Funds from operations adjusts property-company earnings for selected noncash and property-sale items.
Funds from Operations (FFO) Calculator
Results
Funds from operation (FFO)
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Table of Contents
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What is FFO Calculator?
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How to Use This Calculator
- Enter or select Net income, Interest income, Gains from property sales, Losses from property sales, Depreciation and amortization.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Core FFO ≈ net income+real-estate depreciation and amortization−property-sale gains+property-sale losses
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Variables Explained
| Input | What it means |
|---|---|
| Net income | Earnings after the relevant expenses, interest and taxes for the reporting period. |
| Interest income | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Gains from property sales | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Losses from property sales | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Depreciation and amortization | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
Net income 100 plus depreciation 30 minus sale gains 10 gives core FFO of 120.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- FFO definitions can include further adjustments. It is not free cash flow or a complete valuation.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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