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\n <\/div>\n Master REIT Accounting, Valuation, and Financial Modeling for M&A and LBO Deals<\/h3>\n <\/div>\n <\/div>\n \n \n \t\n \t- \n \t
Understand global REIT fundamentals<\/h4>\n
You\u2019ll learn the accounting, valuation, and U.S. GAAP vs. IFRS differences<\/p>\n\t\t\t <\/li>\n
- \n \t
Master valuation and financial modeling<\/h4>\n
You\u2019ll build 3-statement, valuation, M&A, and LBO models for REITs<\/p>\n\t\t\t <\/li>\n
- \n \t
Complete 6 case studies<\/h4>\n
Build 2 shorter \u201ccrash course\u201d models and 4 detailed \u201con the job\u201d ones\n\n<\/p>\n\t\t\t <\/li>\n <\/ul>\n \n Full Details<\/a>\n \n Short Outline<\/a>\n <\/div>\n<\/div>\n<\/div>\n\nFunds from Operations (FFO) = Net Income + RE Depreciation & Amortization + Losses \/ (Gains) + Impairments.<\/p>\n
Under U.S. GAAP, REITs depreciate properties and record a huge Depreciation expense on the IS; under IFRS, they revalue properties constantly and record huge Fair Value Gains and Losses instead.<\/p>\n
Also as a result of that, Book Value is important and meaningful for IFRS-based REITs but must be adjusted significantly for U.S.-based REITs.<\/p>\n
To project a REIT\u2019s statements, you start by projecting its \u201csame-store\u201d (existing) properties by assuming rental growth and margins.<\/p>\n
Then, assume acquisition, development\/redevelopment spending, a yield on spending, and margins there, and assume something for dispositions and the lost revenue and operating income.<\/p>\n
Add up all the property-level revenue and expenses, and then project corporate items such as Depreciation, Maintenance CapEx, and SG&A with traditional percentage approaches.<\/p>\n
Make Dividends a % of FFO, AFFO, or EPRA Earnings, and assume Debt and Equity issued based on the REIT\u2019s Cash before financing vs. its minimum Cash balance.<\/p>\n
To value a REIT with a DCF, extend these projections, factor in all CapEx and Asset Sales, as well as Stock Issued, and project revenue, margins, D&A, CapEx, and Asset Sales through a 10-year period.<\/p>\n
Calculate and discount Terminal Value the normal way, discount and sum up the Free Cash Flows, back into the Implied Equity Value and divide by the share count (current + future shares to be issued) to get the Implied Share Price.<\/p>\n
The DDM is similar, but you use Cost of Equity instead of WACC, Equity Value-based multiples for the Terminal Value, and you discount and sum up Dividends rather than Unlevered FCF.<\/p>\n
To calculate NAV for U.S.-based REITs, project the 12-month forward Net Operating Income from properties, divide it by an appropriate Cap Rate<\/a> or Yield (based on similar transactions or companies in the market), and then take the market value of the other assets and add them up.<\/p>\nThen, adjust the Liabilities, and subtract them from the market value of Assets to determine Net Asset Value; divide by the share count to get NAV per Share and compare it to the Current Share Price.<\/p>\n
Public Comps are similar, but the screening criteria are usually Real Estate Assets, Geography, and Sub-Industry. You can use traditional metrics and multiples like EBITDA and EV \/ EBITDA, but you\u2019ll also use alternative ones such as FFO, P \/ FFO, NAV, and P \/ NAV, and, for IFRS-based REITs, Book Value and P \/ BV.<\/p>\n
- \n \t
- \n \t
Understand global REIT fundamentals<\/h4>\n
You\u2019ll learn the accounting, valuation, and U.S. GAAP vs. IFRS differences<\/p>\n\t\t\t <\/li>\n
- \n \t
Master valuation and financial modeling<\/h4>\n
You\u2019ll build 3-statement, valuation, M&A, and LBO models for REITs<\/p>\n\t\t\t <\/li>\n
- \n \t
Complete 6 case studies<\/h4>\n
Build 2 shorter \u201ccrash course\u201d models and 4 detailed \u201con the job\u201d ones\n\n<\/p>\n\t\t\t <\/li>\n <\/ul>\n \n Full Details<\/a>\n \n Short Outline<\/a>\n <\/div>\n<\/div>\n<\/div>\n\n
Funds from Operations (FFO) = Net Income + RE Depreciation & Amortization + Losses \/ (Gains) + Impairments.<\/p>\n
Under U.S. GAAP, REITs depreciate properties and record a huge Depreciation expense on the IS; under IFRS, they revalue properties constantly and record huge Fair Value Gains and Losses instead.<\/p>\n
Also as a result of that, Book Value is important and meaningful for IFRS-based REITs but must be adjusted significantly for U.S.-based REITs.<\/p>\n
To project a REIT\u2019s statements, you start by projecting its \u201csame-store\u201d (existing) properties by assuming rental growth and margins.<\/p>\n
Then, assume acquisition, development\/redevelopment spending, a yield on spending, and margins there, and assume something for dispositions and the lost revenue and operating income.<\/p>\n
Add up all the property-level revenue and expenses, and then project corporate items such as Depreciation, Maintenance CapEx, and SG&A with traditional percentage approaches.<\/p>\n
Make Dividends a % of FFO, AFFO, or EPRA Earnings, and assume Debt and Equity issued based on the REIT\u2019s Cash before financing vs. its minimum Cash balance.<\/p>\n
To value a REIT with a DCF, extend these projections, factor in all CapEx and Asset Sales, as well as Stock Issued, and project revenue, margins, D&A, CapEx, and Asset Sales through a 10-year period.<\/p>\n
Calculate and discount Terminal Value the normal way, discount and sum up the Free Cash Flows, back into the Implied Equity Value and divide by the share count (current + future shares to be issued) to get the Implied Share Price.<\/p>\n
The DDM is similar, but you use Cost of Equity instead of WACC, Equity Value-based multiples for the Terminal Value, and you discount and sum up Dividends rather than Unlevered FCF.<\/p>\n
To calculate NAV for U.S.-based REITs, project the 12-month forward Net Operating Income from properties, divide it by an appropriate Cap Rate<\/a> or Yield (based on similar transactions or companies in the market), and then take the market value of the other assets and add them up.<\/p>\n
Then, adjust the Liabilities, and subtract them from the market value of Assets to determine Net Asset Value; divide by the share count to get NAV per Share and compare it to the Current Share Price.<\/p>\n
Public Comps are similar, but the screening criteria are usually Real Estate Assets, Geography, and Sub-Industry. You can use traditional metrics and multiples like EBITDA and EV \/ EBITDA, but you\u2019ll also use alternative ones such as FFO, P \/ FFO, NAV, and P \/ NAV, and, for IFRS-based REITs, Book Value and P \/ BV.<\/p>\n