ENTITIES ADDRESSED BY THE FFO DEFINITION Sample Clauses

ENTITIES ADDRESSED BY THE FFO DEFINITION. The 1991 definition of FFO addressed the treatment of unconsolidated partnerships and joint ventures. Specifically, REITs were instructed to reflect the contributions of unconsolidated partnerships and joint ventures to the REIT's FFO on the same basis as the REIT's own operations. It appears that the original drafters intended that the term joint ventures include both unincorporated associations or corporations in which a REIT holds an active interest. Nevertheless, REITs increasingly use corporations, the operations of which are not reported on a consolidated basis with those of the REITs. NAREIT BELIEVES THAT THE USE OF A CORPORATE FORM INSTEAD OF A PARTNERSHIP SHOULD NOT AFFECT THE DETERMINATION OF WHETHER AN ENTITY IS TO BE TREATED AS A JOINT VENTURE FOR PURPOSES OF THE DEFINITION.
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