Question

what is the meaning of "stabilized NOI?"( stabilized net operating income) At what point is a...

what is the meaning of "stabilized NOI?"( stabilized net operating income) At what point is a property's NOI considered "stabilized?"

Homework Answers

Answer #1

Stabilized Net Operating Income is when Projected income less expenses that are both subject to change depending on macro, micro economic factors or any relevant factors but that have been adjusted to reflect equivalent stable property operations.

Present value of income equals the present value of series of uneven cash flows when both are discounted at same rate for same period of time.

Property is considered to have stabilized Net Operating Income:

The property is fully leased, Rents are at market rates, Tenant turnover is uneven over the long term and is minimal in short term and Revenue expenditure of the improving is minimal to maintain the operating standards as in the market.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI)...
You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is financed with an 80% LTV mortgage at 4% A. What is the Cap Rate? B. What is the ROA? C. What is the leverage ratio?
Net operating income (NOI) is expected to be level at $100,000 per year for the next...
Net operating income (NOI) is expected to be level at $100,000 per year for the next five years because of existing leases. Starting in Year 6, the NOI is expected to increase to $120,000 because of lease rollovers and increase at 2 percent per year thereafter. The property value is also expected to increase at 2 percent per year after Year 5. Investors require a 12 percent return and expect to hold the property for five years. What is the...
Using the following information, compute net operating income ( NOI ) for the first year of...
Using the following information, compute net operating income ( NOI ) for the first year of operations. Use an “above-line” treatment of capital expenditures. Number of apartments: 10 Rent per month per apartment: $800 Expected vacancy and collection loss: 5 percent Annual maintenance: $12,000 Annual depreciation: $6,000 Property taxes: $4,000 Property insurance: $5,000 Management: $6,000 Capital expenditures: $5,000 Income taxes: $9,000 Other operating expenses: $3,000 Annual mortgage debt payments: $14,000 a) $27,200 b) $41,200 c) $47,200 d) $50,200 e) $56,200
There are two firms, Hello and olleH. Each has expected Net Operating Income (NOI) of $18...
There are two firms, Hello and olleH. Each has expected Net Operating Income (NOI) of $18 million each year forever, and the cash flow to Hello will always be exactly the same as that to olleH, whether it ends up above or below the expected amount. Hello is all equity (stock). olleH has some equity, along with $100 million in debt (market value and face value). olleH’s debt pays 5% interest at the end of each year, and olleH has...
A property produces a net operating income of $20,000 in year one ; $30,000 in year...
A property produces a net operating income of $20,000 in year one ; $30,000 in year two, and $45,000 in years 3 to 6. The property will be sold in year five. The resale price is estimated using a terminal capitalization rate of 8.5% applied to the sixth year NOI. What is the value of the property today using a 10.5% discount rate? A. $468,892 B. $502,634 C. $454,872 D. $424,337
What is residual operating income? What return on net operating assets does a company have to...
What is residual operating income? What return on net operating assets does a company have to generate to earn positive residual operating income?
​(Using degree of operating​ leverage) Last year​ Baker-Huggy Inc. had fixed costs of ​$200,000 and net...
​(Using degree of operating​ leverage) Last year​ Baker-Huggy Inc. had fixed costs of ​$200,000 and net operating income of ​$27,000. If sales increase by 20 ​percent, by how much will the​ firm's NOI​ increase? What would happen to the​ firm's NOI if sales decreased by 22 ​percent? If sales increase by 20​%, the change in the​ firm's NOI will be ▼ of %. ​(Select from the​ drop-down menu and round to two decimal​ places.)
Why is “net operating income” on the functional format income statement the same as “net operating...
Why is “net operating income” on the functional format income statement the same as “net operating income” on the contribution format income statement.                                                            Gross Margin 8,603,560 46.76% 10,530,320 49.30% 11,772,882 48.27% 30,762,309 100.00% less: Marketing Expenses (Sch 7) 5,358,000 29.12% 6,194,000 29.00% 7,010,000 28.74% 8,781,000 28.54% less: G & A Expense (Sch 8) 1,845,000 10.03% 2,004,000 9.38% 2,202,000 9.03% 0 0.00% Net Operating Income 1,400,560 7.61% 2,332,320 10.92% 2,560,882 10.50% 21,981,309 71.46% Contribution Margin 9,106,560 49.57% 10,686,320 50.10% 11,345,882...
Net operating income computed using absorption costing will always be less than net operating income computed...
Net operating income computed using absorption costing will always be less than net operating income computed using variable costing. TRUE OR FALSE
Differences between net income and net cash provided by operating activities exist because: 1) net income...
Differences between net income and net cash provided by operating activities exist because: 1) net income is an estimate whereas cash from operating activities is an actual number. 2) net income is an actual number whereas cash from operating activities is an estimate. 3) accrual accounting recognizes revenue and income even when cash has not been received or paid. 4) net income includes capital expenditures, cash from operating activities does not.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT