FFO and AFFO: How to Evaluate a REIT's Earnings, Debt and NAV

Key takeaways

• FFO starts with GAAP net income. It adds back real estate depreciation and amortization and removes gains and losses from selling certain real estate, gains and losses from a change in control, and certain real estate impairment write-downs.
• FFO is a performance measure, not a cash measure. Nareit, the REIT industry's trade group, says "FFO is not intended to be used as a measure of the cash generated by a REIT nor of its dividend-paying capacity."
• AFFO, or adjusted funds from operations, has no single official definition. Each REIT chooses its own adjustments, so read its reconciliation before you compare one REIT with another.
• No single number tells you enough. Look at the payout ratio, debt and interest coverage, same-store NOI, occupancy and leasing spreads, and the share price compared with NAV, together.
• If you're heading into a REIT through a DST's 721 exit, the REIT is what you'll own for years. Evaluate it before you buy the DST, not after the conversion.
• In my offering records as of October 2026, 13 DST offerings (17%) make the 721 exit into a REIT mandatory and 44 (58%) make it optional.

What is FFO?

Let me start with why REITs need a different earnings measure at all.

A REIT, or real estate investment trust, is a company that owns, and usually runs, income-producing real estate. My guide to what a REIT is covers the basics.

Public companies report results under GAAP, or generally accepted accounting principles. These are the standard U.S. accounting rules. GAAP's bottom line is net income, which is revenue minus all expenses.

One of those expenses is depreciation. Depreciation spreads the cost of a building over many years as a yearly expense. No cash leaves the company when it's recorded. The cash went out when the building was bought.

For a factory machine, that makes sense. The machine wears out and loses value. For well-kept real estate, the link between depreciation and real value is weaker. Buildings can hold or gain value in some markets and lose value in others. Yet GAAP keeps charging depreciation either way.

The result is that a REIT's net income can look much lower than its operating results. FFO, or funds from operations, adjusts for that.

Nareit's industry definition

Nareit publishes the industry definition in its Funds From Operations White Paper, 2018 Restatement. Nareit is the REIT industry's trade association, so this is an industry definition, not a law or an accounting rule. It defines FFO as "Net income (calculated in accordance with GAAP), excluding":

1. "Depreciation and amortization related to real estate."
2. "Gains and losses from the sale of certain real estate assets."
3. "Gains and losses from change in control."
4. "Impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity."

The white paper also adjusts for properties a REIT owns with partners, so that their results are counted the same way.

Amortization is like depreciation, but for intangible items, such as the value of leases in place when a building is bought. A change in control is when a REIT gains or loses control of a company or venture that owns property. An impairment write-down is a charge a company takes when an asset's value drops below its value on the books.

The white paper says the purpose is "to address the artificial nature of historical cost depreciation and amortization of real estate." The SEC, or Securities and Exchange Commission, is the federal agency that oversees public companies and securities markets. The white paper says "The SEC staff has accepted Nareit's definition of FFO as a performance measure."

Why gains on sales come out

FFO removes gains and losses from selling real estate. The idea is to measure what the portfolio earns from operations, year after year. A one-time gain from selling a building would make one year look better than the business really is. Removing it keeps the focus on recurring results.

What FFO is not

This part is easy to get wrong. Nareit's white paper says plainly: "FFO is not intended to be used as a measure of the cash generated by a REIT nor of its dividend-paying capacity." It points to the GAAP cash flow statement for that.

So FFO tells you about operating performance. It doesn't tell you how much cash the REIT has to pay dividends. For that, you'll want the cash flow statement and an adjusted measure such as AFFO, described below.

How SEC rules treat FFO

FFO is a non-GAAP financial measure. Under 17 CFR § 244.101, that's "a numerical measure of a registrant's historical or future financial performance, financial position or cash flows" that excludes or includes amounts compared with the closest GAAP measure.

Under the SEC's Regulation G, 17 CFR § 244.100, a company that publicly discloses a non-GAAP measure must also present "the most directly comparable financial measure" under GAAP. It must include a reconciliation between the two. It also can't present a non-GAAP measure in a misleading way.

In SEC filings, 17 CFR § 229.10(e) adds two more requirements. The GAAP measure must be shown "with equal or greater prominence." And the company must say why management believes the non-GAAP measure "provides useful information to investors."

That reconciliation is the most useful table in the release. It shows every line between net income and FFO, so you can check what the REIT added back.

