Funds From Operations - FFO


DEFINITION of 'Funds From Operations - FFO'

A figure used by real estate investment trusts (REITs) to define the cash flow from their operations. It is calculated by adding depreciation and amortization expenses to earnings, and sometimes quoted on a per share basis.


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BREAKING DOWN 'Funds From Operations - FFO'

The FFO-per-share ratio should be used in lieu of EPS when evaluating REITs and other similar investment trusts.

  1. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  3. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  4. Amortization

    1. The paying off of debt in regular installments over a period ...
  5. Rich Valuation

    An asset that is being valued by investors at a very substantial ...
  6. Cash Available For Distribution ...

    A real estate investment trust's (REIT's) cash on hand that is ...
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  1. What is the difference between adjusted and regular funds from operations?

    While regular funds from operations measures the cash flow generated by the operations of a real estate investment trust ... Read Full Answer >>
  2. How can I use the funds from operations to total debt ratio to assess risk?

    The funds from operations (FFO) to total debt ratio is used in fundamental analysis to determine a company's financial risk. ... Read Full Answer >>
  3. What is the difference between funds from operations per share and earnings per share?

    Funds from operations (FFO) is an alternative metric to net income. Both are used to measure the returns being generated ... Read Full Answer >>
  4. What factors drive share prices in the real estate sector?

    The health and growth of share prices of companies in the real estate sector are closely tied to the overall health and growth ... Read Full Answer >>
  5. What price-to-earnings ratio is average in the real estate sector?

    The price-to-earnings (P/E) ratio is a commonly cited valuation metric that can help investors decide what stock price is ... Read Full Answer >>
  6. How can I calculate the Macaulay duration of a zero-coupon bond?

    The funds from operations is a measure of the amount of cash flow that a business's operations generates. Real estate investment ... Read Full Answer >>

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