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Funds from operations – FFO

Funds from operations – FFO refers to the figure used by real estate investment trusts (REITs) to define the cash flow from their operations.

FFO is calculated by adding depreciation and amortization to earnings and then subtracting any gains on sales. It is sometimes quoted on a per-share basis. The FFO-per-share ratio of a REIT is more often quoted, rather than earnings per share (EPS).

FFO – Funds from operations – FFO

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