Glossary

Debt

Money, goods, or services owed by an individual or company to another individual or company. Monetary debt can be represented by a loan note, bond, mortgage, or other form stating repayment terms and, if applicable, interest payments to be made. All forms of debt imply intent to repay an amount owed by a specific date.

Deposits

Deposits at CapitalSource Bank include: savings accounts, money market accounts, and certificates of deposit.

Depreciation

Charges against earnings to write off the cost, less salvage value, of an asset over its estimated useful life.

Direct Real Estate Investments

CapitalSource owns income-producing healthcare facilities (primarily skilled nursing facilities), in its Healthcare & Specialty Finance business, and leases the facilities back to experienced operators. These transactions are typically triple net lease in nature, which means CapitalSource owns the property and the operator is responsible for all maintenance fees and facility operations. CapitalSource reports its direct real estate investments in its Healthcare Net Lease segment.

Dividend Reinvestment Plan (“DRIP”)

A plan enabling shareholders to reinvest cash dividends (for additional stock), and/or make optional cash purchases. For more information on our DRIP, please visit our DRIP page.

Downgrades

When an analyst reduces a recommendation for a stock. Examples include changing a “buy” recommendation to a “hold,” or a “hold” recommendation to a “sell.”

Due Diligence

Research, investigation, or audit work done on a potential investment or transaction with the intent to confirm all material facts in connection with an investment or transaction.