Net Lease Office PropertiesNLOP +2.25%42 Gross Margin % is 80.29% as of Mar. 2026, which is 1% above its 10-year median of 79.51. GuruFocus rates NLOP with a GF Score™ of 42/100 and a GF Value™ of $16.67 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 680 REITs companies, Net Lease Office Properties ranks better than 55.29% on this metric.
Net Lease Office Properties (NYSE:NLOP) 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
Net Lease Office Properties had a gross margin of 80.29% 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.
Net Lease Office Properties Gross Margin % Related Terms
Net Lease Office Properties 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, Net Lease Office Properties'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.
Net Lease Office Properties Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Net Lease Office Properties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Net Lease Office Properties'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.
Net Lease Office Properties (NLOP) has a Gross Margin % of 80.29% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Net Lease Office Properties and its competitors. This is near median its historical median of 79.51. Over the past decade, Net Lease Office Properties' Gross Margin % has ranged from 69.30 to 80.44. According to the industry distribution chart, Net Lease Office Properties ranks #304 out of 680 companies in the REITs industry, placing it in the top 44.7%.
Is Net Lease Office Properties' Gross Margin % too high?
Net Lease Office Properties' current Gross Margin % of 80.29% is near median its 10-year median of 79.51. Over the past 10 years, this metric has ranged from a low of 69.30 to a high of 80.44. The REITs industry median Gross Margin % is 69.71. Net Lease Office Properties' value of 80.29% is 15.2% above this industry median. Based on the distribution chart, Net Lease Office Properties ranks #304 out of 680 companies in the REITs industry, which is above the industry midpoint. Overall, Net Lease Office Properties has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Net Lease Office Properties' Gross Margin % compare to ONL and FSP?
According to the REITs industry distribution chart, Net Lease Office Properties ranks #304 out of 680 companies for Gross Margin %. This puts Net Lease Office Properties in the upper half of its industry. The industry median Gross Margin % is 69.71. Net Lease Office Properties' value of 80.29% is 15.2% above this benchmark. Historically, Net Lease Office Properties' own Gross Margin % has ranged from 69.30 to 80.44 over the past decade. While the company's 10-year median is 79.51 vs. the industry median of 69.71, Net Lease Office Properties 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. Net Lease Office Properties's current Gross Margin % of 80.29% is 15.2% 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 Net Lease Office Properties 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. Net Lease Office Properties's current Gross Margin % is 80.29%, which is near median its own 10-year median of 79.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Net Lease Office Properties stock overvalued right now?
Based on GuruFocus' analysis, Net Lease Office Properties (NLOP) is currently considered Possible Value Trap. The stock's GF Value™ is $16.67, compared to a current price of $11.36 — trading 31.9% below its estimated fair value. The current Gross Margin % is 80.29%, which is near median its 10-year median of 79.51 and 15.2% above the REITs industry median of 69.71. Net Lease Office Properties' overall GF Score™ is 42/100 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 Net Lease Office Properties (NLOP), the current Gross Margin % is 80.29% 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 Net Lease Office Properties (NLOP) Overvalued in 2026?
Based on GuruFocus' analysis, Net Lease Office Properties stock appears to be undervalued.
The current stock price of $11.36 is trading 31.9% below its estimated GF Value™ of $16.67.
GuruFocus considers Net Lease Office Properties to be Possible Value Trap.
Key valuation signals for NLOP:
Gross Margin %: 80.29% (near median its 10-year median of 79.51)
GF Value™: $16.67 vs. price of $11.36 (31.9% below fair value)
Industry Position: 15.2% above the REITs median (#304 of 680)
No single metric tells the full story. See the NLOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Net Lease Office Properties is a Maryland real estate investment trust that, together with its consolidated subsidiaries, owns, operates, and finances a diversified portfolio of office properties mainly leased to corporate tenants on a single-tenant, net-lease basis. The company operates as a single operating and reportable segment focused on owning and managing office properties that generate revenue mainly from long-term lease agreements with tenants.
42GF Score
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