# FFO Growth

Year-over-year percentage change in FFO per share.

## Definition

FFO growth is how fast a REIT's funds from operations per share are expanding: rents rising, properties acquired or developed, and shares issued or bought back, in one number.

## Formula

(FFO per Share this period − FFO per Share prior period) ÷ FFO per Share prior period × 100

## Why it matters

REITs pay out most of their income, so growth has to come from rent increases and new properties funded with debt and new shares. FFO growth shows whether that expansion adds to each shareholder's slice or just to the size of the portfolio.

## How Standard Equity uses it

Takes EPS growth's place in the main table for REITs, on the same reported-FFO-first basis as FFO per share.

## The metric

| Category   | REITs      |
| ---------- | ---------- |
| Unit       | %          |
| Applies to | REITs only |

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