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Real Estate Finance II: Income Pro forma, Equity Returns, and Multi-Period Financial Analysis
Date: June 11 - 14, 2012
Venue: Waterview Conference Center
Location: 1919 North Lynn Street, Arlington, Virginia
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As evidenced by recent experience, real estate development is a cyclical enterprise. Development projects today often require complex financing and the ability to support estimates of cash flows through both the development and holding periods. This second course in commercial real estate finance explores the techniques of financing commercial projects through the various phases of development site analysis, land acquisition, development, and construction. The central objectives of the course include providing students with hands-on experience in recognizing and mitigating risk. The key extensions from Real Estate Finance I include a focus on equity returns and the impact of time on those returns.

This second course introduces the notion of the time value of money and incorporates it into the analytical process. This includes constructing the discounted cash flows over the construction and holding period, with specific attention paid to analyzing and accounting for contingencies, tax effects, and financing alternatives. It also explores how the deal structure allocates risk and return to each of the investor groups—i.e., the investment waterfall. Other topics include interim and permanent lending procedures, use of income and expense statements, construction disbursement schedules, sales and leaseback, and leasehold financing—all examined through both case studies and workshop problems. The course focuses on the lender’s perspective, the equity investor’s perspective, and dynamic cash flow analysis or total property return metrics—i.e., internal rate of return (IRR) and net present value (NPV)—with an introduction to options analysis in real estate development decision making.

Case studies examined throughout the course will illuminate concepts, providing hands-on experience, and industry guest speakers will provide current examples of deal structures and industry data.

Participants are expected to bring a laptop computer with Microsoft Excel to the course.
Instructor
 Bruce SmithBrent C. Smith
Associate Professor
Virginia Commonwealth University School of Business
Department of Finance Insurance and Real Estate
Richmond, Virginia

Smith is an associate professor in the Department of Finance Insurance and Real Estate in the School of Business at Virginia Commonwealth University. He holds a master of business degree from the University of Notre Dame and holds a PhD in finance and economic geography from Indiana University. Smith’s research interests include commercial property markets, mortgage performance, housing finance, and valuation.

Smith was a recipient of the Outstanding Reviewer Award in 2009 for real estate economics, and received the Emerging Scholar Award in 2010 from the American Real Estate Society. In addition, he is a postdoctoral honoree at the Weimer School of Advanced Studies in Real Estate and Land Economics, Florida. His research papers have received numerous grants and acknowledgments, including two best paper awards from the American Real Estate Society. Smith was recently inducted as one of only three academic members into the Real Estate Councilors’ Group of America.

Smith’s recent research is directed at issues of risk and valuation. Within those themes, the areas of study include commercial property markets, mortgage performance, investment finance, and public policy and tax influences. Articles produced from this activity are published or scheduled for publication in the Journal of Real Estate Finance and Economics, Real Estate Economics, Journal of Real Estate Research, Urban Affairs Review, Journal of Property Tax Assessment and Administration, Journal of Housing Economics, Journal of Housing Research, and Economic Quarterly, and Journal of Public Budgeting, Accounting, and Financial Management.

Guest Speakers

Neal Gumbin
Managing Director
Beckham Gumbin Ventures, LLC
The Plains, Virginia

Roger Staiger
Managing Director
Stage Capital
Columbia, Maryland


Accommodations and Course Location
Hotel accommodations are not included in the registration fee. If you would like to make hotel arrangements, please contact the hotel directly.

Meeting Only
Waterview Conference Center
1919 North Lynn Street
Arlington, Virginia

Accommodations Only
Le Meridien Hotel
1121 North 19th Street
Arlington, Virginia
800-543-4300

A limited number of sleeping rooms have been blocked by ULI at the Hotel Palomar for this event. Mention the Urban Land Institute to get the rate of $259. The room block deadline is May 17, 2012.



Register Now

 
or call 800-321-5011 with credit card information.

Download Registration Form

Course Highlights
Review conceptual foundations of the property markets

Income-producing property markets

The time value of money—cost of capital, compounding, present value, future value

The time value of money and commercial real estate debt financing

Using mortgage debt in dynamic property analysis

Present value, future value, and mortgage constant analyses

Equity investor metrics—leases

Including capital expenditures in the cash flows

Case study on present value analysis

Considering cash flow risks arising from leases

Case study on risk metrics
Registration Fee
Early Bird Discount. Register by May 7 and save $200 off of your first course*

ULI Member: $1,550*
Non-member: $1,850*
Government and nonprofit: $1,250

*Second course $1,250 at all times for members and, $1,550 for non-members

Registration fee includes tuition, course materials, continental breakfast, luncheon, and refreshments.

Cancellations must be made in writing or by e-mail to ULI’s customer service department and are subject to a $100 administrative fee. Cancellations must be received at least seven days before the start of the program to be eligible for a refund. No refunds will be granted thereafter. You may transfer your registration to another member of your organization with no penalty.
Contact Professional Development

David Mulvihill
Vice President, Professional Development
Phone: 202-624-7122
E-mail: dmulvihill@uli.org

Questions or Special Needs
Contact ULI customer service at 800-321-5011 or 410-626-7505 or via email at customerservice@uli.org