REALPAC Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS (January 2022)


Since the introduction of the REALPAC Handbook in 1972, REALPAC has promoted Funds from Operations (FFO) as the industry-wide standard measure of a real estate entity’s operating performance. The definition, initially labeled as cash flow from operations, has been clarified and amended several times to address new issues since that time. The definition historically has been one that was based on generally accepted accounting principles (GAAP).

Since the release on November 21, 2003, of the Revised Canadian Securities Administrators’ Staff Notice 52-306, Non- GAAP Financial Measures, FFO is no longer disclosed in financial statements and is included in other continuous disclosure documents of reporting issuers, both corporations and real estate investment trusts (REITs).

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