net operating income


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Related to net operating income: Cap rate

Earnings Before Interest and Tax

A measure of a company's ability to produce income on its operations in a given year. It is calculated as the company's revenue less its expenses (such as overhead) but not subtracting its tax liability or interest paid on debt. It is important to note that EBIT does not account for one-off or otherwise unusual revenues and expenses, only recurring ones. EBIT represents cash available to pay off creditors in the event of liquidation and, as such, it is closely watched, especially when the company incurs little depreciation or amortization. It is also called operating profit.

net operating income (NOI)

The foundation of almost all analyses of income-producing property such as apartments,office buildings,and retail space.The number is the result of taking all rental and other revenues from the property and then subtracting all reasonably necessary operating expenses.Loan payments do not count as expenses for purposes of the NOI.If you,as the owner,pay yourself a salary of $100,000 a year but your job could be filled by someone at $35,000 a year, it is legitimate to make that downward adjustment in the expenses when presenting figures to a potential purchaser or lender. On the other hand, if you take no salary, do all the office work, make all repairs, and mow the lawn, then you will have to estimate what those expenses would be if a third party owned the project and enter that number as an imputed expense.

References in periodicals archive ?
This decrease was due to higher net realized investment losses, partially offset by increased net operating income from continuing operations.
Adjustment: Net operating income attributable to noncontrolling interests in
In our view, these deals are going to contract because some investors are computing their anticipated return-on-investment based on the seller's numbers, rather than doing their own due diligence and deflating actual, or better yet, projected net operating income, by providing adequate reserves for operating expenses, capital improvements, and tenant work letters.
As Home Properties repositions its portfolio and refinances debt, Fitch would look for a larger pool of unencumbered assets and additional unencumbered net operating income to cover the additional unsecured borrowing.
Net operating income (loss) and net operating income (loss) per share are non-GAAP measures that represent net income (loss) excluding net realized gains or losses, net of tax.
By adjusting for these "special" items, a "true" net operating income for both years can be set.
The Company defines "net operating income after tax" as our net operating income less income tax provision excluding investment related activity and the tax impact related to the investment related activity.
At the same time, net operating income (total income less total expenses) rose by 0.
A capitalization rate is determined by dividing the property's annual net operating income by the purchase price.
In the fourth quarter of 2014, our Net Operating Income (NOI) excluding termination revenues and other income items increased 1.
Since in recent years there have been few sales of record and these have not warranted substantial increases in assessed values, he assessor now determines assessed value primarily through capitalization of the prior year's net operating income before debt service, depreciation, md real property taxes.
The tax provision excluding impact of investment related activity is calculated by applying the tax rate calculated from the income statement to net operating income.