What's exclluded from NOI?

[the show NY]

Just financing costs? Is that it?

 

[meazza]

Depreciation...

 

[Isura]

depreciation

 

[approaching_c]

interest, depreciation, tax (not property tax)

 

[cfadec08]

For real estate valuation?

Its depreciation and interest expense.

 

[Northeastern Student]

and income tax..under the income method

 

[shakespeare]

Is it correct to think EBITDA?

 

[Northeastern Student]

i highly doubt you will see it like that....EBIDA..no T (at least property tax)

 

[the show NY]

i think i phrased it wrong.

by excluded i meant, if youre given a whole list of expenses, like maintenance and financing costs and insurance, interest, depreciation, etc., which of those should you NOT subtract from gross revenues to calculate NOI

 

[rohol123]

NOI= Gross Rental Income - (Gross Rental Income * (1-vacancy rate)) - Maintenance Expenses - Expenses (excluding interest) - property tax

Value of property = NOI/ Mkt Cap

 

[rohol123]

insurance expense would also be subtracted, forgot that one