Realty Income Corp. (O) recently completed a merger with VEREIT. After the merger, O spun the office building portion of the REIT into a new entity named Orion Office REIT Inc. (ONL). Shareholders of O received 1 share of ONL for every 10 shares of O.
As stated above, ONL is an office REIT. This space does look overly attractive to me. The recent surge in work from home for many has reduced the need for office space. This space should rebound some in the near term, but for the long term it could be a struggle to thrive in this space.
In my case, I received 5 shares of ONL. This amounts to a little over $100 of “free” stock that I received. This is a very small part of my portfolio. I will be selling my shares of ONL. I am not excited about the sector it is in. I have a lot of exposure to REITs already in my portfolio. I do not want to add another position for me to monitor.
ONL may turn out to be a fine investment over the long term, but for me it just does not make sense at this time. It does not fit into my investing plan. I feel I could make better use of the money by investing it elsewhere. What are your thoughts on ONL? Do you plan to hold or sell?
On a side note, I have added a Recommended Resources in the menu. It currently is a work in progress. It will contain blogs and YouTube channels that I enjoy as well as some sites that I use. I hope you take the time to check it out.
*Disclaimer – I am not a financial professional. The information shared here should not be considered financial advice. I am just a factory worker sharing my experience as I strive to achieve financial freedom. Before investing or making any financial decision do your own research and due diligence or consider seeking the advice of a financial and/or tax professional.
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3 thoughts on “Thoughts on the Realty Income Corp Spinoff”
I plan on selling mine eventually as I don’t plan on adding to it so it makes sense to me to sell it