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: 2021/2

Module Convenor: Prof Alex Moss
Email: a.moss@henley.reading.ac.uk

Type of module:

Summary module description:

ThisÌýis a practitionerÌýbasedÌýmoduleÌýwhichÌýintroduces students to real estate securities markets.ÌýStudents will learn how to value any listed real estate company globally,ÌýwhatÌýthe differenceÌýisÌýbetween aÌýReal Estate Investment Trust (REIT)Ìýand a non-REIT, and how listed real estate is used in asset management. Attention will be given to how listed real estate performs throughout the cycle, and its role as a leading indicator for the direct market. To ensure that issues addressedÌýremain topical andÌýrelevant,Ìýthere will be a session looking at current trends and themes, where students will differentiate between cyclical and structural changes, and see how the growth ofÌýEnvironmental Social Governance (ESG), alternative sectors, income and real assetsÌýimpacts the real estate securities market.Ìý

Aims:

This module 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 debt capital markets. The module will examine how the different vehicles are structured and how they can contribute to a broad real estate portfolio.ÌýIn particular itÌýwill cover extensively those issues that differentiate real estate securities from both the private real estate market and from similar mainstream assetsÌý

Assessable learning outcomes:

Ìý

Intended learning outcomes:Ìý

The module will enable students to value any global listed real estate company, produce a target price and investment recommendation and understand the role of global real estate capital markets from a practical and academic perspective.Ìý

Assessable learning outcomes:Ìý

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 real estate vehicles and securities. Constant reference will be made to current, practical examples of the concepts involved, by use of mini case studies.Ìý

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

• Understand what differentiates direct and indirect investment in r eal estate;Ìý


• 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;Ìý


• Further enhance knowledge of corporate finance by appreciating how the regulations REITs operate under alter the corporate financing decisions of the firm;Ìý


• Empirically analyse listed securities such as REITs in relation to their opera tional performance and their use in a portfolio management context;Ìý


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

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 moduleÌýwill also aid in the development ofÌýtheÌýquantitativeÌýand spreadsheet skillsÌýof students.Ìý

Outline content:

• Regulatory Framework of Real Estate Investment TrustsÌý


• Financial Statement Analysis of REITs and Property CompaniesÌý


• Corporate Finance and REITsÌý


• Investment Dynamics and Characteristics of Real Estate SecuritiesÌý


• Valuation of Real Estate SecuritiesÌý


• Setting a Target Price and making a RecommendationÌý


• Practical Uses and Applications of Real Estate Securitie s in Asset ManagementÌý


• Private Real Estate FundsÌý

Brief description of teaching and learning methods:

The course will be delivered as a block release with on-line post moduleÌýsupport. The block release teaching will comprise lectures, presentations and problem-solving computer workshops.Ìý

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 andÌýquantitativeÌýwork. The report should beÌý5,000ÌýwordsÌýandÌýtake into accountÌýthe production of tables, graphs, spreadsheets etc.Ìý

Assignment Submission Deadline: Week 48Ìý

Formative assessment methods:

As this is a core Module of Special Significance, studentsÌýcompletingÌýthe MScÌýinÌýReal Estate Investment & FinanceÌýmustÌýachieve a mark of at least 40 in order to be awarded the MSc.Ìý

Students completing the IPF DiplomaÌýand/or MSc IPF Entry routeÌýmust achieve a mark of at least 50 in order to achieve the IPF Qualification.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:
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.Ìý

Additional Costs (specified where applicable):

Last updated: 8 April 2021