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.

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RELATED FAQS
  1. What security should I use funds from operations for?

    Find out what sorts of securities are evaluated using funds from operations. Learn how FFO is calculated and why it is relevant ... Read Answer >>
  2. What is the difference between funds from operations per share and earnings per share?

    Find out how funds from operations (FFO) differs from net income. Learn how FFO is calculated and why REITs are evaluated ... Read Answer >>
  3. What is the difference between a REIT and a real estate fund?

  4. How can I use the funds from operations to total debt ratio to assess risk?

    Find out more about the funds from operations to total debt ratio and how to use the FFO to total debt ratio to assess a ... Read Answer >>
  5. What is the difference between adjusted and regular funds from operations?

    Understand a REIT's regular funds from operations and its adjusted funds from operations. Learn what each is used to measure ... Read Answer >>
  6. Is NAV the best way to assess the value of an REIT?

    Examine and understand the usefulness of net asset value as an accurate metric with which to assess the value of a REIT investment. Read Answer >>
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