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Real Estate Investors (LSE:RLE) Gross Margin % : 82.65% (As of Dec. 2023)


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What is Real Estate Investors Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Real Estate Investors's Gross Profit for the six months ended in Dec. 2023 was £4.51 Mil. Real Estate Investors's Revenue for the six months ended in Dec. 2023 was £5.46 Mil. Therefore, Real Estate Investors's Gross Margin % for the quarter that ended in Dec. 2023 was 82.65%.

Warning Sign:

Real Estate Investors PLC gross margin has been in long-term decline. The average rate of decline per year is -3%.


The historical rank and industry rank for Real Estate Investors's Gross Margin % or its related term are showing as below:

LSE:RLE' s Gross Margin % Range Over the Past 10 Years
Min: 69.41   Med: 85.25   Max: 91.49
Current: 80.61


During the past 13 years, the highest Gross Margin % of Real Estate Investors was 91.49%. The lowest was 69.41%. And the median was 85.25%.

LSE:RLE's Gross Margin % is ranked better than
72.61% of 628 companies
in the REITs industry
Industry Median: 68.865 vs LSE:RLE: 80.61

Real Estate Investors had a gross margin of 82.65% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Real Estate Investors was -3.00% per year.


Real Estate Investors Gross Margin % Historical Data

The historical data trend for Real Estate Investors's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Real Estate Investors Gross Margin % Chart

Real Estate Investors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 91.05 91.49 79.16 81.28 80.61

Real Estate Investors Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.56 83.67 78.48 78.78 82.65

Competitive Comparison of Real Estate Investors's Gross Margin %

For the REIT - Diversified subindustry, Real Estate Investors's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Real Estate Investors's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Real Estate Investors's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Real Estate Investors's Gross Margin % falls into.



Real Estate Investors Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Real Estate Investors's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=9.3 / 11.513
=(Revenue - Cost of Goods Sold) / Revenue
=(11.513 - 2.232) / 11.513
=80.61 %

Real Estate Investors's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=4.5 / 5.457
=(Revenue - Cost of Goods Sold) / Revenue
=(5.457 - 0.947) / 5.457
=82.65 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Real Estate Investors  (LSE:RLE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Real Estate Investors had a gross margin of 82.65% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Real Estate Investors Gross Margin % Related Terms

Thank you for viewing the detailed overview of Real Estate Investors's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Real Estate Investors (LSE:RLE) Business Description

Traded in Other Exchanges
Address
75-77 Colmore Row, 2nd Floor, Birmingham, GBR, B3 2AP
Real Estate Investors PLC operates as a real estate investment trust in the United Kingdom. The property investment firm has interests in commercial and residential properties throughout the country. Its portfolio is diversified by property type and tenant, with a mix of office, retail, and residential assets. The company invests in well located, real estate assets in the established and markets of central Birmingham and the Midlands. Its source of income is in the form of rents derived from retail, office and residential land and property, new lettings, rent reviews, lease renewals, refurbishment, change of use and planning gains. It has a range of occupiers from national and regional multiple retailers to government and corporate office occupiers.

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