FFO per share

Most REITs report FFO per share. That's FFO divided by the weighted average number of shares and, often, OP units outstanding. OP units are units in the REIT's operating partnership, the partnership under the REIT that owns the buildings. They usually track REIT shares one for one. My guide to OP units explains them.

Per-share figures let you compare a REIT's results over time, even as it issues new shares. Growth in total FFO doesn't help you much if the share count grew faster.

AFFO vs. FFO: which tells you more?

AFFO, or adjusted funds from operations, tries to get closer to the cash a REIT's properties produce. Some REITs call a similar measure FAD, for funds available for distribution, or CAD, for cash available for distribution.

Nareit's white paper explains where these came from. Because FFO isn't a measure of cash or dividend capacity, "some market participants have gone further and suggested a variety of adjustments to FFO." It adds: "The results of these calculations generally are referred to by their authors as FAD, CAD or AFFO."

The key point is that there's no official AFFO formula. Each REIT picks its own adjustments. In general terms, the adjustments often include:

• Recurring capital spending. Money spent to keep buildings competitive, such as roofs, parking lots and unit turns. FFO ignores this, but it's real cash.
• Leasing costs. Tenant improvement allowances and leasing commissions needed to keep space filled.
• Straight-line rent. GAAP often spreads rent increases evenly over a lease. That can make reported rent higher than cash rent in early years. AFFO may reverse it.
• Noncash items. Stock-based pay, amortization of loan costs and similar items may be added back.

Because the choices differ, one REIT's AFFO may not match another's. Read each REIT's reconciliation table line by line.

FFO, AFFO and other measures side by side

So which tells you more? FFO is better for comparing operating performance, because more REITs calculate it the same way. AFFO is often closer to what can be paid out, but only if the REIT's adjustments are reasonable. I'd use both, and check them against the cash flow statement.

A worked example: from net income to FFO and AFFO

This is a hypothetical REIT with round numbers. It doesn't represent any real company, and the figures aren't typical of any REIT or offering.

The income statement

Say a REIT reports these results for the year, in millions of dollars:

• Net operating income from its properties: $150
• Corporate overhead: $10
• Interest expense: $40
• Real estate depreciation: $60
• Impairment write-down on an older property: $5
• Gain on sale of a building: $10

Net income is $150 − $10 − $40 − $60 − $5 + $10 = $45 million.

From net income to FFO

The REIT has 100 million shares and units outstanding. FFO per share is $100 million ÷ 100 million = $1.00.

Net income per share would be only $0.45. That gap is why REIT investors look at FFO.

From FFO to AFFO

Now say this REIT defines AFFO as FFO minus recurring capital spending and minus the straight-line rent adjustment.

AFFO per share is $0.85.

Valuation and payout

Say the shares trade at $14.00 and the REIT pays $0.75 per share in dividends each year. A price-to-FFO multiple is the share price divided by FFO per share.

• Price-to-FFO multiple: $14.00 ÷ $1.00 = 14.0
• Price-to-AFFO multiple: $14.00 ÷ $0.85 ≈ 16.5
• Payout ratio on FFO: $0.75 ÷ $1.00 = 75%
• Payout ratio on AFFO: $0.75 ÷ $0.85 ≈ 88%
• Dividend yield: $0.75 ÷ $14.00 ≈ 5.4%

The same dividend looks comfortable against FFO and much tighter against AFFO. That's the main reason to calculate both.

How do you use FFO to compare REITs?

FFO is most useful in three ways.

Growth in FFO per share

Look at FFO per share over five or more years. Steady growth suggests the portfolio and the balance sheet are working. Flat or falling FFO per share while total FFO grows can mean the REIT is issuing shares faster than it's adding earnings.

Price-to-FFO multiples

For a listed REIT, the price-to-FFO multiple is the share price divided by FFO per share. It works a bit like a price-to-earnings ratio for other stocks. A higher multiple means investors are paying more for each dollar of FFO.

Compare multiples only among REITs that own similar property types. Different property types tend to trade at different multiples, because their growth and risks differ. My guide to REIT sectors describes the main property types.

Quality of FFO

Two REITs can report the same FFO with very different quality behind it. Ask:

• Is FFO driven by rent growth, or by one-time items the REIT didn't remove?
• Does the REIT also report a "core" or "normalized" FFO? What did it remove, and why?
• How much interest rate risk is in the earnings? Floating-rate debt can cut FFO quickly when rates rise.

What is a REIT payout ratio?

A payout ratio is dividends per share divided by an earnings measure per share. For REITs, the common versions use FFO or AFFO.

