Adjusted Funds From Operations (AFFO) Calculator

FINANCIAL & TAX CALCULATORS Adjusted Funds From Operations (AFFO) Calculator Calculate the Adjusted Funds From Operations (AFFO) for Real Estate Investment Trusts.
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What is the Adjusted Funds From Operations (AFFO) Calculator & How does it work?
Adjusted Funds From Operations (AFFO) is a key metric used to measure the financial performance of a Real Estate Investment Trust (REIT). It represents the amount of cash available to fund debt service, capital expenditures, and distributions to shareholders. AFFO is calculated by adjusting Net Operating Income (NOI) for certain non-cash items such as straight-line depreciation and amortization.
The formula for AFFO is:
AFFO = NOI – Depreciation – Amortization
NOI = Net Operating Income
Depreciation = Annual depreciation expense
Amortization = Annual amortization expense
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Parameters
Adjusted Funds From Operations (AFFO)—
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Frequently Asked Questions
What is Adjusted Funds From Operations (AFFO)?
AFFO is a metric used to measure the cash flow available to a REIT after accounting for non-cash expenses like depreciation and amortization.
How do I calculate NOI?
Net Operating Income (NOI) is calculated by subtracting operating expenses from rental income.
Why is AFFO important for investors?
AFFO helps investors understand the cash flow available to fund debt, capital expenditures, and dividends.
Can I use this calculator for any type of property?
This calculator is specifically designed for Real Estate Investment Trusts (REITs).
What does depreciation mean in this context?
Depreciation refers to the reduction in value of a property over time, which is subtracted from NOI to calculate AFFO.
How often should I recalculate my AFFO?
It's recommended to recalculate AFFO at least annually to reflect any changes in income or expenses.
Does this calculator include other adjustments besides depreciation and amortization?
This basic calculator focuses on NOI, depreciation, and amortization. Other adjustments may be necessary for a complete analysis.

Results are for informational purposes only and do not constitute professional advice.