Funds From Operations (FFO) Calculator

FINANCIAL & TAX CALCULATORS Funds From Operations (FFO) Calculator Calculate Funds From Operations (FFO) for evaluating REIT financial performance.
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What is the Funds From Operations (FFO) Calculator & How does it work?
Funds From Operations (FFO) is a non-GAAP measure used to evaluate the operating performance of real estate investment trusts (REITs). It excludes items that are not considered part of core operations, such as gains or losses from property sales, impairment charges, and certain other items. FFO provides investors with a clearer picture of the cash flow generated by the REIT’s properties.
FFO = Net Income + Depreciation – Amortization
Net Income = Total income minus expenses
Depreciation = Reduction in value of property over time
Amortization = Reduction in value of intangible assets over time
This calculator helps you compute the FFO based on your REIT’s net income, depreciation, and amortization figures. By inputting these values, you can assess the financial health and performance of your REIT more effectively.
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Frequently Asked Questions
What is Funds From Operations (FFO)?
FFO is a non-GAAP measure used to evaluate the operating performance of real estate investment trusts, excluding items like gains from property sales and impairment charges.
How do I calculate FFO?
FFO is calculated by adding depreciation to net income and subtracting amortization.
Why is FFO important for investors?
FFO provides a clearer picture of the cash flow generated by REITs' properties, excluding non-core operational items.
What does depreciation represent in FFO calculations?
Depreciation represents the reduction in value of property over time and is added back to net income for FFO calculations.
How do I find the necessary financial data for FFO calculation?
You can typically find this information in a REIT's annual report or financial statements, including net income, depreciation, and amortization figures.
Can FFO be used to compare different REITs?
Yes, FFO allows for a more apples-to-apples comparison of REIT performance by focusing on core operating cash flow.
What are some common adjustments made when calculating FFO?
Common adjustments include adding back gains from property sales, impairment charges, and certain other non-operational items.

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