Funds From Operations - FFO

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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.

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.

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