The market for commercial real estate investment continues to evolve and integrate with broader investment and capital markets. This two-day course combines theory and industry practice to examine current topics and emerging issues in the increasingly complex world of real estate finance and investment. The primary objective of the course is to introduce tools and refine concepts and techniques that will improve investment, financing and risk management decisions. The course will explore both the "micro-level” pertaining to individual properties and deals, and "macro-level” portfolio and investment management considerations. It is designed to be interactive with attendees encouraged to participate and interact with other attendees and the instructor during lectures and case studies.
- A unique learning experience that blends academic theory with industry reality to provide you with a road map for analyzing real estate investment and financing opportunities within continually evolving and increasingly complex real estate capital markets
- Gain a solid understanding of the structure of (and players in) real estate capital markets across the spectrum of real estate investments (debt and equity, private and public)
- Hands on experience and practical application with real estate investment and mortgage underwriting concepts and calculations and their use in valuation and lending decisions
- Introduction to cutting edge changes in institutional investor portfolio structures and risk management innovations and their potential implications for real estate equity and debt markets
- The evolution of real estate as an asset class
- Real estate capital market perspectives, trends and emerging innovations
- Structuring the financing of property investment: the "capital stack”
- Investment analysis and valuation of existing (built) properties
- Ratio and discounted cash flow techniques: cap rates and discount rates
- Commercial mortgage capital sources and mortgage underwriting
- Debt financing: impact on risk, return and valuation over the cycle
- Financial analysis of real estate development projects
- The role of real estate in modern mixed asset portfolios
- Public versus private market pricing of real estate equity
- Assessing, pricing and managing real estate investment risk
KEY LEARNING OUTCOMES
Upon completion of this course, you will be able to:
- Explain why and how institutions invest in real estate
- Value income property using a variety of metrics
- Appreciate the importance of "below NOI” line items in pro formas
- Underwrite a commercial mortgage loan
- Relate cap rates to discount rates, bond yields and property income growth
- Link investors’ expected equity returns to property level returns, debt costs and leverage amount
- Quantify the incremental risks associated with the use of debt financing
- Understand CMBS, CRE CDOs and mezzanine debt and their roles in the credit crisis
- Calculate the incremental cost of additional layers of debt financing
- Derive a net present value and IRR for a development project
WHO SHOULD ATTEND
This course is intended for real estate professionals with some exposure to finance, investment and/or valuation, and who are interested in a more in-depth treatment of the concepts and applications critical to the finance and investment function.
The course will also benefit professionals who specialize in more singular (yet related) functional areas (such as finance, acquisitions, accounting, development) who are keen to explore cutting edge analysis and be exposed to the finance & investment function’s broader context and how it integrates into the larger business.
It is expected that participants will have a basic understanding of time value of money concepts and be somewhat familiar with the use of a financial calculator (and/or the finance functions in MS-Excel).
Jim Clayton, PhD Vice President, Research Cornerstone Real Estate Advisers
DATE & TIME
November 7th & 8th, 2012
08:30-09:00 – Registration
09:00-12:00 - Part I
12:00-13:00 – Group Lunch
13:15-17:00 - Part II
FOOD & BEVERAGE
- Continental breakfast available at registration
- Group lunch
- Refreshments offered during morning and afternoon breaks
Early Bird Special: (Closes October 5th, 2012)
REALpac Member Company*: $1345
Non-Member Company: $1845
REALpac Member Company*: $1395
Non-Member Company: $1895
*To determine if your company is a REALpac Member, click here.
REALpac reserves the right to cancel course offerings based on low attendance numbers for 100% refund on registration fees only.
Participant cancellations must be received in writing, at least five business days prior to the event for a 75% refund. Substitutions are permitted.
REALpac ACCESSIBILITY FOR PERSONS WITH DISABILITIES CUSTOMER SERVICE POLICY
In fulfilling our mission, REALpac is committed to providing its goods and services in a way that respects the dignity and independence of people with disabilities. We are also committed to giving people with disabilities the same opportunity to access our goods and services and allowing them to benefit from the same services, in the same place and in a similar way as other customers. If you require alternative means of communication (e.g., TTY, relay services, etc.), require assistive devices, or will be accompanied by a service animal and/or support person(s), please let us know. To view the REALpac Accessibility for Persons with Disabilities Customer Service Policy, please click here.
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Registration and attendance at, or participation in, REALpac professional development, events, meetings and other activities constitutes an agreement by the registrant for REALpac to use and distribute (both now and in the future) the registrant's or attendee's image or voice in photographs, videotapes, electronic reproductions, and audiotapes of such events and activities.