March 11, 2020
I – Purpose:
The purpose of this document is to promote a guide and criteria for the determination of a financial metric focused in the organic performance of real estate entities, referred to as AMEFIBRA FFO and enable its voluntary, standard and generalized incorporation in the financial reporting practice of these entities.
AMEFIBRA FFO is conceptualized as a supplementary financial metric in addition to those the accounting itself provides. It is in the use of the overall set of metrics, and not in substitution of one over the other, that AMEFIBRA considers greater clarity and understanding is achieved in assessing the organic performance of real estate entities managing investment property activities. For the same reason attempting to compare the operational performance of different real estate entities through any one single metric would be insufficient.
AMEFIBRA considers that achieving such purpose is of merited interest to facilitate and improve the comprehension of results reported in the financial reports of its members within the overall public investing community, and also to facilitate comparing the organic performance of the different entities.