25 & 26 October 2018,
Thursday and Friday (9.00am to 5.00pm)
Trainer: Roy Ling
This workshop is eligible for 14 CE and CPD hours
Eligible for FTS Credit - Programme Code : P180808PQJ
Overview
As the Asia real estate industry emerges from the financial market crisis, industry professionals must become more adept at identifying and capitalizing on new opportunities.
The 2 day course will sharpen your understanding of the Asia real estate capital markets, and update you on key real estate investment trends and risks for 2019.
After attending this workshop, participants will be able to:
- Understand Asia real estate capital markets; public/ private debt and equity structures and valuation techniques for Asia developers and REITs
- Enhance learning with cutting-edge real estate excel models, creative structures and proven shareholder value creation techniques
- Value real estate assets and developments using 3 recognized approaches
- Explore the creative financial engineering structures commonly used by Singapore and Hong Kong REITs
- Identify Asia real estate market opportunities and how to ride on the investment trends
- Evaluate the key risks for 2019 and potential black swan disasters
- Analyze complex development and stabilized real estate models & structures
Who should attend?
This training course is specifically designed for junior-to-mid level experience real estate executives and tailored specially for:
- Management associates at developers and REITs
- Investment bankers
- Real estate advisors
- Financial analysts
- Institutional investors
- CFA candidates
Participants are not required to have specific prior experience of any of the subject areas. More experienced individuals will be able to build on their knowledge through practical, current case studies.
Training Methodology
- Lecture style, with Exercises / Case Studies
- Participants are required to bring their own laptops with Microsoft Excel install for this workshop.
Course Outline
Day 1
Morning: Overview of Asia Real Estate
- Investigate the impact of the economic environment and investment climate on real estate returns.
- Introduction to shareholder value creation, ROIC and WACC.
- Understand risk management and interrelated risks.
- Consider the impact of international factors, government policy and interest rates on real estate value.
- Evaluate Asia real estate investment opportunities in 2019
- Identify key real estate risks for Asia and potential black swan disasters
- Analyze key real estate investment markets and sectors in Asia
- Structure investment ideas to profit from Asian real estate
Afternoon: Public and Private Debt Financing
- Differentiate between different classifications of debt
- Distinguish between various forms of debt and equity within a capital structure
- Evaluate the drivers of real estate returns by constructing a simple excel cashflow model
- Understand the role of financial leverage in real estate investment
- Explore the basis for making projections of future cash flows
- Examine Debt Financing structures
- Bank Debt v Securitization - CMBS
- Development Financing
- Mezzanine Financing
- Distressed Assets
- Case Study - Real Estate Mezzanine Debt Underwriting of a Hotel and Office mixed used development in Singapore
Day 2
Morning: Equity Valuation of Listed Developers and REITs
- Investigate the impact of the economic environment and investment climate on real estate returns
- Examine shareholder value creation, ROIC and WACC, and the value drivers in real estate.
Calculating the cost of equity, cost of debt and WACC (Weighted average cost of capital)
- Understand the cost of capital
- Explore the concept of a tax shield
- Evaluate why Capital structure creates value
- Learn practical considerations when computing WACC
Discounted Cash Flow valuation- Understand shareholder value creation, ROIC and WACC
- Determine the terminal value using different methods
- Understand sensitivity and scenario analysis
- Case Study - Real Estate DCF Valuation of a listed Thailand residential developer
Comparable valuation
- Learn how to accurately create a comparable table
- Determine the pitfalls of how to game the comparable valuation method
- Understand why not all P/Es are created equal
Sum of the parts valuation
- Understand how to value the different strategic business units of a diversified developer
- Learn the shortfalls of the SOTP valuation method
- Case study based on the CapitaLand Business model SOTP valuation
Afternoon: Asia REITs and Business Trusts
- Evaluate the Singapore REIT structure, corporate governance rules and regulatory requirements.
- Compare REITs to other asset classes.
- Understand the advantages and disadvantages of REITs from the retail and developer perspectives
- Learn about the creative financial engineering structures commonly used by Singapore and Hong Kong REITs
- Analyze the motivations of cross border REITs for Singapore
- Consider the latest consultation proposals from the regulators for upcoming changes to the Singapore REIT market; feedback and considerations from various stakeholders.
- Identify the valuation metrics that drive Asia REIT returns
- Contrast different types of REITs in Asia and globally
- Highlight the differences between REITs and Business Trusts
Course Fee:
CFA Singapore member price : S$1,580* per module (Early Bird fee) / S$1,780* per module (Standard fee)
Non-member price : S$1,780* per module (Early Bird fee) / S$1,980* per module (Standard fee)
Early bird fee valid till 25 September 2018
* Prices before 7% GST
* 10% off Group Discount available
* Course Fee includes - Course Materials, Lunch & Refreshments
