One-glance verdict
Undervalued
$6.79 our estimate vs market $2.51
Wall Street consensus: $3.50 (-48.4% lower than our fair-value estimate)
63% below our estimate, below the bear case
Fundamentals snapshot
Orion Properties Inc.
ONL · NYQ · Real Estate · REIT - Office
Current price
$2.51
52-week range
$1.89 - $3.05
Market cap
$143.18M
Balance sheet
Distressed
-0.07x Concerning
Net debt $427.03M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Free cash flow was positive in 3/10 years.
- Reward Dividend yield is 3.2% with 5-year payout history.
- Risk Return on equity was -13.8% last year — the company lost money on shareholders' equity.
What this company does
Orion Properties Inc.
Orion Properties is a real estate company that owns office buildings in U.S. suburbs and rents them out, often an entire building to a single company. Most of its money comes from these rental agreements, which are typically "net leases" (a type of lease where the tenant pays for building upkeep costs like taxes and maintenance on top of rent). This setup can make Orion's income more stable and predictable than a typical landlord's.
How the company got here
Orion Office REIT was created in November 2021 when two other real estate companies, Realty Income and VEREIT, merged and spun off their office properties into this new, separate company. This allowed Orion to focus specifically on owning and managing a collection of office buildings. The company is a Real Estate Investment Trust (REIT), which is a type of company that owns and often operates income-producing real estate. The leadership team largely came from VEREIT and is focused on growing the company rather than selling it off.
What it actually does
Orion owns office buildings in suburban areas across the United States. Instead of renting out floors or sections to many different companies, Orion specializes in leasing entire buildings to a single company, known as a single-tenant net lease. Under this arrangement, the tenant (the company renting the building) is responsible for paying not just rent, but also most of the building's operating costs, like property taxes, insurance, and maintenance. This provides a steady and predictable income for Orion with less day-to-day management responsibility.
Rental Income
The main way Orion makes money is by collecting rent from the companies that lease its office buildings. Because the leases are typically long-term, often lasting 10 years or more, this creates a stable stream of cash. This single business segment, owning and renting commercial real estate, accounts for nearly all of the company's revenue. The properties are a mix of traditional corporate headquarters and what the company calls "Dedicated Use Assets."
Dedicated Use Assets
A growing part of Orion's portfolio consists of specialized office properties. These aren't just standard office buildings; they are often tailored for specific needs, such as government agency offices (like the FBI), medical clinics, research and development labs, or flexible industrial spaces. These properties are considered valuable because their unique functions make the tenants more likely to stay for a very long time. As of early 2026, these types of properties made up over a third of the company's rental income.
What management is betting on now
The company's main strategy is to shift its focus away from traditional office buildings and acquire more of these "Dedicated Use Assets". Management believes these specialized properties are more resilient and have better long-term growth potential, especially as work habits change. To fund this shift, Orion has been selling off properties it considers non-essential to raise money for new purchases. The company is also exploring other major strategic options, which could include being sold or merging with another company.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
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Net income
$24.58M
Diluted EPS
0.42
Operating cash flow
$16.08M
Free cash flow
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Sources
Revenue
—
Net income
$-13.58M
Diluted EPS
-0.24
Operating cash flow
$-7.72M
Free cash flow
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Sources
Revenue
—
Net income
$-35.81M
Diluted EPS
-0.63
Operating cash flow
$8.52M
Free cash flow
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Sources
Revenue
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Net income
$-69.03M
Diluted EPS
-1.23
Operating cash flow
$5.74M
Free cash flow
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Sources
Revenue
—
Net income
$-25.10M
Diluted EPS
-0.45
Operating cash flow
$11.56M
Free cash flow
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Sources
Revenue
—
Net income
$-9.36M
Diluted EPS
-0.17
Operating cash flow
$-2.25M
Free cash flow
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Sources
Revenue
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Net income
$-32.76M
Diluted EPS
-0.59
Operating cash flow
$12.50M
Free cash flow
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Sources
Revenue
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Net income
$-10.22M
Diluted EPS
-0.18
Operating cash flow
$13.75M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $6.79 vs current price $2.51
Wall Street consensus is the average analyst price target: $3.50 (-48.4% lower than our fair-value estimate).
Our most-likely fair value is $6.79 a share — about 170.4% above today's price of $2.51, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $427.0M. Interest coverage -0.1x.
Net debt
$427.03M
Interest coverage
-0.07x
Orion Properties Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ONL
BASELINE
Orion Properties Inc.
Total debt $443.90M Interest coverage -0.07x This is the baseline the peer rows are being compared against.
Total debt $21.90M Interest coverage 2.77x This peer still has a real interest-payment cushion, while ONL does not.
Total debt $2.63B Interest coverage 0.58x This peer still has a real interest-payment cushion, while ONL does not.
Total debt $3.74B Interest coverage -0.26x Neither company has much profit cushion over interest right now.
Total debt $254.06M Interest coverage -0.33x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ONL
2 Rewards
1 Risk
Rewards
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 3.2% with 5-year payout history.
Risks
-
Return on equity was -13.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-9.65x
P/B
0.23x
P/S
1.09x
EV/EBITDA
11.67x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.6%
Operating margin
9.9%
Net margin
-71.3%
ROE
-13.8%
ROA
-0.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.70x
Current ratio
3.97x
Quick ratio
2.14x
Total debt
$443.90M
Total cash
$16.87M
Growth
How the business has been compounding
Revenue TTM
$131.61M
Revenue 5Y CAGR
-10.8%
EPS TTM
-1.68
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$22.61M
Free CF TTM
$-28.12M
FCF margin
-21.4%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
0.0%
Last ex-div date
2026-09-30