Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Orix Jreit's Degree of Operating Leverage for the quarter that ended in Feb. 2026 was 1.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Orix Jreit's Degree of Operating Leverage or its related term are showing as below:
FRA:O2F's Degree of Operating Leverage is ranked worse than 53.74% of 722
companies
in the REITs industry
Industry Median: 1.24
vs FRA:O2F: 1.51
Orix Jreit (FRA:O2F) 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.
Orix Jreit Degree of Operating Leverage Related Terms
Orix Jreit Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Orix Jreit'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.
FRA:O2F vs BXP, ARE, VNO: Degree of Operating Leverage Comparison
For the REIT - Office subindustry, Orix Jreit'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.
Orix Jreit Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Orix Jreit's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Orix Jreit'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 1.51 mean?
Orix Jreit (FRA:O2F) has a Degree of Operating Leverage of 1.51 as of Feb. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Orix Jreit and its competitors. According to the industry distribution chart, Orix Jreit ranks #388 out of 722 companies in the REITs industry, placing it in the top 53.7%.
Is Orix Jreit's Degree of Operating Leverage too high?
Orix Jreit's current Degree of Operating Leverage is 1.51. The REITs industry median Degree of Operating Leverage is 1.24. Orix Jreit's value of 1.51 is 21.8% above this industry median. Based on the distribution chart, Orix Jreit ranks #388 out of 722 companies in the REITs industry, which is below the industry midpoint. Overall, Orix Jreit has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Orix Jreit's Degree of Operating Leverage compare to BXP and ARE?
According to the REITs industry distribution chart, Orix Jreit ranks #388 out of 722 companies for Degree of Operating Leverage. This places Orix Jreit in the lower half of its industry. The industry median Degree of Operating Leverage is 1.24. Orix Jreit's value of 1.51 is 21.8% 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 1.24, based on 722 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. Orix Jreit's current Degree of Operating Leverage of 1.51 is 21.8% 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 Orix Jreit and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orix Jreit's current Degree of Operating Leverage is 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orix Jreit stock overvalued right now?
Orix Jreit (FRA:O2F) has a current Degree of Operating Leverage of 1.51. The stock's GF Value™ is €527.32, compared to a current price of €510.00 — trading 3.3% below its estimated fair value. The current Degree of Operating Leverage is 1.51 and 21.8% above the REITs industry median of 1.24. Orix Jreit's overall GF Score™ is 65/100 with 8 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 Orix Jreit (FRA:O2F), the current Degree of Operating Leverage is 1.51 as of Feb. 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 Orix Jreit (FRA:O2F) Overvalued in 2026?
Based on GuruFocus' analysis, Orix Jreit stock appears to be undervalued.
The current stock price of €510.00 is trading 3.3% below its estimated GF Value™ of €527.32.
Key valuation signals for FRA:O2F:
Degree of Operating Leverage: 1.51
GF Value™: €527.32 vs. price of €510.00 (3.3% below fair value)
Industry Position: 21.8% above the REITs median (#388 of 722)
No single metric tells the full story. See the FRA:O2F stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orix Jreit Inc is a real estate investment trust engaged in the acquisition, ownership, and leasing of properties throughout Japan. In terms of asset acquisition price, the majority of the company's real estate portfolio comprises office buildings. Retail facilities and residential properties together also make up a considerable percentage of this portfolio. Orix JREIT's real estate assets are mostly located in the Greater Tokyo area, with those in the Central Wards of Tokyo representing the geographic segment in terms of property acquisition price. The company derives nearly all of its income in the form of rental revenue from tenants.
65GF Score
Get the complete analysis for FRA:O2F
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:O2F has been successfully added to your 
