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European Real Estate Analyst

Included with course

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

Course Outline

Day One

Know how to build a property asset cash flow, analyse geared, and ungeared 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
  • 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)
  • Analysing the IRR for errors (data tables, charting)
  • Sensitivity analysis and Scenario testing
  • International comparison of property market

Day Two

Know how to build a multi-let property cash flow and analyse advanced debt structures.

  • 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 leases 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 Annual summaries of quarterly/monthly cash flows
  • Modelling stressed cash flows for debt purposes
  • Interest only and amortising loans (PMT)

For more information visit – www.bayfieldtraining.com