Agenda

Land and Evolving Asset Classes

• Land values and construction costs
• Land banking, development and investment
• Sectoral analysis of real estate
• Differences between markets
• Evolving developer and investor strategies

International comparisons of prices, yields and other key data

• Smart Construction (robotics, 3Dprinting and other new building techniques)
• Artificial Intelligence (AI) and real estate
• Solar and other renewable energy
• Valuation and GIS software
• Land registration, conveyancing and the blockchain
• Marketing and sales applications

The impact of solar energy on property values

The role of drones and 5D mapping

Distributed Ledger technology in emerging markets

Key proptech companies and their international strategies

• Political risk and how to manage it
• Economic cycles and their impact
• Climate change – effect on real estate
• Cultural and social issues
  
  

Risk consultancy and its value

Conversions, greenfield developments and demand

Successful and failed developments and investments

• Why buy residential real estate?
• Does rental income matter for residential property?
• What are the main problems?
• Measurement criteria for residential real estate – hedonic approaches
• Qualitative issues, competition, style and marketing

Using proptech for valuation

• Comparables and how to analyse them
• Regression models and how they work

Comparable analysis for accurate valuation

• Gross and net income
• Differences in calculating NOI
• Overall capitalisation rate
• Capital expenditure issues
• Differences between property types
• Approaches to the cap rate
• Assessing Net Present Value (NPV) for properties
• Ratio analysis and its value
• Land values in NPV
• The terminal value issue

NPV and IRR calculations for real estate

• Methods of forecasting and their application

Application of the Delphi Method to qualitative real estate forecasting

Mortgages and Bank Finance

• Concepts and applicability of the mortgage
• Global statistics
• Available types of mortgage
• Syndication and the mortgage market
• Lending practice and pitfalls
• Mezzanine finance and deal structuring
• Logic and use of Special Purpose Vehicles
• Relative returns for structured real estate finance
• Recent funding developments and the role of proptech
• How to model real estate finance
• Islamic finance for real estate

Calculating mortgages and impact on value

How financial waterfalls work for real estate development

Crowdfunding and its application to real estate investment and development

Real estate investment and financing models

• Costs, taxes and inflation
• CAPM and corporate leverage (equity/asset betas)
• Capital budgeting and real estate

• Appraisal of income property – RICS Valuation Practices and international comparisons
• Comparison with corporate finance valuation
• Reporting according to IFRS standards

Important aspects of the RICS Valuation Standards (including valuer independence)

Cost approaches to valuation

• Analysing highest and best use studies and models
• Feasibility studies: do’s and don’ts

Working through feasibility studies

• Why developers and investors alike need to study leases
• Nature and creation of leases
• Differences between types of commercial property leases
• Commercial leases and statutory control
• Residential tenancies and statutory control
• Structure of leases e.g. length of the lease period; including options for tenant alterations and expansion
• Sinking funds
• Lease calculations (with worked examples and exercises)
• Rent reviews and lease renewal options
• Covenants to leases e.g. repairing liability, occupancy conditions, subleases, termination, service charge provision

• Lease calculations
• Lease valuations

Valuing commercial leases

• Accounting theory and methods
• Asset and liability valuations
• Development vs. Investment property in IFRS
• Reporting procedures in the management of different kinds of properties
• Preparing profit-and-loss statements
• Tax implications; tax records
• Cash flows; depreciation; investment tax credits; after-tax cash flow;
• Presentation to clients and management of client’s accounts

Financial management - outlining a property’s sources of income and types of expenses and how they are accounted and reported

• Modelling and evaluating comparative risks
• Risk management strategies (including derivatives)
• Available risk management instruments
• Costs and benefits of risk management
• Modelling risk management

Scenario analysis in Excel

Measuring Property Performance

• Applicable concepts and methodologies
• Problems and issues with performance evaluation
• Sources of data
• Evolution of data measurement
• International comparisons of performance
• Current issues in performance measurement

What are the MSCI real estate indices and why are they not in emerging markets?

• Comparison of risk–return profiles of real estate and financial investment assets
• Measuring investment performance
• Principles of portfolio diversification
• The case for active portfolio management
• Application of property within a larger non-property investment market
• The nature of risk and return from property compared with bonds and equities

portfolio management and property investment – how much property should a fund hold?

• Listed vs. unlisted (private equity) property investment vehicles
• Investment funds, trusts and other legal and tax structures

• Comparing tax structures for property and funds in Western and emerging market jurisdictions
• International property investment, diversification and portfolio management

Investment in high- yield real estate debt

• Securitisation mechanics
• Sukuks and their relationship to securitisation
• Securitising mortgages
• The future of securitisation

• What is a REIT?
• Size and structure of the global REIT market
• Benefits and risks of REIT investment
• Comparison with direct and private equity investment
• Examples of new REIT sub- classes

Prospects for the REITs market