What is covenant strength and why does it matter?

By Cleo Folkes

As House of Fraser announced the closure of 31 stores earlier this month and Debenhams issued their third profit warnings in the year today, we hear that landlords worry about covenant strength. What is it exactly that they worry about?

In property you often hear the word covenant strength when people talk about a tenant or the quality of an investment property or real estate loan. When you Google the definition for covenant it will tell you it is “an agreement” or something you “agree by lease, deed, or other legal contract”. Thus, when people talk about covenant strength, they are talking about how secure the income is coming from a lease with a tenant. Continue reading What is covenant strength and why does it matter?

RICS and Cambridge Finance collaborate to bridge the skills gap between real estate and finance

The Royal Institution of Chartered Surveyors (RICS) is delighted to announce a collaboration with Cambridge Finance to develop a comprehensive training course that will help bridging the gap between real estate and finance education.

The growing sophistication of the property and financial markets has meant that investment surveyors have not only been requested to advise on property location, covenants and physical structure of buildings, but also on debt, Continue reading RICS and Cambridge Finance collaborate to bridge the skills gap between real estate and finance

How to convince your boss to pay for your financial modelling training

More often than not employees find themselves trapped in a situation where they know they could do a better job, but just don’t have the right skills to implement more efficient routines. Training seems to be the key to solve their problem. However, there is always that question: “Should I pay for my training or should I ask the company to pay for it?”

In our experience, companies are more willing to pay for their staff’s training as long as they can see the short-term results of their investment, mainly improved process or product development.
Continue reading How to convince your boss to pay for your financial modelling training

Are REITs real estate?

Cambridge Finance Property Training Courses

Firstly, REITs, or Real Estate Investment Trusts, are companies that own and manage real estate. Therefore, owning shares in REITs is a way for investors to access the risks and rewards of holding property assets without having to buy and manage property directly. REITs typically pay out all of their taxable income (90% in the UK) as dividends to shareholders and in turn, shareholders pay income tax on those dividends. Continue reading Are REITs real estate?

What is the value a REIT?

What’s the value of a listed real estate asset? Our belief is that as markets trade on disagreements about the value of assets, the valuation process should be a crucial point in any investment course.

However, before we start, we want to highlight that a valuation exercise is an exercise of consistency and coherence. We call these the two pillars of the valuation exercise. On the course, you will understand better what this means but we want to draw your attention to this now. Thus, if the variables used on the different

Continue reading What is the value a REIT?