FFO Definition Wednesday, September 25, 1:05 PM ET
In the world of REITs -- Real Estate Investment Trusts -- often a company will own assets that are able to be depreciated for tax purposes, but that actually appreciate over the course of time. This creates a situation where reported earnings are lower than the ongoing amount of cash generated from operations.
The industry developed the term FFO, which stands for Funds From Operations. FFO is a way for REITs to present an alternative financial measure of their business performance, taking into account depreciation and certain other items. Many REIT investors find that following FFO in addition to EPS gives a more complete picture of a REIT's performance.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
X
Wait! Don't leave yet.
Want to receive our latest research absolutely free?
⤹
Click the button below for your complimentary copy of Your Early Retirement Portfolio: Dividends Up to 8.3%—Every Month—Forever.
You'll discover the details on 4 stocks and funds that pay you massive dividends as high as 8.3%.
