[Verse 1] Sarah bought a building, rent comes streaming in Net Operating Income, that's where profits begin Take the rental revenue, subtract expenses clean Property taxes, maintenance, utilities between Divide NOI by purchase price, decimal appears Cap Rate shows the yield across the investment years [Chorus] NOI over price gives Cap Rate's slice FFO counts the cash, AFFO twice as nice Net Operating Income, funds that flow Real estate metrics every analyst should know Cap Rate, FFO, AFFO in a row These numbers paint the picture, watch your portfolio grow [Verse 2] REITs report their earnings but ignore depreciation FFO adds it back for clearer valuation Funds From Operations shows the cash generation Not the paper losses from accounting's calculation Add depreciation to net income's core FFO reveals what REITs truly store [Chorus] NOI over price gives Cap Rate's slice FFO counts the cash, AFFO twice as nice Net Operating Income, funds that flow Real estate metrics every analyst should know Cap Rate, FFO, AFFO in a row These numbers paint the picture, watch your portfolio grow [Bridge] But wait, there's more precision in the tale AFFO takes FFO, makes the picture less pale Subtract recurring capex, tenant improvements too Leasing costs and maintenance that properties pursue Adjusted FFO shows sustainable cash The truest measure when you're counting up the stash [Verse 3] Compare cap rates across similar properties Higher rates mean higher yields, lower guarantees FFO per share helps value REIT stocks right AFFO per share shows distributable might These metrics dance together in analysis Commercial real estate's financial compass [Chorus] NOI over price gives Cap Rate's slice FFO counts the cash, AFFO twice as nice Net Operating Income, funds that flow Real estate metrics every analyst should know Cap Rate, FFO, AFFO in a row These numbers paint the picture, watch your portfolio grow [Outro] From office towers to apartment blocks These metrics are your analytical locks Cap Rate, FFO, AFFO - learn them well Real estate secrets they will always tell
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