REMF52-Real Estate Portfolio Management

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: 2022/3

Module Convenor: Mr Pin-Te Lin
Email: pin-te.lin@henley.reading.ac.uk

Type of module:

Summary module description:

This moduleÌýcoversÌýthe theoretical and practical principles of asset allocation choices and portfolio management. After introducing the concept of diversification and the single index model, different optimisation models are examined, along with specific features of real estate portfolios related to performance measurement and available vehicles to build such a portfolio.Ìý

Aims:

This module enables students to develop their understanding of the concepts of investment strategy, portfolio selection and performance measurement, and their application to real estate markets. It develops students’ analytical capacity. Students will have a detailed understanding of key theoretical concepts in investment strategy (e.g. efficient frontier, risk diversification,Ìýsingle indexÌýmodels) and their application in a real estate context. They will also be able to use statistical toolboxes for portfolio decision making, critically examine published work in the field, and apply this knowledge to the analysis of real estate investment decisions within a portfolio context.Ìý

Assessable learning outcomes:

Upon completion of this module, studentsÌýshould be able to:Ìý

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  identify, explain and apply key theoretical concepts of investment strategy, portfolio selection and performance measurement in financial and, more specifically, real estate markets;Ìý

  
  


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  construct the mean-variance efficient frontier and identify the optimal risky portfolio for a given universe of risky assets;Ìý

  
  


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  explain the pricing of assets using the capital asset pricing model;Ìý

  
  


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  discuss relevant literature in international markets,Ìýincluding an abilityÌýto interpret and critically examine published results of empirical research in the field;Ìý

  
  


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  understand portfolio optimisation models and issues related to their application using real estate data;Ìý

  
  

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  analyse capital market data using quantitative techniques to identify theoretically optimal portfolio strategies and assess managers’ performances;

  
  

Additional outcomes:

In addition, students will:Ìý

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  develop theirÌýbusinessÌýwriting skills;Ìý

  
  


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  develop their IT skills through the computer-based workshops;Ìý

  
  


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  enhance their capacity to read complex published material in a critical fashion.Ìý

  
  

Outline content:

TheÌýmoduleÌýwill cover risk and return and investors’ investment preferences; models of portfolio selection and pricing (portfolio theory, efficient frontier, capital asset pricing model, portfolio optimisation models); the place of real estate in mixed asset class investment strategies; structuring the property portfolio through a sector and geographical mix and/or through the use of indirect vehicles; performance measurement, attribution analysis and the analysis of manager performance; benchmarking and the measurement of real estate market activity. The module will draw on both academic and professional literature and utilise data and examples from international markets.Ìý

Brief description of teaching and learning methods:

Summative assessment- Examinations:

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

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Summative assessment- Coursework and in-class tests:

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:

The pass mark for this module is 50%

Reassessment arrangements:

Re-assessment will be through a three-hour exam (100%) for the entire module, subject to variation by the Examination Board where appropriate.Ìý

Additional Costs (specified where applicable):

1. Required text books: About £50

2. Specialist equipment or materials:ÌýAbout £15 for a calculator (Casio FX-83GTPLUS or Casio FX-85GTPLUS)Ìý

Last updated: 22 September 2022