What does the operating margin indicate in leasing?

The operating margin is a financial metric that assesses the profitability of a company's leasing operations by measuring the difference between operating revenue and operating expenses. When evaluating the performance of leasing activities, the operating margin provides insight into how efficiently a company is managing its costs relative to the income generated from its leasing agreements.

In this context, having a higher operating margin indicates that the leasing operations are more profitable, as it reflects a greater difference between the income generated from rent and the expenses associated with managing those leasing activities. This is critical for making informed business decisions, as it helps identify how well a company is controlling costs and maximizing profitability within its leasing portfolio.

The other options focus on different aspects of leasing that do not align with the purpose of the operating margin. While expenses incurred by the tenant and the amount of rent collected relate to leasing but do not specifically measure profitability in an operational context, the value of leased assets at termination deals with asset valuation rather than ongoing profitability.