Real Estate (REIT) Modeling

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.

Course Objective

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.

Course Samples

Modeling the Income Statement, Part 1

Modeling CIP and Accum. Depreciation

REIT Operating Modeling Template

XLS

Course Highlights


  • Intuitive, Self-Paced and Comprehensive

    Wall Street Prep’s Real Estate (REIT) Modeling Self Study Program is intuitive and self-paced. You should expect to spend approximately 100 hours to complete it. The program uses approximately 700 pages of tutorial guidance and Excel model templates to teach students how to build, analyze, and interpret Oil & Gas financial and valuation models in a step-by-step fashion, at their own pace.


  • 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 to equip industry professionals with the practical financial skill set they need 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.


  • Support Center

    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.


  • Boost Add-In for Excel

    Free Access to Boost, an all-in-one suite of time-saving tools designed for people who build financial models in Excel. Key features include: Attach common number formats to keyboard shortcuts and cycle rapidly through the different font and color schemes; Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool; and much more!

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.

Course Agenda

    • 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
X

The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.