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.
Adjusted Funds from Operations (AFFO)
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.
