Real Estate Analyst (Financial Modelling in Excel)

Course Outline – Day 1
Know how to build a property asset cash flow, analyse geared, and un-geared IRRs.
Part A (morning)

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
Part B (afternoon)

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
Protecting, saving and auditing your work
Course Outline – Day 2
Know how to build a multi-let property cash flow and apply the concepts on a real case study.

Part C (morning)

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
Part D (afternoon)

Incorporating time-varying rental growth rates
Analysing multi-let cash flows to see if the leases are sufficiently diversified
Further IRR analysis (XIRR, MIRR)
Case Study

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