What does NOI stand for in real estate terms?

In real estate terms, NOI stands for Net Operating Income. This is a key metric used by investors and property managers to assess the profitability of a real estate investment. It is calculated by subtracting operating expenses from the total income generated by the property, excluding any financing costs or taxes.

Net Operating Income provides a clear picture of a property's financial performance, making it easier to compare different investment opportunities. It plays a crucial role in determining the value of a property, especially when using income capitalization approaches for valuation. Understanding NOI is essential for anyone involved in real estate investment, as it influences decisions regarding property management, acquisition, and financing strategies.

The other terms do not accurately reflect the industry-standard definition of NOI and are not commonly used within real estate financial analysis.