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: 2020/1

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 investment in real estate, in order to develop a critical understanding of the different features of real estate securities and overall market products. It challenges the implications that specific characteristics of 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 products (e.g. mortgage-backed securities) and other real estate derivative products and investment vehicles. The module will present how the different markets and securities are structured and what their implications are on models used to price such financial products.

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 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.Ìý

Outline content:

The module will introduce both market structures and pricing models of real estate securities, 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:

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

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:

One three-hour written examinationÌý

Summative assessment- Coursework and in-class tests:

A group task to discuss a module related topic. Each group needs to present the discussion results in the last week.

Formative assessment methods:

Feedback will be provided via in-class discussions.Ìý

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: 24 September 2020