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First Real Estate Investment Trust of New Jersey (First Real Estate Investment Trust of New Jersey) Operating Margin % : 13.67% (As of Jan. 2024)


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What is First Real Estate Investment Trust of New Jersey Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. First Real Estate Investment Trust of New Jersey's Operating Income for the three months ended in Jan. 2024 was $0.96 Mil. First Real Estate Investment Trust of New Jersey's Revenue for the three months ended in Jan. 2024 was $7.00 Mil. Therefore, First Real Estate Investment Trust of New Jersey's Operating Margin % for the quarter that ended in Jan. 2024 was 13.67%.

Warning Sign:

First Real Estate Investment Trust of New Jersey Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7%.

The historical rank and industry rank for First Real Estate Investment Trust of New Jersey's Operating Margin % or its related term are showing as below:

FREVS' s Operating Margin % Range Over the Past 10 Years
Min: 22.27   Med: 30.59   Max: 35.81
Current: 22.27


FREVS's Operating Margin % is ranked worse than
78.66% of 689 companies
in the REITs industry
Industry Median: 52.06 vs FREVS: 22.27

First Real Estate Investment Trust of New Jersey's 5-Year Average Operating Margin % Growth Rate was -7.00% per year.

First Real Estate Investment Trust of New Jersey's Operating Income for the three months ended in Jan. 2024 was $0.96 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $6.32 Mil.


First Real Estate Investment Trust of New Jersey Operating Margin % Historical Data

The historical data trend for First Real Estate Investment Trust of New Jersey'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.

* Premium members only.

First Real Estate Investment Trust of New Jersey Operating Margin % Chart

First Real Estate Investment Trust of New Jersey Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.58 29.67 26.85 22.36 26.12

First Real Estate Investment Trust of New Jersey Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.27 25.61 20.70 29.06 13.67

Competitive Comparison of First Real Estate Investment Trust of New Jersey's Operating Margin %

For the REIT - Residential subindustry, First Real Estate Investment Trust of New Jersey'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.


First Real Estate Investment Trust of New Jersey's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, First Real Estate Investment Trust of New Jersey's Operating Margin % distribution charts can be found below:

* The bar in red indicates where First Real Estate Investment Trust of New Jersey's Operating Margin % falls into.



First Real Estate Investment Trust of New Jersey 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.

First Real Estate Investment Trust of New Jersey's Operating Margin % for the fiscal year that ended in Oct. 2023 is calculated as

Operating Margin %=Operating Income (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=7.403 / 28.344
=26.12 %

First Real Estate Investment Trust of New Jersey's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=0.957 / 6.999
=13.67 %

* 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.


First Real Estate Investment Trust of New Jersey  (OTCPK:FREVS) 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 Nokia’s 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.


First Real Estate Investment Trust of New Jersey Operating Margin % Related Terms

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First Real Estate Investment Trust of New Jersey (First Real Estate Investment Trust of New Jersey) Business Description

Traded in Other Exchanges
N/A
Address
505 Main Street, Suite 400, Hackensack, NJ, USA, 07601
First Real Estate Investment Trust of New Jersey Inc operates in the real estate sector of the United States. It implies the investment in real estate properties and passing on a regular income and benefit of capital appreciation to its shareholders. The company operates in two reportable segments; commercial properties and residential properties. Its revenues consist of fixed rental income from its residential and commercial properties and additional rent in the form of expense reimbursements acquired from its income-producing commercial properties. The majority of revenue is derived from the Residential properties segment.
Executives
Richard Aslanian director 4 WEST RED OAK LANE, SUITE 303, WHITE PLAINS NY 10604
Justin Meng director 10 ROCK HILL LANE, SCARSDALE NY 10583
Ronald J Artinian other: Trustee FIVE BRISTOL DRIVE, MANHASSET NY 10030
Allan Tubin officer: CFO and Treasurer 505 MAIN STREET, HACKENSACK NJ 07601
David Hekemian other: Trustee 505 MAIN STREET, SUITE 400, HACKENSACK NJ 07601
Donald W Barney officer: Trustee & President
Herbert C Klein other: Trustee 155 POLIFLY RD, HACKENSCK NJ 07601
John A Aiello officer: Trustee & Executive Secretary GIORDANO HALLERAN & CLESIA, PC 125 HALF MILE RD PO BOX 190, MIDDLETOWN NJ 07748
David F Mcbride director C/O KEYSTONE PROPERTY TRUST, 200 FOUR FALLS CORPORATE CENTER, WEST CONSHOHOCKEN PA 19428
Hekemian Robert S Jr director 370 PASCACK ROAD, TOWNSHIP OF WASHINGTON NJ 07676
Alan L Aufzien other: Trustee
Robert S Hekemian officer: CEO 505 MAIN ST, SUITE 400, HACKENSACK NJ 07601