Japan Prime Realty Investment (OTCPK:JPRRF) 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
Japan Prime Realty Investment had a gross margin of 57.15% for the quarter that ended in Dec. 2025 => 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.
Japan Prime Realty Investment Gross Margin % Related Terms
Japan Prime Realty Investment 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.
Japan Prime Realty Investment Gross Margin % Chart
For the REIT - Diversified subindustry, Japan Prime Realty Investment'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.
Japan Prime Realty Investment Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Prime Realty Investment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Prime Realty Investment's Gross Margin % 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.
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.
Japan Prime Realty Investment (JPRRF) has a Gross Margin % of 57.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Prime Realty Investment and its competitors. This is near median its historical median of 54.43. Over the past decade, Japan Prime Realty Investment's Gross Margin % has ranged from 52.79 to 58.14. According to the industry distribution chart, Japan Prime Realty Investment ranks #506 out of 680 companies in the REITs industry, placing it in the top 74.4%.
Is Japan Prime Realty Investment's Gross Margin % too high?
Japan Prime Realty Investment's current Gross Margin % of 57.15% is near median its 10-year median of 54.43. Over the past 10 years, this metric has ranged from a low of 52.79 to a high of 58.14. The REITs industry median Gross Margin % is 69.61. Japan Prime Realty Investment's value of 57.15% is 17.9% below this industry median. Based on the distribution chart, Japan Prime Realty Investment ranks #506 out of 680 companies in the REITs industry, which is below the industry midpoint. Overall, Japan Prime Realty Investment has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Japan Prime Realty Investment's Gross Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Japan Prime Realty Investment ranks #506 out of 680 companies for Gross Margin %. This places Japan Prime Realty Investment in the lower half of its industry. The industry median Gross Margin % is 69.61. Japan Prime Realty Investment's value of 57.15% is 17.9% below this benchmark. Historically, Japan Prime Realty Investment's own Gross Margin % has ranged from 52.79 to 58.14 over the past decade. While the company's 10-year median is 54.43 vs. the industry median of 69.61, Japan Prime Realty Investment has consistently been below 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 69.61, 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. Japan Prime Realty Investment's current Gross Margin % of 57.15% is 17.9% below 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 Japan Prime Realty Investment and its competitors. For the REITs industry, the median Gross Margin % is 69.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Prime Realty Investment's current Gross Margin % is 57.15%, which is near median its own 10-year median of 54.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Prime Realty Investment stock overvalued right now?
Japan Prime Realty Investment (JPRRF) has a current Gross Margin % of 57.15%. The stock's GF Value™ is $592.26, compared to a current price of $614.57 — trading 3.8% above its estimated fair value. The current Gross Margin % is 57.15%, which is near median its 10-year median of 54.43 and 17.9% below the REITs industry median of 69.61. Japan Prime Realty Investment's overall GF Score™ is 70/100 with 4 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 Japan Prime Realty Investment (JPRRF), the current Gross Margin % is 57.15% as of Dec. 2025. 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 Japan Prime Realty Investment (JPRRF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Prime Realty Investment stock appears to be overvalued.
The current stock price of $614.57 is trading 3.8% above its estimated GF Value™ of $592.26.
Key valuation signals for JPRRF:
Gross Margin %: 57.15% (near median its 10-year median of 54.43)
GF Value™: $592.26 vs. price of $614.57 (3.8% above fair value)
Industry Position: 17.9% below the REITs median (#506 of 680)
No single metric tells the full story. See the JPRRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Prime Realty Investment Business Description
Japan Prime Realty Investment Corporation, or JPR, is a Japanese real estate investment trust involved in the ownership of properties in the Greater Tokyo region. The majority of JPR's real estate portfolio is comprised of office buildings, with retail properties making up the rest of the company's holdings. The vast majority of JPR's assets are in the Tokyo metropolitan area, which are mostly concentrated in Central Tokyo. The company generates nearly all of its revenue through collecting funds from investors, investing that money into real estate properties, and then collecting rental income from those properties. Its collection of tenants is fairly evenly distributed among service, information and communication, manufacturing, finance, retail, and real estate companies.
70GF Score
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