Why Orion Office REIT Fell as Much as 18% at the Open Today
Shares of Orion Office REIT (NYSE: ONL), a real estate investment trust (REIT) that is focused on largely suburban office properties, fell sharply in early trading Friday, losing around 18% of their value. The big story was the company's after-the-close earnings release on Thursday, which clearly didn't live up to investor expectations. The earnings number, however, wasn't the most important news from the company.
Orion Office was spun off from Realty Income (NYSE: O) in late 2021, so the fourth-quarter update was the first that Orion has made as a stand-alone company. Complicating the quarterly results is the fact that Orion Office's portfolio represents the combination of Realty Income's office properties and those of VEREIT, which Realty Income bought just prior to Orion Office's spinoff. VEREIT's properties were only owned for part of the quarter, so you probably shouldn't even look at the fourth quarter as a baseline here -- that will come next quarter, when the entire portfolio has been owned for the entire period. Still, core funds from operations came in at $0.47 per share, with funds available for distribution of $0.30 per share.
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Source Fool.com
