How to calculate funds from operations (FFO)?

The formula to calculate funds from operations (FFO) is as follows. Funds from Operations (FFO) = Net Income to Common + Depreciation – Gain on Sale, net + NCI Loss, net Non-controlling interest (NCI) comprises operating partnership (OP) unit holders that have not yet converted their units into common shares.

How do you calculate FFO?

The calculation for FFO can be made by retrieving accounting data found on the income statement and inserting this data into the FFO formula. The FFO formula is: FFO = Net Income + Depreciation + Amortization + Losses on Sales of Asset - Gains on Sales of Assets - Interest Income

What is funds from Operation (FFO)?

The fund from operation (FFO) is a metric that will help you analyze the performance of a real estate investment trust (REIT). This article will help you understand what FFO is and how to calculate the metric using the FFO formula. We will also show you its application by demonstrating some examples. What are funds from operation (FFO)?