Real Estate InvestorsLSE:RLE 42 Operating Margin % is 54.53% as of Dec. 2025, which is 11% below its 10-year median of 61.08. 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 749 REITs companies, Real Estate Investors ranks better than 51% on this metric.
Real Estate Investors (LSE:RLE) 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.
Real Estate Investors Operating Margin % Related Terms
Real Estate Investors Operating Margin % Historical Data
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The historical data trend for Real Estate Investors'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.
LSE:RLE vs VICI, WPC: Operating Margin % Comparison
For the REIT - Diversified subindustry, Real Estate Investors'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.
Real Estate Investors Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Real Estate Investors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Real Estate Investors's Operating Margin % falls into.
Real Estate Investors 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.
Real Estate Investors's Operating Margin % for the fiscal year that ended in Dec. 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.
Real Estate Investors (LSE:RLE) has a Operating Margin % of 54.53% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Real Estate Investors and its competitors. This is 11% below median its historical median of 61.08. Over the past decade, Real Estate Investors' Operating Margin % has ranged from 53.11 to 71.63. According to the industry distribution chart, Real Estate Investors ranks #367 out of 749 companies in the REITs industry, placing it in the top 49%.
Is Real Estate Investors' Operating Margin % too high?
Real Estate Investors' current Operating Margin % of 54.53% is 11% below median its 10-year median of 61.08. Over the past 10 years, this metric has ranged from a low of 53.11 to a high of 71.63. The REITs industry median Operating Margin % is 52.71. Real Estate Investors' value of 54.53% is 3.5% above this industry median. Based on the distribution chart, Real Estate Investors ranks #367 out of 749 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' Operating Margin % compare to VICI and WPC?
According to the REITs industry distribution chart, Real Estate Investors ranks #367 out of 749 companies for Operating Margin %. This puts Real Estate Investors in the upper half of its industry. The industry median Operating Margin % is 52.71. Real Estate Investors' value of 54.53% is 3.5% above this benchmark. Historically, Real Estate Investors' own Operating Margin % has ranged from 53.11 to 71.63 over the past decade. While the company's 10-year median is 61.08 vs. the industry median of 52.71, 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.71, based on 749 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. Real Estate Investors's current Operating Margin % of 54.53% is 3.5% 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 Real Estate Investors and its competitors. For the REITs industry, the median Operating Margin % is 52.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Real Estate Investors's current Operating Margin % is 54.53%, which is 11% below median its own 10-year median of 61.08. 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 Operating Margin % is 54.53%, which is 11% below median its 10-year median of 61.08 and 3.5% above the REITs industry median of 52.71. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Real Estate Investors (LSE:RLE), the current Operating Margin % is 54.53% 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:
Operating Margin %: 54.53% (11% below median its 10-year median of 61.08)
GF Value™: £0.25 vs. price of £0.32 (26% above fair value)
Industry Position: 3.5% above the REITs median (#367 of 749)
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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