Net Investment In Real Estate – Total real estate investment minus the balance of the outstanding debt.
Net Investment Income – A portfolio’s or legal entity’s income or loss calculated by deducting all expenses, including portfolio and asset management fees, but before realized and unrealized gains and losses on investments, from total income.
Net Net Lease (NN) – Leases that require the tenant to pay property taxes and insurance in addition to the rent. Not a triple net lease.
Net Operating Income (NOI) – A before-tax key indicator of financial strength computed by taking gross revenues minus operating expenses and a vacancy rate allowance.
Non-Owner Occupied Property – Property purchased by a borrower, not as a primary residence, but as a real estate investment with the intent of generating rental income, tax benefits, and/or profitable resale. Also known as an investment property.
Net Present Value (NPV) – Net present value is used to compare the relative merits of two or more investment choices. It is calculated by adding the total present value of incremental future cash flows to the present value of estimated proceeds from sale or transaction.
Net Purchase Price – Gross purchase price minus any financed debt.
Net Real Estate Investment Value – Market value of all real estate holdings less their property-level debt.
Net Returns – Total returns to investors less consultant or management fees, also known as net profit.
Net Sales Proceeds – Earnings from an asset’s sale, or a portion of an asset’s sale, minus the brokerage commissions, closing costs and associated expenses.
Nominal Yield – The yield to investors prior to making adjustments for fees, inflation or risk.
Non-Compete Clause – A lease clause specifying that a tenant’s business is exclusive in the property and that no other tenant may operate the same or a similar type of business in the building (like a shopping center or a mall).
NNN – Triple Net Lease – A lease where the tenant or lessee agrees to pay all real estate taxes, building insurance and common area maintenance on the leased property in addition to the normal fees, such as rent, that are expected in the agreement. The tenant or lessee is also responsible for all costs due to repairs or replacement of the structural building elements of the property. Not a Net-Net lease.