non cash rent adjustment in AAFO

[pass hungry]

average contractual rent over the lease term - cash rent paid during the period.
This isn’t making sense to me. Is this in there to nullify effects of fluctuating rental rates?
Thanks.

 

[CarloRoco]

Treat FFO as CFO without working capital (as adjustments in this reconcile cash and non cash expectations)
the Adjusted FFO accounts for noncash payments that are accounted for over a term. so for example if a renter was supposed to pay a 1000, but for some weird ass reason paid 900 plus a favor. Management only recieved 900 in cash. under FFO it is still assumed as payments, AFFO takes that out. Dont worry though that amount should be given.