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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Arena REIT's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 8.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Arena REIT's Degree of Operating Leverage or its related term are showing as below:
ASX:ARF's Degree of Operating Leverage is ranked worse than 82.29% of 706
companies
in the REITs industry
Industry Median: 1.21
vs ASX:ARF: 8.71
Arena REIT (ASX:ARF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Arena REIT Degree of Operating Leverage Related Terms
Arena REIT Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Arena REIT's Degree of Operating Leverage 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.
ASX:ARF vs EQIX, AMT, DLR: Degree of Operating Leverage Comparison
For the REIT - Specialty subindustry, Arena REIT's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Arena REIT Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Arena REIT's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Arena REIT's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 8.71 mean?
Arena REIT (ASX:ARF) has a Degree of Operating Leverage of 8.71 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Arena REIT and its competitors. According to the industry distribution chart, Arena REIT ranks #581 out of 706 companies in the REITs industry, placing it in the top 82.3%.
Is Arena REIT's Degree of Operating Leverage too high?
Arena REIT's current Degree of Operating Leverage is 8.71. The REITs industry median Degree of Operating Leverage is 1.21. Arena REIT's value of 8.71 is 619.8% above this industry median. Based on the distribution chart, Arena REIT ranks #581 out of 706 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Arena REIT has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arena REIT's Degree of Operating Leverage compare to EQIX and AMT?
According to the REITs industry distribution chart, Arena REIT ranks #581 out of 706 companies for Degree of Operating Leverage. This places Arena REIT in the lower half of its industry. The industry median Degree of Operating Leverage is 1.21. Arena REIT's value of 8.71 is 619.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a REITs company?
The median Degree of Operating Leverage among REITs companies is 1.21, based on 706 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arena REIT's current Degree of Operating Leverage of 8.71 is 619.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Arena REIT and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arena REIT's current Degree of Operating Leverage is 8.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arena REIT stock overvalued right now?
Based on GuruFocus' analysis, Arena REIT (ASX:ARF) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.81, compared to a current price of A$2.15 — trading 43.6% below its estimated fair value. The current Degree of Operating Leverage is 8.71 and 619.8% above the REITs industry median of 1.21. Arena REIT's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Arena REIT (ASX:ARF), the current Degree of Operating Leverage is 8.71 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arena REIT (ASX:ARF) Overvalued in 2026?
Based on GuruFocus' analysis, Arena REIT stock appears to be undervalued.
The current stock price of A$2.15 is trading 43.6% below its estimated GF Value™ of A$3.81.
GuruFocus considers Arena REIT to be Possible Value Trap.
Key valuation signals for ASX:ARF:
Degree of Operating Leverage: 8.71
GF Value™: A$3.81 vs. price of A$2.15 (43.6% below fair value)
Industry Position: 619.8% above the REITs median (#581 of 706)
No single metric tells the full story. See the ASX:ARF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arena REIT is an internally managed Australian property trust. The REIT specializes in leasing social infrastructure properties, with close to 300 childcare centers and about a dozen healthcare facilities in its portfolio. Typically, tenants enter into long-term leases with inflation-linked or fixed rental escalations every year. All leases are "triple net," meaning tenants pay for all statutory and operating outgoings and costs, such as land tax, insurance, electricity, and maintenance. The tenant profile is concentrated—almost three quarters of rents are generated from the top five tenants. Arena actively grows its property book through acquisitions and developments, and historically added on average 10 sites, net of divestments, per year.
75GF Score
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