Monthly Archives: September 2023

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If a company has negative enterprise value, what does that mean?

This means that the company must have more cash than the equity value, debt, and preferred equity combined together. Cash is subtracted from the enterprise value, so the larger cash is, the lower the enterprise value. The company also likely has a suppressed equity value due to negative investor sen...
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What is adjusted funds from operations (AFFO)?

Adjusted Funds From Operations (AFFO) is calculated as: AFFO = FFO + rent increases – capital expenditures – routine maintenance amounts For reference, the formula for Funds from Operations (FFO) is:FFO = net income + depreciation & amortization + property sales losses – proper...
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What is funds from operations (FFO)?

Funds From Operations (FFO) is calculated as: FFO = net income + depreciation & amortization + property sales losses – property sales gains – interest income FFO measures the cash flows generated from a real estate company’s core operations. Unlike net operating income, FFO is leve...
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