Funds From Operations


FFO. 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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Our operating performance was going good and I knew that because of our funds from operations, which was really cool.

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We checked the numbers regarding our funds from operations and came away more confident than ever that the coming quarter would be a great one.

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The REIT's manager asked his analyst to calculate the most recent quarter's funds from operations. He needed to determine how they were performing operationally.

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