Orion Office REIT Stock (NYSE:ONL), Trade Ideas

Orion Office REIT

Orion Office REIT Inc is a internally-managed REIT engaged in the ownership, acquisition, and management of a diversified portfolio of mission-critical and headquarters office buildings located in high quality suburban markets across the U.S. and leased on a single-tenant net lease basis to creditworthy clients. The portfolio of the company includes traditional office buildings, governmental offices, medical offices, laboratories, and others. The Company operates in one business segment: direct ownership and operation of commercial real estate.

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Goldman Sachs reveals $929B of CRE mortgages due in 2024, 50% drop from 2023, highest delinquency rates in office properties, refinancing challenges loom as interest rates hover at 12%

Commercial Real Estate Grapples With $1 Trillion Refinancing Tsunami In 2024, Over $200 Billion In Office Debt

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The office real estate market has entered a challenging year, grappling with significant challenges represented by disruptive industry trends and upcoming financial maturities. 

Half A Trillion Dollars: Office Real Estate Owners Are About To Face Huge Debt Payment, New Data Shows 2024 Is A Critical Year

Orion Office REIT Inc

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<p>Keybanc  analyst Jason Celino   maintains Coursera (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COUR#NYSE">COUR</a>) with a Overweight and lowers the price target from $24 to $20.</p>


Price Target

COUR

Keybanc Maintains Overweight on Coursera, Lowers Price Target to $20

Earnings

Teledyne Technologies Posts Q1 Orders Of $1.43B

Biotech

Large Cap

Health Care

General

The FDA Has Accepted Supplemental Biologics License Application For GSK's Jemperli (Dostarlimab) In Combination With Standard-of-care Chemotherapy To Expand Treatment To All Adult Patients With Primary Advanced Or Recurrent Endometrial Cancer

<p>Keybanc  analyst Justin Patterson   maintains Pinterest (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>) with a Overweight and lowers the price target from $48 to $40.</p>


PINS

Keybanc Maintains Overweight on Pinterest, Lowers Price Target to $40

<p>Teledyne Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDY#NYSE">TDY</a>) reported quarterly earnings of $4.55 per share which missed the analyst consensus estimate of $4.63 by 1.73 percent. This is a 0.44 percent increase over earnings of $4.53 per share from the same period last year.  The company reported quarterly sales of $1.35 billion which missed the analyst consensus estimate of $1.40 billion by 3.57 percent.  This is a 2.39 percent decrease over sales of $1.38 billion the same period last year.</p>


Teledyne Technologies Q1 Adj. EPS $4.55 Misses $4.63 Estimate, Sales $1.35B Miss $1.40B Estimate

<p>Wabash National (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WNC#NYSE">WNC</a>) reported quarterly earnings of $0.39 per share which missed the analyst consensus estimate of $0.45 by 13.33 percent. This is a 62.5 percent decrease over earnings of $1.04 per share from the same period last year.  The company reported quarterly sales of $515.28 million which missed the analyst consensus estimate of $516.85 million by 0.30 percent.  This is a 17.02 percent decrease over sales of $620.95 million the same period last year.</p>


Earnings Misses

Wabash National Q1 Adj $0.39 Misses $0.45 Estimate, Sales $515.28M Miss $516.85M Estimate

<p>On April 23, 2024, the Board of Directors of Evercore declared a quarterly dividend of&nbsp;$0.80&nbsp;per share to be paid on June 14, 2024 to common stockholders of record on May 31, 2024.</p>


Dividends

Evercore Increased Quarterly Dividend 5% To $0.80/Share

VCIG

Legacy Credit Announce A Substantial Investment Exceeding 5% Stake Through A Private Placement In VCI Global Limited

