Operations
Capital expenditure (capex)
Spending on major replacements or improvements that extend a property's life, as opposed to routine repairs.
Examples include roofs, HVAC systems, parking lot resurfacing and full unit renovations. Capex is usually tracked below the NOI line and is often depreciated over years rather than expensed at once, depending on tax treatment.
Owners plan capex through reserves and multi-year budgets. Distinguishing capex from repairs keeps NOI comparable across periods and helps owners judge whether a renovation earned its cost through higher rent.
See it on a sample company