Griswold figures the company will still be paying out 98% of its adjusted FFO in 2002.
Good companies tend to have excellent long-term records of FFO growth and vice versa.
So of the 58 cents each share paid, only 11 cents came from the company's FFO.
At Maguire this adjusted FFO has been climbing only 1.8% annually over five years.
Analyst Sullivan says Ventas' FFO will expand 7% per year over the next three years.
But as a practical matter, the widely-reported FFO figure is a good gauge of a REIT's financial health.
All REITs pay generous dividends, and a dividend is only as good as the FFO that supports it.
Furthermore, the current year FFO multiple of 17x is well above the 17 year average of 12.3x.
His Wells REITII pays out only a penny per share more than FFO.
Banc of America Securities analyst Lee Schalop says dividends that consume more than 85% of this modified FFO number are suspect.
As for first quarter results, funds from operation (FFO) per share was 33 cents, in-line with the Zacks Consensus Estimate.
Here we'll use an adjusted FFO measure favored by real estate research firm Green Street Advisors, which subtracts building-upkeep costs from FFO.
Specifically, we anticipate that total debt to EBITDA will be 2x or below and FFO to total debt will be above 40%.
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Yet the new wrinkle is that many private REITs are hooking investors with enticing dividends that aren't covered by FFO (see chart, p. 78).
It has shown the highest steady earnings growth of any REIT on our Gold List with five-year annualized growth in adjusted FFO of 11.7%.
The rent growth and position as a domestic owner of domestic hard assets (without European exposure) warrant above average FFO multiples in our opinion.
Equity One ( EQY), Regency Centers ( REG), Kimco ( KIM) and Weingarten Realty Advisors ( WRI) have all reported improved occupancy and FFO results.
On Oct. 24, the company reported strong third-quarter FFO per share of 79 cents, topping the Zacks Consensus Estimate by 5.3% and the year-ago FFO by 25.4%.
With a solid core of long-term leases that should see it through the downturn, the company has access to cash for future investments that may further enrich FFO.
The company now expects FFO between 63 cents and 65 cents per share for the full fiscal year, down from guidance for 66 cents to 69 cents per share.
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With its dividend return and an expected long-term FFO growth rate of around 7.2%, Taubman Centers appears to be a promising pick for investors seeking both growth and income.
With its dividend return and an expected long-term FFO growth rate of around 8.1%, Digital Realty appears to be a promising pick for investors seeking both growth and income.
The company has a solid collection of Hyatts and Hiltons in places like New York and California, and for the first nine months of 2006 its adjusted FFO was up 21%.
However, we project FFO growth will be in the 8-10 percent range for the next 2 years thanks to positive same store growth, accretive portfolio additions (external and internal), and accretive refinancings.
If two REITs are both run by managers who churn out great FFO growth, but one owns trailer parks and the other fancy office skyscrapers made of glass and steel, the latter will probably trade at a richer multiple.
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