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.


Details

Duration: 2 days
Location: London
CPD Hours: 12
Level: Basic
Maximum number of delegates: 10

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Content


Day 1


Overview

What is a real estate security?

Listed vs Unlisted Real Estate – how do they compare?

Sector and companies 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)

  • Accounts
  • Pricing

Day 2


Real Estate Securities Valuation (II)

P&L (Dividends)

  • Forecasting
  • Gordon Growth’s Model
  • Pricing

Cash-flow statement

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

Efficient frontier

Markowitz mean-variance portfolio in Excel

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