Funds From Operations FFO Formula to Measure REITs
During the year, it wrote off Rs. 4,25,000 in depreciation and Rs. 2,35,000 in amortisation costs. After adding depreciation and subtracting property gains, FFO is about $838,390 in 2019 and almost $757,600 in 2020. Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. In our first step, we’ll input the relevant financial data reported for 2022 into our spreadsheet. REIT Income Statement Note that we are showing price divided by FFO, which is market capitalization (market cap) divided by FFO....