Equinix, a prominent data center firm, is facing allegations of inflating a key profit metric by short-seller Hindenburg Research. The report released by Hindenburg accuses Equinix of misleading investors by manipulating its adjusted funds from operations (AFFO) metric.
The AFFO metric is a crucial measure used by real estate investment trusts (REITs) like Equinix to reflect the company's operating performance. Hindenburg claims that Equinix artificially inflated this metric by including certain expenses that should not have been part of the calculation.