Abstract
What the accounting system is trying to measure and address may be eventually the information about the valuation of corporations. For this purpose, we usually assess the corporate valuation on the basis of lots of numbers and indices extracted from the balance sheet and profit/loss statement which we legally draw up as basic financial statements. This research is trying to provide the useful accounting information needed by investors, real estates industry and financial related institutes. But currently due to the shortage of proper data in Korea, I used the data of America REITs which is the originality of ours to make three empirical analyses. On the basis of Beaver's research(1996) predicting the difference in information usefulness of net income according to the individual industry characteristics, I compared and investigated the comparative information contents using the three performance measurements that are NI, CFO, and FFO. As a result, I found that funds from operations have a higher information content than net income. This means that the performance measurement reflecting the characteristics of REITS industry whose main business target is real estate is more related to stock price in value relevance than net income.