Bayfield Training and Revo have collaborated to bring you the new Retail Property Appraisals course.
Learn how to build a Retail Property cash flow model. This course takes delegates step by step through the creation of a full shopping destination cash flow model. As a modelling course, it is almost entirely Excel based. The course starts by analysing the variables that influence shopping centre 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 shopping centres. 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 shopping centre 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
Course price: £2,650 + VAT
Collating and sorting Retail Property Data
- Retailer Classification within sample
- Catchment areas analysis within sample
- Operational metrics within sample
Retail Property Analytics
- Analysis of vacancy and appropriateness of tenant mix
- Catchment versus operational dimension analysis
- Fragmentation, clustering and co-location analysis
- Sustainable Metrics
Analytics and Value
- Understanding the interaction between Retail Property KPIs and their impact on asset level returns: Footfall, Threshold, Engagement and Conversion
- The mathematics of optimising Retail Property KPIs
Retail Property Appraisals
- Turnover, affordability ratios and rental capture
- Rental Growth, inflation and fixed rent
- Financial model layout
- Retail Tenancy Scheduled and ITZA calculations
- Rent Functions and rental projection
- Service Charges and Operational Expenditure (OPEX) and Capital Expenditure (CAPEX)
- Project Financing
- Internal Rate of Return (IRR), Net present value (NPV) and other metrics
- Macroeconomics impacts on retail property KPIs
- Sensitivity analysis
- Resilience through demographic change and different stages of the business cycles
Round up and Conclusions of Day One
Shopping Centre Case Study
- Delegates are presented with a leased shopping centre, location, catchment information and a schedule of leases
- The trainer will facilitate a discussion on location, catchment, shopping centre design and leasing strategy
- Delegates will then be required to enter the tenant information into an Excel template
Tenancy Schedule Analysis
- Analyse the tenancy schedule of the case study shopping centre using the visualisation techniques and metrics learned in day one
- The centre will be ranked according to the various metrics and benchmarked
Full Project Cash Flow
- Techniques for planning complex functions
- 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
Risk Analysis of Retail Property Appraisals
- How resilient is your leasing strategy to the scenarios presented?
- Has your shopping centre performed within expectations
- Which solutions might you propose to help maintain the value of your centre?
Round up and Conclusions of Day Two
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.