Question about calculating NOI
Hi guys, I'm reading an income statement from a property and I'm having a difficult time getting the NOI. There's no line that reads NOI, but at the way bottom there's a line that says TOTAL NET INCOME. Is that the same as NOI or 2 different things?

Thank you!
[{"id": "cxi9qdy", "text": "in my unprofessional opinion, you would take gross rents and subtract all of the operating costs.", "replies": [{"id": "cxib85h", "text": "would it be just income from rents and no other income like Recovery Income: CAM and Taxes ?", "replies": [], "depth": 2}], "depth": 1}, {"id": "cxian3w", "text": "NOI in CRE usually means EBITDA, or Earnings before Interest, Taxes, Depreciation and Amortization. You'll rarely find two income statements which are produced in the same format, so I understand why you are confused. EBITDA/NOI will be the first item after a line that reads \"Total Expenses\" or \"Total Operating Expenses\", or something to that effect.\n\nTotal Net Income is likely not NOI. Check to see if depreciation and/or interest expenses have been accounted for before Total Net Income.", "replies": [{"id": "cxibau6", "text": "Thanks. I see a line called Total Operating Expenses without Depreciation etc. And I see a line for Total Rental Revenue which includes Recovery Income: CAM, Insurance, and Escalations - RE Taxes. Did I find the right lines to calculate from?", "replies": [{"id": "cxicne3", "text": "NOI would probably be the line immediately below the Total Op. Exp. line. Total Rental Rev. should be above your operating expenses. The CAM (common area maintenance) and insurance reimbursements indicate income received from the tenants. The property likely has a net lease meaning the tenants pay for those items and the landlord gets reimbursed monthly (technically the landlord pays them, and then gets reimbursed). \n\nYou really shouldn't have to calculate anything, there should be a line just below Total Op. Exp. that details NOI.", "replies": [{"id": "cxixgkf", "text": "There isn't a line in this case. And this IS has a few peculiarities such as \"non-operational revenue, and non operational expenses. Personally I think these are mislabeled. I think the non-operational revenue is the interest income earned from the property's bank account and therefore should be included. And the non -operational expenses seem like normal operational expenses to me. ", "replies": [{"id": "cxj0zjb", "text": "Agreed. Vacancy loss and advertising are absolutely operating costs.", "replies": [], "depth": 5}, {"id": "cxj6ky1", "text": "why would you include the interest income?  That would seem entirely non op to me.  I mean if the ownership keeps a million in their accounts or $10, it doesn't really change the fundamentals of the property or its valuation.  \n\nMaybe your thought process is different than mine....", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "cxixe6k", "text": "Why confuse the subject by introducing another acronym. Yes you 95% correct about EBITDA, however\n1. Often there are non - operational expenses (think capex) which would not be included. EBITDA doesn't capture this idea. For instance on a hotel income statement you will often see a EBITDA line and a NOI line and they are different (care to guess why?) ", "replies": [{"id": "cxj61kk", "text": "FF&amp;E Reserve.  Are you a hotelie?", "replies": [{"id": "cxjnhxy", "text": "I am hotelie. And you are correct. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "cxj5s8w", "text": "I don't know why people up voting hydog and down voting me. Let me make it clear he is absolutely not right equating NOI to EBITDA! In most cases they will be the same but not always. And the differences are very material. There are two problems with using EBITDA as a proxy for NOI. For instance EBITDA includes non-recurring revenue, and secondly it does not exclude capitalized investments. Now the former is probably not the important for real estate but the latter most certainly is. And since we are trying to teach principals this is a major thing to understand. So let me say this very clearly EBITDA is not NOI.\n\nHydog you said it absolutely perfect above. But then muddled the waters with EBITDA. \n", "replies": [], "depth": 2}, {"id": "cxj75dh", "text": "You guys are funny. I guess wrong answers and ignorance rules!!!!\n\nI am out. \n\nThis sub is for amateurs. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cxiasve", "text": "Add back Depreciation, Amortization, and Interest Expenses to your Net Income. There might be some other expenses, but those are the big three.", "replies": [], "depth": 1}, {"id": "cxifg9f", "text": "I'm not sure why folks are getting downvoted for basically giving you correct answers.  Post your IS with numbers blacked out and you can get an answer pretty fast.  Like the others said though, include ALL income sources such as rent, expense recaptures etc then subtract ALL expenses that are not financing related or income tax related (ie, principal/interest payments, depreciation, income tax etc).  You DO include property tax, which you should have an offset for if this is a NNN property, which it sounds like it is.  \n\nIs this a proforma or a historical statement?  There are some differences in how things like reserves/vacancy would be accounted for.  \n\nWhat is the purpose you are looking at this for?", "replies": [{"id": "cxig0ov", "text": "I was kinda wondering the same thing. I wouldn't imagine a CRE subreddit to be the place where people spam downvotes.", "replies": [{"id": "cxig7td", "text": "All I can figure is because you used the term EBITDA or that you didn't specify Income Tax / Property Tax.  I dunno, downvotes seem pretty rare here usually, I was surprised.  I knew exactly what you meant......", "replies": [{"id": "cxigamz", "text": "Oh yeah, good point. Glad you covered it.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cxix4uj", "text": "I am amazed at the litany of answers. I am not going to answer as I think a few people answered correctly below.  But to the OP - I hope you are a student, because you shouldn't be reading a IS without supervision.  ", "replies": [{"id": "cxix9ij", "text": "Ok I. Changed my mind and will make it super simple. \n\nThe numbers on n the left hand side of your IS are called GL codes (general ledger) \n\nTake GL 48999 and subtract GL 67599.  Now I would also subtract 67699 as well. While these are titled \"non-operating\" expenses vacant suite cost and marketing/advertising are normal and usual operating cost.  \n", "replies": [], "depth": 2}], "depth": 1}, {"id": "cxixqg4", "text": "I just noticed one other thing which hasn't been mentioned. Noi is also defined by a time period. Such as the NOI for 2015, or the trailing twelve month NOI. Your IS stament has a heading \"period to date\" which typically is the reporting month and \"year to date \" which is what it sounds like. So let's pretend that the \"period to date\" is for March 2015 and the \"year to date\" is January thru March 2015. So what now are you trying to define? The \"period\" noi, I.e. The NOI for March, or the NOI for year to date, i.e. January thru March (t-3), you can annualized either of course (they will be different).", "replies": [{"id": "cxixupb", "text": "I'm looking for the YTD NOI so for example Jan-March NOI. Thanks.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cxku7z7", "text": "From a lender's perspective:  \nI would eliminate interest income. Other income adjustments might be required depending on how you're booking rental income. \nI would eliminate amortization, depreciation and interest expense. ", "replies": [], "depth": 1}]