About this course

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.

Who should attend this course:

  • 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.

Details

Duration:  5 days
Location: Virtual Live /Hard Rock Hotel, London
CPD Hours: 32 hours
Level: Beginner to Advanced

Early Bird
plus VAT
Book Early & Save
Book & Pay min. 30 days before course start date
RICS members Virtual Live Course £2,930
RICS Members In-Person Course £3,790
Non RICS Members Virtual Live Course £3,215
Non RICS Members In-Person Course £4,080
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Regular Price
plus VAT
Quality Training
Book and/or pay less than 30 days in advance
RICS members Virtual Live Course £3,220
RICS Members In-Person Course £4,170
Non RICS Members Virtual Live Course £3,540
Non RICS Members In-Person Course £4,485
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Payment Plan available

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

Dates

  • 20-24 March 2023
  • 15-19 May 2023
  • 3-7 July 2023
  • 9-13 October 2023
  • 11-15 December 2023

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

Analyse the results

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

Case study:

  • Single-tenant office building in the UK

Day 2

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

Day 3

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

Day 4

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
  • 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

Day 5

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.

 

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