The numbers below are from the current analysis. Ratios do not take into account all of the cash flows, and are not a discounted cash flow measure like NPV, hence do not reflect the true yield for the analysis. Cash flows with the * symbol are partial years where the partial number has been divided by the number of months and multipled by 12.
	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Total Operating Expenses	$66,400	$68,184	$70,020	$71,910	$73,855	$75,858	$77,920	$80,043	$82,229	$84,481
/ Total Gross Income	$362,147	$371,173	$368,560	$374,467	$381,745	$411,982	$424,841	$435,148	$448,017	$462,428
= Operating Expense Ratio	18.3%	18.4%	19%	19.2%	19.3%	18.4%	18.3%	18.4%	18.4%	18.3%

Operating Expense Ratio is the Total Operating Expenses divided by the Gross Income.

Considers:

Expenses and Gross Income (Potential)

Ignores:

Vacancy, Sale Proceeds, All Financing (Loans), Other Years NOI, All Taxes

... and a lot of other things

Why is NOI/Property Value useful?

Operating Expense Ratio is the Total Operating Expenses divided by the Gross Income, which tests the reality of the total expense amount, as well as the expense growth rate. Note that this ratio is better presented in the Common Size report which shows the same ratio for each of the individual expenses as well as the total.

What is the NOI/Property Value Sensitive to:

Anything related to Expenses and Gross Income (Potential) in the current year