Real Estate Investment Trusts

Course Overview

The purpose of this course is to train participants in all of the important aspects of investing in Real Estate Investment Trusts.

It begins with a detailed examination of the history of indirect real estate investment vehicles (with particular attention to the UK), then a description of how REITs came to dominate the UK listed property scene.

The course covers REIT structures and requirements, converting to a REIT, taxation issues, the question of how REITs are priced, REITs models, REIT investment strategies and risk management.

A wide range of REITs are examined during the course in respect of each of these aspects of the market.

Each participant will be required to bring a laptop running Microsoft Office with a USB Port to the seminar.

Course Content

Introduction to Real Estate Investment Trusts (REITS)

• Origin and development of REITs
• Equivalents in South Africa, France and other jurisdictions
• Criteria for REITS
• Current issues in the market

Case Study: Introduction of REITs in Singapore

Pricing and Investment in REITs

• How to price a REIT
• REIT pricing in practice
• Liquidity and premia to value in the UK, Europe and elsewhere
• Evidence on international investment in REITs

Case Study: REITs pricing in different markets

REITs structuring issues

• Tax issues
• Accounting for REITs
• Issues in REITs investment
• Comparison with listed companies

Key Case Study: Applicability of the REITs concept in the UK property market: will the REIT model prove universal?

Comparable performance analysis

• Methods of performance analysis for direct property and REITs
• RAROC and RORAC performance
• Sources of performance analysis
• Comparative analysis of REITS vs investment trusts, mutual funds, hedge funds, & real property

Case Study: Comparative performance analysis in the UAE

Securitisation and the Secondary Mortgage Market

• Concept of securitization and applicability to real estate
• Real Estate Debt Securitization: MPTs, CMOs
• REMICs, Strips, and Floaters

Case Study: Kensington Mortgages – subprime mortgage securitisation

Risk and Real Estate

• Applicable risks in real estate investment
• Modelling and evaluating comparative risks
• Risk management strategies
• Use of REITs in real estate risk management

Case Study: Comparative liquidity – physical and equity real estate

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.