Dictionary of Real Estate Terms: Cash Available for Distribution (CAD)
Cash Available for Distribution (CAD)
derived from the amount earned by a Real Estate Investment Trust. It is Funds From Operations (FFO), less the cost of recurring capital expenditures such as replacing building roofs, resurfacing parking lots, and major repairs to HVAC equipment.
Example:
| Net income | $1,000,000 |
| Add: depreciation | 150,000 |
| Add: amortization of deferred charges | 50,000 |
| FFO | 1,200,000 |
| Less: recurring capital expenditures | 75,000 |
| Cash available for distribution | $1,125,000 |
