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What are the four basic components of NOI? - 🧠 ANSWER ✔✔1 - Potential
rental income (PRI)
2 - Vacancy and credit losses
3 - Other income
, 4 - Operating expenses
[XXXX] is used to determine a property's PRI (Potential Rental Income.) - 🧠
ANSWER ✔✔Lease analysis
PRI equals NOI in what property/tenant scenario? - 🧠 ANSWER ✔✔If the
property has one tenant with a long-term absolute NNN lease.
[XXXX] is PRI minus vacancy and collection losses. - 🧠 ANSWER ✔✔ERI
(Effective Rental Income)
Name some items which are EXCLUDED from Operating Expenses. - 🧠
ANSWER ✔✔Interest and principal on debt on the property
Depreciation (cost recovery)
Capital Expenditures
Income Taxes
Reserves for Replacement
Tenant Improvements
True or False: Depreciation is included in Operating Expenses. - 🧠
ANSWER ✔✔False