<p><strong>TotalEnergies SE</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) disclosed that its affiliate, TotalEnergies EP Congo,&nbsp;<a target="_blank" href="https://totalenergies.com/news/press-releases/republic-congo-totalenergies-increases-its-interest-giant-field-moho-and" rel="noreferrer noopener">inked&nbsp;</a>a deal with<strong>&nbsp;Trident Energy&nbsp;</strong>for a combination of purchase and sale transactions in the Republic of&nbsp;Congo.</p>
<p>In particular, the oil giant will acquire an additional 10% stake in the Moho license from Trident Energy and sell its 53.5% interest in the Nkossa and Nsoko II licenses to the company.</p>
<p><strong><em>Also Read</em></strong><em>:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37887001/totalenergies-revitalizes-danish-north-sea-operations-tyra-hub-production-restarted" rel="noreferrer noopener">TotalEnergies Revitalizes Danish North Sea Operations: Tyra Hub Production Restarted</a></em></p>
<p>Moho is a deep offshore field located 80 kilometers off the coast of Pointe Noire. Meanwhile, Nkossa and Nsoko II are two offshore fields situated 70 kilometers off the coast, which are matured oil fields currently producing a combined 15 kboe/d (100%).&nbsp;</p>
<p>The deal completion is subject to particular regulatory approvals and the closure of Trident&nbsp;Energy&#8217;s&nbsp;acquisition of Chevron Congo.</p>
<p>Post closure, TotalEnergies EP Congo will hold a 63.5% operated interest in the Moho license alongside Trident Energy (21.5%) and the Société Nationale des Pétroles du Congo (SNPC, 15%).&nbsp;</p>
<p>Mike Sangster, Senior Vice President&nbsp;Africa, Exploration&nbsp;and&nbsp;Production at&nbsp;TotalEnergies&nbsp;said,<strong>&nbsp;</strong>&#8220;With these transactions, TotalEnergies continues&nbsp;to dynamically manage its portfolio. In line with our strategy, we focus on&nbsp;low cost,&nbsp;low emission&nbsp;assets,&nbsp;and leverage our deep offshore expertise.&#8221;</p>
<p>&#8220;As a long-term partner of the Republic of Congo, TotalEnergies remains fully committed to the country through our increased stake and operatorship in&nbsp;Moho&nbsp;field,&nbsp;and is preparing&nbsp;for the drilling of&nbsp;an exploration well on the Marine XX license before summer 2024.&#8221;</p>
<p>Yesterday, Total Energies reported that they&nbsp;had begun&nbsp;construction of&nbsp;New York&nbsp;State&#8217;s&nbsp;largest&nbsp;onsite solar generating and storage system at John F. Kennedy (JFK) International Airport in collaboration with the Port Authority of&nbsp;New York&nbsp;and&nbsp;New Jersey&nbsp;(PANYNJ) and&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38386577/totalenergies-begins-construction-of-12-mw-solar-project-at-new-yorks-jfk-airport" rel="noreferrer noopener">the New York Power Authority (NYPA)</a>.</p>
<p>Last week, TotalEnergies announced a strategic partnership with OK Petroleum,&nbsp;a&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38339325/whats-going-on-with-totalenergies-shares-friday" rel="noreferrer noopener">distributor in&nbsp;Long Island, NY</a>.</p>
<p>Investors can gain exposure to the stock via&nbsp;<strong>First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIPX#NYSE">EIPX</a>)&nbsp;and&nbsp;<strong>Keating Active ETF</strong>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KEAT#NASDAQ">KEAT</a>).</p>
<p><strong><em>Also Read</em></strong><em>:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38375376/double-play-in-asia-totalenergies-expands-gas-portfolio-in-malaysia-and-oman" rel="noreferrer noopener">Double Play in Asia: TotalEnergies Expands Gas Portfolio in Malaysia and Oman</a></em></p>
<p><strong>Price Action</strong>: TTE shares are up 0.05% at $73.01 premarket&nbsp;at the last check Wednesday.</p>


Equities

Asset Sales

First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF

EIPX

KEAT

TotalEnergies Trades Mature Assets for Growth In Low-Emission Congolese Oil Field

<p>The Dow Jones index closed higher by over 250 points on Tuesday. When insiders purchase or sell shares, it indicates their confidence or concern around the company&#8217;s prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision.</p>
<p>Below is a look at a few recent notable insider transactions for penny stocks. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions</a> platform.</p>
<h3 class="wp-block-heading"><strong>Conn&#8217;s</strong></h3>
<ul>
<li><strong>The Trade: Conn&#8217;s, Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CONN#NASDAQ">CONN</a>) Director Douglas H Martin <a href="https://www.benzinga.com/sec/insider-trades/">bought a total of 10,817 shares</a> at an average price of $3.71. To acquire these shares, it cost around $40,103.</li>
<li><strong>What's Happening: </strong>On April 11, the company reported fourth-quarter adjusted earnings per share of $(1.25) loss, narrower than the street view of $(1.57).</li>
<li><strong>What Conn&#8217;s Does: </strong>Conn&#8217;s Inc is a US-based specialty retailer selling durable consumer goods and related services.</li>
</ul>
<h3 class="wp-block-heading"><strong>Mobile Infrastructure</strong></h3>
<ul>
<li><strong>The Trade: Mobile Infrastructure Corporation </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEEP#NYSE">BEEP</a>) CEO Manuel Chavez III <a href="https://www.benzinga.com/sec/insider-trades/">acquired a total of 5,442 shares at</a>  an average price of $3.44. To acquire these shares, it cost around $18,720.</li>
<li><strong>What's Happening:</strong> Mobile Infrastructure is expected to issue its first quarter 2024 earnings release on May 15, 2024.</li>
<li><strong>What Mobile Infrastructure Does:</strong> Mobile Infrastructure Corp focuses on acquiring, owning, and leasing parking facilities and related infrastructure, including parking lots, parking garages and other parking structures throughout the United States.</li>
</ul>
<h3 class="wp-block-heading"><strong>Alzamend Neuro</strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong>Alzamend Neuro, Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALZN#NASDAQ">ALZN</a>) Director Milton C Ault III <a href="https://www.benzinga.com/sec/insider-trades/">acquired a total of 1,000 shares</a>  at an average price of $0.69. The insider spent around $688 to buy those shares.</li>
<li><strong>What's Happening:</strong> On Dec. 11, 2023, Alzamend Neuro received a &#8220;Study May Proceed&#8221; letter from the FDA for the initiation of study AL001-PTSD01, a Phase 2A study of AL001 for post-traumatic stress disorder (PTSD).</li>
<li><strong>What Alzamend Neuro Does:</strong> Alzamend Neuro Inc is an early clinical-stage biopharmaceutical company.</li>
</ul>
<p><strong>Check This Out:</strong> <a href="https://www.benzinga.com/news/earnings/24/04/38396543/meta-likely-to-report-higher-q1-earnings-here-are-the-recent-forecast-changes-from-wall-streets-mos">Meta Likely To Report Higher Q1 Earnings; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a></p>


