What does the program cover?
The program equips delegates with the necessary knowledge and tools so that starting from scratch, they can develop a full-scale financial model for valuation of real estate investments.
Learning Objectives
- Learn to apply advanced excel tools in real estate modeling
- Understand fundamentals of real estate investments
- Learn nuances for developing financial models for different types of real estate investments such as residential, commercial and hospitality
- Modeling of debt structure for real estate investments
- Model and calculate real estate investment KPIs
- Perform scenario and sensitivity analysis
Program Agenda
Introduction to the Real-Estate Model
Introduction to the Real Estate Model
- Model design and structure for the case study real estate asset
Introduction to Real Estate Cash Flows
- Understanding real estate investment concepts: Rental rates, ADR, Occupancy, RevPAR, GOP, NOI, cap rate
Develop the model
- Projecting rental rates, rental revenue and non-rental revenues
- Projecting occupancy rates and vacancy losses and key operating expenses
- Calculating terminal value : Replacement cost Vs exit cap rate methods
Financial Modeling
Modeling the Debt Structure
- Flexible debt repayment & interest payment schedule
Model output and dashboard
- Calculating outputs such as payback period and levered and unlevered IIR
- Preparing Dashboards to present key sections of the model
Modeling for Key Model outputs
- Understanding the role of Asset Management post acquisition
- Preparing an asset management dashboard for performance monitoring
- Analysing post acquisition fair value and analysing the impact of potential impairment
Case Study: Starting from scratch, develop a real estate feasibility analysis model for a mixed-use building consisting of retail space, apartments, and hotels using advanced excel tools and best practices in financial modeling.
