AFFO Calculator

Calculate Funds From Operations (FFO), Adjusted Funds From Operations (AFFO), and AFFO per share with live REIT cash-flow analysis, formulas, examples, and practical interpretation.

⚑ Report error
Adjusted funds from operations
—
FFO + rent increases − recurring costs
Funds from operations
—
Net income + D&A + losses − gains − interest income
AFFO per share
—
AFFO ÷ shares outstanding

FFO → AFFO bridge

How each adjustment moves the operating measure
Live
Positive bars add; negative bars reduce the bridgeUpdates with every input

AFFO sensitivity

AFFO as recurring costs change
Live
Same FFO and rent adjustmentCurrent point highlighted
LIVE SCENARIO INTELLIGENCE

What your AFFO is really telling you

Updates live
AFFO conversion—AFFO as a share of FFO
Recurring burden—recurring costs ÷ FFO
Property-sale adjustment—losses − gains − interest income
AFFO per share—cash-flow measure per share
Change any input to see the AFFO bridge update live.
DECISION TOOLS

See how one assumption changes AFFO

Test stronger net income or lower recurring property costs without changing the base scenario.

Live
AFFO retentionLIVE
—How much of FFO remains after modeled adjustments.
FFO to AFFO allocationLIVE
— FFO— rent adjustment— recurring costs
—

AFFO calculation bridge

10 lines
ComponentAmountEffectRole

Your scenario

$
Net income for the selected reporting period.
$
$
$
$
$
$
$
shares
Use one consistent reporting period. AFFO is a non-GAAP analytical measure and different REITs may define its adjustments differently; this educational model makes every adjustment explicit.
THE CONCEPT

What is AFFO?

Adjusted Funds From Operations (AFFO) is a REIT-focused analytical measure designed to move from net income toward a recurring operating cash-flow view. The central idea is simple: calculate FFO first, then make additional adjustments for selected recurring property and rent-related items.

For a student, the best mental model is a bridge: net income → FFO → AFFO. Each step has a purpose, and each adjustment should be visible enough that you can challenge it.

Real commercial property used as an illustration of income-producing real estate
Real commercial property example. Income-producing buildings generate rent but also require ongoing capital investment and maintenance. Image: Wikimedia Commons.
NET INCOMEstarting pointFFO ADJUSTMENTS+ D&A + losses− gains − interestFFOoperating baseAFFO ADJUSTMENTS+ rent increases− CapEx − maintenanceEvery adjustment remains visible in the learning model.AFFO is an analytical measure, not a replacement for full financial statements.
Σ

Think like a REIT analyst: ask which adjustments are recurring, how the company defines them, and whether the same definition is being used when you compare another REIT.

THE FORMULA

AFFO formula

FFO = Net income + D&A + Losses − Gains − Interest income
NI
Net income for the selected period.
D&A
Depreciation and amortization added back in the FFO model.
Losses
Losses from property sales.
Gains
Gains from property sales removed from the operating measure.
II
Interest income removed under this model.
AFFO = FFO + Rent increases − Recurring CapEx − Routine maintenance
FFO
Funds from operations from the first bridge.
Rent
Rent-related adjustment in the chosen convention.
CapEx
Recurring capital spending.
Maintenance
Routine recurring property maintenance.
①
FFO

Creates the first operating bridge from accounting net income.

②
Recurring adjustments

Brings recurring property costs and rent-related adjustments into view.

③
AFFO / share

Divides AFFO by shares outstanding to express the measure per share.

THE BRIDGE

Read AFFO as a sequence of adjustments

StartNet incomeAccounting base
Add+ D&ANon-cash charge+
Remove− gainsProperty-sale effect−
Adjust± other itemsLosses and interest income±
ThenAFFORecurring-cost adjusted measure→
WORKED EXAMPLES

AFFO calculator examples

Worked examples make the bridge auditable. The figures below use the same convention as the calculator.

EXAMPLE A · REIT ALPHA

From net income to AFFO

Net income $500,000; D&A $150,000; gains $125,000; losses $80,000; interest income $75,000.

