NOI in REIT Analysis

This problem practices a core REIT concept, net operating income, and the ability to separate property level performance from the rest of the company. Candidates need to understand which costs belong at the property level and which items are excluded because they are not part of day to day real estate operations. Interviewers ask this because NOI is a standard way to evaluate the earnings power of a portfolio, compare assets on a like for like basis, and connect operating performance to valuation metrics used in real estate, including cap rates.