What is yearly gross profit in SAP RE - Real Estate Management?

SAP Term: yearly gross profit

• Component: RE

• Component Name: Real Estate Management

• Description: Sum of consistently attainable income from rental and leasing of an object. For calculating gross revenue, the typical local rent market rent is used rather than the actual rent.

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• Key Concepts: 
  Yearly Gross Profit is a financial metric used in SAP Real Estate Management (RE) to measure the total amount of money earned from a property over the course of a year. It is calculated by subtracting the total expenses associated with the property from its total revenue. 
  
  How to use it: 
  Yearly Gross Profit can be used to measure the profitability of a property and compare it to other properties. It can also be used to assess the performance of a property over time and identify areas for improvement. 
  
  Tips & Tricks: 
  When calculating Yearly Gross Profit, it is important to include all expenses associated with the property, such as taxes, insurance, maintenance, and utilities. It is also important to include any income generated from the property, such as rent or other fees. 
  
  Related Information: 
  Yearly Gross Profit is closely related to other financial metrics, such as Net Operating Income (NOI) and Cash Flow (CF). NOI measures the total income generated from a property after subtracting operating expenses, while CF measures the amount of money available for distribution after subtracting all expenses and capital expenditures.