Real Estate Terminology
D
Debt coverage ratio (DCR): Ratio of net operating income to annual debt service. Expressed as NOI divided by ADS.
Depreciation: The loss of utility and value of a property.
Discounting: The process of reducing the value of money received in the future to reflect the opportunity cost of waiting to receive the money.
Diversification: A method of reducing risk by investing in unrelated (uncorrelated) assets.