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.
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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.
AFFO excludes the changes in the fair value of derivative instruments, net of certain associated costs.
03 per share in AFFO is attributable to positive business related to the effects from the hurricane season.
The Company's computation of AFFO and AFFO per diluted share is not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes it is an appropriate measure for this Company.