Insider Trades

ALZN

Mobile Infrastructure Corporation Common Stock

BEEP

CONN

Alzamend Neuro And 2 Other Stocks Under $5 Insiders Are Buying

<ul>
<li>Continue to expect total revenue to decline by a low- to mid-single digit percentage vs. 2023 and expect core pharmaceutical revenue (product revenue + LEQEMBI) to be flat vs. 2023</li>
<li>Continue to expect operating income to grow low-double digit percentage vs. 2023 with expected midsingle digit percentage point operating margin improvement</li>
</ul>


Guidance

BIIB

Biogen Reaffirms 2024 Adjusted EPS Guidance Of $15.00-$16.00, Representing EPS Growth Of Approximately 5% Versus 2023 At The Mid-point Versus Consensus Of $15.48

<p>Excluding an estimated&nbsp;$0.40&nbsp;per share impact of restructuring charges and other items, the company continues to expect 2024 adjusted earnings per share of&nbsp;$9.00&nbsp;to&nbsp;$9.50.</p>


Avery Dennison Corporation Lowers FY24 Guidance Range For Reported Earnings Per Share From $8.65-$9.15 To $8.60-$9.10

<p>B of A Securities  analyst Andrew Obin   initiates coverage on GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) with a Neutral rating and announces Price Target of $150.</p>


Initiation

B of A Securities Initiates Coverage On GE Vernova with Neutral Rating, Announces Price Target of $150

Earnings Beats

BXMT

Blackstone Mortgage Trust Q1 2024 Distributable EPS Prior To Charge-Offs $0.65 vs $0.43 Estimate

MAG Silver Announces That Juanicipio Processed 325,684 Tonnes Of Ore In Q1

<p>Guggenheim  analyst Joseph Osha   downgrades Enphase Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) from Neutral to Sell and announces $92 price target.</p>


Downgrades

ENPH

Guggenheim Downgrades Enphase Energy to Sell, Announces $92 Price Target

<p>Evercore (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVR#NYSE">EVR</a>) reported quarterly earnings of $2.13 per share which beat the analyst consensus estimate of $2.09 by 1.91 percent. This is a 1.39 percent decrease over earnings of $2.16 per share from the same period last year.  The company reported quarterly sales of $587.328 million which missed the analyst consensus estimate of $636.381 million by 7.71 percent.  This is a 1.65 percent increase over sales of $577.782 million the same period last year.</p>


Evercore Q1 2024 Adj EPS $2.13 Beats $2.09 Estimate, Sales $587.328M Miss $636.381M Estimate

<p>Baird  analyst Eric Coldwell   maintains Medpace Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MEDP#NASDAQ">MEDP</a>) with a Outperform and raises the price target from $446 to $454.</p>


MEDP

Baird Maintains Outperform on Medpace Hldgs, Raises Price Target to $454

Lennox Reaffirms FY24 Revenue Guidance Of Approximately 7%, With 2% Of Benefit From AES Acquisition; Revises EPS Guidance From $18.50-$20.00 To $19.00-$20.00, Est $19.72

HELE

Helen Of Troy Sees FY25 Adj EPS Of $8.70-$9.20 Vs. $9.72 Est.

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Shares in real estate investment trusts have bounced back in recent months, but as the commercial real estate space remains in a tough spot, there are still plenty of stocks in this category best described as REITs to sell.</p>



<p>The main reason for this all has to do with the macro environment. Interest rates remain high. The other factors driving the commercial real estate crisis, like falling demand for office space due to remote working, persist.</p>



<p>On top of these macro factors, many REITs are even contending with their own tenant-related headwinds. Put it all together, and barring something like a sudden decision by the Federal Reserve to lower interest rates, it&rsquo;s hard to see the situation for these names improving soon.</p>



<p>Instead, each of these seven REITs to sell is likely to get knocked even lower because of worsening fiscal performance, or because of negative developments like dividend reductions/cuts.</p>



<h2>Boston Properties (BXP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/bxp-1600-300x169.png" alt="Closeup of mobile phone screen with logo lettering of boston properties, stock market chart background. BXP stock."><div>Source: Ralf Liebhold / Shutterstock</div></div><p>&lsquo;Blue-chip REIT&rsquo; may be an apt descriptor for <strong>Boston Properties</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bxp-stock-quote/"><strong>BXP</strong></a>). This office REIT owns high-end office buildings in &ldquo;gateway&rdquo; real estate markets, like New York, Boston, Washington, D.C., Los Angeles, and San Francisco.</p>



<p>But like other owners of class A office space, the aforementioned decline in office space demand remains a major risk for BXP stock. So far, this has resulted in <a href="https://investors.bxp.com/news-releases/news-release-details/bxp-announces-fourth-quarter-and-full-year-2023-results">declining funds from operations</a> (the REIT version of earnings). </p>



<p>Worse yet, as Moody&rsquo;s noted in a December downgrade of BXP&rsquo;s debt, leases representing 14% of the REIT&rsquo;s annualized revenue <a href="https://www.bisnow.com/national/news/office/moodys-downgrades-boston-properties-credit-shifts-outlook-to-stable-122188">expire between now and 2025</a>. </p>



