REMB19-Real Estate Securities

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Summer term module
Non-modular pre-requisites:
Modules excluded:
Module version for: 2016/7

Module Convenor: Prof Simon Andrew Stevenson


Summary module description:
To acquire knowledge of the main opportunities of indirect investment in real estate. To develop understanding of the different features of real estate securities and direct investment in real estate. To understand how real estate securities are structured and priced in capital markets.

This course introduces students to the primary securitised real estate markets. Equity vehicles examined will include Real Estate Investment Trusts and the module will also examine the developing real estate derivative markets and the unlisted real estate fund sector. The module will examine how the different vehicles are structured and how they can contribute to a broad real estate portfolio. In particular it will cover extensively those issues that differentiate real estate securities from both the private real estate market and from similar mainstream assets.the module also considers in depth the residential and commercial Mortgage Backed Security markets, including specific discussion surrounding the subprime crisis.

Assessable learning outcomes:
The module aims to provide students with the core knowledge required to appreciate the unique characteristics of real estate securities. Students will be able to use current research to enable them to critically analyse various of real estate vehicles and securities. By the completion of the module students will be able to:
•Understand what differentiates direct and indirect investment in real estate;
•Appreciate the key differences between alternative real estate investment vehicles in terms of structure and use current research to inform them of the differences in investment dynamics;
•Further enhance knowledge of corporate finance by appreciating how the regulations REITs operate under alters the corporate financing decisions of the firm;
•Empirically analyse listed securities such as REITs in relation to their operational performance and their use in a portfolio management context;
•Critically assess the role of unlisted real estate funds and the importance of gearing;
•Enhance knowledge with respect to derivative pricing in the context of property derivatives;
•Understand the structure of the mortgage market and the role of it within the underlying commercial and residential property market
•Understand the key determinants in the growth of the subprime market and the causes and consequences of the subsequent crisis;
•Enhance understanding of the distinct nature of the CMBS market and how it differs from the Residential market.

Additional outcomes:
The module will aid students in developing an overall awareness of the determinants of real estate market performance and the importance of alternative vehicle and funding structures. The course will also aid in the development of students quantitative and spreadsheet skills.

Outline content:
Global context (where appropriate)
•Regulatory Framework of Real Estate Investment Trusts
•Financial Statement Analysis of REITs and Property Companies
•Corporate Finance and REITs
•Investment Dynamics and Characteristics of Real Estate Securities
•Geared Investment and Private Real Estate Funds
•Property Derivatives
•Residential Mortgage Backed Security Market
•The Subprime Mortgage and MBS Markets
•Commercial Mortgage Backed Securities

Brief description of teaching and learning methods:
The course will be delivered as a block release with on-line post course support. The block release teaching will comprise lecture, seminars, presentations and problem solving computer workshops. Following the block session, further help will be provided via Blackboard. Assessment will be in the form a written piece of work

Contact hours:
Lectures 18
Tutorials/seminars 6
Practicals 3
Presentations 3
Total hours 30
Number of essays or assignments 1 Management Report
Other (eg major seminar paper)  

Summative Assessment Methods:
Method Percentage
Report 100

Other information on summative assessment:
The assessment will be based on a report where the student will usually apply several aspects of the course to analyse investment opportunities in real estate securities. This will involve analytic and quantitative work.

As this is a core Module of Special Significance, students joining the MSc Real Estate Investment & Finance programme from September 2012 will have to achieve a mark of at least 40 in order to be awarded the MSc.

Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information:

Length of examination:

Requirements for a pass:

Reassessment arrangements:
Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 21 December 2016

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