Real Estate Investment
Adjusted Funds From Operations (AFFO) is a financial metric used to assess the cash flow available to equity holders of a Real Estate Investment Trust (REIT) after adjusting for capital expenditures necessary to maintain the property. This figure is crucial for evaluating a REIT's performance, as it provides a clearer picture of cash generation by factoring in necessary expenses that traditional Funds From Operations (FFO) might overlook, such as maintenance and leasing costs.
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