Given the following information, calculate the funds from operation (FFO). Net income: $1,200,000; Gain/losses from infrequent and unusual events: $0; Amortization of tenant improvements: $120,000; Amortization of leasing expenses: $75,000; Depreciation (real property): $2,675,000.

Question

Quizplus · Accepted Answer

FFO is calculated by starting with net income, then adding back depreciation and amortization of real estate assets, and adjusting for gains or losses on sales of properties. In this case, FFO = $1,200,000 (Net Income) + $2,675,000 (Depreciation) + $120,000 (Amortization of tenant improvements) + $75,000 (Amortization of leasing expenses) = $4,070,000.

Given the Following Information, Calculate the Funds from Operation (FFO)