Funds Available For Distribution - FAD

AAA

DEFINITION of 'Funds Available For Distribution - FAD'

An informal measure of the amount of capital that is on hand for paying out to shareholders. Funds available for distribution is a term that pertains to a real estate investment trust (REIT). REITs are shares offered to the public by a real estate company or trust that holds a portfolio of income-producing properties and/or mortgages. Most of a REIT's profits must be distributed as dividends. There is no standardized method for calculating funds available for distribution, however many calculate FAD by adjusting the funds from operations value for straight-line rents, leases and any recurring real estate related expenses.

INVESTOPEDIA EXPLAINS 'Funds Available For Distribution - FAD'

The funds available for distribution value represents a measurement of a REIT's cash flow for shareholders and investors. The FAD is a metric used in evaluating the current and future health of a REIT. Other widely used metrics include adjusted funds from operations (AFFO) and cash available for distribution (CAD).

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Cash Available For Distribution ...

    A real estate investment trust's (REIT's) cash on hand that is ...
  3. Funds From Operations - FFO

    A figure used by real estate investment trusts (REITs) to define ...
  4. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  5. Adjusted Funds From Operations ...

    A financial performance measure primarily used in the analysis ...
  6. REIT ETF

    Exchange-traded funds that invest the majority of assets in equity ...
Related Articles
  1. The Basics Of REIT Taxation
    Taxes

    The Basics Of REIT Taxation

  2. How To Analyze Real Estate Investment ...
    Home & Auto

    How To Analyze Real Estate Investment ...

  3. The REIT Way
    Options & Futures

    The REIT Way

  4. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center