Singapore

Who should attend the course?

  • Individuals – looking to move into the real estate industry
  • New hires – who have missed a joining company in-house program
  • Teams – employed in real estate investment roles with non-finance backgrounds
  • Graduates - preparing to interview for a finance related role in the real estate industry
  • Students – at business schools looking for a career in real estate finance
  • Investment bankers (real estate industry teams)
  • Real estate analysts
  • Buy side (principal investors
  • Anyone interested in real estate investments

Course details

Real estate fundamentals

The aim of this session is to provide an overview of different types of real estate, the suitability of different real estate classes for investment and the methods for investing in real estate. We also review the different methodologies for valuing real estate using relative valuation techniques.

 

Key topics:

  • How to invest in real estate?
    • REITs
    • Direct Investment
    • Listed real estate companies
  • Real Estate valuation approaches
    • NAV valuation
      • Net operating income
      • Capitalisation rates
  • Trading comps
    • FFO
    • AFFO
    • EBITDA

 

Modeling land acquisition and development

 

Key topics:

  • Creating dynamic dates schedules
  • Identification and analysis of hard costs versus soft costs
  • Allocating costs using straight line and normal distribution methodologies
  • Modeling construction equity drawdown
  • Modeling construction debt finance and interest roll up

 

Real estate modeling fundamentals

The aim of this session is to introduce the techniques for modeling real estate assets. We will cover the key modeling periods, acquisition, operating and exit. We will analyse the cash flows and returns based on both a levered and unlevered basis. We will introduce the different techniques of forecasting both revenues and costs.

 

Key topics:

  • Cash flow valuation
    • Acquisition cash flow
    • Financing structure and fees
    • Sources and uses table
    • Modeling revenues based on occupancy
    • Fixed versus variable costs
    • Net operating income
    • Levered versus unlevered cash flows
    • Exit assumptions
    • Return calculations

 

Advanced real estate modeling

The aim of this session is to look at more detailed techniques for modeling real estate assets. We will cover two different asset classes and the different approaches to modeling these. A significant component of the training will be the detailed modeling of rental income, including, occupancy, vacancy and detailed rent roll modeling. We will look at both maintenance and renovation capex. The financing will include modeling different financing and hedging instruments as well as applying different financing scenarios.

 

Key topics:

  • Introduction to different asset classes within real estate, modeling will include office and multi-family residential
  • Land acquisition cash flow, including working capital
  • Financing structure, different debt instruments and use of derivatives to hedge interest rates
  • Incorporating financing scenarios in the model using excel functions such as
    • CHOOSE
    • OFFSET
    • INDEX
    • MATCH
  • Sources and uses table
  • Modelling revenues based on occupancy and vacancy
  • Detailed revenue modelling e.g. rent roll
  • Fixed versus variable costs
  • Tenant incentives and lease costs
  • Net operating income
  • Maintenance versus renovation capex
  • Transaction financing modeling
    • Building a sources and uses table, including flexible funding structures
    • Establishing cash flows available for debt servicing
    • Repayment schedules for individual debt instruments
    • Modeling different types of financing instruments, including hedging instruments
    • Acceleration of debt payments using a cash sweep mechanism
    • Modeling the revolving credit facility
    • Modeling cash and PIK interest
  • Debt structuring - the concept of cash flow lending
    • The lender’s perspective: risk, return and exit routes
    • Operating cash flow generation and cash conversion capacity
    • Assessing the impact of future operating investment requirements, including operating working capital management and maintenance capex
  • Levered versus unlevered cash flows
  • Exit assumptions, including equity waterfall analysis and dynamic exit periods
"I attended AMT's financial modeling courses and they helped bring me up to speed with a few new techniques and tricks. I've certainly strengthened my financial skills feel that I can make a real difference in my team." ~ research analyst, management consultancy

Course materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to DELTA. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

 

  • e-binder
  • real estate case studies
  • 24/7 access to DELTA online learning environment
  • online videos
  • quizzes

Course trainers

Prerequisite

We recommend delegates have a solid understanding of financial statement analysis (balance sheet, income statement and cash flow) and financial modeling skills.