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.
Prerequisites
Requires that each student bring a laptop to class. Intermediate familiarity with Microsoft Excel is necessary. Case work will be done using Excel models. Participants should be comfortable:
- Navigating worksheets
- Creating and copying formulas
- Editing and modifying formulas.
Seminar Overview
- Corporate finance fundamentals
- Financial analysis
- The real estate investor's view
- Financial structures
- Risk management
How You Will Benefit
- Improve your ability to perform or oversee financial analysis for corporate real estate transactions
- Strengthen your ability to intelligently discuss financial issues with the finance group or CFO
- Increase capacity to develop business cases founded on sound corporate finance principles
- Identify financial risks within the corporate real estate portfolio and develop risk mitigation strategies
- Increase understanding of the financial management process, and application to corporate real estate
Who Should Attend
Corporate real estate managers and directors who want to develop a better understanding of corporate finance principles and their application to corporate real estate decision-making and management.