Funds From Operations - FFO

Loading the player...

What are 'Funds From Operations - FFO'

Funds from operations (FFO) refer to the 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.

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.

RELATED TERMS
  1. Funds From Operations Per Share ...

    A metric for the performance of a real estate investment trust ...
  2. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  3. Cash Available For Distribution ...

    A real estate investment trust's (REIT's) cash on hand that is ...
  4. Funds Available For Distribution ...

    An informal measure of the amount of capital that is on hand ...
  5. Funds From Operations (FFO) To ...

    A leverage ratio that a credit rating agency or an investor can ...
  6. Adjusted Funds From Operations ...

    A financial performance measure primarily used in the analysis ...
Related Articles
  1. Investing Basics

    Calculating Funds from Operations

    Funds from operations (FFO) measures the performance of a real estate investment trust (REIT) and other similar types of investments.
  2. Mutual Funds & ETFs

    Real Estate Investment Trusts (REITs)

    Real Estate Investment Trusts (REITs)
  3. Mutual Funds & ETFs

    Analyzing REITs And REIT Performance

    Analyzing REITs And REIT Performance
  4. Investing Basics

    5 Types of REITs And How To Invest In Them

    Real estate investment trusts are historically one of the best-performing asset classes around. There are many types of REITs available.
  5. Mutual Funds & ETFs

    At Look at REITS vs. Real Estate Mutual Funds (ESRT, TRREX)

    REITs and real estate mutual funds have their differences, but they both offer liquidity and easy access to diversified real estate assets.
  6. Options & Futures

    20 Investments: Real Estate Investment Trusts (REITs)

    What Is It? What if you want to invest in the real estate sector, but you either already have a house or don't have enough money to buy one right now? The answer is REITs. REITs sell like stocks ...
  7. Investing

    What Is a REIT and Does It Belong in My Portfolio?

    Real estate investment trusts offer a unique way for investors to own a real estate portfolio without the risks of owning single properties.
  8. Mutual Funds & ETFs

    REITs vs. REIT ETFs: How They Compare

    Learn about the difference in investing in a REIT for a single real estate company versus investing in a REIT ETF that tracks a larger REIT index.
  9. Professionals

    Real Estate Investments

    NASAA Series 65: Section 10 Real Estate Investments. In this section real estate investment trust (REIT), equity REIT, mortgage REIT, Reit Taxation and real estate limited partnership.
  10. Mutual Funds & ETFs

    Real Estate Investment Trusts

    REIT Introduction
RELATED FAQS
  1. What security should I use funds from operations for?

    Find out what sorts of securities are evaluated using funds from operations. Learn how FFO is calculated and why it is relevant ... Read Answer >>
  2. What is the difference between funds from operations per share and earnings per share?

    Find out how funds from operations (FFO) differs from net income. Learn how FFO is calculated and why REITs are evaluated ... Read Answer >>
  3. What is the difference between a REIT and a real estate fund?

  4. How can I use the funds from operations to total debt ratio to assess risk?

    Find out more about the funds from operations to total debt ratio and how to use the FFO to total debt ratio to assess a ... Read Answer >>
  5. What is the difference between an Equity REIT and a Mortgage REIT?

    Find out more about real estate investment trusts and the main differences between equity and mortgage real estate investment ... Read Answer >>
  6. What is the difference between adjusted and regular funds from operations?

    Understand a REIT's regular funds from operations and its adjusted funds from operations. Learn what each is used to measure ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center