money guidance and how to get rich_318

_{With most companies, net income is a useful number to evaluate, re-}

_{flecting the profits left over from sales after all expenses have been subtracted.}

_{With REITs, though, net income isn't as meaningful.}

_{According to accounting rules, the value of REIT properties is decreased}

_{over time, with depreciation charged against net income, reducing}

_{it. In reality, however, these properties are probably not falling}

_{in value, and may even be appreciating, so a REIT's net income tends}

_{to understate its health. This is why, with REITs, you should look at}

_{the "funds from operation," or FFO, instead. The FFO ignores the effect}

_{of depreciation and other non-cash charges to help you see a REIT's}

_{true performance.}