Why REITs pay out so much

A REIT has to pay out most of its income to keep its tax status. Under 26 U.S.C. § 857, its dividends must generally equal at least "90 percent of the real estate investment trust taxable income for the taxable year."

Paying out more than the minimum can also save tax. Under § 857(b), a REIT owes corporate income tax on its REIT taxable income, which is figured after a deduction for the dividends it pays. So income a REIT keeps instead of paying out is generally taxed at the REIT level.

That 90% test uses REIT taxable income, a tax figure. It isn't the same as FFO or AFFO. A REIT can meet the tax rule and still pay a dividend that's high compared with its AFFO.

Reading the ratio

There's no single right level. In general terms:

• A payout well below 100% of AFFO leaves room to reinvest and a cushion if rents fall.
• A payout near or above 100% of AFFO means the REIT is paying out everything, or more, and may need debt, asset sales or new shares to fund it.
• A payout above FFO deserves a close look at where the money is coming from.

Investor.gov warns that non-traded REITs "frequently pay distributions in excess of their funds from operations." My guide to non-traded REITs explains why that happens and what it does to share value.

How REIT dividends are taxed is a separate topic. My guide to REIT dividends and taxes covers it.

How do you read a REIT's balance sheet?

Debt is where many REIT problems start. A REIT can have good buildings and still struggle if its loans come due at the wrong time.

Leverage ratios

Leverage means using borrowed money. The common REIT leverage measures are:

• Debt to gross assets. Total debt divided by the total value or cost of assets. Lower means less debt.
• Net debt to EBITDA. EBITDA is earnings before interest, taxes, depreciation and amortization. It's a rough measure of operating cash earnings. Net debt is debt minus cash. This ratio shows how many years of EBITDA it would take to pay off the debt.
• Loan to value, or LTV. The loan divided by the property's value. You'll see this more often for single properties and DSTs.

Coverage ratios

• Interest coverage. EBITDA divided by interest expense. It shows how many times over the REIT's earnings cover its interest bill.
• Fixed charge coverage. Like interest coverage, but it also counts preferred dividends and required principal payments.

Debt structure

The ratios don't tell the whole story. Also look at:

• Maturities. When does each loan come due? A big pile of maturities in one year is a refinancing risk.
• Fixed vs. floating rate. Floating-rate debt costs more when interest rates rise.
• Secured vs. unsecured. Secured debt is tied to specific properties. Unsecured debt is backed by the company as a whole. A REIT with mostly unsecured debt usually has more flexibility.
• Loan covenants. These are promises in loan agreements, such as keeping leverage below a limit. Breaking one can trigger penalties or early repayment.
• Preferred stock. It isn't debt, but it has a claim ahead of common shareholders.

Back to the example

Using the hypothetical REIT above, say it has $1,000 million of debt and $2,500 million of gross assets.

• Debt to gross assets: $1,000 ÷ $2,500 = 40%
• EBITDA: $150 − $10 = $140 million
• Net debt to EBITDA, with no cash: $1,000 ÷ $140 ≈ 7.1 times
• Interest coverage: $140 ÷ $40 = 3.5 times

None of these numbers is good or bad on its own. They're a starting point for comparing REITs that own similar properties.

What is same-store NOI?

Net operating income, or NOI, is a property's rent and other income minus its operating costs, such as taxes, insurance, repairs and on-site management. It leaves out interest, depreciation and corporate overhead.

Same-store NOI looks only at properties the REIT owned for the full period in both years being compared. It leaves out properties bought, sold or under development. Some REITs call it "same-property" NOI.

That's why it matters. A REIT's total NOI can grow just because it bought more buildings. Same-store NOI shows whether the existing buildings are earning more.

A worked example: same-store vs. total NOI

This is hypothetical.

Properties sold during the period also drop out of the same-store pool.

The headline growth looks strong at about 15%. But most of it came from buying buildings, which takes new money. The existing portfolio grew 4%. That's the number that tells you about the buildings themselves.

Each REIT defines its own same-store pool. Read the definition in the supplemental report, and check whether the pool changes much from year to year.

How do occupancy and leasing spreads show demand?

Occupancy

Occupancy is the share of space that's leased, or for some property types, physically used. Watch the trend, not just one quarter. Also check how the REIT measures it. "Leased" can include signed leases where the tenant hasn't moved in or started paying.

