Glossary: d

Depreciation: Decrease in the value of property caused by change in the market, deterioration in its condition, or other factors.

 

Development: Making any material change in the use of any buildings or other land, not including internal alterations that do not materially affect its appearance.

 

Development construction cost: The total cost of construction of a project to completion, excluding site values and finance costs.

 

Development pipeline: Typically the combination of a development strategy, together with proposed schemes that are not yet included in the construction process however are more likely to proceed than not.

 

Development programme: A schedule of major development schemes comprising projects that are completed but not yet fully on the market, in the addition to developments on site and committed developments.

 

Development surplus: Excess of latest valuation over the total development cost.

 

Dilution:When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company, making each share less valuable.

 

Direct property fund: Direct property is the term commonly used to describe real estate investments, whether it be the purchase of a commercial, industrial, retail, residential or any other property asset, which can either be held directly (direct ownership on the title) or indirectly through collective ownership vehicles such as managed property investments: funds, trusts and syndicates.

 

Discounted cash flow: A discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment.

 

Distribution of capital: The income or capital gain made by a fund that is paid to the fund’s investors.

 

Distribution warehousing: Premises used by (mainly) retail companies for distributing goods, usually nearer in the chain of movement to the ultimate user of the goods e.g. the shop.

 

Diversification: The extent to which the performance of two or more assets are unrelated.

 

Dividend: A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves).

 

Dividend cover: Number of times dividend charge in the profit and loss account is covered by profit after tax.

 

Dividend reinvestment: A dividend reinvestment plan (DRIP) is offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date. A DRIP is an excellent way to increase the value of an investment.

 

Dividend yield: A ratio that represents the amount of income a company pays in dividends compared with its current share price, calculated by dividing the annual dividend per share of a company by its current share price. The ratio does not take into account capital gains or losses associated with the stock.

 

Domiciled: A dividend expressed as a percentage of a current share price.

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