Real Estate Analyst
18 November @ 10:00 am - 19 November @ 5:00 pm
18th - 19th November
Real Estate Analyst
Create flexible real estate financial models in Excel. This financial modelling course shows how to develop rent functions and net operating income. It also shows how to value and appraise property investments and calculate, interpret and analyse the results.
On this course, you will…
- Learn how to structure an investment cash flow from first principles and how to value and appraise property investments
- Learn how to model lease behaviour and create income forecast
- Build OPEX and CAPEX into your cash flow
- Analyse risk using sensitivity tables and charts
- Employ best practice and find solutions to common modelling problems
Who will benefit from this course?
- Real Estate Analysts and Investors
- Portfolio Analysts
- Investment Managers
- Real Estate professionals at any level with exposure to real estate financial models on a frequent basis
- Mid-level to senior 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
- 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
- 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.
Know how to build a property asset cash flow, analyse geared, and un-geared IRRs.
- 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
- 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
Know how to build a multi-let property cash flow and apply the concepts on a hypothetical case study.
- The ‘Rent Function’ and Multi-let cash flows
- The ‘date problem’ and assumptions in property asset cash flows
- 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)