APPENDIX B
Case Study: FFO, AFFO, FAD, and CAD
The following example in Table B.1 is an income statement derivation of adjusted funds from operations (AFFO) and funds (or cash) available for distribution (FAD or CAD), contained in a quarterly earnings report by Post Properties, an apartment REIT. Although the calculation below was published by the REIT a number of years ago, it is nevertheless still typical of how AFFO, FAD, or CAD can be derived for most REITs.
Table B.1 Post Properties (PPS): Third Quarter, 1996
(In thousands of dollars, except for per share.)
| Revenue | |
| Rental—Owned Property | $40,583 |
| Property Management | 722 |
| Landscape Services | 1,199 |
| Interest | 50 |
| Other | 1,661 |
| Total Revenue | $44,215 |
| Property Expenses | |
| Property Operating ... | |
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