Certificate in Real Estate Financial Modelling

Contact Us Book Now

Course Overview

This is an exclusive programme offered by Cambridge Finance and in line with the Royal Institution of Chartered Surveyors (RICS) financial modelling competency.

Cambridge Finance is the only real estate financial modelling training company regulated by RICS. We are their exclusive partners in their real estate finance and investment content development.

The Certificate in Real Estate Financial Modelling comprises of the following:   

Real Estate Investment & Financial Modelling

Real Estate Debt Structures & Financial Modelling

Learning outcomes

  • Construct fully automated multi-tenant property cash flows from scratch.
  • Audit third-party cash flows.
  • Understand how cash flow inputs and outputs are interlinked.
  • Develop and produce sensitivity and scenario analysis.
  • Give investment recommendation based on quantitative methods.
Course Content

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

Analyse the results

  • IRR, NPV and Worth
  • Data tables & sensitivity analysis
  • Risk visualisation (charts)

Case study

Single-tenant office building in the UK

Multi 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

 

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

Pro-forma cash flow development 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
Mezzanine finance
  • Modelling mezzanine structures
  • Mezzanine interest and fees

Debt Prioritisation

 

  • Modelling cash flow waterfall
  • Coupon and capital repayment schedule

Analysis

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

Case study:

Office development lending 

Real Estate Risk

Sensitivity Analysis 

Data Tables

Scenario Analysis

Automatic scenario modelling

Simulation Analysis

Monte Carlo analysis 

Case Study:

Learn how to add a real life tenancy schedule and debt facilities into the models. Analyse any investment-grade commercial property transactions in the European markets.

Analysts in commercial property investment and capital markets.

APC candidates (Property Finance and Investment /Commercial Property Pathway) who would like to take financial modelling as a competency to Level 2 and 3.

Real estate professionals who want to receive the Cambridge Finance Certificate to demonstrate financial modelling skills on their CV.

Testimonials
Jamie Harris MRICS

"The set up of the course was brilliantly done. Maria is fun and engaging in herself and makes real estate financial modelling as fun as it can be. The way the course is structured is logical and builds from the basics."

Nicole Ranes

"I attended Cambridge Finance's Real Estate and Financial Modelling course and thoroughly enjoyed it! Maria's way of teaching made it easy to follow and I would recommend it to anyone who is looking to improve their financial modelling skills.

Fahad Al Tamimi

"The examples and case studies in the course and being able to interact with different experienced professionals attending the course was very helpful. Also the new excel functions were very interesting."

Dates & Prices
Duration CPD Hours Location Level Dates
5 days 35 The Cumberland, London /Online Beginner - Advanced 09,10,11,12,13 Oct 2023
11,12,13,14,15 Dec 2023
04,05,06,07,08 Mar 2024
03,04,05,06,07 Jun 2024
16,17,18,19,20 Sep 2024
11,12,13,14,15 Nov 2024
Early Bird Prices
plus VAT

Book Early & Save

Book & Pay min. 30 days
before course start date
Regular Prices
plus VAT

Quality Training

Book and/or pay less
than 30 days in advance

RICS members Virtual Live Course

£2,930
£3,223

RICS Members In-Person

£3,790
£4,169

Non RICS Members Virtual Live

£3,215
£3,536

Non RICS Members In-Person

£4,080
£4,485
Book Now Book Now

Payment Plan available

The course fee includes training, course materials and post course support.

Our Featured Resources

You may submit an application to be considered for the scholarship program.