Triple Net Lease (NNN): What It Is, How It Works, and Why Investors Love It
Warren Team
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Key terms
- Net WorthThe total value of your assets minus your liabilities. A key measure of financial health that should ideally increase over time as you build wealth.
- Net IncomeIncome remaining after all deductions, taxes, and expenses are subtracted from gross income. Also called take-home pay for individuals or net profit for businesses.
- Net MarginThe percentage of revenue that remains as profit after all expenses, including operating costs, interest, taxes, and depreciation, have been deducted. Net margin is often considered the most comprehensive measure of a company's overall profitability and is sometimes called the 'bottom line.' It is calculated by dividing net income by total revenue and helps investors compare the profitability of companies across different industries and sizes.
- Room and BoardThe combined cost of housing and meal plans at a college or university, which is a significant portion of the overall cost of attendance. Room and board costs vary depending on whether you live on campus, off campus, or at home, and the type of meal plan you select. Many colleges require first-year students to live on campus and purchase a meal plan.
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