Real Estate InvestorsLSE:RLE 42 Gross Margin % is 76.90% as of Dec. 2025, which is 9% below its 10-year median of 84.70. GuruFocus rates LSE:RLE with a GF Score™ of 42/100 and a GF Value™ of £0.25 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 680 REITs companies, Real Estate Investors ranks better than 64.56% on this metric.
LSE:RLE's Gross Margin % is ranked better than 64.56% of 680
companies
in the REITs industry
Industry Median: 69.705
vs LSE:RLE: 76.94
Real Estate Investors had a gross margin of 76.90% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Real Estate Investors was -2.40% per year.
Real Estate Investors (LSE:RLE) 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
Real Estate Investors had a gross margin of 76.90% 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.
Real Estate Investors Gross Margin % Related Terms
Real Estate Investors Gross Margin % Historical Data
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The historical data trend for Real Estate Investors'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, Real Estate Investors'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.
Real Estate Investors Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Real Estate Investors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Real Estate Investors'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.
Real Estate Investors (LSE:RLE) has a Gross Margin % of 76.90% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Real Estate Investors and its competitors. This is near median its historical median of 84.70. Over the past decade, Real Estate Investors' Gross Margin % has ranged from 76.94 to 91.49. According to the industry distribution chart, Real Estate Investors ranks #241 out of 680 companies in the REITs industry, placing it in the top 35.4%.
Is Real Estate Investors' Gross Margin % too high?
Real Estate Investors' current Gross Margin % of 76.90% is near median its 10-year median of 84.70. Over the past 10 years, this metric has ranged from a low of 76.94 to a high of 91.49. The REITs industry median Gross Margin % is 69.71. Real Estate Investors' value of 76.90% is 10.3% above this industry median. Based on the distribution chart, Real Estate Investors ranks #241 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, Real Estate Investors has a GF Score™ of 42/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Real Estate Investors' Gross Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Real Estate Investors ranks #241 out of 680 companies for Gross Margin %. This puts Real Estate Investors in the upper half of its industry. The industry median Gross Margin % is 69.71. Real Estate Investors' value of 76.90% is 10.3% above this benchmark. Historically, Real Estate Investors' own Gross Margin % has ranged from 76.94 to 91.49 over the past decade. While the company's 10-year median is 84.70 vs. the industry median of 69.71, Real Estate Investors 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. Real Estate Investors's current Gross Margin % of 76.90% is 10.3% 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 Real Estate Investors 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. Real Estate Investors's current Gross Margin % is 76.90%, which is near median its own 10-year median of 84.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Real Estate Investors stock overvalued right now?
Based on GuruFocus' analysis, Real Estate Investors (LSE:RLE) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.25, compared to a current price of £0.32 — trading 26% above its estimated fair value. The current Gross Margin % is 76.90%, which is near median its 10-year median of 84.70 and 10.3% above the REITs industry median of 69.71. Real Estate Investors' overall GF Score™ is 42/100 with 8 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 Real Estate Investors (LSE:RLE), the current Gross Margin % is 76.90% 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 Real Estate Investors (LSE:RLE) Overvalued in 2026?
Based on GuruFocus' analysis, Real Estate Investors stock appears to be overvalued.
The current stock price of £0.32 is trading 26% above its estimated GF Value™ of £0.25.
GuruFocus considers Real Estate Investors to be Modestly Overvalued.
Key valuation signals for LSE:RLE:
Gross Margin %: 76.90% (near median its 10-year median of 84.70)
GF Value™: £0.25 vs. price of £0.32 (26% above fair value)
Industry Position: 10.3% above the REITs median (#241 of 680)
No single metric tells the full story. See the LSE:RLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Real Estate Investors PLC operates as a real estate investment trust in the United Kingdom. The property investment firm has interests in commercial and residential properties throughout the country. Its portfolio is diversified by property type and tenant, with a mix of office, retail, and residential assets. The company invests in well-located, real estate assets in the established markets of central Birmingham and the Midlands. Its source of income is in the form of rents derived from retail, office, and residential land and property, new lettings, rent reviews, lease renewals, refurbishment, change of use, and planning gains. It has a range of occupiers from national and regional multiple retailers to government and corporate office occupiers.
42GF Score
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