The formula used in the calculations is:
\[ \text{FFO} = \text{Net Income} + \text{D&A} + \text{Losses} - \text{Gains} - \text{Interest Income} \]
This calculator computes the Funds From Operations (FFO) based on the input values of net income, depreciation and amortization (D&A), gains and losses from property sales, and interest income. FFO is a measure often used by real estate investment trusts (REITs) to define the cash generated by their operations.
Let's assume the following:
Calculate the FFO:
\[ \text{FFO} = 500,000 + 150,000 + 80,000 - 125,000 - 75,000 = 530,000 \]
Therefore, the Funds From Operations (FFO) is $530,000.