What is FFO?
Funds From Operations: a REIT performance metric that adds real estate depreciation and amortization back to net income and adjusts for property-sale gains/losses. Analysts use Price / FFO much like a P/E ratio. Not the same as free cash flow.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.