NOI
Also called: net operating income · property NOI
Net operating income: property revenue less ordinary operating expenses before debt service and certain non-operating items.
What it means in practice.
NOI is a core property-level underwriting metric. Exact definitions vary by market and deal, so investors should normalize one-time items, reserves, owner-specific costs and management assumptions.
Why it matters.
Cap rate, debt service coverage and value analyses often begin with NOI.
Additional notes.
NOI is a core property-level underwriting metric. Exact definitions vary by market and deal, so investors should normalize one-time items, reserves, owner-specific costs and management assumptions.
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