Finance

AFFO Calculator

Adjusted Funds From Operations — the gold standard cash flow metric for REITs.

Net Income ($)

Depreciation & Amortization ($)

Gains on Property Sales ($)

Recurring CapEx ($)

Straight-Line Rent Adj ($)

Tenant Improvements ($)

Leasing Commissions ($)

Shares Outstanding

Formulas:
FFO = Net Income + D&A − Gains on Sales
AFFO = FFO − Recurring CapEx − SLR Adj − TIs − Leasing Commissions

FFO vs AFFO

FFO adds back depreciation (since real estate often appreciates) and removes property sale gains. AFFO goes further, subtracting recurring maintenance CapEx and other non-cash adjustments to show true recurring cash flow. AFFO is considered the best measure of a REIT's ability to pay dividends.

AFFO Payout Ratio

A healthy REIT typically pays 70-85% of AFFO as dividends. Above 90% leaves little cushion; below 60% suggests the dividend could be raised.