Funds From Operations (FFO) is a measure of the profitability of a Real Estate Investment Trust (REIT) derived from net income adjusted for non-cash items such as depreciation and amortization. It is widely regarded as a more accurate indicator of a REIT's performance than GAAP net income.
In accounting, the term 'Net Income' refers to the amount remaining after all expenses have been deducted from total revenue. It is a key measure of profitability and is also known as the bottom line. In appraisal, net income can often be termed as net operating income, and in personal finance, it refers to an individual's take-home pay after all taxes and deductions have been subtracted.
