Return of investment, or _______ is the return of principal at the end of ownership.

The correct term to describe the return of principal at the end of ownership is capital recapture. This concept refers specifically to the recovery of the initial investment in a property, which occurs once the property is sold or its ownership is transferred. Capital recapture is essential for investors, as it indicates that they have successfully recovered their invested capital in addition to any income generated during their ownership period.

Understanding this concept is crucial for real estate investors because it allows them to gauge the overall success of their investment strategy. The aim is not only to earn income through operations but also to ensure that the principal amount invested can be recouped, enabling investors to reinvest in other opportunities or realize profits.

Options like capitalization, dividends, and net operating income relate to other aspects of financial return. Capitalization refers to the process of converting income into value, dividends are payouts to shareholders and do not directly pertain to property ownership recovery, and net operating income represents the income generated by a property after operating expenses, rather than returning the principal investment.