When calculation FFO in real estate, how do you calculate amortization? Is it the actual principle paid?

amortization
Tim asked:


FFO = Earnings + Depreciation + Amortization – Sales…. What is the amortization? Is it the amount of actual principle paid on the loan in that year?
principal… oops!

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One Response to When calculation FFO in real estate, how do you calculate amortization? Is it the actual principle paid?

  1. daeve930
    July 7, 2009 at 9:14 pm

    No. I think your first step is to define amortization. Try Wikipedia.

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