By Cleo Folkes As many high street stores find themselves closing their doors permanently, we hear that landlords increasingly worry about covenant strength. What is it exactly that they worry about? In property you often hear the word covenant strength when people talk about a tenant or the quality of an investment property or real … Continue reading What is covenant strength and why does it matter?
Real Estate financial models are mainly spreadsheets used extensively as an aid in decision support in the areas of property investment and lending. These spreadsheets will ascertain the present value of a stream of cash flows and generate risk / return ratios. How do I create a real estate financial model? Being proficient in real … Continue reading Demystifying real estate financial models
Being a highly productive financial analyst is not an innate talent; it’s simply a matter of organising your spreadsheets so that you can efficiently get the right calculations and analysis done. Real estate financial analysts in particular... So, what behaviours define highly productive financial analysts? What habits and strategies make them consistently more productive than others? And … Continue reading 5 Things Highly Productive Financial Analysts Do Differently
Yields have many different meanings in finance - yield to maturity, running yield, dividend yield, interest yield - and in property finance, the case is very similar. We can talk about initial yield, equivalent yield, reversionary yield etc. It is, therefore, really easy to get lost in a “yield” conversation, unless you stop the other person and ask: “which yield?!” If you are emotionally intelligent enough (and I bet you are if you are reading this!), you won’t do this so blatantly. So, let’s break down this “yield” conversation first to ascertain the relationship between yields, risk etc. First, it is safe to assume that “yield” refers to initial yield...
Firstly, REITs, or Real Estate Investment Trusts, are companies that own and manage real estate. Therefore, owning shares in REITs is a way for investors to access the risks and rewards of holding property assets without having to buy and manage property directly. REITs typically pay out all of their taxable income (90% in the … Continue reading Are REITs real estate?
In our financial modelling courses, we discuss what makes a great financial model in Excel and here are the top 10 ‘Golden Rules’ that I find will help you to achieve that. Don’t hard code values, instead use input tables Don’t use CTRL + Shift + Enter command Use intermediate calculations to help simplify your … Continue reading Top 10 ‘Golden Rules’ of Financial Modelling in Excel
The Royal Institution of Chartered Surveyors (RICS) is delighted to announce a collaboration with Cambridge Finance to develop a comprehensive training course that will help bridging the gap between real estate and finance education. The growing sophistication of the property and financial markets has meant that investment surveyors have not only been requested to advise … Continue reading RICS and Cambridge Finance collaborate to bridge the skills gap between real estate and finance
First, we need to understand what a financial modelling is so we can keep this in mind throughout the test and better accept why companies are asking us more and more to go through Excel tests in order to proceed to the next round of interviews. Financial Modelling in real estate is used as a … Continue reading How to prepare for a real estate financial modelling test
More often than not employees find themselves trapped in a situation where they know they could do a better job, but just don’t have the right skills to implement more efficient routines. Training seems to be the key to solve their problem. However, there is always that question: “Should I pay for my training or … Continue reading How to convince your boss to pay for your financial modelling training
What’s the value of a listed real estate asset? Our belief is that as markets trade on disagreements about the value of assets, the valuation process should be a crucial point in any investment course.