.03% | 14.38% | -11.91% | -80.43% | |
33 Underperform | $29.32M | ― | -90.59% | ― | -1.36% | -19.10% |
* Real Estate Sector Average
Performance Comparison
ONL
Orion Office REIT
2.01
-1.39
-40.88%
FSP
Franklin Street Properties
1.51
-0.35
-18.82%
PDM
Piedmont Office
6.71
0.20
3.07%
OPI
Office Properties Income
0.27
-1.81
-87.02%
CIO
City Office REIT
4.96
0.54
12.22%
NYC
New York City REIT
11.46
3.30
40.44%
Orion Office REIT Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -2.51%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the company highlighted strong leasing activity, successful property sales, and a strategic shift towards more stable dedicated use assets, these positives were offset by decreased revenues, increased vacancies, and higher CapEx. The market conditions and economic uncertainties continue to pose challenges.Q1-2025 Updates
Positive Updates
Strong Leasing Activity
Over 450,000 square feet of leasing completed as of May 6, 2025, with a weighted average lease term of 7.4 years. Included a significant 15.7-year lease in Parsippany, New Jersey.
Successful Property Sales
Closed on the sale of three vacant properties totaling 287,000 square feet for a gross sales price of $19.1 million, and two properties totaling 211,000 square feet are under contract for $27.3 million.
Shift Towards Dedicated Use Assets
Approximately 32% of the portfolio by annualized base rent and 25% by square footage are now dedicated use assets, expected to increase through dispositions and acquisitions.
Strong Liquidity Position
Liquidity remains strong at $244.5 million, represented by cash on hand and the available balance on the revolver.
Negative Updates
Decreased Revenues and Earnings
Total revenues decreased to $38 million from $47.2 million in the prior year. Core FFO dropped to $10.7 million compared to $20.4 million in the same quarter of 2024.
Increased Vacancy and Leasing Challenges
Operating property occupancy rate was 74.3% with lease rate at 77.4%. Initial rent spreads on renewal leases off about 18% due to market dynamics.
Increased CapEx
CapEx increased to $8.3 million compared to $3.4 million in the same quarter of 2024. Expected to rise with leasing activity and tenant improvement allowances.
Company Guidance
During Orion Properties' First Quarter 2025 earnings call, the company provided guidance for the full year 2025, reaffirming their core funds from operations (FFO) range of $0.61 to $0.70 per diluted share, and general and administrative (G&A) expenses between $19.5 million and $20.5 million. The net debt to adjusted EBITDA is expected to range from 8 to 8.8 times. Orion reported first-quarter revenues of $38 million, a net loss of $9.4 million or $0.17 per share, and a core FFO of $10.7 million or $0.19 per share. The company highlighted leasing activities, with over 450,000 square feet leased and an operating property lease rate of 77.4%. They also discussed their strategic shift towards dedicated use assets and their continued property sales to maintain liquidity, which stood at $244.5 million as of early May. Additionally, Orion's Board declared a quarterly cash dividend of $0.02 per share for the second quarter of 2025.Orion Office REIT Corporate Events
Business Operations and StrategyFinancial Disclosures
Orion Office REIT Announces Leasing and Sales Achievements
Positive
Apr 11, 2025
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.
Spark’s Take on ONL Stock
According to Spark, TipRanks’ AI Analyst, ONL is a Neutral.
Orion Office REIT’s overall stock score is primarily influenced by its financial and technical challenges, despite some operational improvements. Declining revenues, negative profitability, and bearish technical indicators weigh heavily on the score. While strategic shifts and rebranding efforts show potential, they are overshadowed by ongoing financial pressures. The high dividend yield is a positive aspect, but its sustainability is questionable given the current financial state.
To see Spark’s full report on ONL stock, click here.
Business Operations and StrategyFinancial Disclosures
Orion Office REIT Rebrands to Orion Properties Inc.
Neutral
Mar 5, 2025
On March 5, 2025, Orion Office REIT Inc. announced a corporate name change to Orion Properties Inc. to better reflect its strategic shift towards dedicated use assets with an office component. The company reported its financial results for the fourth quarter and full year 2024, highlighting significant leasing activity and a strategic acquisition of a flex/laboratory/R&D facility. Despite a net loss for the year, Orion is focused on stabilizing its portfolio and achieving future earnings growth through asset sales, cost reductions, and a realigned dividend.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.