OCAUTIOUS

Gross Margin

91.9%

Higher than 92% of Real Estate sector peers

Updated 656h ago

Sector Performance

92th percentile

91.9%

Sector Median

72.5%

Sector Avg

70.2%

📊

Deep Analysis

Realty Income’s current Gross Margin of 91.9% means that for every dollar of revenue the company earns, it keeps roughly 92 cents after paying the direct costs of operating its properties—a measure of core profitability.

This figure ranks in the 93rd percentile among Real Estate sector peers and sits well above the sector median of 67.7%, indicating the company is far more efficient at generating profit from its revenue than most competitors. The trend data are not available, with no year-over-year or quarter-over-quarter change reported, so there is no basis to assess momentum in margin performance. The combination of a very high margin—at the top of the peer group—with a flat trend suggests that the current efficiency is a stable strength rather than a source of recent improvement or deterioration. While this strong margin supports the company’s financial health, it does not directly contradict the overall CAUTIOUS verdict, because other factors (such as valuation or growth risks) likely outweigh this single positive metric.

Frequently Asked Questions

What does the Gross Margin tell investors about O?

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 O's Gross Margin compare to its sector?

O's Gross Margin of 91.9% compares to a Real Estate sector median of 72.5%, placing it in the 92th percentile.

Who are O's closest peers by Gross Margin?

The closest Real Estate peers by Gross Margin include: FR (72.5%), PSA (72.1%), AMT (73.9%), TRNO (74.4%), REG (69.8%).

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.