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:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2018/9

Email: a.moss@henley.reading.ac.uk

Type of module:

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.

Aims:

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 market and  coverage of the debt capital markets. 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. Constant reference will be made to current, practical examples of the concepts involved, by use of  mini case studies.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;

•Value any global listed real estate company , using a combination of three (Earnings, Asset and Dividend  Based.) models.

•Produce a target price and recommendation for any global listed real estate company.

•Enhance knowledge with respect to derivative pricing in the context of property derivatives;

•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.

Outline content:

• 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

• Valuation of Real Estate Securities

• Setting a Target Price and making a Recommendation

• Practical Uses and Applications of Real Estate Securities in Asset Management

• Geared Investment and Private Real Estate Funds

• Property Derivatives 

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

Summative assessment- Examinations:
None

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 course to analyse investment opportunities in real estate securities. This will involve analytic and quantitative work. The report should be in the region of 3500-4000 words and takes into account the production of tables, graphs, spreadsheets etc.

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

Assessment requirements for a pass:
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: 31 July 2018