Analyst rethinks FFO as measure of a firm's health

07/10/2009 | National Post (Canada)

Funds from operations have become a misleading way to measure the health of a real estate company, according to Blackmont analyst Gail Mifsud. "We find traditional line items misleading as some publicly traded companies have elected to modify the definition of FFO to suit their reporting purposes -- including property sales and one-time gains, adjusting for foreign exchange, adding back real cash costs such as corporate reorganization, etc.," she said.

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National Post (Canada)

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