Leasing spreads

A leasing spread compares rent on new or renewed leases with rent on the leases they replace. Say a lease paying $20 per square foot expires, and the space re-leases at $23. The spread is ($23 − $20) ÷ $20 = 15%.

Positive spreads suggest rents are rising for that REIT's space. Negative spreads suggest the opposite. REITs may report spreads on a cash basis or a straight-line basis. The two can differ a lot, so check which one you're reading.

Lease terms and tenants

Also look at:

• Lease expirations. How much rent expires in each of the next few years?
• Weighted average lease term. The average time left on leases, weighted by rent. Longer terms mean more predictable rent and less room to raise it.
• Tenant concentration. How much rent comes from the top 10 tenants? Heavy reliance on one tenant is a risk.
• Retention. What share of expiring tenants renew?

What do NAV premiums and discounts tell you?

NAV, or net asset value, is an estimate of what a REIT's assets are worth minus its debts and other liabilities. NAV per share is NAV divided by shares outstanding.

How NAV is estimated

A common approach values the properties by dividing their NOI by a capitalization rate, or cap rate. The cap rate is the NOI a buyer would expect per dollar of price. Then you add other assets and subtract debt.

Using the hypothetical REIT above:

• Property value: $150 million NOI ÷ 6.0% cap rate = $2,500 million
• Less debt: −$1,000 million
• NAV: $1,500 million
• NAV per share: $1,500 million ÷ 100 million shares = $15.00

At a $14.00 share price, the stock trades at about a 6.7% discount to this estimated NAV ($1.00 ÷ $15.00).

The cap rate changes everything

NAV is only as good as the cap rate behind it. Small changes move it a lot, especially with debt.

A one-point swing in the cap rate, from 5.5% to 6.5%, moves NAV per share by more than $4. The same stock could look like it trades at a discount or a premium depending on the assumption.

Listed vs. unlisted REITs

For a listed REIT, NAV is an analyst's estimate, and the market price can sit above or below it. A premium can mean the market expects growth or values the management team. A discount can mean the market doubts the property values, worries about debt, or simply sees lower values than appraisers do.

For a REIT whose shares don't trade, NAV is often the price itself. The REIT uses its own NAV, built from appraisals, to sell and repurchase shares. FINRA, the Financial Industry Regulatory Authority, which oversees broker-dealers, has an account statement rule, Rule 2231, that requires statements to warn that "the price received may be less than the per share estimated value provided in the account statement." There's no market price to check it against.

REIT metrics at a glance

How to evaluate a REIT, step by step

This is a REIT due diligence checklist you can use on a listed REIT, an unlisted REIT or the REIT behind a DST's 721 exit (a Delaware Statutory Trust that may later convert into units of a REIT's operating partnership; see the 721 section below).

Step 1: Gather the filings

Start with the REIT's SEC filings on EDGAR, the SEC's free database of company filings. Investor.gov's guide to using EDGAR explains the main forms: the annual report (Form 10-K), quarterly reports (Form 10-Q) and current reports (Form 8-K). Many REITs also post a quarterly supplemental report with property-level data. For a REIT still selling shares, read the prospectus too.

Investor.gov's bulletin on publicly traded REITs suggests you "perform thorough research before making any investment decisions concerning REITs."

Step 2: Understand what it owns

Which property types, which markets and which tenants? How much of its NOI comes from each? Is it focused or spread out?

Step 3: Check earnings quality

Read the reconciliation from net income to FFO and AFFO. Track FFO and AFFO per share over at least five years. Note any one-time items and how the REIT defines "core" results.

Step 4: Test the dividend

Calculate the payout ratio on AFFO. Compare the dividend with cash flow from operations minus recurring capital spending. Look for dividend cuts in past downturns.

Step 5: Review the balance sheet

Check debt to gross assets, net debt to EBITDA, interest coverage, maturities and the share of floating-rate debt. Read the debt footnote in the 10-K.

Step 6: Check property results

Look at same-store NOI growth, occupancy, leasing spreads, lease expirations and the largest tenants.

Step 7: Estimate value

Compare the share price with FFO, AFFO and NAV. Test the NAV with a range of cap rates, as in the table above.

Step 8: Look at management, fees and governance

Is the REIT internally managed, or does an outside manager run it for a fee? Investor.gov notes an external manager "can lead to potential conflicts of interests with shareholders." Read how executives or the manager are paid and what affiliates earn from the REIT.

Step 9: Read the liquidity terms

For a listed REIT, liquidity is the stock market, with its price swings. For an unlisted REIT, read the repurchase plan's caps and the board's power to limit or suspend it.

