Adjusted Funds From Operations (AFFO)
AFFO is a non-standardized analyst/investor computation intended to approximate recurring/normalized operating performance after adjusting FFO for items such as recurring capital expenditures and straight-line rent effects. Nareit notes there is no standardized definition of AFFO, so users should understand the company's definition.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Public reporting; investor analysis
- Property types
- Equity REITs; public real estate analysis
In practice
Because AFFO is not standardized, "AFFO yield" comparisons require careful reconciliation of what is included/excluded across issuers.
Related terms
Investment Metrics
- Cost of Capital
- EBITDAre
- Funds From Operations (FFO)
- Internal Rate of Return (IRR)
- Net Present Value (NPV)
- Total Return
General information, not legal, tax or financial advice.