Regal Real Estate Investment Trust (OTCPK:RREIF) 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
Regal Real Estate Investment Trust had a gross margin of 97.27% 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.
Regal Real Estate Investment Trust Gross Margin % Related Terms
Regal Real Estate Investment Trust 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.
Regal Real Estate Investment Trust Gross Margin % Chart
RREIF vs HST, RHP, APLE: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Regal Real Estate Investment Trust'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.
Regal Real Estate Investment Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Regal Real Estate Investment Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Regal Real Estate Investment Trust'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.
Regal Real Estate Investment Trust (RREIF) has a Gross Margin % of 97.27% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Regal Real Estate Investment Trust and its competitors. This is near median its historical median of 97.07. Over the past decade, Regal Real Estate Investment Trust's Gross Margin % has ranged from 96.80 to 98.47. According to the industry distribution chart, Regal Real Estate Investment Trust ranks #51 out of 680 companies in the REITs industry, placing it in the top 7.5%.
Is Regal Real Estate Investment Trust's Gross Margin % too high?
Regal Real Estate Investment Trust's current Gross Margin % of 97.27% is near median its 10-year median of 97.07. Over the past 10 years, this metric has ranged from a low of 96.80 to a high of 98.47. The REITs industry median Gross Margin % is 69.71. Regal Real Estate Investment Trust's value of 97.27% is 39.5% above this industry median. Based on the distribution chart, Regal Real Estate Investment Trust ranks #51 out of 680 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Regal Real Estate Investment Trust has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Regal Real Estate Investment Trust's Gross Margin % compare to HST and RHP?
According to the REITs industry distribution chart, Regal Real Estate Investment Trust ranks #51 out of 680 companies for Gross Margin %. This places Regal Real Estate Investment Trust in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 69.71. Regal Real Estate Investment Trust's value of 97.27% is 39.5% above this benchmark. Historically, Regal Real Estate Investment Trust's own Gross Margin % has ranged from 96.80 to 98.47 over the past decade. While the company's 10-year median is 97.07 vs. the industry median of 69.71, Regal Real Estate Investment Trust 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. Regal Real Estate Investment Trust's current Gross Margin % of 97.27% is 39.5% 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 Regal Real Estate Investment Trust 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. Regal Real Estate Investment Trust's current Gross Margin % is 97.27%, which is near median its own 10-year median of 97.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Regal Real Estate Investment Trust stock overvalued right now?
Regal Real Estate Investment Trust (RREIF) has a current Gross Margin % of 97.27%. The stock's GF Value™ is $0.07, compared to a current price of $0.04 — trading 43.3% below its estimated fair value. The current Gross Margin % is 97.27%, which is near median its 10-year median of 97.07 and 39.5% above the REITs industry median of 69.71. Regal Real Estate Investment Trust's overall GF Score™ is 47/100 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 Regal Real Estate Investment Trust (RREIF), the current Gross Margin % is 97.27% 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 Regal Real Estate Investment Trust (RREIF) Overvalued in 2026?
Based on GuruFocus' analysis, Regal Real Estate Investment Trust stock appears to be undervalued.
The current stock price of $0.04 is trading 43.3% below its estimated GF Value™ of $0.07.
Key valuation signals for RREIF:
Gross Margin %: 97.27% (near median its 10-year median of 97.07)
GF Value™: $0.07 vs. price of $0.04 (43.3% below fair value)
Industry Position: 39.5% above the REITs median (#51 of 680)
No single metric tells the full story. See the RREIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Regal Real Estate Investment Trust Business Description
Regal Real Estate Investment Trust is a Hong Kong-based REIT that invests in hotel properties, serviced apartments, and commercial properties. The company owns and invests in income-producing hotels, serviced apartments, or commercial properties (including office premises) with the objectives of producing stable and growing distributions to the unitholders of Regal REIT and achieving long-term growth in the net asset value per Unit. The company has two operating segments: the hotel properties segment, which invests in the Initial Hotels, iclub Sheung Wan Hotel, iclub Fortress Hill Hotel, and iclub To Kwa Wan Hotel, and the mixed-use property segment, which invests in the iclub Wan Chai Hotel. Regal generates the majority of its revenue from the hotel properties segment.
47GF Score
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