Investment AnalysisFree Tool

FFO Calculator

Provided byOmni Calculatoromnicalculator.com

Our funds from operation (FFO) calculator helps you to evaluate the performance of REITs (real estate investment trus...

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About this tool

What FFO Calculator does

The FFO Calculator on Omni Calculator helps users determine funds from operation, a key performance metric for real estate investment trusts (REITs). By inputting net income, depreciation and amortization, gains or losses from property sales, and interest income, the tool outputs the FFO figure and a per-share result. This allows investors to quickly assess a REIT's ability to sustain dividend payments without needing to manually rearrange financial statements. The calculator is designed specifically for REIT analysis, stripping out one-time property sale gains and interest income that would distort operating performance.

Step by step

How to use the Omni Calculator FFO Calculator

  1. 1

    Enter the REIT's net income from operations

  2. 2

    Add depreciation and amortization expenses

  3. 3

    Include gains from property sales and subtract losses from property sales

  4. 4

    Input interest income earned during the period

  5. 5

    View the calculated funds from operation (FFO) and per-share result

Is it right for you

Best for

Investors and analysts evaluating REITs who need a quick, accurate FFO figure to judge dividend security and operational performance without manual spreadsheet work.

Limitations

  • Results depend on the accuracy of user-entered financial data
  • Excludes detailed context about specific REIT accounting policies
  • Does not replace a full financial statement audit or SEC filings
Questions

FFO Calculator FAQ

What is funds from operation (FFO) and why is it used for REITs?
FFO is a REIT-specific metric that starts with net income and adds back depreciation and amortization while excluding gains from property sales and interest income. It is used because it strips out non-operating items, providing a clearer view of the cash generated by the REIT's core real estate operations and its ability to pay dividends.
How does FFO differ from net income?
Net income includes depreciation, amortization, one-time property sale gains or losses, and interest income, which can distort the true operating performance of a REIT. FFO removes these items to focus on the sustainable cash flow from property operations.
Can FFO be used to compare different REITs?
Yes, FFO is the standard industry metric for comparing REIT performance. A higher FFO generally indicates greater capacity to maintain or grow dividend payments, making it useful for side-by-side analysis of competing real estate investment trusts.
Is the FFO calculator accurate for all types of REITs?
The calculator applies the standard FFO formula, but accuracy depends on the user entering the correct line items from the REIT's financial statements. Different REIT subtypes may adjust the calculation further, so users should verify against the REIT's official filings.
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