About this this course:

An exclusive programme offered by Cambridge Finance on behalf of the Royal Institution of Chartered Surveyors (RICS), this course covers the main topics related to real estate financial modelling in Excel, leading up to the RICS Certificate in Real Estate Financial Modelling. Delegates will learn how to create robust financial models from scratch, from traditional valuation methods to fully bespoke cash flows.

In line with the RICS financial modelling competency, this certificate will ensure that delegates are able to demonstrate that they can develop and apply property cash flows in Excel in order to provide detailed and reasoned advice on the performance of investment and risks.

This course comprises the following courses:

Real Estate Investment & Financial Modelling
Real Estate Debt Structures & Financial Modelling
RICS Real Estate Financial Modelling Masterclass

Learning outcomes:

  • Construct robust and fully automated multi-tenant property cash flows from scratch
  • Be able to audit third-party cash flows
  • Understand how cash flow inputs and outputs are interlinked and how to test for errors
  • Develop and produce sensitivity and scenario analysis
  • Be able to give investment recommendation based on quantitative methods

Who should attend this course:

  • Professionals in the industry, particularly analysts in the commercial property investment and capital markets, who need to create financial models from scratch, analyse them and give investment recommendations
  • APC candidates on the Property Finance and Investment or on the Commercial Property Pathway who would like to take Financial Modelling as a competency to Level 2 and 3
  • Real estate professionals who want to advance their financial modelling skills and receive the RICS Certificate


Duration: 10 sessions 9am-1pm
Location: Online
CPD Hours: 43
Level: Basic to Advanced

Course fee:
RICS Members: £2,325 + VAT
Non-RICS Members: £2,795 + VAT

Payment Plan available

Next Dates:

9-13 & 16-20 November 2020



Sessions 1 – 2

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 Worth
  • Data tables & sensitivity analysis
  • Risk visualisation (charts)

Case study:

  • Single-tenant office building in the UK

Sessions 3 – 4

Multiple tenant properties

  • Modelling tenancy schedules and rents forecast
  • 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

  • When to accept the project and make investment recommendation

Case study

  • Multi-tenant office building in the UK

Sessions 5 – 6

Capital structure, sources of debt funds & lending criteria

  • Capital structures: debt & equity
  • Explanation of different debt & equity structures
  • Sources of debt fund & lending criteria

Debt covenants & calculations

  • Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line
  • Financial Covenants: interest cover ratio, debt service coverage, loan to value, debt yield

Senior debt repayment modelling

  • Interest Only
  • Constant Amortisation
  • Fully-Amortising Constant Payment
  • Partially-Amortising Constant Payment
  • Rolled-Up (Capitalised) Interest

  • Cash Sweep
  • Cash Trap
  • Revolving Facilities

Sessions 7 – 8

Development finance

  • Mezzanine finance
    • Modelling mezzanine structures
    • Mezzanine interest and fees

Debt prioritisation

  • Modelling cash flow waterfall
  • Coupon and capital repayment schedule


  • Maximum loan amount based on financial covenants
  • Credit Analysis
  • Stress test
  • Capital adequacy calculations

Case study:

  • Office development lending

Day 9 – 10

Real Estate Development

Pro-Forma Development Cash Flow Modelling

  • Site Purchase
  • Gross Development Value (GDV) versus Net Development Value (NDV)

Development Timeline Modelling:  Phases and Duration

Development Costs Modelling: Hard Costs and Soft Costs

  • S-Curve
  • Straight-Line
  • Known Costs

Real Estate Risk

Sensitivity Analysis 

Data Tables

Scenario Analysis

Automatic scenario modelling

Simulation Analysis

Monte Carlo analysis 

Worked example

2-hour worked example based on a real case study 


Contact us if you have any questions or would like the table of contents:

By submitting this form, you agree to the use of your personal information as set out in our Privacy Policy.