net operating income (NOI)

Net Operating Income (NOI) is a measure of a property's profitability before accounting for financing costs, taxes, or depreciation. It is calculated by subtracting operating expenses—such as maintenance, property management, and utilities—from the gross rental income generated by tenants. Essentially, NOI reflects the income generated solely from the property's operations, providing investors and owners a clear view of its performance and potential cash flow without considering how it is financed or other non-operational factors.