No, NOI is not an acronym that you would associate with text messaging, which has slowly expanded, but at the sametime shrank the English language. NOI is a very important business associated acronym that you may not hear about very often.
NOI stands for Net Operating Income and is basically how a business measures their success. NOI refers to a company's operating income after operating expenses are deducted, but before income taxes and interest are deducted. If this is a positive value, it is referred to as net operating income, while a negative value is called a net operating loss (NOL).
You might think of NOI as the number of dollars a property returns in a given year if the property were to be purchased for all cash and before consideration of income taxes or capital recovery. By more formal definition, it is a property's Gross Operating Income less the sum of all operating expenses.
Essentially, in the real estate/apartment community world, NOI is the net cash generated before mortgage payments/taxes with housing and after specials are taken into consideration wit apartments. Therefore, the higher the NOI, the better for the apartment community, or homeowner.
Now you can say you know what NOI means.
Enjoy!
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