<p>If weak office space demand affects lease renewals, a deterioration in results may be just around the corner. With this in mind, it&rsquo;s best to sell/skip on BXP for now, even if other factors (like its 6.26% dividend) about it are appealing.</p>



<h2>Diversified Healthcare Trust (DHC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/reits1600c-300x169.jpg" alt="tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions. best REITs"><div>Source: Shutterstock</div></div><p>Shares in <strong>Diversified Healthcare Trust</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/dhc-stock-quote/"><strong>DHC</strong></a>), which owns health care and senior housing properties, are up by more than 60% over the past year. </p>



<p>However, most of these gains were accrued last summer, when the REIT <a href="https://www.dhcreit.com/news/press-release-details/2023/Diversified-Healthcare-Trust-and-Office-Properties-Income-Trust-Mutually-Agree-to-Terminate-Merger-Agreement/default.aspx">canceled plans to merge</a> with another of the REITs to sell (more below).</p>



<p>Since then, DHC stock has traded sideways, as this <strong>RMR Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rmr-stock-quote/"><strong>RMR</strong></a>) managed REIT works to get its house in order. However, as a <em>Seeking Alpha</em> commentator argued in January, DHC has only two options to improve its balance sheet: <a href="https://seekingalpha.com/article/4665023-diversified-healthcare-trust-hurtin-for-certain">asset sales, or the issuance of new shares</a>.</p>



<p>Either option is bad news for DHC investors. Selling assets will of course affect cash flow. This may minimize the chances DHC&rsquo;s quarterly dividend (now at a penny per share) gets re-raised. Selling new shares would mean dilution, which may send shares lower. Still in a tough spot, steer clear.</p>



<h2>Global Net Lease (GNL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600c-300x169.jpg" alt="image of small toy homes with a red arrow pointing up to represent reits to buy"><div>Source: Shutterstock</div></div><p><strong>Global Net Lease</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/gnl-stock-quote/"><strong>GNL</strong></a>) shares have declined steadily over the past five years. You may find this net lease REIT appealing, if only for its high forward dividend yield.</p>



<p>At current prices, GNL stock has a forward yield of 19.27%. However, as is often the case with REITs (or any stock) with a  high dividend yield, there&rsquo;s a good reason why the market has priced shares this way. </p>



<p>Not only are GNL&rsquo;s quarterly dividends (totaling $1.42 per share annually) not covered by forecast funds from operations for 2024 (<a href="https://seekingalpha.com/symbol/GNL/earnings">$1.09 per share</a>).</p>



<p>As I&rsquo;ve argued previously, GNL <a href="https://investorplace.com/2024/02/its-time-7-done-for-dividend-stocks-to-sell-in-february/">may have an inflated book value</a>, and is at risk of price declines that far outweigh its big fat payout. While there may be a few high-yield REITs out there where yield outweighs the risks, that&rsquo;s not the case for most of them, including Global Net Lease.</p>



<h2>Medical Properties Trust (MPW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/mpw_medicalpropertiestrust1600-300x169.png" alt="Blurred hospital images, Patient bed in the hospital, Hospital cleaning, Hospital disinfection cleaning, Patient bed cleaning for emergency patients. Medical Properties Trust (MPW)"><div>Source: venusvi / Shutterstock.com</div></div><p>I&rsquo;ve long argued that <strong>Medical Properties Trust</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/mpw-stock-quote/"><strong>MPW</strong></a>) is one of the top REITs to sell. My bearishness has, for the most part, been to be the right call. </p>



<p>Shares slid sharply lower in 2023, as this hospital REIT has <a href="https://investorplace.com/2024/01/7-reits-to-sell-in-january-before-they-crash-and-burn/">contended with a problem tenant</a>, leading to significant dividend cuts.</p>



<p>More recently, however, MPW stock has been trending higher. Chalk this up to <a href="https://seekingalpha.com/news/4069520-medical-properties-q4-earnings-beat-negotiating-new-steward-bridge-loan">a well-received quarterly earnings release</a>, which included promising updates regarding the problem tenant, as well as MPW&rsquo;s efforts to improve its balance sheet. </p>



<p>Yet while some may think that Medical Properties Trust is making a comeback, err on the side of caution. </p>



<p>Assume MPW&rsquo;s latest moves are merely a &ldquo;dead cat bounce.&rdquo; Why? Not completely out of the woods with its major issues, a surprise negative development, such as another dividend cut could cause Medical Properties Trust shares coughing back these latest gains.</p>



<h2>Orion Office REIT (ONL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600d-300x169.jpg" alt="a wooden house shape holds 3 bags of cash representing reits to buy"><div>Source: Shutterstock</div></div><p>Owners of high-quality, downtown office space like BXP had been hard hit by changing workplace trends, but for names like <strong>Orion Office REIT</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/onl-stock-quote/"><strong>ONL</strong></a>), which owns suburban office properties in less glamorous locales, the situation has clearly hit crisis mode.</p>



