What is FFO per share?

As mentioned, FFO per share is sometimes provided by firms as a supplement to their EPS. Earnings per share is a company's net income divided by the outstanding equity shares. EPS and FFO per share provide a measure of how much income is being generated on a per-share basis.

What is funds from operations (FFO)?

Funds from operations is the figure used by real estate investment trusts (REITs) to define the cash flow from their operations. Real estate companies use FFO as a measurement of operating performance. FFO excludes one-time cash inflows such as income from the sale of an asset; instead, it only includes income from business activities.

What is FFO in REITs?

FFO helps investors analyze a REIT’s operational cash flow, separate from non-cash items, providing a clearer financial picture. Q. How does FFO differ from net income? Net income includes non-operational items, while FFO focuses solely on cash flow from a REIT’s core real estate operations.