French Real Estate Analyst

Course Outline

Day One
Know how to build a property asset cash flow, analyse geared, and un-geared IRRs.


Part A (morning)
Term & Reversion and Layer Method Valuation (Intro to Excel)Equivalent Yield (Solver, Scenario and Goal Seek functions)Single-Let Discounted Cash FlowCash Flow inputs (Rents, Yields, Growth Rates, Target Returns)Analysis and use of date seriesInternal Rate of Return (IRR) and Net Present Value (NPV)Comparing Value, Price and WorthChanging the periodicity of models

Part B (afternoon)
Adding borrowing and analysing geared returnsIntroducing Rent Reviews and other ‘events’ into cash flowsThe ‘Rent Function’ concept and Logic functions (IF,OR,AND)Analysing the IRR for errors (data tables, charting)Sensitivity analysis and Scenario testingProtecting, saving and auditing your work.

Day Two
Know how to build a multi-let property cash flow and analyse advanced debt structures.


Part C (morning)
The ‘Rent Function’ and Multi-Let cash flowsThe ‘date problem’ and assumptions in property asset cash flowsPattern of rents in UK, European and Index linked leases (Arrays, Lookups)Reducing the rent function, intermediate calculations and modelling theoryModelling lease expiries, break clauses, voids, and upward only covenantsIncorporating time-varying rental growth ratesAnalysing multi-let cash flows to see if the leases are sufficiently diversifiedModelling French LeasesModelling the impact of contra varying indexation and rental growth on tenant breaksLease renewals and expiry assumptions


Part D (afternoon)
Further IRR analysis (XIRR, MIRR)Creating Annuals summaries of quarterly/monthly cash flowsModelling stressed cash flows for debt purposesInterest only and amortising loans (PMT)Debt criteria, rent-weighted minimum interest cover, maximum LTV (SUMIF)Data validation, templates, auditing, and other functions.