<p>As <em>InvestorPlace&rsquo;s</em> Steve Booyens argued last month, Orion Office is dealing with<a href="https://investorplace.com/2024/02/its-time-3-overplayed-reits-to-sell-in-february/"> staggeringly-low occupancy rates (80.5%)</a> for its properties. If that&rsquo;s not bad enough, the REIT has a very leveraged balance sheet, and Orion&rsquo;s portfolio has a weighted average remaining lease term of<a href="https://d1io3yog0oux5.cloudfront.net/_cf8a4cf5260fdb40c03485e24f6bb44f/onlreit/db/2137/20383/pdf/Orion+Investor+Presentation+-+Q4+2023+%28Final+-+02.27.2024%29.pdf"> only 4 years</a>.</p>



<p>A high proportion of leases are soon expiring. There&rsquo;s high uncertainty over whether the REIT can find new tenants for these properties (which are primarily single tenant). </p>



<p>This leaves ONL stock (down 47.5% over the past year) at risk of further declines. Avoid/sell it, even as it has <a href="https://www.onlreit.com/investors/news-events/press-releases/detail/21/orion-office-reit-inc-announces-fourth-quarter-and-full">maintained its dividend</a>, and currently has a forward yield of 11.7%.</p>



<h2>Office Properties Income Trust (OPI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/REIT1600-300x169.jpg" alt="a businessperson holds an imaginary blueprint of a house"><div>Source: Shutterstock</div></div><p>As mentioned above, <strong>Office Properties Income Trust</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/opi-stock-quote/"><strong>OPI</strong></a>) was going to merge with another of the REITs to sell, DHC, last year. Yet with this deal quashed by shareholders, this moribund REIT, also externally-managed by RMR Group, has been focusing on refinancing and asset sales in an effort to turn itself around.</p>



<p>Unfortunately, the odds may be stacked against an OPI stock comeback. As I&rsquo;ve pointed out before, many factors point to a further deterioration of Office Properties Income Trust&rsquo;s fiscal performance. These factors include not only the overarching office space demand trends, but also <a href="https://investorplace.com/2024/03/its-time-7-pitiful-penny-stocks-to-sell-right-now/">a tsunami of upcoming lease expirations</a>.</p>



<p>Add in the fact that this REIT, like Diversified Healthcare Trust, has cut its quarterly dividend down to a penny per share, giving it a paltry forward yield of just 2.04%, there&rsquo;s zero reason to waste your time (or risk your capital) on OPI shares.</p>



<h2>Paramount Group (PGRE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600e-300x169.jpg" alt="a person in a suit holds a tiny house to represent reits to buy"><div>Source: Shutterstock</div></div><p><strong>Paramount Group</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/pgre-stock-quote/"><strong>PGRE</strong></a>) is essentially a smaller version of Boston Properties, except with greater concentration in the New York and San Francisco office building markets.</p>



<p>Yes, PGRE stock has already crashed, due to high-profile lease expiration news. </p>



<p>For instance, this office REIT had the misfortune of being a landlord for <a href="https://www.costar.com/article/1635238715/paramount-group-expects-hit-on-profits-from-leases-with-pair-of-failed-banks">not one, but two</a> of the banks that failed during the 2023 regional banking crisis. Following PGRE&rsquo;s slide into &ldquo;penny stock territory&rdquo; (under $5 per share), the stock is arguably now trading at a fire sale price.</p>



<p>However, in 2025 and 2026, <a href="https://s28.q4cdn.com/314435393/files/doc_presentation/2024/PGRE-Investor-Presentation-February-2024.pdf">leases covering a quarter of its total portfolio square footage expire</a>. The REIT is having success finding new tenants, but at lower rents. </p>



<p>Analysts anticipate continued declines in PGRE&rsquo;s funds from operations next year (<a href="https://seekingalpha.com/symbol/PGRE/earnings">from 74 cents to 64 cents per share</a>). Until this trend reverses, shares are at risk of a continued slide in price.</p>



<p><em>On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com </em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>.</em></p>
<div><p>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/03/7-reits-to-sell-in-march-before-they-crash-burn/">7 REITs to Sell in March Before They Crash &amp; Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 REITs to Sell in March Before They Crash & Burn

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Shares in real estate investment trusts have bounced back in recent months, but as the commercial real estate space remains in a tough spot, there are still plenty of stocks in this category best described as REITs to sell.</p>



<p>The main reason for this all has to do with the macro environment. Interest rates remain high. The other factors driving the commercial real estate crisis, like falling demand for office space due to remote working, persist.</p>



<p>On top of these macro factors, many REITs are even contending with their own tenant-related headwinds. Put it all together, and barring something like a sudden decision by the Federal Reserve to lower interest rates, it&rsquo;s hard to see the situation for these names improving soon.</p>



<p>Instead, each of these seven REITs to sell is likely to get knocked even lower because of worsening fiscal performance, or because of negative developments like dividend reductions/cuts.</p>



<h2>Boston Properties (BXP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/bxp-1600-300x169.png" alt="Closeup of mobile phone screen with logo lettering of boston properties, stock market chart background. BXP stock."><div>Source: Ralf Liebhold / Shutterstock</div></div><p>&lsquo;Blue-chip REIT&rsquo; may be an apt descriptor for <strong>Boston Properties</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/bxp-stock-quote/"><strong>BXP</strong></a>). This office REIT owns high-end office buildings in &ldquo;gateway&rdquo; real estate markets, like New York, Boston, Washington, D.C., Los Angeles, and San Francisco.</p>



