ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Real Estate Investors's annualizedNet Income for the quarter that ended in Dec. 2025 was £-2.34 Mil.
Real Estate Investors's average Total Assets over the quarter that ended in Dec. 2025 was £127.61 Mil. Therefore, Real Estate Investors's annualized ROA % for the quarter that ended in Dec. 2025 was -1.83%.
The historical rank and industry rank for Real Estate Investors's ROA % or its related term are showing as below:
LSE:RLE'
s ROA % Range Over the Past 10 Years
Min: -9.14 Med: 2.57 Max: 6.72
Current: -0.65
During the past 13 years, Real Estate Investors's highest ROA % was 6.72%. The lowest was -9.14%. And the median was 2.57%.
LSE:RLE's ROA % is ranked worse than 83.48% of 938
companies
in the REITs industry
Industry Median: 3.22
vs LSE:RLE: -0.65
Real Estate Investors (LSE:RLE) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 - Diversified subindustry, Real Estate Investors's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Real Estate Investors's ROA % distribution charts can be found below:
* The bar in red indicates where Real Estate Investors's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Real Estate Investors (LSE:RLE) has a ROA % of -1.83% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Real Estate Investors and its competitors. According to the industry distribution chart, Real Estate Investors ranks #783 out of 938 companies in the REITs industry, placing it in the top 83.5%.
Is Real Estate Investors' ROA % too high?
Real Estate Investors' current ROA % is -1.83%. Based on the distribution chart, Real Estate Investors ranks #783 out of 938 companies in the REITs industry, which is in the bottom quartile relative to peers. 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' ROA % compare to VICI and WPC?
According to the REITs industry distribution chart, Real Estate Investors ranks #783 out of 938 companies for ROA %. This places Real Estate Investors in the lower half of its industry. The industry median ROA % is 3.22. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.22, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Real Estate Investors and its competitors. For the REITs industry, the median ROA % is 3.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Real Estate Investors's current ROA % is -1.83%. 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 ROA % is -1.83%. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Real Estate Investors (LSE:RLE), the current ROA % is -1.83% 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:
ROA %: -1.83%
GF Value™: £0.25 vs. price of £0.32 (26% above fair value)
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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