Course description
Real Estate Masterclass (2 days) - Virtual Classroom
Real estate as an asset class requires an understanding of specific industry terminology, an analytical approach to modeling both indirect and direct property level cashflows and an assessment of capital investment structures including debt structuring and equity waterfall analysis.
On Day 1, delegates on this two day course will be introduced to real estate terminology and real estate related cashflows, measures and return metrics. They will also apply modeling techniques to indirect property investments including REIT analysis and valuation.
On Day 2, delegates will focus on direct real estate investment including land acquisition and development, the analysis of construction costs using average spread and normal distribution approaches, assess property characteristics, establish unlevered and levered cashflows and model amortized and interest only debt repayment structures and equity waterfall returns analysis based on limited partner and general partner joint venture arrangements.
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Upcoming start dates
Suitability - Who should attend?
- Individuals – looking to move into the real estate industry
- New hires – who have missed a joining company in-house program
- Teams – employed in real estate investment roles with non-finance backgrounds
- Graduates - preparing to interview for a finance related role in the real estate industry
- Students – at business schools looking for a career in real estate finance
- Investment bankers (real estate industry teams)
- Real estate analysts
- Buy side (principal investors
- Anyone interested in real estate investments
Prerequisite
We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.
Training Course Content
Day 1 - Learning outcomes
Overview of the real estate industry and terminology
- Definition of specific real estate industry terms
- Distinction between direct and indirect property investing
- Assessment of indirect property investing platforms
Understanding real estate cashflow measures and metrics
- Calculation of cashflow measures including NPV, IRR, XIRR, MIRR, DSCR, cash on cash Return and money multiples
RE financial modeling best practice and excel fundamentals
- Excel keyboard shortcuts
- Functions and formulas useful for real estate modeling
- Best practice and principles of three statement modeling
REIT Valuation and modeling
- Financial statement analysis - rental growth, NOI margin, Funds from Operations and Adjusted Funds from Operations
- Financial forecasting - rental growth, maintenance capex and investment capex
- Debt modeling - cash sweep, convenant testing and new debt issuance
- REIT valuation including multiples and cashflow valuation
- Real estate scenarios and sensitivity analysis
Building scenarios into models – Choose, Offset, Index and Match
- Running sensitivities on model outputs – One input data tables, Two input data tables, Three input data tables
Day 2 - Learning outcomes
Modeling land acquisition and development
- Creating dynamic dates schedules
- Identification and analysis of hard costs versus soft costs
- Allocating costs using straight line and normal distribution methodologies
- Modeling construction equity drawdown
- Modeling construction debt finance and interest roll up
Modeling property level cashflows
- Calculating gross and net revenues
- Identifying and modeling property related costs
- Calculating net operating income, unlevered and levered cashflows
- Calculating property sale value
Modeling property related debt
- Applying interest only and amortizing principles to debt modeling
- Assessing the impact of debt structures on property level return cashflows
Modeling equity returns and waterfall structures
- Identifying joint venture relationships
- Assessing the distribution of property level cashflows via waterfall distribution structures
Reviews
Average rating 4.9
Awesome work trainer. I really enjoyed spending two afternoons learning from you.
The instructor is really clear and engaging.
They were one of the best teachers I have ever had. Outstanding.