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: 2018/9

Module Convenor: Dr Masaki Mori

Email: m.mori2@henley.ac.uk

Type of module:

Summary module description:

The module represents 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 implication 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. Students will be able to extract information from company accounts and to understand how the investment and financing decisions can be separated. They will be able to apply and critically evaluate different techniques for the pricing of investments. The module will enable students to understand the decision to invest in any real estate project using a rigorous and consistent framework.

Assessable learning outcomes:

At the end of the course students will 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

- Understand and apply financial models to compute the cost of raising funds and determine the discount rate for new investment opportunities;

- Analyse the financial structure of a company and determine its impact on enterprise value

- Recognise how to select the appropriate discount rate for investment decisions;

- Apply capital budgeting techniques to price investment opportunities.

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

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
Practicals classes and workshops	5
Guided independent study	85
Total hours by term	100.00
Total hours for module	100.00

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:

Two Hours

Summative assessment- Coursework and in-class tests:

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

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: 21 September 2018