The calculation used to analyze the profitability of income-generating real estate investments. Includes all revenue minus reasonably necessary operating expenses. A before-tax figure on the income and cash flow statements, that includes principal and interest payments (loans and notes), capital expenditures, depreciation, and amortization. When used in other industries, it is referred to as “EBIT,” which stands for “Earnings Before Interest and Taxes.”
Pertains to real estate, debt, and equity offerings.
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