Adjusted Funds From Operations (AFFO)
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Adjusted Funds From Operations (AFFO) is a financial metric used by real estate investment trusts (REITs) to measure the true performance of their operations. AFFO adjusts the traditional Funds From Operations (FFO) by deducting recurring capital expenditures and leasing commissions, providing a more accurate representation of a REIT’s cash flow available for distribution to shareholders.
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