Funds from operations or FFO workout. We have a basic income statement for a REIT and we are going to calculate the funds from operations. The first thing that we're going to do is go to the net income to common shareholders number. This is always after any NCI income, non-controlling interest income. We also see that they have depreciation amortization as well as some gains and losses on the sale of property. So we pretty much have everything that we need for an FFO calculation.

We will begin with our net income to common and then we're going to add the depreciation expense.

We will now add back any losses in the sale of property and subtract any gains. So we wanna make sure that we get the sign correctly here. So in the first historical year, they have 44 in gains so we're gonna make sure that we back that out or subtract it with a minus sign. And then in the second year we have a 50 loss so we have to add that back. So the way we're gonna do this is to add the loss and subtract the gain.

I have a minus 44 and when I copy that across I get the correct sign for the loss which is being added back. I can now add these three items and I get my total FFO.