FFO = 500,000 + 150,000 + 80,000 − 125,000 − 75,000 = $530,000
AFFO = 530,000 + 50,000 − 60,000 − 35,000
AFFO = $485,000
EXAMPLE B · PER SHARE

Putting AFFO on a share basis

If AFFO is $485,000 and shares outstanding are 1,000,000:

AFFO/share = 485,000 ÷ 1,000,000
AFFO/share = $0.485
ILLUSTRATIVE AFFO BRIDGE
LineAmountEffect
Net income$500,000Start
+ D&A+$150,000Add
− Gains−$125,000Remove
+ Losses+$80,000Add
− Interest income−$75,000Remove
FFO$530,000Operating base
+ Rent increases+$50,000Adjust
− Recurring CapEx−$60,000Recurring cost
− Maintenance−$35,000Recurring cost
AFFO$485,000Adjusted measure
AFFO VS FFO

What is the difference between FFO and AFFO?

FFO is the first operating bridge. AFFO takes another step by incorporating selected recurring property costs and rent-related adjustments. Because AFFO is non-GAAP, the exact reconciliation can differ between REITs.

FFO

Operating bridge

Useful for examining operating performance after the specified FFO adjustments.

Recurring CapExNot yet deducted
RoleFirst bridge

AFFO

FFO ± adjustments

Moves further toward a recurring property cash-flow view by including selected adjustments.

Recurring costsAdjusted
RoleSecond bridge
Important distinction: do not assume two companies' AFFO figures are directly comparable until you understand their reconciliation policies.
REAL-WORLD USE

Where AFFO is used

REIT

Dividend analysis

Analysts can examine AFFO alongside distributions to understand the recurring cash-flow context behind dividends.

$/S

Per-share analysis

AFFO per share connects the total measure with the number of shares outstanding.

Δ

Trend analysis

Tracking the bridge over time helps separate operating change from recurring capital requirements.

Commercial property exterior
Real building example: property economics include both income generation and ongoing upkeep. Public-domain image via Wikimedia Commons.
PROPERTY ECONOMICS

Why recurring costs matter

A building can produce rent for years, but roofs, systems, interiors and other components still require investment. AFFO analysis tries to keep that recurring burden visible.

FFO → adjustments → AFFO
INTERPRETATION

How to read your AFFO result

Start with the gap between FFO and AFFO. A large gap is not automatically good or bad; it tells you to inspect recurring costs and the rent adjustment. Then look at AFFO per share to add share-count context.

High AFFO conversion

AFFO close to FFO

A large share of FFO survives the modeled recurring adjustments.

Large FFO → AFFO gap

Inspect recurring costs

Review CapEx, maintenance and the rent adjustment before drawing conclusions.

COMMON ERRORS

Common AFFO calculation mistakes

1

Mixing definitions

Different REITs can use different non-GAAP reconciliation policies.

2

Mixing periods

Keep net income, CapEx and maintenance on the same reporting basis.

3

Ignoring recurring capital

FFO alone does not show every recurring property cash requirement.

4

Treating AFFO as GAAP

AFFO is a non-GAAP analytical measure, so the reconciliation matters.

FAQ

AFFO Calculator FAQ

What does AFFO stand for?

AFFO stands for Adjusted Funds From Operations, a REIT-oriented analytical measure built from FFO with additional adjustments.

What is the difference between FFO and AFFO?

FFO is the first operating bridge from net income. AFFO goes further by incorporating selected recurring capital, maintenance and rent-related adjustments.

Can AFFO be negative?

Yes. If the modeled recurring adjustments are large enough, AFFO can be negative.

Is AFFO the same for every REIT?

No. AFFO is non-GAAP and companies can use different reconciliation policies.

How do I calculate AFFO per share?

Divide AFFO by shares outstanding. This expresses the calculated measure on a per-share basis.

Educational note: this calculator is a simplified learning model. Actual REIT reporting can use different non-GAAP reconciliation policies and recurring-cost definitions.