NOI Leakage
Hi All,
Wondering if someone could explain theoretically why firms include rent frees and leasing commissions as below the line expenses, as in below NOI rather than above?
Is it simply a matter of them being non-recurring expenses and not actual costs of operating the property?
They are non recurring expenses. So if you include them in operating income, it will skew your value as you don’t pay them yearly.
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