Real Estate Financial Modelling School (5 days) 

Are you an ambitious modeller? If so, these three courses are intended for you.

Who will benefit from this school?

• Real Estate professionals at any level with exposure to real estate financial models on a frequent basis
• Junior or new Real Estate Analysts who would like to start building their own real estate models quickly, rather than relying solely on coaching from existing team members
• Mid-level to senior Real Estate Analysts
• APC candidates who would like the opportunity to consolidate their competencies by understanding how theory and variables interact within the precision context of a financial model.
• Real Estate Managers who would like to gain understanding of the dynamics of debt and financial return fluctuations in more detail
• Real Estate Professionals looking to develop their financial modelling skills to the next level
• Property industry modellers who would like to be fully proficient in building complex

Real Estate Financial modelling school combines three courses:

• Real Estate Analyst
• Real Estate Investor
• Real Estate Modelling Masterclass 

OUTLINE

Day one

Real Estate Analyst I

• 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
• 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)
• Sensitivity Analysis

Day two

Real Estate Analyst II

• 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)

Day three

Real Estate Investor I

• Introduction to development appraisals
• Development cash flows versus Investment cash flows
• Known costs & s-curves
• Phased asset sales in development appraisals
• Discounting development cash flows
• Complimentary return metrics for development appraisals

Day four

Real Estate investor II

• Modelling International variations in real estate income streams
• Modelling sector variations in real estate income streams i.e. Office versus industrial, retail & leisure
• Further senior debt covenants
• Analysing debt structures, joint ventures & partnership financing

Day five

Real Estate Modelling Materclass*

• JV Structures: Profit Share and Promote
• Full spectrum risk analysis: Sensitivity analysis, scenario analysis & Monte Carlo
• Portfolio Analysis

*Masterclass includes some visual basic for applications (VBA)

 

For more information visit – Bayfield Training