AFFO Calculator

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GAAP net income reported in the REIT's income statement for the period.
Non-cash D&A on real estate assets. This is added back because GAAP depreciation overstates the true decline in property values.
Realized gains from selling properties during the period. Subtracted from FFO because they are non-recurring.
Realized losses from selling properties. Added back to FFO because they are non-recurring.
Capital expenditures needed to maintain existing properties in their current condition (roof replacements, HVAC, etc.). Growth capex is excluded.
GAAP requires rent to be recognized on a straight-line basis over the lease term. This removes the non-cash portion of that adjustment so AFFO reflects actual cash collected.
Cash costs to re-lease space: broker commissions and tenant improvement allowances. These are real recurring cash outflows not captured in D&A.
Diluted weighted-average shares (or units) outstanding for the period.
Current market price per share, used to compute AFFO yield.
Total dividends declared per share over the year (or annualized). Used to compute the AFFO payout ratio.
Currency
AFFOConservative payout
$29,000,000

Adjusted Funds From Operations: cash available for dividends after recurring capex and lease costs

FFO$35,000,000
AFFO per share$2.90
AFFO yield8.92%
Dividend payout ratio62.1%
Total AFFO adjustments$6,000,000
FFO$35,000,000
AFFO$29,000,000
Total Adjustments$6,000,000
62.1% %
Conservative<75Sustainable75-90High90-100Unsustainable100+

AFFO is $29.00M (FFO of $35.00M less $6.00M in adjustments). AFFO per share is $2.90.

  • AFFO adjustments reduced FFO by 17.1% (a typical reduction for a well-maintained portfolio).
  • The 62.1% payout ratio is within the generally healthy range for REITs (75-90%), suggesting the dividend is well-covered by cash flow.
  • At the entered share price, AFFO yield is 8.92%. Compare this to the broader REIT market average (typically 4-7%) to assess relative value.
  • AFFO is a non-GAAP metric; definitions vary by company. Always cross-check how recurring capex and straight-line rent are disclosed in the REIT's supplemental filings.

Next stepCompare AFFO per share growth year-over-year and check whether management is growing the portfolio without eroding AFFO margins.

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