🏘️ FFO Calculator
Calculate Funds From Operations (FFO)
Gains from sale of real estate or other assets (optional, default 0)
How to Use This Calculator
Enter Net Income
Input the net income from the income statement - profit after all expenses and taxes.
Enter Depreciation and Amortization
Enter depreciation and amortization expenses - non-cash expenses that reduce net income but don't affect cash flow.
Enter Gain on Sale (Optional)
Optionally enter gains on sale of assets (real estate, property, etc.) - these are one-time gains that should be excluded from FFO.
Review FFO
See the funds from operations (FFO) - a key performance metric for REITs that measures operating performance by adding back non-cash expenses and excluding one-time gains.
Formula
FFO = Net Income + Depreciation + Amortization - Gain on Sale of Assets
Example Calculation:
If net income $500,000, depreciation $200,000, amortization $50,000, gain on sale $0:
• FFO = $500,000 + $200,000 + $50,000 - $0 = $750,000
• This measures operating performance for REITs
About FFO Calculator
An FFO (Funds From Operations) calculator helps you calculate funds from operations, which is a key performance metric for REITs (Real Estate Investment Trusts). FFO = Net Income + Depreciation + Amortization - Gain on Sale of Assets. FFO measures operating performance by adding back non-cash expenses (depreciation and amortization) to net income and excluding one-time gains from asset sales. FFO is considered a better measure of REIT performance than net income because it accounts for the nature of real estate assets and operations.
When to Use This Calculator
- REIT Analysis: Calculate FFO for REIT performance analysis
- Real Estate Investment: Evaluate REIT operating performance
- Financial Analysis: Analyze REIT cash generation
- Investment Analysis: Assess REIT value and performance
Understanding FFO
- REIT Metric: Key performance metric for REITs
- Operating Performance: Measures operating performance excluding non-cash items
- Cash Proxy: Better proxy for cash flow than net income
- Industry Standard: Standard metric for REIT analysis
Why Use Our Calculator?
- ✅ REIT Analysis: Calculate FFO accurately
- ✅ Real Estate Investment: Evaluate REIT performance
- ✅ Financial Analysis: Analyze REIT cash generation
- ✅ Investment Analysis: Assess REIT value
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is FFO (Funds From Operations)?
FFO (Funds From Operations) is a key performance metric for REITs (Real Estate Investment Trusts). FFO = Net Income + Depreciation + Amortization - Gain on Sale of Assets. FFO measures operating performance by adding back non-cash expenses (depreciation and amortization) to net income and excluding one-time gains from asset sales. FFO is considered a better measure of REIT performance than net income because it accounts for the nature of real estate assets and operations.
Why is FFO important for REITs?
FFO is important for REITs because it provides a better measure of operating performance than net income. REITs have significant depreciation expenses that reduce net income but don't affect cash flow. FFO: (1) Adds back non-cash expenses - depreciation and amortization, (2) Excludes one-time gains - gains from asset sales, (3) Better cash proxy - better measure of cash generation, (4) Industry standard - standard metric for REIT analysis. FFO is used to assess REIT performance, compare REITs, and evaluate dividend-paying capacity.
How is FFO different from net income?
FFO differs from net income by: (1) Adding back depreciation and amortization - non-cash expenses that don't affect cash flow, (2) Excluding gains on sale - one-time gains from asset sales, (3) Operating focus - focuses on operating performance, (4) Cash proxy - better proxy for cash flow. Net income includes depreciation and gains on sale, which can distort REIT performance. FFO provides a clearer view of operating performance and cash generation for REITs.
What is AFFO (Adjusted Funds From Operations)?
AFFO (Adjusted Funds From Operations) is a refined version of FFO that further adjusts for maintenance capital expenditures and other recurring items. AFFO = FFO - Maintenance CapEx - Other Adjustments. AFFO is considered an even better measure of REIT cash flow because it accounts for the cash needed to maintain properties. AFFO is often used alongside FFO to provide a more complete picture of REIT performance and dividend-paying capacity.