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What is Funds From Operations?

FFO: a REIT performance metric that starts with net income and adds back real estate depreciation and amortization and adjusts for gains or losses on property sales. It is 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.