GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Highlands REIT Inc (OTCPK:HHDS) » Definitions » Gross Margin %

Highlands REIT (Highlands REIT) Gross Margin % : 57.99% (As of Dec. 2023)


View and export this data going back to 2016. Start your Free Trial

What is Highlands REIT Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Highlands REIT's Gross Profit for the three months ended in Dec. 2023 was $4.52 Mil. Highlands REIT's Revenue for the three months ended in Dec. 2023 was $7.80 Mil. Therefore, Highlands REIT's Gross Margin % for the quarter that ended in Dec. 2023 was 57.99%.

Warning Sign:

Highlands REIT Inc gross margin has been in long-term decline. The average rate of decline per year is -4.6%.


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

HHDS' s Gross Margin % Range Over the Past 10 Years
Min: 49.1   Med: 65.87   Max: 90.41
Current: 53.96


During the past 10 years, the highest Gross Margin % of Highlands REIT was 90.41%. The lowest was 49.10%. And the median was 65.87%.

HHDS's Gross Margin % is ranked worse than
80.91% of 634 companies
in the REITs industry
Industry Median: 68.745 vs HHDS: 53.96

Highlands REIT had a gross margin of 57.99% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Highlands REIT was -4.60% per year.


Highlands REIT Gross Margin % Historical Data

The historical data trend for Highlands REIT'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.

Highlands REIT Gross Margin % Chart

Highlands REIT 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 64.72 49.10 51.96 54.10 53.96

Highlands REIT Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 50.24 52.84 52.69 52.29 57.99

Competitive Comparison of Highlands REIT's Gross Margin %

For the REIT - Diversified subindustry, Highlands REIT'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.


Highlands REIT's Gross Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Highlands REIT's Gross Margin % falls into.



Highlands REIT Gross Margin % Calculation

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

Highlands REIT'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 )
=16.7 / 30.981
=(Revenue - Cost of Goods Sold) / Revenue
=(30.981 - 14.263) / 30.981
=53.96 %

Highlands REIT'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 / 7.796
=(Revenue - Cost of Goods Sold) / Revenue
=(7.796 - 3.275) / 7.796
=57.99 %

* 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.


Highlands REIT  (OTCPK:HHDS) 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

Highlands REIT had a gross margin of 57.99% 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.


Highlands REIT Gross Margin % Related Terms

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


Highlands REIT (Highlands REIT) Business Description

Traded in Other Exchanges
N/A
Address
1 South Dearborn Street, 20th Floor, Chicago, IL, USA, 60603
Highlands REIT Inc is an independent, self-advised, non-traded real estate investment trust. The company's portfolio consists of office, industrial, retail and apartment assets, correctional facility, and unimproved land. Its business activities are operated through two business segments namely Multi-family and other. The company generates maximum revenue from the Multi-family segment.
Executives
Kimberly A Karas officer: See Remarks 1 SOUTH DEARBORN STREET, 20TH FLOOR, CHICAGO IL 60603
Jeffrey L. Shekell director 1 SOUTH DEARBORN STREET, 20TH FLOOR, CHICAGO IL 60603
Robert J. Lange officer: See Remarks 1 SOUTH DEARBORN STREET, 20TH FLOOR, CHICAGO IL 60603
Paul A. Melkus director 332 S MICHIGAN AVENUE, NINTH FLOOR, CHICAGO IL 60604
R. David Turner director 1 SOUTH DEARBORN STREET, 20TH FLOOR, CHICAGO IL 60603
Inventrust Properties Corp. 10 percent owner 3025 HIGHLAND PARKWAY SUITE 350, DOWNERS GROVE IL 60515
Richard Vance director, officer: See Remarks 1 SOUTH DEARBORN STREET, 20TH FLOOR, CHICAGO IL 60603
Joseph M. Giannini officer: See Remarks 332 S MICHIGAN AVENUE, NINTH FLOOR, CHICAGO IL 60604

Highlands REIT (Highlands REIT) Headlines

No Headlines