Course Description
Quantitative techniques for analyzing equity investments in real estate. Emphasis is placed on the effects of financial leverage and taxation on investment performance. These are addressed at the single property and portfolio levels. Students must analyze the investment performance of a REIT and its sector.
Athena Title
Real Estate Investments
Non-Traditional Format
Course may be offered half semester or full semester.
Prerequisite
REAL 7800
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