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Exam (elaborations)

CCIM 101 Financial Analysis Questions and Correct Answers

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  • Course
  • CCIM 101
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  • CCIM 101

What are the four basic components of NOI? Ans: 1 - Potential rental income (PRI) 2 - Vacancy and credit losses 3 - Other income 4 - Operating expenses [XXXX] is used to determine a property's PRI (Potential Rental Income.) Ans: Lease analysis PRI equals NOI in what property/tenant scenario?...

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  • July 18, 2024
  • 7
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
  • CCIM 101
  • CCIM 101

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By: ajmckenna • 3 months ago

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CCIM 101 Financial Analysis Questions
and Correct Answers




What are the four basic components of NOI?


Ans: 1 - Potential rental income (PRI)


2 - Vacancy and credit losses


3 - Other income


4 - Operating expenses




[XXXX] is used to determine a property's PRI (Potential Rental Income.)


Ans: Lease analysis




PRI equals NOI in what property/tenant scenario?


Ans: If the property has one tenant with a long-term absolute NNN lease.




[XXXX] is PRI minus vacancy and collection losses.

, Ans: ERI (Effective Rental Income)




Name some items which are EXCLUDED from Operating Expenses.


Ans: Interest and principal on debt on the property


Depreciation (cost recovery)


Capital Expenditures


Income Taxes


Reserves for Replacement


Tenant Improvements




True or False: Depreciation is included in Operating Expenses.


Ans: False




True of False: Principal and interest on debt financing is included in Operating

Expenses


Ans: False. This is an expense of ownership, not an operating expense.




True or False: Capital Expenditures are included in Operating Expenses.


Ans: False. They are written off over a period of years.

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