Spear REITJSE:SEA -0.90%63 Gross Margin % is 64.10% as of Feb. 2026, which is 4% below its 10-year median of 66.62. GuruFocus rates JSE:SEA with a GF Score™ of 63/100 and a GF Value™ of R7.03 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 682 REITs companies, Spear REIT ranks worse than 61.88% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Spear REIT's Gross Profit for the
six
months ended in Feb. 2026 was R292.9 Mil. Spear REIT's Revenue for the
six
months ended in Feb. 2026 was R457.0 Mil. Therefore, Spear REIT's Gross Margin % for the quarter that ended in Feb. 2026 was 64.10%.
Warning Sign:
Spear REIT Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Spear REIT's Gross Margin % or its related term are showing as below:
JSE:SEA'
s Gross Margin % Range Over the Past 10 Years
Min: 63.91 Med: 66.62 Max: 72.46
Current: 63.91
During the past 10 years, the highestGross Margin % of Spear REIT was 72.46%. The lowest was 63.91%. And the median was 66.62%.
JSE:SEA's Gross Margin % is ranked worse than 61.88% of 682
companies
in the REITs industry
Industry Median: 69.705
vs JSE:SEA: 63.91
Spear REIT had a gross margin of 64.10% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Spear REIT was -1.40% per year.
Spear REIT (JSE:SEA) 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
Spear REIT had a gross margin of 64.10% for the quarter that ended in Feb. 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.
Spear REIT Gross Margin % Related Terms
Spear REIT Gross Margin % Historical Data
* Premium members only.
The historical data trend for Spear REIT's Gross Margin % 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.
For the REIT - Diversified subindustry, Spear REIT'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.
Spear REIT Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Spear REIT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Spear REIT'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.
Spear REIT (JSE:SEA) has a Gross Margin % of 64.10% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Spear REIT and its competitors. This is near median its historical median of 66.62. Over the past decade, Spear REIT's Gross Margin % has ranged from 63.91 to 72.46. According to the industry distribution chart, Spear REIT ranks #422 out of 682 companies in the REITs industry, placing it in the top 61.9%.
Is Spear REIT's Gross Margin % too high?
Spear REIT's current Gross Margin % of 64.10% is near median its 10-year median of 66.62. Over the past 10 years, this metric has ranged from a low of 63.91 to a high of 72.46. The REITs industry median Gross Margin % is 69.71. Spear REIT's value of 64.10% is 8% below this industry median. Based on the distribution chart, Spear REIT ranks #422 out of 682 companies in the REITs industry, which is below the industry midpoint. Overall, Spear REIT has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Spear REIT's Gross Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Spear REIT ranks #422 out of 682 companies for Gross Margin %. This places Spear REIT in the lower half of its industry. The industry median Gross Margin % is 69.71. Spear REIT's value of 64.10% is 8% below this benchmark. Historically, Spear REIT's own Gross Margin % has ranged from 63.91 to 72.46 over the past decade. While the company's 10-year median is 66.62 vs. the industry median of 69.71, Spear REIT 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 69.71, based on 682 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. Spear REIT's current Gross Margin % of 64.10% is 8% 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 Spear REIT 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. Spear REIT's current Gross Margin % is 64.10%, which is near median its own 10-year median of 66.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spear REIT stock overvalued right now?
Based on GuruFocus' analysis, Spear REIT (JSE:SEA) is currently considered Significantly Overvalued. The stock's GF Value™ is R7.03, compared to a current price of R13.28 — trading 88.9% above its estimated fair value. The current Gross Margin % is 64.10%, which is near median its 10-year median of 66.62 and 8% below the REITs industry median of 69.71. Spear REIT's overall GF Score™ is 63/100 with 11 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 Spear REIT (JSE:SEA), the current Gross Margin % is 64.10% 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 Spear REIT (JSE:SEA) Overvalued in 2026?
Based on GuruFocus' analysis, Spear REIT stock appears to be overvalued.
The current stock price of R13.28 is trading 88.9% above its estimated GF Value™ of R7.03.
GuruFocus considers Spear REIT to be Significantly Overvalued.
Key valuation signals for JSE:SEA:
Gross Margin %: 64.10% (near median its 10-year median of 66.62)
GF Value™: R7.03 vs. price of R13.28 (88.9% above fair value)
Industry Position: 8% below the REITs median (#422 of 682)
No single metric tells the full story. See the JSE:SEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spear REIT Ltd is a real estate investment trust. The company has five segments Industrial, Commercial, Retail, Development, and Non-property. The company generates majority of revenue from Industrial segment. The industrial portfolio comprises a diverse range of multi-let industrial properties, warehouses, logistics parks, and urban logistics facilities. The company has presence in Cape.
63GF Score
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