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Finance Calc Kit
Real estate

FFO Calculator

Calculate Funds From Operations (FFO) for Real Estate Investment Trusts (REITs) using net income, depreciation, and gains on property sales.

REIT income statement inputs

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Funds from operations (FFO)

$6,800,000.00

Calculation details

Net income$5,000,000.00
+ Non-cash addbacks$2,500,000.00
- Net property sales adjustment$700,000.00
Funds from operations$6,800,000.00
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What is funds from operations (FFO)?

Funds from operations (FFO) is the standard REIT cash-flow metric. It starts with GAAP net income, adds back real estate depreciation and amortization, and removes non-operating property sale gains while adding sale losses. This calculator reports total FFO and FFO per share. All math runs in your browser.

FFO is a starting point, not a dividend guarantee. For recurring capex adjustments, use the AFFO calculator. To build net income from revenue and costs, try the accounting profit calculator. For book depreciation totals, open the accumulated depreciation calculator.

FFO formula

FFO=Net Income+Depreciation+Amortization−Gains on Sales+Losses on Sales\text{FFO} = \text{Net Income} + \text{Depreciation} + \text{Amortization} - \text{Gains on Sales} + \text{Losses on Sales}

FFO per share divides total FFO by weighted-average shares outstanding for the period.

Worked example: REIT with $5M net income

  1. Net income: $5,000,000
  2. Add depreciation and amortization: $2,000,000 + $500,000 = $2,500,000
  3. Subtract net property sale gain: $800,000 - $100,000 = $700,000
  4. FFO: $5,000,000 + $2,500,000 - $700,000 = $6,800,000
  5. FFO per share: $6,800,000 / 1,000,000 shares = $6.80

Frequently asked questions

Why do REITs add back depreciation for FFO?
Real estate depreciation is a non-cash GAAP expense. FFO is meant to approximate recurring cash generated by property operations.
How is FFO different from AFFO?
AFFO further adjusts FFO for recurring capital spending and certain rent smoothing items. Use the AFFO calculator for that metric.
Should I use gains or losses from all asset sales?
Nareit FFO focuses on gains and losses from sales of real property and land, not every corporate divestiture. Enter property-related amounts only.
Can FFO be negative?
Yes. Large property sale gains or weak operating income can produce negative or unusually low FFO. Compare FFO trends over several quarters.
Are the results stored?
No. Inputs sync to the page URL for sharing, but nothing is saved on a server.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.