Definition
A REIT performance measure adding depreciation back to net income and excluding gains on property sales.
Example
Price-to-FFO is used for REITs the way price-to-earnings is used for operating companies.
Related terms
Frequently asked questions
What does Funds From Operations mean in real estate?
A REIT performance measure adding depreciation back to net income and excluding gains on property sales.
How is Funds From Operations used in practice?
Price-to-FFO is used for REITs the way price-to-earnings is used for operating companies.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.