How to Calculate AFFO: A Step-by-Step Guide for Real Estate Investors
Real estate investing demands a sharp eye for financial metrics to pinpoint the best opportunities. Among these, Adjusted Funds From Operations (AFFO) stands out as a vital tool for gauging the true cash flow potential of properties, especially within Real Estate Investment Trusts (REITs). Whether you’re a seasoned investor analyzing portfolios or a newcomer sizing up your first deal, mastering AFFO and its calculation process can unlock smarter, data-driven decisions. In this comprehensive guide, we’ll walk you through calculating AFFO step-by-step, explore its real-world applications, and highlight how cutting-edge tools like Portfolio Management AI—such as those offered by Leni.co—can elevate your analysis.
