Real Estate Sector Overview and Valuation         

By the end of this course you will be able to:

.Recognize the attractiveness of the real estate sector to investors, including its long-term performance, to identify investment-related risks

.Identify and understand the problems facing corporate management to support decision-making to own or rent real estate, and measure the financial impact on operating and financing leases

.The ability to identify the main elements of real estate cash flow to arrive at the valuation of real estate assets

Course Outline:

.Day 1: Real Estate Sector Overview

.1- Types of commercial real estate: Core asset classes and alternative

.2- خصائص الأداء:

.2.1 Long-term performance

.2.2 Liquidity

.2.3 Risk-adjusted returns

.2.4 Correlation to other asset classes

.3- Entry points into the sector and sector ownership

.4- Accounting considerations:

.4.1 Finance vs. operating lease accounting treatment

.4.2 Forthcoming changes and implications for sale and leasebacks

.5- Corporate ownership: Should a company own property or rent, and how to approach an assessment?

.6- The listed sector:

.6.1 Real Estate Investment Trusts (REITs) as a tax-efficient wrapper

.6.2 Entry criteria

.6.3 Relevance NAV discounts

.6.4 Premium considerations

.6.5 Comparison of different REIT landscapes

.7- Real estate cash flows:

.7.1 The core component parts of a real estate cash flow

.7.2 Rental cash flow

.7.3 Leasing dynamics

.7.4 Service charges

.7.5 Letting and renewal fees

.7.6 Agent’s fees

.Day 2: Real Estate Valuation

.1- Yield-based valuation methodology: Initial, reversionary, and equivalent yields

.2- Private equity valuation approach: Targeted Internal Rate of Return (IRR) methodology

.3- Harmonizing surveyor, investment banking

.4- private equity valuation approaches

.5- Hotel valuation: Worked example of hotel portfolio analysis

.6- Land valuation: Worked example of development appraisal/ residual calculation

.7- Operating company

.8- property company interaction and how to realize value from the separation

Target Audience:

.1- Collateral Management

.2- Collateral / Asset Valuation

.3- Portfolio/ Fund Management

.4- Finance

Prerequisites:

This course entitles you to attend:

Upon successful completion of this course, participants will obtain: