Funds From Operations – FFO
A financial measure used by Real-Estate Investments Trust –REITS to define their operating cash-flow. FFO is calculated by adding depreciation expenses and amortization expenses to earnings, and often is expressed as per share ratio.
REITS earnings often include large non cash items, so FFO can be better indicator of REITS cash flow. Also, FFO per share should be used instead EPS when evaluating REITS financial power.
| Related Terms: |