Link Real Estate Investment Trust (OTCPK:LKREF) Operating Margin % Explanation
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.
Link Real Estate Investment Trust Operating Margin % Related Terms
Link Real Estate Investment Trust Operating 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.
Link Real Estate Investment Trust Operating Margin % Chart
LKREF vs SPG, O, KIM: Operating Margin % Comparison
For the REIT - Retail subindustry, Link Real Estate Investment Trust'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.
Link Real Estate Investment Trust Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Link Real Estate Investment Trust's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Link Real Estate Investment Trust's Operating Margin % falls into.
Link Real Estate Investment Trust Operating Margin % Calculation
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.
* 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.
Link Real Estate Investment Trust (LKREF) has a Operating Margin % of 67.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Link Real Estate Investment Trust and its competitors. This is near median its historical median of 71.55. Over the past decade, Link Real Estate Investment Trust's Operating Margin % has ranged from 67.45 to 72.81. According to the industry distribution chart, Link Real Estate Investment Trust ranks #196 out of 750 companies in the REITs industry, placing it in the top 26.1%.
Is Link Real Estate Investment Trust's Operating Margin % too high?
Link Real Estate Investment Trust's current Operating Margin % of 67.74% is near median its 10-year median of 71.55. Over the past 10 years, this metric has ranged from a low of 67.45 to a high of 72.81. The REITs industry median Operating Margin % is 52.67. Link Real Estate Investment Trust's value of 67.74% is 28.6% above this industry median. Based on the distribution chart, Link Real Estate Investment Trust ranks #196 out of 750 companies in the REITs industry, which is above the industry midpoint. Overall, Link Real Estate Investment Trust has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Link Real Estate Investment Trust's Operating Margin % compare to SPG and O?
According to the REITs industry distribution chart, Link Real Estate Investment Trust ranks #196 out of 750 companies for Operating Margin %. This puts Link Real Estate Investment Trust in the upper half of its industry. The industry median Operating Margin % is 52.67. Link Real Estate Investment Trust's value of 67.74% is 28.6% above this benchmark. Historically, Link Real Estate Investment Trust's own Operating Margin % has ranged from 67.45 to 72.81 over the past decade. While the company's 10-year median is 71.55 vs. the industry median of 52.67, Link 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 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. Link Real Estate Investment Trust's current Operating Margin % of 67.74% is 28.6% 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 Link Real Estate Investment Trust 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. Link Real Estate Investment Trust's current Operating Margin % is 67.74%, which is near median its own 10-year median of 71.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Link Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, Link Real Estate Investment Trust (LKREF) is currently considered Fairly Valued. The stock's GF Value™ is $4.83, compared to a current price of $4.60 — trading 4.8% below its estimated fair value. The current Operating Margin % is 67.74%, which is near median its 10-year median of 71.55 and 28.6% above the REITs industry median of 52.67. Link Real Estate Investment Trust's overall GF Score™ is 67/100 with 4 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 Link Real Estate Investment Trust (LKREF), the current Operating Margin % is 67.74% 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 Link Real Estate Investment Trust (LKREF) Overvalued in 2026?
Based on GuruFocus' analysis, Link Real Estate Investment Trust stock appears to be undervalued.
The current stock price of $4.60 is trading 4.8% below its estimated GF Value™ of $4.83.
GuruFocus considers Link Real Estate Investment Trust to be Fairly Valued.
Key valuation signals for LKREF:
Operating Margin %: 67.74% (near median its 10-year median of 71.55)
GF Value™: $4.83 vs. price of $4.60 (4.8% below fair value)
Industry Position: 28.6% above the REITs median (#196 of 750)
No single metric tells the full story. See the LKREF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Link Real Estate Investment Trust Business Description
Link REIT is Asia's largest REIT, listed in 2005 to privatize retail assets held by the Hong Kong Housing Authority. It owns 154 properties and around 57,000 car park spaces. It expanded its investment mandate in 2014 to allow overseas acquisitions, and has since acquired retail, office, and logistics properties in China, as well as an office development project in Hong Kong. Link also expanded its footprint to Sydney, Melbourne, London, and Singapore.
67GF Score
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