Add real estate risk and hurdle rates calculations to any financial model and use them to advise clients, lenders, joint-venture partners and other stakeholders on the risk-adjusted returns of real estate projects.

This course is aimed at all real estate consultants and analysts seeking to become an expert in real estate finance and financial modelling.

Delegates will learn to incorporate risk analysis and calculations of appropriate hurdle rates to their geared discounted cash flow models and perform investment and lending decisions based on robust financial thinking.

Who should attend this course:

The Real Estate Risk Analysis & Modelling courses are suitable for those willing to develop their finance and modelling skills to the next level. This is a course aimed at experienced professionals and modellers who would like to improve their real estate finance and modelling techniques to become an expert in the property finance field.


Details

Duration: 2 days
Location: London
CPD Hours: 16
Level: Advanced
Maximum number of delegates: 6

Next Dates: 20 & 21 September, 2017

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Content


Day 1


Real estate risk 

Diversifiable versus non-diversifiable risks

Risks depending on property types: office, retail, industrial, mixed-use, housing

Credit risks associated with different phases of a property’s life cycle: from construction to lease-up and stabilisation.

Multiple components of risk associated with construction companies, developers, investors, properties and projects.

Cyclical property market forces that impact rents, vacancy, capitalization and interest rates

Risk Modelling

Scenario analysis

Stress tests

Monte Carlo simulation


Day 2


Estimating hurdle / discount rates

Methods for calculating the cost of equity

Capital Asset Pricing Model (CAPM)

Arbitrage Pricing Model (APM)

Surveying Method

Individual assets: prices and risk parameters

How comparable are assets within a real estate class?

Understanding market indices: MSCI IPD, FTSE EPRA/NAREIT, Case & Shiller

Applying indices to derive discount / hurdle rates

Methods for calculating the cost of debt

Pre- and after-tax cost of debt

Gearing levels

Global portfolios, risk and hurdles rates

Country risk premium

Market risk premium

Industry risk premium

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