Heartbreaking topic! Lower cap rate = Lower FFO. Why? 

Could you, please, kindly explain me the following passage from Reading 44 on page 124: “a lower capitalization rate (i.e., a lower NOI with such other parameters as interest costs and corporate expenses being the same) implies a lower FFO and hence a higher P/FFO ratio if P/NAV ratios are similar”? In my understanding, lower rate leads to higher FFO, not lower FFO. :bulb: