Real Estate (REIT) Modeling

Ideal for investment banking, equity research, and real estate professionals with a focus on REITs. Trainees build financial and valuation models for a REIT the way it's done on the job.

Real Estate (REIT) Modeling

Course Description

In this course by Wall Street Prep, we will learn about the REIT industry’s unique drivers and challenges. We will then build REIT financial and valuation models from scratch, using a step-by-step approach for an actual company, BRE Properties. Along the way, we will cover modeling best practices for same store properties, acquisitions, developments, and dispositions. In addition, we model and deconstruct critical REIT profit metrics like FFO, AFFO, and CAD. Part 2 dives into valuation modeling, with a focus on the Net Asset Value (NAV) approach. At completion, trainees will have developed a comprehensive REIT model from scratch.

Course Details:

Target Audience

This course is designed to teach REIT modeling to students and professionals pursuing a career in finance, with a specific focus on analyzing REITs.

Access Timeframe

Lifetime

Prerequisites

This course does not assume a prior background in Real Estate (REIT) Modeling. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
Certificate Info:

Type of Certification

Certificate of Completion

Format of Certification

Digital

Course Outline

  • Industry profile
  • Industry drivers and terminology
  • Tax advantages of REIT’s
  • REIT basics
  • The structure of REIT’s (UPREIT’s and DOWNREIT’s)
  • The financials of REIT’s as compared to other companies
  • Working with press releases, financial filings, and historical data
  • GAAP vs. Non-GAAP presentation of REIT financial data
  • Sector-specific  drivers and forecasting best practices
  • Forecasting Funds from operations (FFO), adjusted funds from operations (AFFO / CAD) Modeling same store properties
  • Impact of Modeling acquisitions, developments and dispositions on the three financial statements
  • Discontinued operations
  • REIT balance sheet forecasting Completed properties, CIP and land under development
  • Building a REIT cash flow statement
  • Step-by-step modeling: Net Asset Value (NAV)
  • Common adjustments to NAV
  • Arriving at implied cap rates
  • Common NAV pitfalls and implicit assumptions

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