Funds From Operations - FFO
A figure used by real estate investment trusts (REITS) to define the cash flow from their operations. It is calculated by adding depreciation and amortization expenses to earnings, and sometimes quoted on a per share basis.
Investopedia Commentary
The FFO-per-share ratio should be used in lieu of EPS when evaluating REITs and other similar investment trusts.
Related Links
Basic Valuation of a Real Estate Investment Trust (REIT)
The Impact of Interest Rates on Real Estate Investment Trusts
What Are REITs?
Working Capital Works
See also: Amortization, Cash Flow, Depreciation, EPS, REITS