REIA

With over 4.5 hours of video lessons, this real estate investing and valuations course is structured to offer an immersive learning experience. It teaches industry-leading best practices with real hands-on applications. For example, we have included several case studies with xls files such as a DCF valuation. The content is organized into five individual chapters:

Chapter 1: Cap Rates

• Introduction to cap rates including the relationship between NOI, yields and property valuations.
• EBITDA multiples for corporate valuations.
• The main determinants of valuation yields including the relationship of interest rates and cap rates.
• Management of valuation risks including an overview of risks that are within and outside of the control of investment firms.
• Cap rates over time and yield spreads to government bonds.
• NOI yield complexities including market vs in-place yields, different time periods and transaction costs.
• Shortcomings of valuations by cap rates.

Chapter 2: Relative Valuations & Capital Values

• Overview of capital values and replacement cost analysis with case study of a development in Barcelona.
• Private transaction comps including an overview of the most important factors that should be considered to ensure comparability.
• Case study of a listed office REIT to demonstrate how public transaction comps are used in practice.
• Shortcomings of relative valuations.

Chapter 3: DCF Valuations

• Calculation of cash-flows and forecasting of cash-flows for DCF valuations.
• Calculation of terminal value via perpetual growth rate and exit yield / multiple.
• Time value of money with case study to calculate the present value of two identical buildings with different cash-flow profiles.
• Calculation of the cost of capital and weighted average cost of capital to determine the appropriate discount rate.
• DCF case study of a shopping centre in Germany.

Chapter 4: LBO Valuations

• Overview of LBO valuations and main differences to DCF valuations.
• LBO model structure with main building blocks including assumptions, tenancy schedule and cash-flow sheet.
• Cash-flow waterfall structure including asset cash-flows, unlevered and levered cash-flows before and after taxes and incentive structures.
• The real estate P&L including overview of how cash-flows in financial models are laid out.
• Main model drivers of all cost items including opex costs, transaction costs, fees and tenant incentives.

Chapter 5: Advanced Valuation Topics

• Net residual valuation analysis with xls support file to calculate the value of a plot of land.
• Valuations of assets with finite cash-flows such as commercial leases with a set expiry date.
• NAV valuations and calculation of difference of NAV to market capitalization by looking at listed real estate vehicle.
• Considerations to realize arbitrage profits between public and private markets.
• Overview of historical take-privates and IPOs by Blackstone to identify market trends. 
• NAV discounts by sector and external factors influencing discounts / premia.

Who is this course for?

• Anyone who wants to develop a deeper understanding of different valuation tools.
• Students seeking finance positions, eager to explore how valuation tools are applied in real-world scenarios.
• Investment professionals aiming to enhance their knowledge of diverse valuation methodologies.

Recommended Prerequisites

It is recommended learners take the REIA Applied Financial Modelling and the REIA Foundations of Real Estate Investments courses beforehand. 

The course delves into the intricacies of LBO models by discussing their core building blocks and cash-flow structures, thereby laying the foundations for the more advanced REIA financial modelling courses.

Refund Policy

You will be entitled to a full refund within the first 72 hours of signing up this course. Just send an e-email to admin@reia-edu.com.