This is an exclusive programme offered by Cambridge Finance and in line with the Royal Institution of Chartered Surveyors (RICS) financial modelling competency. Cambridge Finance is the only real estate financial modelling training company regulated by RICS. We are their exclusive partners in their real estate finance and investment content development.
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In Person £4,080
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Virtual Live £3,215
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RICS Member Virtual Live £2,930
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In Person £4,485
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Virtual Live £3,536
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RICS Member In Person £4,169
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RICS Member Virtual Live £3,223
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Book and pay at least 30 days in advance of the courses start date. Prices exclude VAT
✦
In Person £4,080
✦
Virtual Live £3,215
✦
RICS Member In Person £3,790
✦
RICS Member Virtual Live £2,930
Dates
Certificate in Real Estate Financial Modelling
Course Overview
This is an exclusive programme offered by Cambridge Finance and in line with the Royal Institution of Chartered Surveyors (RICS) financial modelling competency. Cambridge Finance is the only real estate financial modelling training company regulated by RICS. We are their exclusive partners in their real estate finance and investment content development.
The Certificate in Real Estate Financial Modelling comprises of the following:
Real Estate Investment & Financial Modelling
Real Estate Debt Structures & Financial Modelling
Learning outcomes
Give investment recommendation based on quantitative methods.
Construct fully automated multi-tenant property cash flows from scratch.
Audit third-party cash flows.
Understand how cash flow inputs and outputs are interlinked.
Develop and produce sensitivity and scenario analysis.
Day 1
Best practice in financial models
- Simple tips to help you become an efficient financial modeller.
- How to avoid errors and present your models in a persuasive way
Implicit investment valuation methods
- Term & Reversion
- Layer / Hardcore
- Property yields
- Defining term and reversionary yields
- Calculating the equivalent yield
Build your cash flow from scratch
- Inputs: passing rent, estimated rental value, initial and exit yields, market growth, review cycles and most
- importantly, target returns
- Outputs: internal rate of return, net present value and worth
- Annual and quarterly discounted cash flows: modelling purchase price, passing rent, rent reviews, exit rent and exit price
Analyse the results
- IRR, NPV and Worth
- Data tables & sensitivity analysis
- Risk visualisation (charts)
Case study
Single-tenant office building in the UK
Day 2
Multi tenant properties
- Modelling tenancy schedules and rents forecast
- Rent reviews, upward-only, break options, lease expiry
- Modelling hypothetical second leases
- Void period, rent free and estimated rental values
Time-varying rental growth
Net Operating Income Forecast
- Modelling capital expenditure for refurbishment and operating costs (letting fees, void costs, empty rates)
Investment decision
- When to accept the project and make investment recommendation
Case Study
Multi-tenant office building in the UK
Day 3
Capital Structure, sources of debt funds & lending criteria
- Capital structures: debt & equity
- Explanation of different debt & equity structures
- Sources of debt fund & lending criteria
Debt Covenants & calculations
- Operational Covenants: asset maintenance, disclosure requirements, insurance and credit line
- Financial Covenants: interest cover ratio, debt service coverage, loan to value, debt yield
Senior debt repayment modelling
Rolled-Up (Capitalised) Interest
Interest Only
Constant Amortisation
Fully-Amortising Constant Payment
Partially-Amortising Constant Payment
Day 4
Pro-forma cash flow development modelling
- Site Purchase
- Gross Development Value (GDV) versus Net Development Value (NDV)
Development Timeline Modelling: Phases and Duration
Development Costs Modelling: Hard Costs and Soft Costs
- S-Curve
- Straight-Line
- Known Costs
Mezzanine finance
- Modelling mezzanine structures
- Mezzanine interest and fees
Debt Prioritisation
- Modelling cash flow waterfall
- Coupon and capital repayment schedule
Analysis
- Maximum loan amount based on financial covenants
- Credit Analysis
- Stress test
- Capital adequacy calculations
Case study:
Office development lending
Day 5
Real Estate Risk
Sensitivity Analysis
Data Tables
Scenario Analysis
Automatic scenario modelling
Simulation Analysis
Monte Carlo analysis
Case Study:
Learn how to add a real life tenancy schedule and debt facilities into the models. Analyse any investment-grade commercial property transactions in the European markets.
Analysts in commercial property investment and capital markets.
APC candidates (Property Finance and Investment /Commercial Property Pathway) who would like to take financial modelling as a competency to Level 2 and 3.
Real estate professionals who want to receive the Cambridge Finance Certificate to demonstrate financial modelling skills on their CV.
“The set up of the course was brilliantly done. Maria is fun and engaging in herself and makes real estate financial modelling as fun as it can be. The way the course is structured is logical and builds from the basics.”
Jamie Harris MRICS, Finance Director
HOH Capital Partners
“I attended Cambridge Finance’s Real Estate and Financial Modelling course and thoroughly enjoyed it! Maria’s way of teaching made it easy to follow and I would recommend it to anyone who is looking to improve their financial modelling skills.
Nicole Ranes,
Finance Director
Savills
“The examples and case studies in the course and being able to interact with different experienced professionals attending the course was very helpful. Also the new excel functions were very interesting.”
Fahad Al Tamimi,
Finance Director