Step 10: Confirm the fit with your CPA

Ask your CPA how the REIT's distributions and any future sale would be taxed for you. If the REIT is part of a 721 path, involve your attorney too. Check anyone recommending the investment on FINRA's BrokerCheck.

How do you evaluate the REIT behind a 721 exchange?

A 721 exchange uses Section 721 of the tax code, which generally lets you contribute property to a partnership for an interest in it without current tax. In real estate, the partnership is usually a REIT's operating partnership. My 721 exchange guide explains the full process.

The common path starts with a Delaware Statutory Trust, or DST, a trust that owns real estate. A DST interest can qualify as replacement property in a 1031 exchange. Some DSTs give a REIT's operating partnership the option to acquire the property later for OP units. When that happens, your DST interest becomes OP units in that REIT.

That means the REIT is what you'll own for the long term. So run the full checklist above on it before you invest in the DST. Add these questions:

• Who is the REIT? Is it listed or unlisted? How large and how spread out is its portfolio?
• How are OP units redeemed? After any holding period, can you redeem for cash or shares, and at what value?
• What limits apply? For an unlisted REIT, redemptions depend on its repurchase plan and the board.
• How is your debt share handled? The way the operating partnership assigns debt to new unitholders can affect your taxes.
• What does the REIT charge? Its management, advisory and performance fees will apply for as long as you hold units.
• Is the 721 exit optional or mandatory? That decides whether you get a choice.

For a broader comparison of owning a DST and owning a REIT, see my guide to DSTs vs. REITs.

Mistakes to avoid when evaluating a REIT

Each of these can lead you to the wrong conclusion about a REIT.

1. Treating FFO as cash. Nareit says FFO isn't a measure of cash or dividend capacity. Check AFFO and the cash flow statement.
2. Comparing AFFO across REITs without reading the definitions. Each REIT picks its own adjustments.
3. Chasing a high dividend yield. A yield can be high because the market expects a cut. Check the payout ratio on AFFO.
4. Ignoring debt maturities. A REIT with moderate leverage can still struggle if a lot of debt comes due in a bad year.
5. Reading total NOI growth as organic growth. Check same-store NOI to see how the existing buildings are doing.
6. Trusting one NAV estimate. NAV moves a lot with the cap rate. Test a range.
7. Assuming an unlisted REIT's NAV is a price you can get. Repurchases can be capped, prorated or suspended.
8. Comparing REITs that own different property types. Multiples and growth rates differ by type.
9. Skipping the fee and conflict disclosures. External managers paid on size or deals have incentives that may differ from yours.
10. Evaluating the DST but not the REIT behind its 721 exit. If the exit happens, the REIT is your long-term holding.

What are the risks of investing in REITs?

REITs are securities, and they can lose money. Read the prospectus or annual report, including the risk factors, before you invest.

• Loss of principal. Property values can fall, and you can lose part or all of your investment.
• Distributions are not guaranteed. They can be cut or stopped, and may at times be funded from sources other than operations.
• Price swings. Listed REIT shares can move sharply with interest rates and the stock market. FINRA says publicly traded REITs are "more prone to price swings (volatility)" than non-traded REITs.
• Illiquidity. Unlisted REITs can't be sold on an exchange, and repurchase programs have limits.
• Interest rate risk. Higher rates can raise borrowing costs and lower property values.
• Leverage. Debt magnifies losses and adds refinancing risk.
• Fees and conflicts. Management and other fees reduce returns. External managers may have conflicts of interest.
• Valuation risk. NAV and FFO depend on estimates and on definitions a REIT chooses.
• Tax risk. REITs must keep meeting the tax code's tests, and tax law can change.
• For 721 paths. After a 721 exchange, you can no longer do a 1031 exchange with that money, and redeeming OP units is generally taxable.

What my data shows

My career includes real estate acquisitions, management and development work at ValueRock Realty Partners, Faris Lee Investments, Westport Capital Partners and Arbor Bay Capital Partners. My firm offers DSTs, including programs with 721 paths into REITs. It doesn't sell REIT shares, and my offering records as of October 2026 track DST offerings, not REITs. Two parts of those records connect directly to this guide.

Here's what my offering records as of October 2026 show, across 76 DST offerings from 38 sponsors. These figures describe the offerings I track. They aren't a forecast or a promise about any future offering.

