Real Estate Investment Trusts

Funds from Operations (FFO)
Funds from operations (FFO) is a financial performance metric primarily used by real estate investment trusts (REITs) to define the cash generated by their operations. It specifically excludes the depreciation and amortization that obscures the actual cash earnings of these types of entities. FFO is essential to assess a REIT’s capability to pay dividends to its shareholders.

Accounting Terms Lexicon

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