Funds From Operations - FFO

What Does Funds From Operations - FFO Mean?
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.

Investopedia explains 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

Amortization
Cash Flow
Depreciation
Earnings Per Share - EPS
Real Estate Investment Trust - REIT
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Related Links

Basic Valuation Of A Real Estate Investment Trust (REIT) - Find out why funds from operations is a superior measure of REIT performance.
The Impact Of Interest Rates On Real Estate Investment Trusts - REITs are high-yield investments, but do they have an inverse relationship with interest rates? Find out here.
What Are REITs? - Looking for an income security that rivals small-cap stocks? It may be time to learn about real estate investment trusts.
Working Capital Works - A company's efficiency, financial strength and cash flow health shows in its management of working capital.

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