Question #10
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 6
Status: Correct
Correct Answer: B
Question
A key difference between Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) is that AFFO excludes:
Answer Choices:
A. non-cash rent while FFO does not
B. depreciation while FFO does not
Explanation
AFFO is FFO adjusted to remove straight-line rent and to provide for leasing costs and
maintenance-type capital expenditures. FFO is accounting net earnings excluding deferred
tax charges, depreciation, and gains or losses on sales of property and debt restructuring.