Net Operating Income Interchange Model

1. Net Operating Income Interchange Model Using the Data Consortium Namespace John McClurejmcclure@hypergrove.com November 09, 2001

2. Objectives • Accommodate multiple Net Operating Income definitions - principally distinguish by the type of Real Estate - the challenge: a called-out expense for one type of RealEstate may be an “Other Expense” for another type of RealEstate - distinguish between NOI of a Property vs NOI of a Facility - accommodate Totals and Subtotals - enable development and comparison of NOI formula • Record stable, normative taxonomies in the Dictionary - minimize impacts of evolutionary change • Demonstrate (standard XML) DCN encoding - implement as Template definitions in the dictionary • Demonstrate (dotted-name) XScript encoding - an intuitive and non-intrusive encoding for encoding NOI data

3. Methodology • Create taxonomies for real estate, financial amounts, & each factor of production (Capital, Labor, Land and Facilities, Product, and Service )- use REIS categories for real estate- use NAFTA’s NAICS/NAIPS & DOL Occupation coding systems - distinguish between Revenue & Income, Cost & Expense • Associate factors’ taxonomies with financial amounts - CapitalRevenue, FacilityRevenue, LaborRevenue, ProductRevenue, ProjectRevenue, and ServiceRevenue- do same for Cost, Expense, and Revenue • Subtype NOI definitions from a publisher by real estate type- NCREIFOfficeNOI, NCREIFRetailNOI, NCREIFMultifamilyNOI, … • Tie NOI formula to Expense & Income entries in the Dictionary - allows subtypes to represent supertypes in datastreams - facilitate easy selection of calculation components from datastreams • Create XScript entries for NOI subtypes and each of their components

4. Real Estate Categories subClassOf DCNResource RDFResource Account REISProperty Actor Fixture Document LandUseRight AgiculturalRE Entry QualifiedRealEstate AssemblyFacilityRE Event PersonalProperty RealEstate CommercialRE Location QualifiedProperty Real Property Categories HealthCareRE Product RealProperty IndustrialRE Property Base Categories LodgingRE QualifiedResource PropertyInterest ResidentialRE Service Real Estate Categories Topic Base Classes

5. Real Estate Subcategories CBDOfficeRE RealEstate CongregateCareRE CommercialTownhouse FlexOfficeRE HospitalRE MixedUseRE OfficeShowroomRE REISProperty SelfstorageRE SuburbanOfficeRE OfficeRE HotelRE AgiculturalRE RetailRE MotelRE AssemblyFacilityRE HighCubeRE ResortRE CommercialRE ShoppingCenterRE HealthCareRE IndustrialRE LodgingRE IndustrialWarehouseRE MultiFamilyRE ResidentialRE ManufacturingRE MultiplexRE Real EstateCategories Plus 11 others SingleFamilyRE

6. Service Categories DCNResource NAICSService Account AdministrativeSvc ManagementSvc Actor AgricultureSvc ManufacturingSvc Document CivicSvc MiningSvc ConstructionSvc Entry PersonalSvc EducationalSvc Event ProfessionalSvc EntertainmentSvc Location RealEstateSvc FinancialSvc Product RepairSvc Property GovernmentSvc RetailTradeSvc QualifiedResource HealthCareSvc TransportSvc subClassOf Service HospitalitySvc UtilitySvc Topic InformationSvc WholesaleTradeSvc Base Categories Base Categories Base Classes

7. Amount Categories DCNResource Account Actor Document subClassOf Entry Event Location Amount Product Count AccountingEntry Memo Property Index Cost QualifiedEntry QualifiedResource Measurement Revenue Quantity Percentage Service Valuation Time QualifiedValue Topic TransactionEntry Base Categories Base Classes Quantity Categories Amount Categories

8. Amount Subcategories subClassOf Amount AccountingEntry Cost Revenue BusinessCost Asset TransactionEntry CapitalCost Equity Valuation BusinessRevenue CostAdjustment Expense Capital CapitalRevenue FacilityCost Income Compensation FacilityRevenue LaborCost Liability Fee MarketValue LaborRevenue ProductCost AccountingEntry Categories Interest TaxValue ProductRevenue ProjectCost Valuation Categories Profit ProjectRevenue QualifiedCost Rent QualifiedRevenue ServiceCost Sale Cost Categories RevenueAdjustment Tax ServiceRevenue TransactionAdjustment Revenue Categories TransactionEntry Categories

