Funds From Operations (FFO)
FFO is a supplemental measure of REIT operating performance created by to promote a uniform industry standard. Nareit's definition starts from GAAP net income and adjusts to address the effects of real estate depreciation and certain gains/losses on sale, among other specified items.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Public reporting; investor analysis; valuation multiples
- Property types
- Equity REITs (primary); some real estate operating companies
In practice
Even with a defined framework, presentation details can differ across issuers; comparability requires reviewing reconciliation disclosures.
Related terms
Investment Metrics
- Adjusted Funds From Operations (AFFO)
- Cost of Capital
- EBITDAre
- Internal Rate of Return (IRR)
- Net Present Value (NPV)
- Total Return
General information, not legal, tax or financial advice.