At completion, trainees will have developed a comprehensive REIT model from scratch.
First, 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.
What You Will Learn
- In-depth REIT industry profile, drivers, terminology, tax advantages and structure (UPREIT’s and DOWNREIT’s)
- Segment-level modeling (same store properties, acquisitions, developments, and dispositions)
- REIT sector-specific drivers and forecasting best practices
- Common REIT valuation approaches including Net Asset Value (NAV), comparable company and transaction analyses, and discounted cash flow (DCF) analysis
- Modeling REIT-specific metrics and ratios – funds from operations (FFO) and adjusted funds from operations (AFFO / CAD)
Wall Street Prep's Real Estate (REIT) Modeling course is used at top financial institutions and business schools.
Modeling the Income Statement, Part 1
Modeling CIP and Accum. Depreciation
REIT Operating Modeling Template
Step-By-Step Modeling Instruction
Wall Street Prep's Real Estate (REIT) Modeling Course delivers step-by-step lessons through videos, readings, ready-to-use restructuring financial and valuation models and exercises using a real case study.
Real World "On the Job" Investment Banking Training
The Real Estate (REIT) Modeling Self Study program bridges the gap between academics and the real world and equips trainees with the practical financial skill set needed to succeed on the job. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build complex Real Estate (REIT) models the way they would on the job.
Upon enrollment, students gain 24-month free access to Wall Street Prep's Online Support Center, where they receive answers to questions, free downloads, and important updates.
Macabacus Excel Plugin
Free access to Macabacus, all-in-one suite of time-saving tools designed for people who build financial models in Excel. Use keyboard shortcuts for common number formats, to cycle rapidly through different font and color schemes and to navigate a formula's inputs across worksheets and workbooks. Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool, and much more. This 6-month free access is for the full version of Macabacus that also includes essential tools for Powerpoint and Word!
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.
- REIT overview
- Industry profile
- Industry drivers and terminology
- Tax advantages of REIT’s
- REIT basics
- The structure of REIT’s (UPREIT’s and DOWNREIT’s)
- Modeling REIT financial statements
- 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
- NAV modeling
- Step-by-step modeling: Net Asset Value (NAV)
- Common adjustments to NAV
- Arriving at implied cap rates
- Common NAV pitfalls and implicit assumptions
REIT Modeling Reviews
I'm in the interview process for a research associate position on the real estate team at a major Canadian bank and I wanted to have a high quality report on a REIT ready as example of my work.
This course touched on a lot of areas I was weak on and made me realize things I was doing wrong in prior reports. I'm still in the process of interviewing, but I've advanced through multiple stages thus far and I feel confident moving forward.
I am currently a director in MUFG Mexico in Energy (Oil,Gas, Power & Utilities), Mining, infra and some retailers.
This course was more of extra curricular learning for me, as we don't cover RE but I am very interested in the sector and have some future projects that relate to REITs in Mexico and other RE investment. It helped me better understand a new industry and improve my technical skills.
I had previously taken your financial modeling and DCF courses to polish and refresh my modeling skills and the courses were super useful.
Here, the explanations of how REITs work and the step by step explanations are very clear and easy to understand, even for someone like me who has limited experience in RE.
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