How this calculator works
FFO adds back real estate depreciation and removes property sale gains, with losses added back. This simplified AFFO reconciliation then removes non-core interest income, non-cash rent and recurring capital or maintenance adjustments. AFFO is not standardized: use the issuer's reconciliation, and do not deduct a maintenance cost twice if it already reduced net income.
Formula
FFO = net income + real estate depreciation - property sale gains + property sale losses. AFFO = FFO - non-core interest income - non-cash rent - recurring capital expenditures - additional maintenance adjustment. Any component can be isolated by rearranging this identity.
Worked example
Net income of $100,000 plus $30,000 depreciation less $10,000 sale gains gives FFO of $120,000. Deducting $5,000 non-cash rent and $10,000 recurring capital spending gives AFFO of $105,000.
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Frequently asked questions
Is AFFO a GAAP measure?
No. Issuers choose adjustments, so compare their definitions before comparing reported values.
Should all interest income be removed?
Only enter the amount your chosen reconciliation treats as non-core. The default is zero.
Can AFFO be negative?
Yes. The calculator retains a negative result rather than implying that cash is available for distribution.