Dates                                                                  

28 November 2008
24 June 2009
23 November 2009

 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