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.