ADJUSTED FUNDS FROM OPERATIONS - AFFO

The financial performance measure predominantly used in analyzing the real-estate income trusts (REITs). The AFFO of a real-estate income trust, though subjected to different computation method, is in general equal to the FFO (funds from operations) of the trust with adjustments done for the recurring capital expenditures utilized to maintain the quality of the underlying assets of the REITs. The calculation takes in the adjustment to leasing costs, GAAO straight-lining of rent and other material factors.