FFO

Definition

Funds From Operations. A financial measure used by REITs to define their operating performance. FFO is calculated by adding depreciation and amortization expenses to earnings. This gives an idea of the REIT's cash performance, which is a better measure of the REIT's performance than earnings, which include (often large) non-cash items.

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adjusted funds from operations cash (or funds) available for distribution (CAD or FAD)