The basic formula for calculating FFO is:
(Net Income + Depreciation + Property Sale Losses) – Property Sale Gains – Interest Income
Another way to determine your ROI for REITs is to look at dividends. Here are three steps to calculating the yield of REIT dividends.
Combine the total amount of dividends the REIT paid over one year. You can estimate annual dividends by multiplying quarterly distributions by 4 or monthly distributions by 12.
Divide this number by the REITs current share price.
Multiply this number by 100 to change it into a percentage.