REMFRES-Real Estate Securities

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

Module Convenor: Prof Simon Andrew Stevenson


Summary module description:

This course introduces students to the primary real estate securities markets. The module will extensively discuss a variety of issues with respect to Real Estate Investment Trusts and Property Companies. It will also examine the real estate derivative markets. The module provides extensive coverage of the mortgage backed security market. 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.

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;
•Enhance knowledge with respect to derivative pricing in the context of property derivatives;
•Understand the structure of the mortgage market and the role Mortgage Backed Securities;
•Critically analyse MBS cash flows and model prepayment and interest rate behaviour;
•Develop the skills necessary to price mortgage backed securities;
•Understand the key determinants and factors surrounding the subprime crisis;

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. Students will have the opportunity to improve their interpersonal and presentational skills through the preparation of a group case study to be delivered to an industry panel.

Outline content:
•Regulatory Framework of Real Estate Investment Trusts
•Financial Statement Analysis of REITs and Property Companies
•Corporate Finance and REITs: Dividend Policy
•Corporate Finance and REITs: Capital Structure and Capital Raising
•Investment Dynamics and Characteristics of Real Estate Securities
•Real Estate Derivatives
•The Residential Mortgage Market and Mortgage Backed Securities
•Modelling MBS Cash Flows
•Pricing Mortgage Backed Securities
•The Subprime Mortgage and MBS Market and 2007 Crisis

Brief description of teaching and learning methods:
The module will consist of a mix of formal lectures and applied workshops. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for the seminars and workshops.

Contact hours:
  Autumn Spring Summer
Lectures 30
Practicals classes and workshops 10
Guided independent study 160
Total hours by term 200.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 80
Written assignment including essay 20

Other information on summative assessment:
The module will be assessed through a three-hour formal examination, 1 group assignment and 1 piece of individual coursework. The pieces of coursework will cover key aspects of the material.

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:
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:
Three hours

Requirements for a pass:
The pass-mark for this module is 50%.

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

Things to do now