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
Industrial Logistics Properties Trust had a gross margin of 86.24% for the quarter that ended in Mar. 2026 => 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.
Industrial Logistics Properties Trust Gross Margin % Related Terms
Industrial Logistics Properties Trust Gross Margin % 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.
For the REIT - Industrial subindustry, Industrial Logistics Properties Trust'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.
Industrial Logistics Properties Trust Gross Margin % vs REITs Industry
* 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.
Industrial Logistics Properties Trust (ILPT) has a Gross Margin % of 86.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Industrial Logistics Properties Trust and its competitors. This is near median its historical median of 86.52. Over the past decade, Industrial Logistics Properties Trust's Gross Margin % has ranged from 85.86 to 88.78. According to the industry distribution chart, Industrial Logistics Properties Trust ranks #148 out of 680 companies in the REITs industry, placing it in the top 21.8%.
Is Industrial Logistics Properties Trust's Gross Margin % too high?
Industrial Logistics Properties Trust's current Gross Margin % of 86.24% is near median its 10-year median of 86.52. Over the past 10 years, this metric has ranged from a low of 85.86 to a high of 88.78. The REITs industry median Gross Margin % is 69.71. Industrial Logistics Properties Trust's value of 86.24% is 23.7% above this industry median. Based on the distribution chart, Industrial Logistics Properties Trust ranks #148 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Industrial Logistics Properties Trust has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Industrial Logistics Properties Trust's Gross Margin % compare to MDV and IIPR?
According to the REITs industry distribution chart, Industrial Logistics Properties Trust ranks #148 out of 680 companies for Gross Margin %. This places Industrial Logistics Properties Trust in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.71. Industrial Logistics Properties Trust's value of 86.24% is 23.7% above this benchmark. Historically, Industrial Logistics Properties Trust's own Gross Margin % has ranged from 85.86 to 88.78 over the past decade. While the company's 10-year median is 86.52 vs. the industry median of 69.71, Industrial Logistics Properties Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Industrial Logistics Properties Trust's current Gross Margin % of 86.24% is 23.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Industrial Logistics Properties Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Industrial Logistics Properties Trust's current Gross Margin % is 86.24%, which is near median its own 10-year median of 86.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industrial Logistics Properties Trust stock overvalued right now?
Based on GuruFocus' analysis, Industrial Logistics Properties Trust (ILPT) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.21, compared to a current price of $9.28 — trading 120.3% above its estimated fair value. The current Gross Margin % is 86.24%, which is near median its 10-year median of 86.52 and 23.7% above the REITs industry median of 69.71. Industrial Logistics Properties Trust's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Industrial Logistics Properties Trust (ILPT), the current Gross Margin % is 86.24% 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 Industrial Logistics Properties Trust (ILPT) Overvalued in 2026?
Based on GuruFocus' analysis, Industrial Logistics Properties Trust stock appears to be overvalued.
The current stock price of $9.28 is trading 120.3% above its estimated GF Value™ of $4.21.
GuruFocus considers Industrial Logistics Properties Trust to be Significantly Overvalued.
Key valuation signals for ILPT:
Gross Margin %: 86.24% (near median its 10-year median of 86.52)
GF Value™: $4.21 vs. price of $9.28 (120.3% above fair value)
Industry Position: 23.7% above the REITs median (#148 of 680)
No single metric tells the full story. See the ILPT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Industrial Logistics Properties Trust Business Description
Industrial Logistics Properties Trust is a real estate investment trust. It owns and leases industrial and logistics properties throughout the United States. The company's investment portfolio includes industrial lands in Hawaii and industrial and logistics properties in other states. Rental revenue is earned from Hawaii Properties and Mainland Properties.
72GF Score
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