# **Beyond FFO: How AFFO Helps Investors Assess REIT Cash Flow** When it comes to evaluating Real Estate Investment Trusts (REITs), the concept of Adjusted Funds from Operations (AFFO) is often mentioned as a significant indicator of a REIT’s financial health. While Funds from Operations (FFO) provides a good starting point, AFFO takes the analysis a step further by accounting for the ongoing expenses required to maintain and grow real estate assets. Adjusted Funds from Operations (AFFO) is a REIT-specific performance metric that adjusts Funds from Operations (FFO) to reflect the costs associated with maintaining and improving the REIT’s properties. AFFO starts with FFO, which adds back non-cash expenses like depreciation to net income, and further deducts capital expenditures, maintenance costs, and other non-recurring items. This approach provides a more realistic view of the REIT’s cash flow, offering investors insight into its true ability to pay dividends. Read full blog post at - https://www.fabanalytics.com/blog-details/beyond-ffo-how-affo-helps-investors-assess-reit-cash-flow