Understanding Key Principles – Real Estate Financial Modelling

Real Estate Financial Modelling - Understanding Key Principles

Understanding your strategy in the context of financial modelling is a cornerstone of real estate financial modelling. On this course, we will explain the shorthand methods of pricing income streams by learning the different conventional valuations and financial mathematics required to create them.

The course will cover the different types of discounted cash flow used to analyse a property investment. We will use case studies in excel which will enhance delegates understanding of real estate financial appraisals and help them fully appreciate the theory behind the numbers.

On this course, you will…

  • Learn about valuation principles and DCF Models
  • Understand property yields
  • Learn about the importance of inputs and outputs
  • Learn about performance metrics and how to create meaningful interpretation of results.

Who will benefit from this course?

  • Professional Real Estate Transaction Managers
  • Asset Managers
  • Recent graduates with exposure to real estate financial modelling
  • New employees with exposure to real estate financial modelling
  • People working in Argus, Anaplan or any commercial real estate software and would like to understand financial modelling key principles.

Course Outline

Real Estate Financial Mathematics
  • Time Value of Money
  • Introduction to Present Value
  • Net Present Value
  • Internal Rate of Return
  • Comparing Value, Price and Worth
Conventional Valuation Methods
  • Term and Reversion, Layer Method
  • Property Yields and Capitalisation Method
  • NPV versus Net Vendor Price
  • Introduce the different options for Exit calculation across Europe
Discounted Cash Flow Models
  • Development v. Investment Appraisal Models
  • Cash flow inputs: Rents, Yields, Growth Rates, Target Returns
  • Discount Rates & Exit Cap Rate
  • Operating Assumptions
  • Adding borrowing and analysing geared returns
Model Interpretation and Analysis
  • IRR, NPV, Cash Return and Equity Multiple
  • Correlation between Discount Rate, IRR, Inflation, Cap Rate
  • Impact on IRR from financing
  • The impact of duration on IRR analysis and Equity Multiple
  • Alternative Performance Metrics
  • Risk Analysis: sensitivity analysis and scenario analysis
  • Identifying and fixing inconsistencies
  • Underwriting versus revised DCF
Quizzes | Q&A

Post-Course Support

We complement all our financial modelling courses with two months’ learning support, to make sure you will fully benefit from our training.

How does it work?
You can contact us at any time and one of our experts will come back to you within two working days. The expert’s time is limited to 10 minutes per inquiry on questions related to the course material only.

Course Details


Classroom-based: TBD
Online: TBD

Number of days: One day
Course type: Financial Modelling
Course level:
Pre-requisite: None

How to Book

Choose your Course delivery option   

Real Estate Analyst Public
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Available Methods of Delivery

Any Questions?

For Course Bookings contact:

Jacob Noble
[email protected]

Holly Johnson
[email protected]

For Course Delivery & Administration:

Emma Wilson
[email protected]

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