adjusted funds from operations

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adjusted funds from operations definition - finance
A calculation used for Real Estate Investment Trusts (REITs) that measures a real estate companyÂ’s cash flow generated from operations. This calculation is often referred to as AFFO, or may be called cash available for distribution (CAD) or funds available for distribution (FAD). To arrive at the adjusted funds from operations, two expenses are subtracted from funds from operations (FFO): 1) straight-line rents, which averages the tenantÂ’s fixed-rent payments over the life of the lease, and 2) routine expenses, such as carpeting, painting, or leasing expenses, which are capitalized by the REIT and then amortized.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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"adjusted funds from operations." Webster's New World Finance and Investment Dictionary. 2009

  • Your Dictionary. 5 July 2009
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APA Style

adjusted funds from operations. (2009). In Webster's New World Finance and Investment Dictionary

  • Retrieved July 5th, 2009, from www.yourdictionary.com/finance/adjusted-funds-from-operations

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