Define funds from operations (FFO) and explain why this measure is often used instead of GAAP net income to quantify the income producing ability of a real estate investment trust ...

GAAP accounting includes noncash deductions such as depreciation and amort ...

Define funds from operations (FFO) and explain why this measure is often used instead of GAAP net

Question:

Define funds from operations (FFO) and explain why this measure is often used instead of net income to quantify the income-producing ability of a real estate investment trust.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...