Masters in Real Estate Finance

Securities, Futures and Options provides learners with the relevant financial knowledge for analysing and valuing different classes of risky assets. It begins with the description of all main asset classes and the basic theory behind market efficiency and investors’ attitude towards financial risk. It then analyses the main framework behind portfolio theory and optimum asset allocation, followed by the introduction of the main pricing models, their applications and limitations. Furthermore, the module provides an in-depth introduction to financial derivatives (futures and options) and their valuation. All the techniques introduced are widely applied in other elements of the programme.

Fixed Income and Equity Investments applies general valuation methods to specific financial instruments: fixed income and equity securities. It describes the basic characteristics of each security and develops practical strategies for finding its value and assessing its risk. It develops general trading strategies for each type of security. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited to form an optimal investment strategy.

This module is designed to provide an introduction to economic, market, and investment analyses, which are important fundamentals for commercial real estate investment analysis. The topics covered by this module include demand and supply of real estate, fundamentals of real estate market research, and basic cash flow techniques for real estate investment valuation.

The module provides students with a comprehensive introduction to core econometric methods and their application to real estate investment and portfolio analysis. It enhances the ability of students to study relationships between the economy and the broader investment environment and the real estate market. The module emphasizes the practical uses and implications of core econometric methods with students further equipped by using econometric software to investigate real world situations.

• Descriptive statistics for real estate data
• Classical Ordinary Least Squares Estimation
• Hypothesis Testing, t-tests, F-tests
• Dynamic models: multivariate regression analysis
• Diagnostics checking and robust model building in real estate
• Cross section and basic panel models for real estate market analysis
• Stationarity, Unit Root Processes, ARMA Models applications to real estate

Academic authors

Dr Pin-Te Lin

This module will enable students to interpret the main principles of corporate finance with an appropriate emphasis on real estate. It will also allow students to recognise the strategic importance of real estate to corporate financial decision making. Finally, students will learn the different forms and pricing of funding available for real estate projects at both individual asset and corporate level.

• Equity financing and the cost of raising own capital
• Pricing and structuring of traditional lending, structured finance and hybrid forms of funding for real estate projects/companies
• Principles underlying decisions about capital structure
• Analysis of financial and accounting implications of lease or buy decisions
• Comparison of valuation methods used in finance and real estate (incl. traditional methods of investment and development appraisal used in the property industry);
• Real options for real estate financial decisions: development appraisal and mortgage contracts

Academic authors

Professor Gianluca Marcato

Aims:
This field trip project module aims to expose students to the operation of land and property markets in a different institutional context from that found in Britain and in doing so requires students to develop a clear understanding of the way in which property markets work in general, and the need to modify that understanding to place the field trip case study in its appropriate economic, social, political, and legal context.

The Real Estate and Planning Dissertation module provides a vehicle for an in-depth understanding of a chosen area of planning, real estate, and rural land and business management practice. Depending on the student's interest, this independent study requires students to select a relevant topic or issue in their programme area for further research and analysis. They will also be specifically required to display academic rigour in carrying out an agreed research programme, in presenting findings, and in producing a high quality, fully referenced dissertation that is supported by appropriate statistical, qualitative and/or illustrative data.

Academic authors

Dr Richard Nunes

Aims:
The module explores both practical and strategic aspects of real estate management primarily for commercial property, and examines innovation and change in this area. The subject is considered from the perspective of the various stakeholders (owners, tenants and owner/occupiers). Underpinning the module is the application of key management and business concepts to real estate advice and real estate management.

Academic authors

Dr Catherine Hughes

The aim of this module is to enable students to develop an understanding of the role of property valuation in both investment and occupier markets. Students will understand the different approaches to valuation and be able to match the methods adapted to the role of the valuation. The module will build on the appraisal issues developed in REMF45 Investment Appraisal and Valuation core module and students will be able to distinguish between different concepts of value and the formal definitions of the bases that follow the concept. Students will be able to apply and critically evaluate different techniques and understand their limitations. Students will understand how statutory and quasi-statutory regulations influence and impact upon the valuation process. Students will understand the importance of the valuation process and the internal and external influences affecting this process and its outcomes.

Academic authors

Professor Peter Wyatt

This module enables students to enhance their understanding of the concepts of investment strategy, portfolio selection and performance measurement, applying them to the real estate asset class. It develops students’ analytical capacity. Students will have a detailed understanding of key theoretical concepts and will be able to inform their empirical application in a real estate context. They will also be able to use statistical toolboxes for portfolio decision making, critically examine published work in the field, and apply this knowledge to the analysis of real estate investment decisions within a portfolio context.

Academic authors

Dr Pin-Te Lin

The Real Estate Securities module examines the key indirect vehicles in the real estate market, examining real estate investment trusts (REITs) and property companies, private funds and real estate derivatives. The module will extensively address those issues that differentiate real estate securities from both the private real estate market and from similar mainstream assets.

• Regulatory framework of real estate investment trusts
• Financial statement analysis of REITs and property companies
• Corporate finance and REITs: dividend policy
• Corporate finance and REITs: capital structure and capital raising
• Investment dynamics and characteristics of real estate equities
• Geared investment and private real estate funds
• Commercial real estate derivatives: total return swaps and futures
• Housing futures contracts

Academic authors

Dr Chen Zheng

The module aims to provide students with an understanding of: the nature of the real estate development process including the activities, agencies, events, relationships, skills and tasks involved; the factors which influence the process and its outcomes; and the types, characteristics, utility and quality of buildings and schemes. The module also explores the methodologies involved in the appraisal and financing of development projects.

Academic authors

Professor Pat McAllister

Aims:
Building on the material introduced in Quantitative Methods for Finance, this module covers a number of more advanced techniques that are relevant for financial applications, and in particular for modelling and forecasting financial time series. These include an introduction to maximum likelihood estimation and two-stage least squares, models of volatility, simulation techniques, and multivariate models. Case studies from the academic finance literature are employed to demonstrate potential uses of each approach. Extensive use is also made of financial econometrics software to demonstrate how the techniques are applied in practice.

The main aim of the module is to provide a rigorous grounding of the theory and practice of corporate finance and more specifically the long-term financial management decisions of the firm pertaining to investments, financing and payout and how they affect its value. It deals with how corporations are governed, their financing structures, payout policies, the processes involved in the issuance of public and private equity, as well growing through inorganic investment (mergers and acquisitions). The module also extensively dealsParticipants also gain exposure to with advanced financial analysis and enterprise valuation methods employed by financial advisors/investment banks as part of advising corporations. Students on this moduleThey also take part in a bespoke investment banking pitch-book simulation challenge whereby they have to work with as part oftheir a team and to produce a real life pitch-book including financial analysis on a real transaction as part ofand assessing the company’s strategic alternatives.