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Introduction to Real Estate Financial Modelling

Analyse, value, and model real estate investments across various asset classes, focusing on key financial concepts, valuation methodologies, financing structures, and detailed returns analysis through case studies.

Beauty of Iceland captured in a waterfall and surrounded by snow

A one-day course

Real Estate Introduction

  • Introduction to different asset classes within real estate
  • Real estate valuation methodologies
    • Capitalisation rate (cap rate)
    • Cash-flow based valuation
    • REIT valuation (BVPS & NAVPS, P/FFO, P/AFFO)
  • Key industry risks


Real Estate Market Update

  • Current outlook per asset class
    • Office
    • Retail
    • Residential
    • Hospitality


Real Estate Terminology

  • Definition of key concepts through mini-case studies
  • Net Operating Income (NOI)
  • Cap rate valuation
  • Loan-to value (LTV)
  • Project and equity Internal Rate of Return (IRR)
  • Promote structure (GPs vs. LPs)
  • REIT valuation
    • Net asset value per share (NAVPS)
    • P/FFO
    • P/AFFO
  • Case study#1: Modelling of a multi-level promote structure

 
Real Estate Modelling

  • Acquisition cash flow
  • Financing structure and fees
  • Sources and uses table
  • Review of tenant assumptions e.g. rent roll
  • Modelling revenues based on occupancy
  • Tenant incentives and lease costs
  • Fixed versus variable costs
  • Maintenance versus renovation capex
  • Levered versus unlevered cash flows
  • Exit assumptions
  • Project and equity IRR calculations
  • Promote/equity waterfall GPs/LPs
  • Case study #2: Modelling of a multi-tenanted office building
  • Case study #3: Modelling and analysis of a part-complete residential model

 

The trainer has more than 20 years of experience in accounting and investment banking. He is an experienced financial trainer who has delivered courses for leading financial institutions and central banks in the City of London, Wall Street and around the world in the areas of Corporate Finance, Valuation (Industrials and Banks), Financial Modelling, M&A, Leveraged Buyout (LBO), Financial Accounting, Capital Markets, Bank Regulatory Capital and Financial Risks, both in English and French.

He began his career as a Credit Analyst at Banque Continental in Luxembourg, conducting credit analyses for short- and long-term credits and participating in loan syndications. He then worked as a Senior Auditor for Deloitte & Touch in Luxembourg, auditing and preparing financial statements for various banks, insurance, investment funds, venture capital and commercial companies.

He continued his career in Investment Banking at Citigroup (ex-Salomon Smith Barney) in London and New York, where he worked on various M&A, LBO and debt offerings, mainly for financial services clients. He was involved in the EUR 20 billion public offer of Crédit Lyonnais by Crédit Agricole, one of the most significant European banking transactions.

He then worked as a Vice-President in the internal M&A department of Barclays Bank in London, where his experience included the acquisition of ABSA for US$ 5 billion, one of the leading South African banks, the purchase of ING Private Banking in France and the failed acquisition of Banco Atlantico in Spain.

Recently, he was a Director in the Investment Banking department of Commercial International Bank (CIB), the largest non-government bank in Egypt. He has completed several transactions, including two sell-side M&A deals, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the UAE, Qatar, Kuwait and Saudi Arabia.

The trainer is a senior advisor to an M&A practice based in Paris and focuses on buy-side and sell-side transactions, mainly in the technology sector.

The trainer has an MBA in Finance from the Kellogg School of Management in Chicago and a Bachelor of Science in Finance from Groupe INSEEC (“International Management Institute of Paris”). He holds « Series 7 » and « Series 63 » US licenses.

This Real Estate Modelling training focuses on analysing and valuing real estate assets, both development and income-producing. Participants will be made familiar with different asset classes within real estate including office, retail, residential, hospitality and related financing.

The notion of rent roll, NOI, vacancy, refurbishment, capitalisation rates, project & equity Internal Rate of Return (IRR) and promote structures will be discussed and analysed in detail.

The participants will model and value an income-producing office building and residential investment. There will be specific focus on optimising the financing structure of the investment and on detailed returns analyses both for LPs and GPs.

  • Highly interactive workshop with several real estate case studies
  • Experienced trainer, an M&A banker with decades of experience in Corporate Finance transactions
  • Comprehensive material covering techniques and tips on modeling and valuing real estate

Redcliffe Training Real Estate Fianncial Modelling course is suitable for;
  • Junior Corporate Finance bankers or equity research specialised in real estate
  • Junior real estate private equity or investment management professionals
  • Junior real estate specialists in family-office, sovereign wealth funds, pension funds

Redcliffe's Real Estate Modelling course is an interactive workshop led by an experienced M&A banker with extensive corporate finance expertise, providing comprehensive training on analysing, valuing, and modeling real estate assets.
The course includes a number of case studies to allow participants to gain practical skills in real estate valuation techniques, financial concepts like NOI, IRR, and cap rates, and structuring and optimising financing for investments across asset classes.
The course emphasises hands-on learning, enabling participants to model real estate projects, analyze returns, and develop strategies for both LPs and GPs.
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