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Funds From Operations (FFO)

Evaluate REIT profitability by adjusting net income to exclude depreciation and property sale gains, revealing true cash generation.

FFO Calculator

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FFO Results

Total FFO

FFO Per Share

FFO Yield

Based on current price

FFO Formula

FFO = Net Income + Depreciation & Amortization - Gains on Sales + Losses on Sales + Impairment

FFO Per Share = FFO ÷ Outstanding Shares

Key Components:

  • • Net Income: REIT's net income from operations
  • • Depreciation: Non-cash depreciation of real estate
  • • Gains/Losses: From property sales (excluded from FFO)
  • • Impairment: Asset impairment charges

Why FFO Matters:

  • • Standard metric for REIT performance
  • • Excludes non-cash depreciation
  • • Better measure of cash flow
  • • Used for dividend coverage analysis

Interpretation Guide

Good FFO Indicators:

  • • Consistent FFO growth over time
  • • FFO covers dividend payments
  • • FFO per share increases annually
  • • Strong FFO yield relative to peers

Warning Signs:

  • • Declining FFO trends
  • • FFO doesn't cover dividends
  • • Large impairment charges
  • • Heavy reliance on property sales

💡 Pro Tips:

  • • Compare FFO growth rates across similar REITs
  • • Look at FFO payout ratios (dividends ÷ FFO per share)
  • • Consider AFFO (Adjusted FFO) for recurring capex
  • • Analyze FFO quality and sustainability

Additional REIT Metrics

Current Stock Price
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P/FFO Ratio

FFO Yield

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