Both NAREIT and IPA define FFO and MFFO for nontraded REITs. What is a major difference between the two calculations for FFO?
Answer: The NAREIT definition of FFO includes an adjustment for impairments to real estate assets in the calculation of FFO. The IPA definition of FFO does not include that adjustment, but makes the adjustment in calculating MFFO. Either method results in the same value for MFFO.