REMF42-Introduction to Real Estate Finance

Module Provider: Real Estate and Planning
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Dr Masaki Mori

Email: m.mori2@henley.ac.uk

Type of module:

Summary module description:

The module provides an introduction to concepts of real estate finance, both theoretically and empirically. It introduces students to the concepts of risk and return, cost of capital and the implications that capital structures have on values and returns. 


Aims:

The aim of this module is to introduce students to basic concepts of finance to be used within the context of investment appraisal of assets and real estate in particular. The module will enable students to understand decisions to invest in any real estate project using a rigorous and consistent framework. 


Assessable learning outcomes:

Intended learning outcomes: 



Students will be able to extract information from company accounts, as well as understand how investment and financing decisions can be separated. They will be able to apply and critically evaluate different techniques for the pricing of investments. 



Assessable learning outcomes: 



At the end of the module, students should be able to: 





  • read and analyse annual reports of companies; 







  • understand the principles of interest rates, time value of money and discounting; 




  • conceptualise and apply the principles of risk and return to the pricing of different assets; 




  • analyse the financial structure of a company and determine its impact on enterprise value. 




Additional outcomes:

Students will be able to: 





  • Develop critical thinking; 




  • Improve analytical and modelling skills. 




Outline content:



  • Principles of risk and return 




  • Introduction to financial accounting 




  • The separation of financing and investment decisions 




  • Capital budgeting and cost of capital 




  • Forms of financing available for real estate 




Global context:

The literature and datasets that are referred to throughout the module provide a mixture of UK and international examples. 


Brief description of teaching and learning methods:

The module will consist of a mix of formal lectures and seminars/workshops. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction. 


Contact hours:
  Autumn Spring Summer
Lectures 10
Tutorials 5
Guided independent study:      
    Wider reading (independent) 20
    Exam revision/preparation 38 2
    Advance preparation for classes 25
       
Total hours by term 98 2 0
       
Total hours for module 100

Summative Assessment Methods:
Method Percentage
Written exam 100

Summative assessment- Examinations:

The module will be assessed through a two-hour formal examination. 


Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Informal feedback will be accessible via seminars/tutorials where key theoretical and empirical concepts will be applied and tested. 


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: 26 April 2019

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

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