"One of the most beneficial and useful courses that we have ever run”
HR Manager, Treasury Holdings

Real Estate Analyst

Course Length: 2-day
Pre-requisite: None

An established course, it is now also delivered each year to Cambridge University’s MPhil Real Estate Finance students. Delegates will learn how to replicate Argus valuation functions in Excel, build multi-let cash flows, funding cash flows, perform sensitivity analysis, scenario analysis and ensure that Excel is giving you the correct IRR!

Any level delegate will attain advanced skills by the end of this course, including a much deeper understanding of how property values are estimated and how decisions based on property models are actually made. Our exceptional and consistent feedback from delegates has kept Britain’s largest property companies running the Analyst course year after year.

Who will benefit from this course?
This course will benefit anyone who needs to understand and/or build real-estate models. This is an intensive and advanced course, but providing a group of delegates are at a similar level, any level can be taught this course. Bayfield’s pioneering technique to delivering financial modelling training, has been proven time and again, at every level, over the last 10 years with consistently excellent feedback from delegates.

Included with course

  • All Excel models used on the course, provided on disk
  • 2-months post course email and telephone support
  • Comprehensive course manual (also available separately and designed for self-study)

Course Outline – Day 1(of 2)

Know how to build a property asset cash flow, analyse geared, and un-geared IRRs.
Part A (morning)

  • Term & Reversion and Layer Method Valuation (Intro to Excel)
  • Equivalent Yield (Solver, Scenario and Goal Seek functions)
  • Single-Let Discounted Cash Flow
  • Cash Flow inputs (Rents, Yields, Growth Rates, Target Returns)
  • Analysis and use of date series
  • Internal Rate of Return (IRR) and Net Present Value (NPV)
  • Comparing Value, Price and Worth
  • Switching between annual, quarterly and monthly DCF models

Part B (afternoon)

  • Adding borrowing and analysing geared returns
  • Introducing Rent Reviews and other ‘events’ into cash flows
  • The ‘Rent Function’ concept and Logic functions (IF,OR,AND)
  • Analysing the IRR for errors (data tables, charting)
  • Sensitivity analysis and Scenario testing
  • Protecting, saving and auditing your work

Course Outline – Day 2(of 2)

Know how to build a multi-let property cash flow, and analyse advanced debt structures.
Part C (morning)

  • The ‘Rent Function’ and Multi-let cash flows
  • The ‘date problem’ and assumptions in property asset cash flows
  • Pattern of rents in UK, European and Index linked leases (Arrays, Lookups)
  • Reducing the rent function, intermediate calculations and modelling theory
  • Modelling lease expiries, break clauses, voids, and upward only covenants
  • Incorporating time-varying rental growth rates
  • Analysing multi-let cash flows to see if the leases are sufficiently diversified
  • Further IRR analysis (XIRR, MIRR)
  • Creating Annuals summaries of quarterly/monthly cash flows

Part D (afternoon)

  • Modelling stressed cash flows for debt purposes
  • Interest only and amortising loans (PMT)
  • Debt criteria, rent-weighted minimum interest cover, maximum LTV (SUMIF)
  • Data validation, templates, auditing, and other functions