Japan Real Estate Investment (OTCPK:JREIF) 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 Real Estate Investment had a gross margin of 54.49% 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.
Japan Real Estate Investment Gross Margin % Related Terms
Japan Real Estate 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.
For the REIT - Office subindustry, Japan Real Estate 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 Real Estate Investment Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Real Estate Investment's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Japan Real Estate 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 Real Estate Investment (JREIF) has a Gross Margin % of 54.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Japan Real Estate Investment and its competitors. This is near median its historical median of 52.27. Over the past decade, Japan Real Estate Investment's Gross Margin % has ranged from 44.54 to 54.77. According to the industry distribution chart, Japan Real Estate Investment ranks #551 out of 681 companies in the REITs industry, placing it in the top 80.9%.
Is Japan Real Estate Investment's Gross Margin % too high?
Japan Real Estate Investment's current Gross Margin % of 54.49% is near median its 10-year median of 52.27. Over the past 10 years, this metric has ranged from a low of 44.54 to a high of 54.77. The REITs industry median Gross Margin % is 69.62. Japan Real Estate Investment's value of 54.49% is 21.7% below this industry median. Based on the distribution chart, Japan Real Estate Investment ranks #551 out of 681 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Japan Real Estate Investment has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Japan Real Estate Investment's Gross Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Japan Real Estate Investment ranks #551 out of 681 companies for Gross Margin %. This places Japan Real Estate Investment in the lower half of its industry. The industry median Gross Margin % is 69.62. Japan Real Estate Investment's value of 54.49% is 21.7% below this benchmark. Historically, Japan Real Estate Investment's own Gross Margin % has ranged from 44.54 to 54.77 over the past decade. While the company's 10-year median is 52.27 vs. the industry median of 69.62, Japan Real Estate 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 69.62, based on 681 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 Real Estate Investment's current Gross Margin % of 54.49% is 21.7% 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 Real Estate Investment and its competitors. For the REITs industry, the median Gross Margin % is 69.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Real Estate Investment's current Gross Margin % is 54.49%, which is near median its own 10-year median of 52.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Real Estate Investment stock overvalued right now?
Japan Real Estate Investment (JREIF) has a current Gross Margin % of 54.49%. The stock's GF Value™ is $625.97, compared to a current price of $658.41 — trading 5.2% above its estimated fair value. The current Gross Margin % is 54.49%, which is near median its 10-year median of 52.27 and 21.7% below the REITs industry median of 69.62. Japan Real Estate Investment's overall GF Score™ is 68/100 with 6 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 Real Estate Investment (JREIF), the current Gross Margin % is 54.49% 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 Japan Real Estate Investment (JREIF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Real Estate Investment stock appears to be overvalued.
The current stock price of $658.41 is trading 5.2% above its estimated GF Value™ of $625.97.
Key valuation signals for JREIF:
Gross Margin %: 54.49% (near median its 10-year median of 52.27)
GF Value™: $625.97 vs. price of $658.41 (5.2% above fair value)
Industry Position: 21.7% below the REITs median (#551 of 681)
No single metric tells the full story. See the JREIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Real Estate Investment Corp, or J-REIT, is a Japanese real estate investment trust that invests in, owns, and leases office properties. The vast majority of the company's real estate portfolio is located within Tokyo's 23 wards and the Tokyo metropolitan area in terms of total value. Within this area, J-REIT's offices reside within the Tokyo central business district. The company derives nearly all of its income in the form of rental revenue from the leasing of its office properties. While J-REIT tenants hail from a diverse assortment of industries, firms from the service, information services, electric devices, and financial services industries are its customers.
68GF Score
Get the complete analysis for JREIF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JREIF has been successfully added to your 
