Understanding Funds from Operations (FFO)

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.