REIPRIME Logo
Intermediate45 minutes9 terms

Real Estate Income: Key Terms

This curated collection clarifies key terms for understanding comprehensive income in real estate. It covers essential concepts from potential gross revenue to after-tax cash flow, helping you analyze property profitability and make informed investment decisions.

Term Collection

1

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (AOCI) is an equity account on the balance sheet that records unrealized gains and losses from certain financial activities not yet recognized in net income, reflecting changes in equity from non-owner sources.

Advanced5 min
2

Asset Revaluation

Asset revaluation is the process of adjusting the book value of an asset to reflect its current fair market value, typically performed by real estate companies to provide a more accurate representation of their financial position.

Advanced5 min
3

Net Operating Income

Net Operating Income (NOI) is a key real estate metric representing a property's annual income after deducting all operating expenses, but before accounting for debt service, income taxes, and capital expenditures.

Intermediate11-12 min
4

Unrealized Gains and Losses

Unrealized gains and losses represent the theoretical profit or loss on an investment that has not yet been sold, reflecting the difference between its current market value and its original cost basis. These are 'paper' gains or losses until the asset is actually sold.

Intermediate5 min
5

Comprehensive Income

Comprehensive income represents the total change in a company's equity during a period from non-owner sources, encompassing both net income and other comprehensive income (OCI) items not reported on the traditional income statement.

Intermediate7-9 min
6

Other Comprehensive Income

Other Comprehensive Income (OCI) represents revenues, expenses, gains, and losses that are excluded from net income but are recognized in comprehensive income, reflecting changes in equity from non-owner sources. It captures certain unrealized gains and losses that bypass the income statement.

Advanced5 min
7

Fair Value Accounting

Fair Value Accounting is an accounting principle that requires certain assets and liabilities to be recorded at their current market value, or 'fair value,' rather than their historical cost. This approach aims to provide more relevant and up-to-date financial information for real estate investors.

Advanced7-9 min
8

Real Estate Investment Trust

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate, allowing individuals to invest in large-scale property portfolios through publicly traded shares.

Intermediate15-18 min
9

Statement of Comprehensive Income

A financial statement that reports a company's total comprehensive income, which includes net income and other comprehensive income (OCI), providing a complete view of all changes in equity from non-owner sources.

Intermediate7-9 min

Common Questions