Featuring:
- Real estate appraisals and analysis
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Structuring a real estate DCF analysis
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Incorporating finance into a DCF appraisal
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Property investment analysis and vehicles
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Property in a corporate context
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Development and private equity vehicles
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Comprehensive case studies, exercises and spreadsheet sessions
Who should attend
The course will be of value to professionals in the following areas:
Teaching method
The course is taught using a combination of theoretical lectures and practical hands-on sessions. Case studies, exercises and computer based sessions feature throughout the programme.
Course objective
This course aims to furnish participants with the necessary analytical skills required to maximise shareholder wealth. Participants will examine both quantitative and qualitative analysis techniques, taking an in-depth look at the components and benefits of a discounted cash flow analysis and putting property into a corporate context.
Day 1
Real estate appraisals and analysis
Introduction to valuations and appraisals terminology and economic and financial assumptions
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Types of income
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How do lease terms affect value?
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Slicing the income and converting to capital
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Unbundling the all risk yield
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Types of yield
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Calculating total returns
- What are the key drivers?
Spreadsheet exercise: setting up and adjusting an investment valuation & appraisal using formula & functions for flexibility. Auditing & best practice tips.
Structuring a real estate DCF analysis. Key variables and outputs in DCFs
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Target rate of return & discount rates
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Income growth & exit yields
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Impact of obsolescence & depreciation
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Outputs: IRRs and NPVs
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Apportioning IRRs
Spreadsheet exercise: Cash flow modelling case study I: Worked Example, setting up a dynamic investment cash flow appraisal. Shaping up the basic deal.
Day 2
Property finance
Incorporating finance into a DCF Appraisal
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Types of debt used:
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Senior
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Mezzanine debt
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Preferred equity
- Private equity vehicles
Case study: financing a Hotel Investment
Risk Analysis in DCF appraisals
Spreadsheet exercise: Adding the capital structure and incorporating risk analysis – data tables and dynamic scenarios.
Day 3
Development & private equity vehicles
Development appraisals
Spreadsheet demo: a spreadsheet model will be used to demonstrate the set up of development proposal. Ratio analysis & risk analysis techniques will be used to show the implications of changing market conditions. Delegates will test possible outcomes on the template provided.
Case study: participants will work in small groups to analyse a case study that considers the risk and return profile of a development and consider appropriate methods of finance.
Private equity
Spreadsheet exercise: using Crystal Ball Software “Crystal Ball is a suite of Microsoft Excel-based applications that harnesses and extends the analytical power of spreadsheets.” “Crystal Ball is a flexible tool that can be applied to solve almost any problem where uncertainty and variability distort spreedsheets.
Course summary and close
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Bill Rodney
Bill Rodney
Senior Lecturer, Cass Business School (City University London).
Bill is a chartered surveyor whose career has spanned both private and public sector work. He has worked on large-scale commercial development schemes and major urban regeneration projects. He has also consulted on funding and development strategies for commercial property projects in Europe, Africa, Asia and Australia as well as having extensive teaching experience in the UK, Hong Kong and Malaysia. He has advised on Private Finance Initiatives (PFI) to Central and Local Government Authorities and undertaken research and consultancy projects in development, cash flow analysis and corporate real estate on a range of topics related to business strategy and trends impacting the real estate industry.
He has over 25 years of teaching and training experience, mainly in postgraduate courses such as specialist Real Estate Investment & Finance Masters and MBA programmes and senior manager workshops. During this time he has presented training throughout Europe, Africa and the Middle East for a range of investment managers, corporate advisory teams, legal firms and public sector institutions. His professional training includes being the founding Technical Director and contributor to the Investment Property Forum's Advanced Education Programme, and faculty member on Corporate Real Estate (CRE) Designation Programmes. In addition he served as the RICS delegate to FIG Commission 9 involving speaking at international workshops and conferences. Bill gained his MSc in Real Estate Investment & Finance at City University just before joining the facility and becoming head of department.
Courses run by this instructor
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