Investment analysis is a critical function in ensuring robust underwriting of acquisitions and maximising the income performance of assets. This online course, which takes place in two-hour sessions over four days, will use a combination of theory, an illustrative cash-flow model and a case study, to demonstrate best practice modelling techniques within real estate. It will consider the inputs and outcomes of cash-flow modelling, as well as examining limitations and how to critique results.
The INREV Investment Analysis online course starts with a bottom-up approach from the asset to the fund level, while later focusing on the impact of issues such as debt, tax structuring and fees. The final session brings all the elements together in a case study.
The course will include the following topics:
- Investment analysis essentials including a high level understanding of cognitive biases in decision making
- Key model inputs for real estate cash-flow analysis and model set-up
- In-depth analysis of the impact of debt financing
- The impact of taxes and structuring on real estate returns
- The effect of specific fund fee structures and levels on returns to investors
The course will include presentations by industry experts, group discussions and a case study to allow participants to share their views.
Who should attend the course?
This course is aimed at individuals involved in investment analysis at both the asset and fund level. This could include junior analysts or more experienced individuals wishing to get an update on cash-flow analysis for real estate. The course will be of interest for investors, investment managers and advisers, specifically acquisition, asset managers and lenders.
Attendees should already have a good competency level in finance and be familiar with Excel-based techniques for cashflow modelling. Please note that this is not and Excel cash-flow modelling course.
Upon completion of the seminar participants will be able to:
- Identify and understand the limitations involved with modelling techniques;
- Benefit from improved or refreshed technical skills for investment analysis;
- Better critique the underlying assumptions and outcomes of models;
- Understand the current landscape surrounding debt financing;
- Have a high level overview of the impact of taxes and structuring;
- Benefit from an improved understanding of fund fee structures and performance fees.
This course is open to INREV members and non-members and counts towards the INREV/ Henley Certificate for Non-listed Real Estate Investments.