FFO. A financial measure used by REITs to define their operating performance....
Used by REITs to define the cash flow from their operations. It is calculated by adding depreciation and amortization expenses to earnings.
A measure of financial performance used by Real Estate Investment Trusts. It consists of net earnings with some depreciation and amortization charges added back. It does not equate to GAAP earnings or cash flow. FFO is sometimes criticized because it is subject to some manipulation in how it is applied. GAAP earnings, however, are also subject to manipulation. If conservatively applied, FFO is a fair and useful measurement in light of the fact that real estate has important attributes not shared by other investments.
The standard method for the reporting earnings by Real Estate Investment Trust (REIT) companies. more... Close this window Growth Rate (Daily Graphs)(See EPS Growth Rate, 3-5 Year) Close this window Headquarters The location of a company's main offices. more... Close this window IBD SmartSelect® Ratings Six proprietary and exclusive research ratings designed to screen out deficient stocks, identify potential market leaders, save time, and significantly improve stock selection. more...
Used by real estate and other investment trusts to define the cash flow from trust operations. It is earnings with depreciation and amortization added back. A similar term increasingly used is Funds Available for Distribution (FAD), which is FFO less capital investments in trust property and the amortization of mortgages.
The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT's net income, excluding gains or losses from sales of property or debt restructuring, and adding back real estate depreciation.
Cash flow from operations less net interest income from operations.
The cash flow derived from trust operations, usually in relation to investment trusts.