<p>But like other owners of class A office space, the aforementioned decline in office space demand remains a major risk for BXP stock. So far, this has resulted in <a href="https://investors.bxp.com/news-releases/news-release-details/bxp-announces-fourth-quarter-and-full-year-2023-results">declining funds from operations</a> (the REIT version of earnings). </p>



<p>Worse yet, as Moody&rsquo;s noted in a December downgrade of BXP&rsquo;s debt, leases representing 14% of the REIT&rsquo;s annualized revenue <a href="https://www.bisnow.com/national/news/office/moodys-downgrades-boston-properties-credit-shifts-outlook-to-stable-122188">expire between now and 2025</a>. </p>



<p>If weak office space demand affects lease renewals, a deterioration in results may be just around the corner. With this in mind, it&rsquo;s best to sell/skip on BXP for now, even if other factors (like its 6.26% dividend) about it are appealing.</p>



<h2>Diversified Healthcare Trust (DHC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/reits1600c-300x169.jpg" alt="tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions. best REITs"><div>Source: Shutterstock</div></div><p>Shares in <strong>Diversified Healthcare Trust</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/dhc-stock-quote/"><strong>DHC</strong></a>), which owns health care and senior housing properties, are up by more than 60% over the past year. </p>



<p>However, most of these gains were accrued last summer, when the REIT <a href="https://www.dhcreit.com/news/press-release-details/2023/Diversified-Healthcare-Trust-and-Office-Properties-Income-Trust-Mutually-Agree-to-Terminate-Merger-Agreement/default.aspx">canceled plans to merge</a> with another of the REITs to sell (more below).</p>



<p>Since then, DHC stock has traded sideways, as this <strong>RMR Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/rmr-stock-quote/"><strong>RMR</strong></a>) managed REIT works to get its house in order. However, as a <em>Seeking Alpha</em> commentator argued in January, DHC has only two options to improve its balance sheet: <a href="https://seekingalpha.com/article/4665023-diversified-healthcare-trust-hurtin-for-certain">asset sales, or the issuance of new shares</a>.</p>



<p>Either option is bad news for DHC investors. Selling assets will of course affect cash flow. This may minimize the chances DHC&rsquo;s quarterly dividend (now at a penny per share) gets re-raised. Selling new shares would mean dilution, which may send shares lower. Still in a tough spot, steer clear.</p>



<h2>Global Net Lease (GNL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600c-300x169.jpg" alt="image of small toy homes with a red arrow pointing up to represent reits to buy"><div>Source: Shutterstock</div></div><p><strong>Global Net Lease</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/gnl-stock-quote/"><strong>GNL</strong></a>) shares have declined steadily over the past five years. You may find this net lease REIT appealing, if only for its high forward dividend yield.</p>



<p>At current prices, GNL stock has a forward yield of 19.27%. However, as is often the case with REITs (or any stock) with a  high dividend yield, there&rsquo;s a good reason why the market has priced shares this way. </p>



<p>Not only are GNL&rsquo;s quarterly dividends (totaling $1.42 per share annually) not covered by forecast funds from operations for 2024 (<a href="https://seekingalpha.com/symbol/GNL/earnings">$1.09 per share</a>).</p>



<p>As I&rsquo;ve argued previously, GNL <a href="https://investorplace.com/2024/02/its-time-7-done-for-dividend-stocks-to-sell-in-february/">may have an inflated book value</a>, and is at risk of price declines that far outweigh its big fat payout. While there may be a few high-yield REITs out there where yield outweighs the risks, that&rsquo;s not the case for most of them, including Global Net Lease.</p>



<h2>Medical Properties Trust (MPW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/mpw_medicalpropertiestrust1600-300x169.png" alt="Blurred hospital images, Patient bed in the hospital, Hospital cleaning, Hospital disinfection cleaning, Patient bed cleaning for emergency patients. Medical Properties Trust (MPW)"><div>Source: venusvi / Shutterstock.com</div></div><p>I&rsquo;ve long argued that <strong>Medical Properties Trust</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/mpw-stock-quote/"><strong>MPW</strong></a>) is one of the top REITs to sell. My bearishness has, for the most part, been to be the right call. </p>



<p>Shares slid sharply lower in 2023, as this hospital REIT has <a href="https://investorplace.com/2024/01/7-reits-to-sell-in-january-before-they-crash-and-burn/">contended with a problem tenant</a>, leading to significant dividend cuts.</p>



<p>More recently, however, MPW stock has been trending higher. Chalk this up to <a href="https://seekingalpha.com/news/4069520-medical-properties-q4-earnings-beat-negotiating-new-steward-bridge-loan">a well-received quarterly earnings release</a>, which included promising updates regarding the problem tenant, as well as MPW&rsquo;s efforts to improve its balance sheet. </p>



<p>Yet while some may think that Medical Properties Trust is making a comeback, err on the side of caution. </p>



<p>Assume MPW&rsquo;s latest moves are merely a &ldquo;dead cat bounce.&rdquo; Why? Not completely out of the woods with its major issues, a surprise negative development, such as another dividend cut could cause Medical Properties Trust shares coughing back these latest gains.</p>



