Corporate Real Estate Finance (MCR Required)
This seminar provides a comprehensive overview of financial analysis and management in a corporate real estate context. Heavy emphasis is placed on case study work to demonstrate concepts, using Microsoft Excel.
The seminar begins with a review of fundamental corporate finance principles such as risk and return, cost of capital, net present value, and discount rate selection. Using spreadsheet case studies, these concepts are applied to the analysis of alternative lease structures, lease buyouts, and buy vs. lease decisions. The real estate investor's perspective on these issues is also explored. The concept of financial risk in a corporate real estate context is then examined. Participants will learn how to identify risk in corporate real estate portfolios and evaluate its impact on shareholder value. Duration matching, a methodology used to manage risk, will be introduced