REMFRES-Real Estate Securities

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Chen Zheng
Email: chen.zheng@henley.reading.ac.uk

Type of module:

Summary module description:

This module aims to provide students with knowledge of market structures and the pricing of financial products available for indirect investments in real estate, in order to develop a critical understanding of the different features of real estate securities. It challenges the implications that specific characteristics of private real estate assets have on the pricing of such securities.


Aims:

This module introduces students to primary securitised real estate markets. Equity vehicles examined will include listed companies, with a focus on Real Estate Investment Trusts. The module will also examine debt and debt-related products (e.g. residential mortgages and mortgage-backed securities) and other real estate derivative products and investment vehicles. The module will present how the different vehicles are structured and what their applications are in an investment context.


Assessable learning outcomes:

The module provides students with the core knowledge required to appreciate the unique characteristics of real estate securities. Students will be able to use current research to critically analyse several real estate securities.



Upon completion of this module, students should be able to:




  • understand what differentiates direct and indirect investment in real estate;

  • analyse the market structure and dynamics of different real estate securities

  • explain key differences between various real estate securities in terms of structure and pricing;

  • be familiar with asset pricing theory and current pricing models used for different products;

  • understand the key determinants in the growth of such markets/products and their usefulness in a portfolio context.


Additional outcomes:

Students will improve their analytical and quantitative skills and will also develop an overall awareness of the determinants of real estate market performance and the importance of alternative investment vehicles. 


Outline content:

The module will introduce market structures and investment dynamics of various indirect real estate vehicles, including:




  • Listed vehicles: Real Estate Investment Trusts and Listed Property Companies

  • Mortgage-Backed Securities

  • Real Estate Derivative Products

  • Subprime Crisis


Global context:

This module will have a focus on the US and UK markets, incorporating other international situations and examples.


Brief description of teaching and learning methods:

Contact hours:
  Autumn Spring Summer
Lectures 20
Tutorials 10
Guided independent study:      
    Wider reading (independent) 40
    Wider reading (directed) 60
    Exam revision/preparation 40
    Preparation for tutorials 30
       
Total hours by term 0 160 40
       
Total hours for module 200

Summative Assessment Methods:
Method Percentage
Written exam 100

Summative assessment- Examinations:

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.


Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Feedback will be provided via in-class discussions. 


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: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment 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):

Last updated: 6 April 2022

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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