Funds From Operations - FFO

AAA

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.

RELATED TERMS
  1. Earnings Per Share - EPS

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

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

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

    A real estate investment trust's (REIT's) cash on hand that is ...
  5. Cash Flow

    1. A revenue or expense stream that changes a cash account over ...
  6. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
Related Articles
  1. Working Capital Works
    Insurance

    Working Capital Works

  2. How To Analyze Real Estate Investment ...
    Home & Auto

    How To Analyze Real Estate Investment ...

  3. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

  4. The Impact Of Interest Rates On Real ...
    Bonds & Fixed Income

    The Impact Of Interest Rates On Real ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center