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Orion Office REIT (ONL) *Realty Income Spin-Off*
02-05-2022, 07:09 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,553
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Orion Office REIT (ONL) *Realty Income Spin-Off*
It's been a brutal start.
Shares were issued on November 15 @ $21.30
Currently trading @ $16.60 -22.07%
A couple people on the message board speculate that once they announce the dividend, shares will recover. I sure hope so. As I understand it, it will end up being a taxable transaction & mine are held in a taxable account.
Any thoughts on Orion ?
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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02-05-2022, 09:11 PM
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#2
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gone traveling
Join Date: Aug 2020
Posts: 682
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Office space is challenged with the remote working phenomenon. It will take some time (years) to find the new normal in office space demand.
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02-06-2022, 07:09 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,607
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Don't hold REITS in a taxable account!!
VW
__________________
Retired May 13th(Friday) 2016 at age 61.
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02-06-2022, 07:59 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,545
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2 Thoughts
1. Spins usually sell off in the early going as people dump them and no one knows to buy. Not sure anything about this REIT but it is a familiar pattern.
2. Holding REITS in taxable is not a bad idea as it allows you to take advantage of the QBI deduction.
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02-06-2022, 09:29 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 1,246
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Sorry, I guess this won't help you now, but I dumped ONL shortly after the spin off. Figured Reality Income knew what they were doing.
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02-06-2022, 10:36 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,686
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Quote:
Originally Posted by misanman
Sorry, I guess this won't help you now, but I dumped ONL shortly after the spin off. Figured Reality Income knew what they were doing.
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Ditto.
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02-06-2022, 03:25 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,553
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Quote:
Originally Posted by VanWinkle
Don't hold REITS in a taxable account!!
VW
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That wasn't the question.......try to keep up.
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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02-06-2022, 03:34 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,686
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This struck me as unusual. The Virginia Retirement System has ONL as its 2nd largest position.
https://finance.yahoo.com/news/virgi...183815762.html
I don't really know how to evaluate that as positive or negative. Time will tell.
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02-06-2022, 03:53 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,553
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Quote:
Originally Posted by target2019
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Interesting.
Thanks
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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02-06-2022, 04:01 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,607
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Quote:
Originally Posted by ownyourfuture
That wasn't the question.......try to keep up.
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My mistake.....
__________________
Retired May 13th(Friday) 2016 at age 61.
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02-28-2022, 09:58 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,607
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Quote:
Originally Posted by Montecfo
2 Thoughts
1. Spins usually sell off in the early going as people dump them and no one knows to buy. Not sure anything about this REIT but it is a familiar pattern.
2. Holding REITS in taxable is not a bad idea as it allows you to take advantage of the QBI deduction.
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From Morningstar:
REITs and REIT funds: Real estate investment trusts are a poor fit for taxable accounts for the reason that I just mentioned. Their income tends to be high and often composes a big share of the returns investors earn from them, as REITs must pay out a minimum of 90% of their taxable income in dividends each year. Moreover, their dividends typically count as nonqualified, meaning that they're taxed at higher ordinary income tax rates versus the lower tax rates that apply to qualified dividends.
__________________
Retired May 13th(Friday) 2016 at age 61.
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02-28-2022, 10:53 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,545
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Quote:
Originally Posted by VanWinkle
From Morningstar:
REITs and REIT funds: Real estate investment trusts are a poor fit for taxable accounts for the reason that I just mentioned. Their income tends to be high and often composes a big share of the returns investors earn from them, as REITs must pay out a minimum of 90% of their taxable income in dividends each year. Moreover, their dividends typically count as nonqualified, meaning that they're taxed at higher ordinary income tax rates versus the lower tax rates that apply to qualified dividends.
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I noticed no discussion of the forever lost QBI deduction. That would be a very good reason to own in a taxable account. So this blurb appears not to reflect the latest law changes. Also not mentioned: REITS that I own have generated large capital gains which are tax favored outside of tax deferred accounts.
But of course the OP never asked for advice on where to hold.
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02-28-2022, 11:05 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,545
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To the OP: Some further thoughts.
This is a net lease REIT with high profile high quality tenants. It collected 99 percent of rents during the pandemic.
The stock appears to be cheap on an absolute basis and relative to peers. As noted it sold off post-spin and appears to have little to no Wall Street following.
I do find it interesting personally, but suggest you do your own research, talk to your investment advisor, etc.
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03-28-2022, 06:55 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,553
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Things definitely haven't improved. It closed at $14.53 today, down 29% since the spin off. Luckily for me, I only received 43 shares, which amount to 0.06% of my portfolio. I'm just going to let it ride.
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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03-28-2022, 08:08 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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I put in an order before the market opened today. I only had a few shares. I’m generally satisfied with the whole Vereit experience. It was fun watching the new CEO brinng the company back after prior CEO’s scandal. It did feel like they sold out to O when they were just about to score and spike the ball. They knew what they were doing when they segregated the ONL assets.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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