ONL - Orion Office REIT: Value To Be Found After Recent Stock Slump
2024-05-15 14:52:55 ET
Summary
- Orion Office REIT has significantly underperformed the Vanguard Real Estate ETF in 2024.
- Core FFO declined by 20% Y/Y in Q1 2024, with the company confirming its initial outlook for a 42% decline relative to 2023.
- Despite an average debt maturity of just 2.6 years, Orion office has limited maturities in 2024 and 2025.
- Net debt accounts for 70% of enterprise value and is a key risk for the investment case together with the occupancy of just 75.8%.
- The 14% market cap rate and the government as the second-largest tenant make Orion Office an attractive investment.
Introduction
Orion Office REIT ( ONL ) has significantly underperformed (by roughly 30%) the Vanguard Real Estate Index Fund ETF ( VNQ ) so far in 2024:
Orion Office REIT: Value To Be Found After Recent Stock Slump