Real Estate Financial Modelling Class

The Real Estate Club is pleased to organise a full-day training course for the students and alums interested in gaining insights into real estate financial modelling.

In this full-day session, you will learn the collection of technical skills for the pro-forma (projection) discounted cash flow modelling. In addition, all students will be provided with a comprehensive, step-by-step manual for Real Estate Modelling for further practice after the session. The course will cover:

1. Building annual and quarterly discounted cash flows
2. Looking in depth at modelling tenancy schedules: rent reviews, upward-only, break options, lease expiry
3. Full project cash flow with OPEX & CAPEX

Detailed content includes:

- Equivalent Yield (Solver, Scenario and Goal Seek functions)
- Single-Let Discounted Cash Flow
- Cash Flow inputs (Rents, Yields, Growth Rates, Target Returns)
- Analysis and use of date series
- Internal Rate of Return (IRR) and Net Present Value (NPV)
- Comparing Value, Price and Worth
- Adding borrowing and analysing geared returns
- Introducing Rent Reviews and other ‘events’ into cash flows
- The ‘Rent Function’ concept and Logic functions (IF,OR,AND)
- Sensitivity analysis
- The ‘Rent Function’ and Multi-let cash flows
- The ‘date problem’ and assumptions in property asset cash flows
- Reducing the rent function, intermediate calculations and modelling theory
- Modelling lease expiries, break clauses, voids, and upward only covenants
- Incorporating time-varying rental growth rates
- Analysing multi-let cash flows to see if the leases are sufficiently diversified
- Further IRR analysis (XIRR, MIRR)
The training will be conducted by Bayfield Training, the leading international resource for executive education in real estate investing. Bayfield works with leading Commercial Real Estate consultancies, developers, investors, and other companies in the industry, including CBRE, JLL, Savills and British Land.

Please bring along your own laptop computer with Excel 2007 or more recent pre-loaded.

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