<h2>Orion Office REIT (ONL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600d-300x169.jpg" alt="a wooden house shape holds 3 bags of cash representing reits to buy"><div>Source: Shutterstock</div></div><p>Owners of high-quality, downtown office space like BXP had been hard hit by changing workplace trends, but for names like <strong>Orion Office REIT</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/onl-stock-quote/"><strong>ONL</strong></a>), which owns suburban office properties in less glamorous locales, the situation has clearly hit crisis mode.</p>



<p>As <em>InvestorPlace&rsquo;s</em> Steve Booyens argued last month, Orion Office is dealing with<a href="https://investorplace.com/2024/02/its-time-3-overplayed-reits-to-sell-in-february/"> staggeringly-low occupancy rates (80.5%)</a> for its properties. If that&rsquo;s not bad enough, the REIT has a very leveraged balance sheet, and Orion&rsquo;s portfolio has a weighted average remaining lease term of<a href="https://d1io3yog0oux5.cloudfront.net/_cf8a4cf5260fdb40c03485e24f6bb44f/onlreit/db/2137/20383/pdf/Orion+Investor+Presentation+-+Q4+2023+%28Final+-+02.27.2024%29.pdf"> only 4 years</a>.</p>



<p>A high proportion of leases are soon expiring. There&rsquo;s high uncertainty over whether the REIT can find new tenants for these properties (which are primarily single tenant). </p>



<p>This leaves ONL stock (down 47.5% over the past year) at risk of further declines. Avoid/sell it, even as it has <a href="https://www.onlreit.com/investors/news-events/press-releases/detail/21/orion-office-reit-inc-announces-fourth-quarter-and-full">maintained its dividend</a>, and currently has a forward yield of 11.7%.</p>



<h2>Office Properties Income Trust (OPI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/REIT1600-300x169.jpg" alt="a businessperson holds an imaginary blueprint of a house"><div>Source: Shutterstock</div></div><p>As mentioned above, <strong>Office Properties Income Trust</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/opi-stock-quote/"><strong>OPI</strong></a>) was going to merge with another of the REITs to sell, DHC, last year. Yet with this deal quashed by shareholders, this moribund REIT, also externally-managed by RMR Group, has been focusing on refinancing and asset sales in an effort to turn itself around.</p>



<p>Unfortunately, the odds may be stacked against an OPI stock comeback. As I&rsquo;ve pointed out before, many factors point to a further deterioration of Office Properties Income Trust&rsquo;s fiscal performance. These factors include not only the overarching office space demand trends, but also <a href="https://investorplace.com/2024/03/its-time-7-pitiful-penny-stocks-to-sell-right-now/">a tsunami of upcoming lease expirations</a>.</p>



<p>Add in the fact that this REIT, like Diversified Healthcare Trust, has cut its quarterly dividend down to a penny per share, giving it a paltry forward yield of just 2.04%, there&rsquo;s zero reason to waste your time (or risk your capital) on OPI shares.</p>



<h2>Paramount Group (PGRE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/reit1600e-300x169.jpg" alt="a person in a suit holds a tiny house to represent reits to buy"><div>Source: Shutterstock</div></div><p><strong>Paramount Group</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/pgre-stock-quote/"><strong>PGRE</strong></a>) is essentially a smaller version of Boston Properties, except with greater concentration in the New York and San Francisco office building markets.</p>



<p>Yes, PGRE stock has already crashed, due to high-profile lease expiration news. </p>



<p>For instance, this office REIT had the misfortune of being a landlord for <a href="https://www.costar.com/article/1635238715/paramount-group-expects-hit-on-profits-from-leases-with-pair-of-failed-banks">not one, but two</a> of the banks that failed during the 2023 regional banking crisis. Following PGRE&rsquo;s slide into &ldquo;penny stock territory&rdquo; (under $5 per share), the stock is arguably now trading at a fire sale price.</p>



<p>However, in 2025 and 2026, <a href="https://s28.q4cdn.com/314435393/files/doc_presentation/2024/PGRE-Investor-Presentation-February-2024.pdf">leases covering a quarter of its total portfolio square footage expire</a>. The REIT is having success finding new tenants, but at lower rents. </p>



<p>Analysts anticipate continued declines in PGRE&rsquo;s funds from operations next year (<a href="https://seekingalpha.com/symbol/PGRE/earnings">from 74 cents to 64 cents per share</a>). Until this trend reverses, shares are at risk of a continued slide in price.</p>



<p><em>On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com </em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>.</em></p>
<div><p>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/03/7-reits-to-sell-in-march-before-they-crash-burn/">7 REITs to Sell in March Before They Crash &amp; Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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<p>There are three REITs to sell in April before the worst comes to worst. These REITs are risky as they are facing significant headwinds in the current economic environment.</p>



<p>Many REITs are struggling with high levels of debt on their balance sheets. As economic conditions have deteriorated, their cash flows have come under immense pressure, making it challenging to service these debts. The shift towards remote work and the ongoing challenges facing brick-and-mortar retail have led to high vacancy rates and reduced rental income for these REITs.</p>



<p>Additionally, these REITs are facing increasingly competitive positions in their respective markets. New supply of commercial real estate, whether it be office buildings, shopping malls, or hotels, is adding pressure and making it harder for these REITs to maintain occupancy and rental rates.</p>



<p>Investors should pay close attention to the REITs to sell in April and also reconsider their investments in these companies. I feel that the worst has yet to come for them.</p>



<h2>Orion Office REIT (ONL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/office-1600-300x169.png" alt="Group of colleagues discuss something in an office conference room. commercial real estate"><div>Source: GaudiLab / Shutterstock</div></div><p><strong>Orion Office REIT</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/onl-stock-quote/"><strong>ONL</strong></a>) is grappling with high debt levels and significant asset dispositions, which raise concerns about its long-term financial stability.</p>



<p>In 2023, ONL <a href="https://finance.yahoo.com/news/orion-office-reit-inc-reports-220257649.html">experienced a decrease in total revenues</a>, from $208.1 million in 2022 to $195 million. Core Funds from Operations (FFO) declined to $94.8 million, or $1.68 per share, from $108.2 million, or $1.91 per share in 2022.</p>



<p>For 2024, ONL <a href="https://finance.yahoo.com/news/orion-office-reit-inc-reports-220257649.html">provided guidance estimates</a> with a Core FFO per share range of $0.93 to $1.01 and general and administrative expenses between $19.5 million and $20.5 million. The net debt to adjusted EBITDA ratio is anticipated to be between 6.2x to 7.0x.</p>



<p>However, even if ONL is able to meet its guidance, these numbers put the company in a precariously leveraged situation financially. This in turn might be enough for investors to question whether it&rsquo;s smart to invest funds in ONL.</p>



<h2>Hudson Pacific Properties (HPP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/01/real-estate-stocks-keys-city-1600-300x169.jpg" alt="hand of person in a suit dangling keys with a house symbol on the ring. Windows overlooking city skyline in background."><div>Source: ImageFlow/shutterstock.com</div></div><p><strong>Hudson Pacific Properties</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hpp-stock-quote/"><strong>HPP</strong></a>) is facing financial challenges with declining revenues and increased operating costs.</p>



<p>The company&rsquo;s FFO <a href="https://finance.yahoo.com/news/hudson-pacific-properties-inc-reports-223434355.html">dropped to $19.6 million or $0.14 per diluted share</a>, down from $70.2 million or $0.49 in the previous year. Adjusted Funds From Operations (AFFO) also declined to $21.5 million or $0.15 per diluted share. Looking ahead to 2024, HPP has set its FFO guidance between $1.00 and $1.10 per diluted share.</p>



<p>Although the company&rsquo;s futures in the very short-term could be looking up via positive guidance from management, some credit rating agencies have taken an alternative view, and could see it as a risky investment.</p>



<p>For example,Fitch Ratings has affirmed <a href="https://www.marketscreener.com/quote/stock/HUDSON-PACIFIC-PROPERTIES-6337610/news/Fitch-Affirms-Hudson-Pacific-Properties-IDR-at-BBB-Outlook-Revised-to-Negative-44299169/">HPP&rsquo;s Issuer Default Rating</a> (<a href="https://investorplace.com/stock-quotes/idr-stock-quote/"><strong>IDR</strong></a>) at &lsquo;BBB-&lsquo;, with a preferred stock rating at &lsquo;BB&rsquo;. However, the rating outlook was revised to negative from stable.</p>



<p>HPP then could be one of those risky REITs to avoid, especially as there are much better options out there on the market.</p>



<h2>Global Net Lease (GNL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/reit_housing_down_1600-300x169.png" alt="wooden houses, small business and arrow down, mortgage crisis, refinance home loan, property prices falling, financial meltdown, economy collapse and crash. Stocks to sell housing crash"><div>Source: SewCream / Shutterstock.com</div></div><p>The challenges for <strong>Global Net Lease</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/gnl-stock-quote/"><strong>GNL</strong></a>) include a negative AFFO growth and declining dividend trend. For example, the REIT&rsquo;s dividend growth rate is a negative 13% at the time of writing, while its dividend yield sits at an unsustainable (relative to earnings) 13%.</p>



<p>Things looked bad for the fourth quarter. The <a href="https://www.globenewswire.com/news-release/2024/02/27/2836478/0/en/Global-Net-Lease-Reports-Fourth-Quarter-2023-Results.html">company reported revenue of $206.7 million</a>, with a net loss of $59.5 million, or $0.26 per diluted share. The net operating income (NOI) stood at $169.7 million, while FFO were $48.3 million.</p>



<p>There is also some liquidity and long-term concerns around its debt. It has 5 billion in debt and just over 162 million in cash and cash equivalents. Since it&rsquo;s already highly leveraged, its shares outstanding have risen over 30% year-over-year, in an apparent bid to shore up liquidity.</p>



<p>I don&rsquo;t see a way out for GNL to continue its unsustainable dividend with that large amount of debt, which makes it one of those REITs to sell before the worst comes to worst.&nbsp;</p>



<p><em>On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> </em>InvestorPlace.com Publishing Guidelines</a>.</p>
<div><p>Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-reits-to-sell-in-april-before-they-crash-burn/">3 REITs to Sell in April Before They Crash &amp; Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

3 REITs to Sell in April Before They Crash & Burn

ACRE

ASPS

BEKE

CATO

CLPR

CMTG

EXPI

LSEA

NEWT

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Orion Office REIT Inc. Announces Fourth Quarter and Full Year 2023 Results

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