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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Link Real Estate Investment Trust's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 14.10. The higher Degree of Operating Leverage, the higher operating risk the company will take.
Link Real Estate Investment Trust (OTCPK:LKREF) 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.
Link Real Estate Investment Trust Degree of Operating Leverage Related Terms
Link Real Estate Investment Trust Degree of Operating Leverage Historical Data
* 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.
Link Real Estate Investment Trust Degree of Operating Leverage Chart
LKREF vs SPG, O, KIM: Degree of Operating Leverage Comparison
For the REIT - Retail subindustry, Link Real Estate Investment Trust'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.
Link Real Estate Investment Trust Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Link Real Estate Investment Trust's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Link Real Estate Investment Trust'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 14.10 mean?
Link Real Estate Investment Trust (LKREF) has a Degree of Operating Leverage of 14.10 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Link Real Estate Investment Trust and its competitors. According to the industry distribution chart, Link Real Estate Investment Trust ranks #607 out of 701 companies in the REITs industry, placing it in the top 86.6%.
Is Link Real Estate Investment Trust's Degree of Operating Leverage too high?
Link Real Estate Investment Trust's current Degree of Operating Leverage is 14.10. The REITs industry median Degree of Operating Leverage is 1.26. Link Real Estate Investment Trust's value of 14.10 is 1019% above this industry median. Based on the distribution chart, Link Real Estate Investment Trust ranks #607 out of 701 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Link Real Estate Investment Trust has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Link Real Estate Investment Trust's Degree of Operating Leverage compare to SPG and O?
According to the REITs industry distribution chart, Link Real Estate Investment Trust ranks #607 out of 701 companies for Degree of Operating Leverage. This places Link Real Estate Investment Trust in the lower half of its industry. The industry median Degree of Operating Leverage is 1.26. Link Real Estate Investment Trust's value of 14.10 is 1019% 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 1.26, based on 701 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. Link Real Estate Investment Trust's current Degree of Operating Leverage of 14.10 is 1019% 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 Link Real Estate Investment Trust and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Link Real Estate Investment Trust's current Degree of Operating Leverage is 14.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Link Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Link Real Estate Investment Trust (LKREF) is currently considered Fairly Valued. The stock's GF Value™ is $4.83, compared to a current price of $4.95 — trading 2.5% above its estimated fair value. The current Degree of Operating Leverage is 14.10 and 1019% above the REITs industry median of 1.26. Link Real Estate Investment Trust's overall GF Score™ is 67/100 with 7 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 Link Real Estate Investment Trust (LKREF), the current Degree of Operating Leverage is 14.10 as of Mar. 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 Link Real Estate Investment Trust (LKREF) Overvalued in 2026?
Based on GuruFocus' analysis, Link Real Estate Investment Trust stock appears to be overvalued.
The current stock price of $4.95 is trading 2.5% above its estimated GF Value™ of $4.83.
GuruFocus considers Link Real Estate Investment Trust to be Fairly Valued.
Key valuation signals for LKREF:
Degree of Operating Leverage: 14.10
GF Value™: $4.83 vs. price of $4.95 (2.5% above fair value)
Industry Position: 1019% above the REITs median (#607 of 701)
No single metric tells the full story. See the LKREF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Link REIT is Asia's largest REIT, listed in 2005 to privatize retail assets held by the Hong Kong Housing Authority. It owns 154 properties and around 57,000 car park spaces. It expanded its investment mandate in 2014 to allow overseas acquisitions, and has since acquired retail, office, and logistics properties in China, as well as an office development project in Hong Kong. Link also expanded its footprint to Sydney, Melbourne, London, and Singapore.
67GF Score
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