Program Delivery: Classroom
Location: University of Calgary Downtown Campus
Commitment: 14 hours (2 days)
- REALPAC Member Company*: $1495.00
- Non-Member Company: $1995.00
*To determine if your company is a REALPAC Member, click here.
Professional Development Hours: Eligible for Continuing Education Credits with BOMI.
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 during lectures and case studies.
Through this two-day program, we will discuss:
- 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
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
- Understand CMBS, CRE CDOs and mezzanine debt and their roles in the credit crisis
- Derive a net present value and IRR for a development project
- Commercial real estate professionals with some exposure to finance, investment and/or valuation
- Professionals interested in a more in-depth treatment of the concepts and applications critical to the finance and investment function
- Professionals who specialize in more singular (yet related) functional areas (such as finance, acquisitions, accounting, development)
- Professionals 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).
Dr. Jim Clayton, Professor & Timothy R. Price Chair, Brookfield Centre in Real Estate & Infrastructure, Schulich School of Business, York University