European Real Estate Analyst

Learn how to generate cash flows arising from European lease codes and conventions. The course revises Real Estate Financial Modelling theory prior to a detailed analysis of the different covenants existing in the various jurisdictions of continental Europe. Inter-European Investments present additional challenges in the permutations of covenants and subsequent rent projections.

This course shows you how to build European focused cash flow models whilst minimising the complexity and size of rent functions.

On this course you will

Revise financial modelling structures and techniques
Learn the covenants prevalent in different countries throughout Europe
Devise solutions and techniques to project flexible rent functions
Apply and analyse debt structures
Analyse using sensitivity and scenario analysis

Who will benefit from this course?

Real Estate professionals at any level with exposure to Real Estate financial models on a frequent basis
Mid-level to senior Real Estate Analysts who would like to start building their own real estate models quickly, rather than relying solely on coaching from existing team members
Junior or new Real Estate Analysts who would like to start building their own real estate models quickly, rather than relying solely on coaching from existing team members
APC candidates who would like the opportunity to consolidate their competencies by understanding how theory and variables interact within the precision context of a financial model.

Day One

Know how to build a property asset cash flow, analyse geared, and ungeared IRRs

Term & Reversion and Layer Method Valuation (Intro to Excel)
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
Switching between Annual, Quarterly and Monthly DCF models
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)
Analysing the IRR for errors (data tables, charting)
Sensitivity analysis and Scenario testing
International comparison of property market

Day Two

Know how to build a multi-let property cash flow and analyse advanced debt structures.

The ‘Rent Function’ and Multi-let cash flows
The ‘date problem’ and assumptions in property asset cash flows
Pattern of rents in UK, European and Index linked leases (Arrays, Lookups)
Reducing the rent function, intermediate calculations and modelling theory
Modelling leases 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)
Creating Annual summaries of quarterly/monthly cash flows
Modelling stressed cash flows for debt purposes
Interest only and amortising loans (PMT)

Course Details

Number of days: Two days
Delivery: In-Person & Virtual
Course type: Financial Modelling
Course level:
Pre-requisite: Real Estate Analyst