Accounting

Net operating income (NOI)

A property's income minus its operating expenses, before debt payments, capital expenditures and income taxes.

NOI equals total operating income (rent and other income, after vacancy and losses) minus operating expenses such as repairs, utilities, insurance, property taxes, payroll and management fees. Mortgage payments, depreciation and capex are excluded.

NOI is the core measure of how well a property is run and, through the cap rate, what it is worth. Most owner conversations about performance come back to it.

See it on a sample company