9. ServiceFee Categories Amount AdministrativeFee ManagementFee AgricultureFee ManufacturingFee Cost Revenue CivicFee MiningFee ConstructionFee TransactionEntry PersonalFee EducationalFee ProfessionalFee Fee EntertainmentFee RealEstateFee FinancialFee RepairFee ServiceCost ServiceRevenue GovernmentFee RetailTradeFee HealthCareFee TransportFee subClassOf HospitalityFee ServiceFee UtilityFee InformationFee WholesaleTradeFee ServiceFee Categories ServiceFee Categories

10. ServiceCost Categories subClassOf Amount AdministrativeCost ManagementCost AgricultureWafe Cost ManufacturingCost CivicCost MiningCost TransactionEntry ConstructionCost PersonalCost EducationalCost Fee ProfessionalCost EntertainmentFee RealEstateCost ServiceCost FinancialCost RepairCost GovernmentCost RetailTradeCost HealthCareCost TransportCost ServiceFee HospitalityCost UtilityCost InformationCost WholesaleTradeCost ServiceCost Categories ServiceCost Categories

11. ServiceRevenue Categories Amount AdministrativeRevenue ManagementRevenue AgricultureRevenue ManufacturingRevenue TransactionEntry Revenue CivicRevenue MiningRevenue ConstructionRevenue PersonalRevenue EducationalRevenue ProfessionalRevenue EntertainmentRevenue Fee RealEstateRevenue FinancialRevenue RepairRevenue ServiceRevenue GovernmentRevenue RetailTradeRevenue HealthCareRevenue TransportRevenue HospitalityRevenue UtilityRevenue ServiceFee InformationRevenue WholesaleTradeRevenue ServiceRevenue Categories ServiceRevenue Categories

12. Income & Expense Categories Amount subClassOf AccountingEntry Cost BusinessExpense Revenue BusinessIncome CapitalExpense Asset TransactionEntry CapitalIncome ExpenseAdjustment Equity Valuation IncomeAdjustment FacilityExpense Amount Categories Expense FacilityIncome LaborExpense Income LaborIncome OperatingExpense Liability OperatingIncome AccountingEntry Categories ProjectExpense QualifiedIncome ProductExpense ProductIncome QualifiedExpense ProjectIncome ServiceExpense ProjectIncome Expense Categories Income Categories

13. Income & Expense Categories Entry Quantity Amount subClassOf QualifiedEntry AccountingEntry ExpenseAdjustment Cost OperatingExpense Asset Revenue CalculatedEntry ProductExpense Equity Valuation ServiceExpense Expense Amount Categories NetAmount Expense Categories Income Liability AccountingEntry Categories IncomeAdjustment OperatingIncome ProductIncome NetOperatingExpense ServiceIncome NetOperatingIncome Income Categories

14. ServiceExpense Categories AccountingEntry AdministrativeExpense ManagementExpense AgricultureExpense ManufacturingExpense Expense CivicExpense MiningExpense subClassOf ConstructionExpense PersonalExpense EducationalExpense ProfessionalExpense ExpenseAdjustment EntertainmentExpense RealEstateExpense OperatingExpense FinancialExpense RepairExpense ProductExpense GovernmentExpense RetailTradeExpense ServiceExpense HealthCareExpense TransportExpense Expense Categories HospitalityExpense UtilityExpense InformationExpense WholesaleTradeExpense ServiceExpense Categories ServiceExpense Categories

15. ServiceIncome Categories AccountingEntry AdministrativeIncome ManagementIncome AgricultureIncome ManufacturingIncome Income CivicIncome MiningIncome subClassOf ConstructionIncome PersonalIncome EducationalIncome ProfessionalIncome IncomeAdjustment EntertainmentIncome RealEstateIncome OperatingIncome FinancialIncome RepairIncome ProductIncome GovernmentIncome RetailTradeIncome ServiceIncome HealthCareIncome TransportIncome Income Categories HospitalityIncome UtilityIncome InformationIncome WholesaleTradeIncome ServiceIncome Categories ServiceIncome Categories

16. NCREIF Operating Expenses AccountingEntry ExpenseAdjustment Expense OperatingExpense NCREIF OperatingExpense ProductExpense subClassOf ServiceExpense Expense Categories AdministrativeExpense ManagementExpense GenlAndAdmin