Cash Available For Distribution - CAD


DEFINITION of 'Cash Available For Distribution - CAD'

A real estate investment trust's (REIT's) cash on hand that is available to be distributed as shareholder dividends. The value is calculated by finding the funds from operations (FFO) and subtracting recurring capital expenditures. Also referred to as funds available for distribution (FAD).

BREAKING DOWN 'Cash Available For Distribution - CAD'

Cash available for distribution is the difference between funds from operations and recurring expenses. Recurring capital expenses that are typically subtracted from the FFO to determine the CAD value include replacing building roofs, HVAC system repairs, resurfacing of parking lots and other significant routine maintenance. The cash available for distribution and the funds from operations value are both ways that investors can help measure a particular REIT's earnings and potential.

  1. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  2. Funds Available For Distribution ...

    An informal measure of the amount of capital that is on hand ...
  3. Funds From Operations Per Share ...

    A metric for the performance of a real estate investment trust ...
  4. Net Operating Profit Less Adjusted ...

    A financial metric that calculates a firm's operating profits ...
  5. Funds From Operations - FFO

    A figure used by real estate investment trusts (REITs) to define ...
  6. Adjusted Funds From Operations ...

    A financial performance measure primarily used in the analysis ...
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