The FFO calculation adjusts for the fact that real estate, by its very nature, involves amortization and depreciation expenses that are not
cash, but which must be subtracted from income to get to
normal «
earnings.»
It presents a 15 year comparison of the
normal MSCI Index with its Value - weighted counterpart (weighted by book value,
earnings,
cash earnings and sales, not dividends), and also with portfolios screened for single metrics.