Profitability
Profitability measures the extent to which property generates income exceeding expenses, evaluated through multiple metrics including NOI margin, cash flow, and return ratios.
| Profitability Metric | Calculation |
| NOI margin | (NOI / EGI) times 100 |
| Cash flow margin | (Net cash flow / Gross income) times 100 |
| Return on assets | (NOI / Property value) times 100 |
| Return on equity | (Net income / Equity invested) times 100 |
| Profitability Drivers | Impact |
| Rental rate optimization | Maximize income |
| Occupancy management | Minimize vacancy loss |
| Expense control | Reduce operating costs |
| Leverage optimization | Balance debt benefit vs cost |
| Value-add improvements | Increase NOI and value |
Related Terms
RERA licensed advisors
Free expert advice
Get property recommendations matched to your goals. No pressure. No commitment.