Question 8
1 pts
Which of the following is FALSE about the funds from operations (FFO) or adjusted FFO?
To derive FFO, we can start with the net income before extraordinary items and reverse the calculations related to minority interest, real estate sales, depreciation and amortization
To derive FFO, we can start with EBITDA and take into account the debt service expenses and preferred dividend
FFO is used as a performance metric about free cash flows of a company
Adjusted FFO adds cap ex, tenant improvements, and leasing commissions to FFO