Glossary Topic: Valuation & Returns

Net operating income divided by purchase price; the standard yardstick for pricing NNN properties.

The income return on an investment, usually expressed as an annual percentage.

Annual pre-tax cash flow divided by total cash invested — the return on the equity actually put into a deal.

The years left on the current lease term — a key driver of NNN pricing and financing.

Gross income minus operating expenses, before debt service and income taxes.