Introduction to Property & Real Estate Economics (45 mins)

• Real Estate as an Asset Class.
• Dynamics in the Occupier, Development and Capital Markets.
• Understanding market indicators: Vacancy, Demand, Stock and Supply.
• Understanding Real Estate cycles.
• Interpreting property market reports and digests.

Valuations and Appraisals (45 mins)

• Conventional valuations, comparable’s and yields.
• Net Present Value (NPV) and the Internal Rate of Return (IRR).
• The Interaction between Value, Price and Worth.
• Explicitly projecting growth.
• Identifying errors in the Internal Rate of Return.

Financial Modelling (1 hour 15 mins)

• Types of lease, cash flow modelling approaches and rental income functions.
• Exit valuation, exit yield factors, sales and acquisition costs.
• Behaviour of operating and capital expenses.
• Trend and Time-varying growth functions.
• Holding periods and sensitivities to leasing decisions and transaction costs.

Sources of Real Estate Risk and Return (45 mins)

• Business, Management, Financial, Liquidity, Inflation, Interest Rate, Legislative, Allocation Risk and Sustainability.
• Contextualising Risk.
• Modelling and Analysing Risk.
• Attributing Risk and Return.