loader image
Real Estate Glossary

Adjusted Funds from Operations (AFFO)

inflation calculator
Written by Richard Wilson

This is a financial measure of real estate investment trust (REIT). It is used as an alternative to funds from operations (FFO). Compared with FFO, however, AFFO is a superior measure as it considers the maintenance costs of the real estate property over its life. AFFO is calculated by taking the FFO, adding rent increases, and subtracting capital expenditures and routine maintenance amounts.

This is a financial measure of real estate investment trust (REIT). It is used as an alternative to funds from operations (FFO). Compared with FFO, however, AFFO is a superior measure as it considers the maintenance costs of the real estate property over its life. AFFO is calculated by taking the FFO, adding rent increases, and subtracting capital expenditures and routine maintenance amounts.

About the author

Richard Wilson