RE3FM-Finance and Markets

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn / Spring / Summer module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Jiarong Li
Email: jiarong.li@henley.reading.ac.uk

Module Co-convenor: Dr Chen Zheng
Email: chen.zheng@henley.reading.ac.uk

Type of module:

Summary module description:

After introducing the main concepts of corporate finance and their application to real estate markets in the Autumn term, the module presents and analyses the structuring, functioning and pricing of main financial products, such as REITs and mortgage-backed securities in the Spring term.

This module is delivered at the ºÚ¹Ï³ÔÁÏÍø and ºÚ¹Ï³ÔÁÏÍø Malaysia.

Aims:

This module aims to enable students to develop their understanding of the operation of commercial real estate markets within a broader capital market setting and to develop students’ analytical skills. Upon completion of the module, students should have an understanding of key theoretical concepts in finance, be able to appraise critically published work in the field, and apply this knowledge to the analysis of practical real estate problems.

Assessable learning outcomes:

Upon completion of the module, students should be able to:

• identify and explain the main theoretical concepts relating to the financial analysis of real estate markets;


• discuss, and appraise critically, relevant literature applying financial models to real estate markets;


• apply theoretical finance principles to solve practical real estate problems;


• analyse capital market and corporate financial data using quantitative techniques;


• analyse the structure and pricing of financial instruments in real estate markets;


• interpret and evaluate published results of empirical research in the field.Ìý

Additional outcomes:

In addition, students will:

• enhance their oral and communication skills through discussions;


• develop their IT skills through computer-based exercises;


• enhance their capacity to read and discuss complex published material in a critical fashion.

Outline content:

The module will develop further understanding ofÌýmaterial on investment and finance introduced in Part 2 of the programme, emphasising theoretical and empirical analyses of real estate markets. Linkages between the property market and other capital markets and asset classes will be explored.

Material covered will include: corporate financial decision-making and capital budgeting; the weighted average cost of capital and capital structure; forms of financing availablefor real estate; the investment characteristics of real estate; securitised property debt; property market price behaviour; the pricing of risk; other relevant financial issues.

Brief description of teaching and learning methods:

The module is based on a mixture of lectures and seminars/tutorials. Importantly, students are expected, on an independent basis, to read prescribed articles and prepare for the seminars/tutorials on a weekly basis.

Contact hours:

Ìý	Autumn	Spring	Summer
Lectures	10	10	2
Seminars	5	5
Guided independent study:	Ìý	Ìý	Ìý
Ìý Ìý Wider reading (independent)	35	35
Ìý Ìý Exam revision/preparation	20	20	18
Ìý Ìý Preparation for tutorials	20	20
Ìý	Ìý	Ìý	Ìý
Total hours by term	90	90	20
Ìý	Ìý	Ìý	Ìý
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	80
Class test administered by School	20

Summative assessment- Examinations:

One three-hour writtenÌýexamination (80%)

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

Two one-hour in-class tests (one in week 7 of the Autumn term and the other one in week 7 of the Spring term), each weighted at 10% of overall module mark.Ìý

Formative assessment methods:

Ongoing discussion during workshops/seminars.

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:

A mark of at least 40% overall.

Reassessment arrangements:

One three-hour examination paper, which covers the content of the entire module, subject to variation by the Examination Board where appropriate.

Additional Costs (specified where applicable):

1. Specialist equipment or materials - About £15 for a calculator (Casio FX-83GTPLUS or Casio FX-85GTPLUS)

Last updated: 22 September 2022