This chapter discusses the concept of funds from operations (FFO) and its importance in evaluating real estate investment trusts (REITs). The speakers explain that FFO is a better measure of a REIT's cash flow and overall value, highlighting its significance for real estate investors. They also discuss the difference between FFO and earnings per share (EPS) and the misleading nature of the earnings payout ratio when evaluating REITs.
We're here to make you smarter, happier, and richer, and today we're focusing on the smart part. Or that's the aim anyway. You keep score and let us know how we're doing, as our all-star cast tries to help you understand some common and not-so-common investing terms. Do you know them? It's lingo-bingo so prepare to be delighted!
Host: David Gardner Guests: Matt Argersinger, Bill Barker, Jim Mueller Producer: Rick Engdahl