In this course, delegates will learn how to value publicly traded real estate securities (REITs) and make sound real estate investment decisions.
This course will expose delegates to a broad literature on real estate securities, real estate investing and portfolio valuation. They will be given opportunities to practice how to set up companies’ accounts and forecast income and securities prices.
This course is aimed at financial and research analysts working for real estate investment companies, banks and property consultancies seeking a best practice approach to building robust real estate securities valuation methods and comparing to direct real estate investment valuation.
Who should attend this course:
The Introduction to Real Estate Securities course is suitable for those willing to understand REITs and improve their valuation skills. This is a course aimed at investment professionals who would like to improve their understanding of financial accounts and portfolio valuation.
Duration: 2 days
CPD Hours: 12
Maximum number of delegates: 10
What is a real estate security?
Listed vs Unlisted Real Estate – how do they compare?
GICS Sector – what are the pros and cons of new classification?
Real Estate Securities
Characteristics of listed real estate
Structure of REITs
- Key features
- Investment rules and borrowing powers
- Regulatory and compliance obligations
Tax Treatment of REITs
- From the perspective of the fund
- From the perspective of the investor
Real Estate Securities Valuation (I)
Corporate analysis key financial ratios
Application to RE companies
Tools to evaluate listed RE securities
Balance Sheet (NAV)
- NNAV / NNNAV
- Pricing (discount to premium)
Real Estate Securities Valuation (II)
- Gordon Growth’s Model
Cost of capital
Assessing market risk
Traditional methods (Capital asset pricing model)
Stochastic models (random walks, markov & wiener processes)
Equity market risk
Portfolio theory for real estate securities
Modern portfolio theory
Markowitz mean-variance portfolio in Excel