Course Description
Quantitative methods for analyzing equity investment in real estate, primarily larger income-producing properties. The analysis includes the effects of financial leverage, income taxes, and unique selling strategies on investment performance. Students determine investment decisions for several potential purchases as well as a current portfolio property. REIT portfolios are also discussed.
Athena Title
Real Estate Investment
Prerequisite
REAL 4000 or REAL 4000H or REAL 4000E
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
This class develops techniques for analyzing equity investments in real estate. Most of the course focuses on investment analysis from the single property perspective. The last section of the course considers real estate portfolios. Main topics include the economics of investments, return measures, the implication of financial leverage and taxation for investment performance, portfolio theory and REITs. This class is intended to provide the background for students to become real estate financial analysts in various sectors.
Topical Outline
The Economics of Investments Real Estate Markets & the Real Estate System Present Value Math for Real Estate Investment Returns DCF and NPV Discount rates The effect of leverage Taxes Portfolio Theory and Asset Pricing REITs
Syllabus