All Forum Posts by: Steve Huettl
Steve Huettl has started 1 posts and replied 2 times.
Quote from @Chris Seveney:
@Steve Huettl
Good article here
https://www.fool.com/knowledge...
Thanks for sharing Chris, good article, but why does Realty Income's quarterly statement list depreciation twice? And I guess don't really get the concept of adding depreciation back in to calculate FFO.
I am trying to understand the concepts of FFO and AFFO in REIT evaluation and am finding it to be a bit confusing. Quoting Investopedia....
"FFO is calculated by adding depreciation, amortization, and losses on sales of assets to earnings and then subtracting any gains on sales of assets and any interest income. It is sometimes quoted on a per-share basis."
Why would you add losses and and subtract gains when calculating the earnings of REITS or any other security, this seems kind of backwards doesn't it....? Can someone who understands these concepts please explain and help the rest of us to understand them as well.....?