To conclude, NOI and EBITDA are two universally used measures of operating profitability, but NOI is intended for real estate properties and thus has more add-backs to isolate the pure operating income generated by the properties themselves. With NOI, more line items are excluded to capture property-level profitability, such as SG&A.įor real estate properties, NOI accounts for the lost revenue caused by tenant vacancies, while EBITDA does not.
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