Real Estate Investing

Net Operating Income

Definition

What is Net Operating Income?

Property revenue minus normal operating expenses, before financing and tax.

Example in practice

Rent of ₦12 million less ₦4 million operating costs gives ₦8 million NOI.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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