Ffo

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Finance

Ffo is a fast, free finance calculator. Enter Net Income, Depreciation & Amortization and Gains/Losses on Sales to get an instant, accurate result — complete with the formula, a step-by-step worked example, and answers to common questions, all on one page and private to your browser.

Formula

FFO = Net Income + D&A - Gains/Losses
  • Key metric for REIT valuation
  • Removes non-cash depreciation
  • Better indicator than GAAP earnings for REITs

REIT FFO

Inputs
  • Net Income: 100000000 $
  • Depreciation & Amortization: 50000000 $
  • Gains/Losses on Sales: 5000000 $
  • Shares Outstanding: 100 millions

$100M NI + $50M D&A - $5M gains = $145M FFO, or $1.45 per share for 100M shares.

Frequently asked questions

Why is FFO important for REITs?
REITs have high depreciation from real estate, making FFO more accurate than GAAP earnings for comparing REIT performance.