To book your place, please email
Up to 18 hours CPD available.
Learn how to build a retail property cash flow model. This course takes delegates step by step through the creation of a full retail place cash flow model. As a modelling course, it is almost entirely Excel based. The course starts by analysing the variables that influence retail place investment returns. Delegates will calculate Key Performance Indicators (KPIs) that can be shown to influence the financial model from tenancy through to risk.
The KPIs are studied, calculated and ranked using a portfolio of 10 real retail places. The first day will also revise the Excel techniques and financial mathematics required to build the case study.
On the second day the tenancy schedule will be analysed, the cash flow built and investment returns calculated. Finally, the model is tested by altering the variables and conditions in the tenancy schedule. Sensitivity and scenario analysis will help delegates appraise and find strategies to optimise their retail property investment. By the end of the course, delegates should be able to build their own retail place investment cash flows and analyse the results.
Who will benefit from this course?
- Asset managers and fund managers who would like to understand the impact of their strategies on asset and shareholder value in a more granular and integrated fashion.
- Suppliers to shopping centres to help them quantify and communicate how their product can add value.
- Analyst and modellers who would like to improve their understanding of financial models in respect of retail property assets.
- Mid-level to senior real estate analysts who would like to advance their financial modelling skills
- Measure and improve operational performance
- Increase lenders and joint venture partners' confidence in asset management strategy
- Allow managers to demonstrate value for money and ROI for budget setting and justification
- Allow shopping centre managers and asset managers to communicate and align financial objectives
- Set targets, monitor and benchmark results
- Develop the financial acumen of experienced managers
- Educate CFOs and experienced financial analysts new to retail property sector
- Ensure best practice in retail property asset management and performance measurement
Retail Property Models
• What makes retail property models unique?
• Input Variables and the Profit Cycle
• Financial Model Layout and Design
• Understanding the nature of Retail Property Cash Flows
Advanced Cash Flow Modelling
• Internal Rate of Return (IRR), Net present value (NPV) and other metrics
• The three Rent Function methods
• Logic Functions and Arrays
• Multi-let Cash Flows
• Multiple and Period Varying Growth Rates
Retail Property Rent Functions
• Common Retail Property Lease Covenants
• Retail Tenancy Schedules
• Zone A calculations
• Turnover, affordability ratios and rental capture
• Rental Growth, inflation and fixed rent
• Rent Functions and Rent Projection
Analysing the Tenancy Schedule
• Hypothetical study of ‘The Galleries’ Shopping Centre
• Unit Plan and Micro Location
• Using Excel as a database and linking to external data sources
• Data visualisation methods
• The Bayfield Retail Quilt (Tenant Mix Analysis)
• Lease Expiry Profiles and Event Analysis
Shopping Centre Portfolio Case Study
• Choosing the Retailer Classification
• Cross Referencing Consumer Classification
• Completing the Tenancy Schedule
• Generating Typologies from tenancy schedules
Rent Functions for Shopping Centres
• Breaking Complex rent functions from existing models
• Planning the rent function
• Events and Rents Table formulae
• Full Rent Function
Full Project Cash Flow
• Building a rent function for the case study shopping centre
• Testing the rent function
• Creating CAPEX and OPEX functions for the case study
• Calculating IRR, NPV and other Investment Metrics
• Testing the IRR for errors
• Scenario Testing and Risk Analysis
Footfall and Performance Metrics
• Destination capacity calculations
• Footfall Signatures
• Peak hour performance
• Performance Metrics
Bayfield Training provides a wide range of Financial Modelling and Real Estate Strategy courses for the Global Real Estate Profession. Their short courses are delivered on a regular basis to leading international Real Estate companies. Training has been delivered for two decades, constantly improving and updating course materials, to ensure relevance within this fast-changing industry.
Bayfield Training have developed a variety of Retail Property Investment courses and have become the Retail Property Specialist. They comprehend the retail real estate paradigm shift, develop the course materials with the brightest minds in the arena and use case studies to enhance learning experience.