Real Estate & REITs
What is AFFO, and how do you get from FFO to AFFO? Give an example.
Model answer
Adjusted FFO (also called CAD or FAD - cash available for distribution) refines FFO toward true recurring cash flow: AFFO = FFO - recurring maintenance capex, tenant improvements, and leasing…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Real Estate & REITs
- What is net operating income (NOI), and what does it exclude?
- What is a cap rate, and how do you use it to value a property?
- Why does a LOWER cap rate mean a HIGHER property value?
- What drives cap rates up or down?
- How should you think about the spread between cap rates and interest rates?
- What is the difference between a going-in cap rate and an exit cap rate, and why do underwriters usually assume the exit cap is higher?