Same-Store Net Operating Income (SS-NOI) Explained
Same-Store Net Operating Income (SS-NOI): Same-Store Net Operating Income (SS-NOI) measures the year-over-year organic revenue and expense growth of stabilized properties owned and operated for at least one full calendar year, stripping out acquisitions and dispositions.
Institutional Analysis & Context
Because REITs constantly buy and sell properties, headline revenue growth can mask deteriorating fundamentals. Same-Store NOI isolates internal organic growth—reflecting occupancy gains, rent increases upon lease renewal, and operating expense discipline—without distortions from M&A or new development deliveries.
Formula & Calculation Breakdown
| Metric Component | Definition & Application |
|---|---|
| Stabilized Properties | Real estate owned and operated continuously across both comparison periods |
| Net Operating Income | Rental revenue minus property operating expenses, taxes, and maintenance |
Real-World Calculation Example
Flagship REITs Exemplifying This Metric
Analyze how top public REITs perform across this dimension in the live market:
Frequently Asked Questions
Why is Same-Store NOI considered the best measure of internal growth?
It eliminates the noise of acquisitions and property sales, demonstrating whether the core existing real estate portfolio is generating higher organic rental income.
What is the difference between Cash SS-NOI and GAAP SS-NOI?
Cash SS-NOI removes non-cash straight-line rent adjustments and amortization of above/below-market leases, reflecting actual cash collected from existing tenants.
What drives positive Same-Store NOI growth?
High tenant retention, positive leasing spreads on expiring leases, contractual rent bumps, and low vacancy rates.