How often a DST leads into a REIT

In my offering records as of October 2026, 13 offerings (17%) make the 721 exit mandatory, and 44 (58%) make it optional. For those programs, the REIT on the other side is part of what you're buying. The checklist in this guide applies to it, before you invest in the DST.

Leverage, the same measure you'd check in a REIT

In the same records, 36 of 76 offerings (47%) are all-cash, with no debt. Another 16 (21%) have loan-to-value above 50%. Among the leveraged offerings, the median loan-to-value is about 49%.

A DST's loan is typically set at the start. A REIT manages its debt over time and can refinance, borrow more or pay debt down. So when you compare a DST with the REIT behind its 721 exit, you're comparing a fixed debt picture with one that can change. Check both.

When we meet, I can walk you through the DST offerings I currently have available, including which ones have a 721 exit and which REIT sits behind each one. Securities are offered through Aurora Securities, Inc., member FINRA/SIPC.

Frequently asked questions

What does FFO stand for in real estate?

FFO stands for funds from operations. It's a REIT earnings measure that starts with net income, adds back real estate depreciation and amortization, and removes certain gains, losses and impairments. Nareit, the REIT industry's trade group, publishes the standard definition.

How do you calculate FFO?

Start with GAAP net income, then add real estate depreciation, amortization and qualifying real estate impairments. Subtract gains, and add back losses, from selling certain real estate and from changes in control. Most REITs show this reconciliation in their earnings release and annual report.

What is the difference between AFFO and FFO?

FFO follows Nareit's industry definition and measures operating performance. AFFO starts from FFO and usually subtracts recurring capital spending and leasing costs, among other adjustments, to estimate cash available for dividends. Each REIT defines AFFO its own way, so read the reconciliation.

Is FFO the same as cash flow?

No. Nareit says FFO is not intended to measure the cash a REIT generates or its ability to pay dividends. Use the GAAP cash flow statement and AFFO for that.

What is a good payout ratio for a REIT?

There's no single right number, and payout ratios depend on the property type and the REIT's plans. A payout near or above 100% of AFFO leaves little room for error and may require borrowing or new shares. Compare the ratio with the REIT's own history and with similar REITs.

Why do REITs report FFO instead of net income?

Net income subtracts real estate depreciation, a large noncash cost that may not reflect what well-kept buildings are worth. FFO adds it back to show operating performance more clearly. SEC rules still require a registered REIT to show net income alongside FFO and reconcile the two.

What is a good price-to-FFO ratio?

It depends on the property type, growth outlook, debt and interest rates. Compare a REIT's multiple with REITs that own similar properties and with its own history. A low multiple can signal value or real problems.

What does it mean when a REIT trades below NAV?

The market price is lower than an estimate of the REIT's assets minus its debts. That can reflect doubts about property values, debt or management, or simply different cap rate assumptions. Because NAV estimates vary, test a range before drawing conclusions.

How do I check the REIT behind a DST's 721 exit?

Ask the sponsor which REIT's operating partnership holds the option, then read that REIT's filings on EDGAR. Run the same checks you would on any REIT: FFO and AFFO, payout ratio, debt, property results, NAV, fees and redemption terms.

Where can I find a REIT's FFO?

SEC-registered REITs that report FFO include it in earnings releases and in their 10-K and 10-Q filings on EDGAR, along with a reconciliation to net income. Many also publish a quarterly supplemental report with more detail.

Before you act

Everything here is general education, not tax, legal or investment advice, and not a recommendation about any security. Please confirm every decision with your CPA, attorney and qualified intermediary (the company that holds sale proceeds during a 1031 exchange), and read the full prospectus, private placement memorandum or annual report. REITs and DSTs involve risk, distributions are not guaranteed, and you can lose your entire investment.

Sources

• Nareit, Funds From Operations White Paper, 2018 Restatement (industry definition)
• 17 CFR § 244.100, General requirements for disclosure of non-GAAP financial measures (Cornell LII)
• 17 CFR § 244.101, Definitions (Cornell LII)
• 17 CFR § 229.10, Regulation S-K Item 10, General (Cornell LII)
• 26 U.S.C. § 857, Taxation of real estate investment trusts and their beneficiaries (Cornell LII)
• Investor.gov, Real Estate Investment Trusts (REITs)
• Investor.gov, Investor Bulletin: Publicly Traded REITs
• Investor.gov, Using EDGAR to Research Investments
• FINRA, Real Estate Investment Trusts: Alternatives to Ownership
• FINRA Rule 2231, Customer Account Statements
• FINRA BrokerCheck