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FFO per Share

Financial glossary · plain-language definition · Specialized Investing

Funds From Operations per share -- the REIT industry's primary earnings measure, replacing net income (EPS) because GAAP net income is distorted by huge non-cash real-estate depreciation. FFO takes net income, adds back real-estate depreciation and amortization, and removes gains on property sales, giving a truer picture of recurring cash-generating power per share. The critical caveat: the NAREIT-defined FFO is the standard, but many REITs headline a "Core FFO" or "Normalized FFO" that adjusts out items THEY choose -- a different, company-specific number. Compare only NAREIT-to-NAREIT, and never assume a bare "FFO" figure is the NAREIT one.

Related terms

Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management

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