Examples of EBITDARM in a sentence
However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDARM.
EBITDARM is defined as earnings before interest, income taxes, depreciation, amortization, rent and management fees.
EBITDARM Coverage is a supplemental measure of a property’s ability to generate cash flows for the operator/tenant (not the Company) to meet the operator’s/tenant’s related cash rent and other obligations to the Company.
EBITDARM does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments.
In addition, EBITDARM does not represent a property’s net income or cash flows from operations and should not be considered an alternative to those indicators.