The NOI divided by a property value is simply the net operating income divided
by the property value. It's also known as the overall cap rate. It can be a test
of the assumption for the appreciation of the property. Here. We noticed that
his tent all the way across, and that's because it's it's basically a cap rate
number. And what we did on this property, as we said, that the. Sales price method
was going to cap last year and why a 10 percent cap rate and when we go
to the income statement, the NY. Property value is really a proof of that,
because what it's saying is it took this year's net operating income and used a 10
percent cap rate to create the sale value. And then the wider property value divides
the. And why buy the property value you get the 10 percent? However, if we go back
and change the sales price method to capitalize next year in Hawaii and go back
to the income statements now to produce a sale value, we're taking the next year's
analy shown here to create this number. And when we look at the Nevada property
value. We're going to be looking at the current year in Hawaii. And dividing
it by the property value that was generated by next year, in a way,
and you're seeing the property of the anyway the property value are changing
each year. Another thing, it can be useful for us if we exit, we can do the sales
price method as a appreciation. We'll see appreciates a four percent. We go back
to the income statements. Now, the sale value is not related to the NRA at all,
it's being a growing appreciating by a percentage each year. And then
when we look at the Nevada property value, this is showing us based on the net
operating income divided by the sale value. And it shows us the. The percentage
each year. What would be the cap rate that would create that sale value?
So is it useful? It really depends on whether you want to see it or not, you can
turn it off by clicking on the menu item and ratio's. You could turn out on and off
any of the races that we're seeing here.