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

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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

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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