Summary
Learn how to construct valuation models and discounted cash flow models for single-tenant and multi-tenant buildings.
Understand sensitivity analysis to allow you to make better investment decisions.
Master real estate finance fundamentals which will enhance your property investment analysis and underwriting processes.
Who should attend this course
Entry-level graduates and APC candidates.
Real estate banking and lending analysts, investment surveyors and property consultants.
Details
Duration: 2 days
Location: Virtual Live/ Hard Rock Hotel, London
CPD Hours: 12
Level: Beginner
(Payment Plan available)
The course fee includes training, course materials and post course support.
Dates
- 20 – 21 March 2023
- 26 & 27 April 2023
- 15 & 16 May 2023
- 14 & 15 June 2023
- 3 & 4 July 2023
- 20 & 21 September 2023
- 9 & 10 October 2023
- 15 & 16 November 2023
- 11 & 12 December 2023
Content
Day 1
Best practice in financial models
- Simple tips to help you become an efficient financial modeller
- How to avoid errors and present your models in a persuasive way
Implicit investment valuation methods
- Term & Reversion
- Layer / Hardcore
- Property yields
- Defining term and reversionary yields
- Calculating the equivalent yield
Build your cash flow from scratch
- Inputs: passing rent, estimated rental value, initial and exit yields, market growth, review cycles and most importantly, target returns
- Outputs: internal rate of return, net present value and worth
- Annual and quarterly discounted cash flows: modelling purchase price, passing rent, rent reviews, exit rent and exit price
Gearing / Leverage
- Adding senior debt “bullet” loan
Analyse the results
- IRR, NPV and maximum bidding price
- Data tables & sensitivity analysis
- Risk visualisation (charts)
Case study:
- Single-tenant office building in the UK
Day 2
Rent Forecast of Multiple Tenant Properties
- Modelling tenancy schedules
- Rent reviews, upward-only, break options, lease expiry
- Modelling hypothetical second leases
- Void period, rent free and estimated rental values
- Time-varying rental growth
Net Operating Income Forecast
- Modelling capital expenditure for refurbishment and operating costs (letting fees, void costs, empty rates)
Investment decision
Case study: multi-tenant office building in the UK
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What our customers say:
“I have made the big move to Capital Markets and am absolutely loving it. Your training helped me a huge amount to secure my dream job, so thank you so much!”
Charlotte Bradbrook, Investment Analyst, Knight Frank
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