Introduction to Real Estate Financial Modelling

Real Estate Financial Modelling Course - 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
• REFM course 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
• Real Estate Financial Modelling Course case study #3: Modelling and analysis of a part-complete residential model

 

Redcliffe’s Real Estate Financial Modelling course is led by a distinguished trainer with over 20 years of experience in accounting and investment banking. With extensive expertise in financial analysis and modelling, he has delivered advanced training to leading financial institutions and central banks across the globe. A versatile educator, his specialist areas include Corporate Finance, Valuation (Industrials and Banks), M&A, Leveraged Buyouts (LBO), Financial Accounting, Capital Markets, Bank Regulatory Capital, and Financial Risks.

The trainer began his career as a Credit Analyst at Banque Continental in Luxembourg, where he conducted credit analyses for both short and long-term credits and participated in loan syndications. He advanced to the role of Senior Auditor at Deloitte & Touche in Luxembourg, where he was responsible for auditing and preparing financial statements for a wide range of clients, including banks, insurance companies, investment funds, venture capital firms, and commercial enterprises.

Our accomplished REFM course leader continued his career in Investment Banking at Citigroup in London and New York, where he worked on important M&A, LBO, and debt offerings, primarily for financial services clients. Most notably, he played a key role in the €20 billion public acquisition of Crédit Lyonnais by Crédit Agricole: one of the most significant banking transactions in Europe.

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 $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.

More recently, he served as Director in the Investment Banking department at Commercial International Bank (CIB), the largest non-government bank in Egypt. During his tenure, he successfully completed several transactions, including two sell-side M&A deals, a follow-on equity offering, and a delisting.

Redcliffe’s Real Estate Financial Modelling course trainer has worked extensively with leading sovereign wealth funds, private equity firms, and prominent families across the UAE, Qatar, Kuwait, and Saudi Arabia. Fluent in English and French, he brings a global perspective to his impactful sessions.

This Real Estate Financial Modelling course focuses on analysing and valuing real estate assets, including development and income-producing properties. You will gain familiarity with various asset classes within real estate, such as office, retail, residential, and hospitality, as well as related financing strategies.

Key concepts such as rent roll, NOI, vacancy rates, refurbishment, capitalisation rates, project and equity Internal Rate of Return (IRR), and promote structures are integral components you will learn throughout this REFM course, which are discussed and analysed in detail.

You have the opportunity to model and value both an income-producing office building and a residential investment. The course will place specific emphasis on optimising the financing structure of these investments, as well as conducting detailed return analyses for both 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 modelling and valuing real estate
  
  

• 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 Financial Modelling course is an interactive workshop led by an experienced M&A banker with extensive corporate finance expertise. The course offers comprehensive training on analysing, valuing, and modelling real estate assets.

You will engage in topic-relevant case studies to develop your practical skills in real estate valuation techniques, financial concepts such as NOI, IRR, and cap rates, and structuring and optimising financing across different asset classes.

With an emphasis on hands-on learning, participants will have the opportunity to model real estate projects, analyse returns, and develop strategies throughout this robust REFM course.