FRNEUTRAL

Gross Margin

72.5%

Higher than 50% of Real Estate sector peers

Updated 33h ago

Sector Performance

50th percentile

72.5%

Sector Median

72.5%

Sector Avg

70.2%

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Deep Analysis

First Street’s current gross margin of 72.5% means that for every dollar of revenue, the company retains $0.725 after subtracting the direct costs of acquiring or producing its real estate properties.

That figure exactly matches the real estate sector median of 72.5%, placing the company at the 50th percentile among its peers — a perfectly average position. The year-over-year change is not available, but the quarter-over-quarter change is a jump of +243.6%, moving from 21.1% last quarter to 72.5% now; the trend direction over the last eight quarters is also not available. The combination of an average gross margin with a massive single-quarter spike suggests a temporary shift in cost structure or revenue mix that may not be sustainable, introducing uncertainty. This metric neither supports nor contradicts the overall NEUTRAL verdict — it shows the company is aligned with the sector norm, but the unusual quarterly swing warrants caution rather than conviction.

Frequently Asked Questions

What does the Gross Margin tell investors about FR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does FR's Gross Margin compare to its sector?

FR's Gross Margin of 72.5% compares to a Real Estate sector median of 72.5%, placing it in the 50th percentile.

Who are FR's closest peers by Gross Margin?

The closest Real Estate peers by Gross Margin include: PSA (72.1%), AMT (73.9%), TRNO (74.4%), REG (69.8%), SBAC (75.6%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.