Adjusted Funds From Operations

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Adjusted Funds From Operations

In real estate investment trusts (REITs), a measure of revenue from operations involving liquid transfers, like cash, rather than illiquid assets. In general, the FFO is determined by taking the REIT's earnings and adding back their depreciation and amortization of mortgages, then subtracting regular expenditures used to maintain the REIT's assets. It is widely considered a better measure of an REIT's earnings than its funds from operations.
References in periodicals archive ?
Reconciliation from net income (loss) to FFO & AFFO
AFFO for the three months ended June 30, 2019 and 2018 was ($336,960) or ($0.12) and ($378,507) or ($0.14) per share respectively.
The following table reconciles IFRS cash used in operating activities to AFFO:
Reconciliation from cash used in operating activity to AFFO
Material forward-looking information in this press release around the swap of interests in G3 and K3 includes expectations regarding: (i) transaction close timing, (ii) AFFO impacts of the transaction, and (iii) the expected accounting loss on the transaction.
AFFO was used by the two former executives to present ARCP's income before consideration of non-cash depreciation and amortization expense and to the exclusion of certain one-time charges and expenses.
"We allege that these senior executives conjured up numbers to purposely conceal ARCP's true performance, misleadingly suggesting that the company had met AFFO estimates for the first and second quarters of the year," said Sanjay Wadhwa, senior associate director of the SEC's New York Regional Office, in a statement.
Attorney's office in New York, prior to the filing of ARCP's Form 10-Q for the second quarter of 2014, Block, McAlister and others "came to understand that the method used by ARCP to calculate AFFO in the first quarter of 2014 and in certain previous quarters was erroneously inflated."
Thus, instead of $0.26 per share, "which was publicly reported by ARCP to its shareholders and the investing public, and which placed ARCP on track to meet its full-year AFFO per-share guidance, the correct AFFO for the first quarter of 2014 was $0.23 per share," authorities explained.
The company declared a distribution of Ps 0.4400 per certificate, representing an AFFO payout ratio of 82.1% for the quarter and 86.5% on a Q3 2016 YTD basis.
FFO and AFFO are not financial measures defined by International Financial Reporting Standards ( IFRS ).