REMB19-Real Estate Securities

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Summer term module
Pre-requisites: REMB31 Corporate Finance
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

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 pricing of financial products available for indirect investments in real estate. The focus will be given to listed real estate, especially real estate investment trusts (REITs). Students will learn how to value any listed real estate company globally,?what?the difference?is?between a?REIT?and a non-REIT, and how listed real estate is used in asset management.

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 their applications in the 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.

On completion of the module, students will be able to: 

• Understand what differentiates direct and indirect investments in r eal 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.

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 module will also aid in the development of the quantitative and spreadsheet skills of students. 

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:

The module is delivered in a block release format that involves a four day face to face teaching block with pre-course preparation plus online post-teaching support. The module is taught in an interactive format through seminars and workshops. An assessed individual project is the consolidating and integrating vehicle for the taught material. Students are encouraged to share information via Blackboard in the extended online support period which follows the face to face ele ment. An online discussion of the case studies between tutors and students supports the assessment in this module. 

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

The assessment will be based on a report where the student will usually apply several aspects of the module to analyse investment opportunities in real estate securities. This will involve analytic and quantitative work. The report should be 3,500 words including tables, graphs, spreadsheets, references etc. (equivalent to a 5,000 word essay). 

Assignment Submission Deadline: Week 48 

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late: 

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days; 


• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded. 

The University policy statement on penalties for late submission can be found at:?https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf 

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work. 

Assessment requirements for a pass:

The pass mark for this module is 50%.

As this is a core Module of Special Significance, students completing the MSc in Real Estate Investment & Finance must achieve a mark of at least 40 in order to be awarded the MSc. 

Students completing the IPF Diploma and/or MSc IPF Entry route must achieve a mark of at least 50 in order to obtain the IPF Qualification. 

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: 30 March 2023