Centuria Office REITASX:COF +0.55%66 Operating Margin % is 59.28% as of Dec. 2025, which is 7% below its 10-year median of 63.90. GuruFocus rates ASX:COF with a GF Score™ of 66/100 and a GF Value™ of A$1.17 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 750 REITs companies, Centuria Office REIT ranks better than 61.33% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Centuria Office REIT Operating Margin % Related Terms
Centuria Office REIT Operating Margin % Historical Data
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The historical data trend for Centuria Office REIT's Operating 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.
ASX:COF vs BXP, ARE, VNO: Operating Margin % Comparison
For the REIT - Office subindustry, Centuria Office REIT's Operating Margin %, along with its competitors' market caps and Operating 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.
Centuria Office REIT Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Centuria Office REIT's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Centuria Office REIT's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Centuria Office REIT's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
Centuria Office REIT (ASX:COF) has a Operating Margin % of 59.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Centuria Office REIT and its competitors. This is near median its historical median of 63.90. Over the past decade, Centuria Office REIT's Operating Margin % has ranged from 57.84 to 70.58. According to the industry distribution chart, Centuria Office REIT ranks #290 out of 750 companies in the REITs industry, placing it in the top 38.7%.
Is Centuria Office REIT's Operating Margin % too high?
Centuria Office REIT's current Operating Margin % of 59.28% is near median its 10-year median of 63.90. Over the past 10 years, this metric has ranged from a low of 57.84 to a high of 70.58. The REITs industry median Operating Margin % is 52.67. Centuria Office REIT's value of 59.28% is 12.5% above this industry median. Based on the distribution chart, Centuria Office REIT ranks #290 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, Centuria Office REIT has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Centuria Office REIT's Operating Margin % compare to BXP and ARE?
According to the REITs industry distribution chart, Centuria Office REIT ranks #290 out of 750 companies for Operating Margin %. This puts Centuria Office REIT in the upper half of its industry. The industry median Operating Margin % is 52.67. Centuria Office REIT's value of 59.28% is 12.5% above this benchmark. Historically, Centuria Office REIT's own Operating Margin % has ranged from 57.84 to 70.58 over the past decade. While the company's 10-year median is 63.90 vs. the industry median of 52.67, Centuria Office REIT 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.67, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Centuria Office REIT's current Operating Margin % of 59.28% is 12.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Centuria Office REIT and its competitors. For the REITs industry, the median Operating Margin % is 52.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Centuria Office REIT's current Operating Margin % is 59.28%, which is near median its own 10-year median of 63.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Centuria Office REIT stock overvalued right now?
Based on GuruFocus' analysis, Centuria Office REIT (ASX:COF) is currently considered Modestly Undervalued. The stock's GF Value™ is A$1.17, compared to a current price of A$0.92 — trading 21.4% below its estimated fair value. The current Operating Margin % is 59.28%, which is near median its 10-year median of 63.90 and 12.5% above the REITs industry median of 52.67. Centuria Office REIT's overall GF Score™ is 66/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Centuria Office REIT (ASX:COF), the current Operating Margin % is 59.28% 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 Centuria Office REIT (ASX:COF) Overvalued in 2026?
Based on GuruFocus' analysis, Centuria Office REIT stock appears to be undervalued.
The current stock price of A$0.92 is trading 21.4% below its estimated GF Value™ of A$1.17.
GuruFocus considers Centuria Office REIT to be Modestly Undervalued.
Key valuation signals for ASX:COF:
Operating Margin %: 59.28% (near median its 10-year median of 63.90)
GF Value™: A$1.17 vs. price of A$0.92 (21.4% below fair value)
Industry Position: 12.5% above the REITs median (#290 of 750)
No single metric tells the full story. See the ASX:COF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Centuria Office REIT is an externally managed real estate investment vehicle. The trust holds a portfolio of office buildings and passes most of the income generated from leasing out these properties to unitholders. Centuria Office focuses on suburban offices, with nearly the entire portfolio located in major Australian capital cities and rated modern A grade.The external manager, Centuria Capital Group, receives fees from Centuria Office in exchange for leasing, property management, and development management services, and retains a 19% interest in the trust. Centuria Office REIT was originally called Centuria Metropolitan REIT. It was renamed in 2020 after selling its industrial assets and becoming a pure-play office REIT.
66GF Score
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