What is TTM in Real Estate?
What is TTM in Real Estate?
"TTM" stands for "Trailing Twelve Months." It refers to the financial data or performance metrics of a property or real estate investment over the past twelve months. TTM figures are commonly used to analyze the recent performance of a property, providing a snapshot of its financial health and operational efficiency without the seasonal fluctuations or irregularities that shorter periods might exhibit.
TTM is particularly useful for:
- Evaluating Revenue: Assessing the total income generated from the property, including rents, fees, and any other income sources, over the past twelve months.
- Understanding Expenses: Reviewing the property's operating expenses, maintenance costs, taxes, and other expenditures incurred during the same period.
- Calculating Net Operating Income (NOI): Determining the NOI by subtracting the total operating expenses from the total income, providing insight into the property's profitability.
- Assessing Performance Trends: Identifying trends in revenue, expenses, or NOI that could indicate how the property is likely to perform in the near future.
Investors and analysts use TTM data to make informed decisions about buying, selling, or holding real estate investments. It offers a comprehensive view of a property's financial performance, enabling better comparison with other investments and aiding in forecasting future profitability.