I read that depreciation is not a part of difference between FFO and AFFO.
While calculating AFFO, we do not subtract depreciation (which was added while calculating FFO).
Then, shouldn’t it be a part of the difference?
The only difference between FFO and AFFO is that you subtract non-cash rents and maintenance capex from FFO to arrive at AFFO. Technically, both AFFO and FFO are adding back depreciation.
Well, i came across an example where one had to start calculating AFFO from NI. And depreciation wasn’t added.
That’s odd. Can you share the example?