Debt Coverage Ratio (DCR) definition
Debt Coverage Ratio (DCR) means the ratio of net operating income (NOI) to total debt service (DS) during a given time period (DCR = NOI ÷ DS). Developments where financing is structured so as not to have debt on the property will not have a debt coverage ratio that can be calculated.
Examples of Debt Coverage Ratio (DCR) in a sentence
There should be sufficient cash flow after NOI and DS to fulfill lender-required Debt Coverage Ratio (DCR).