Wall Street Prep – Real Estate (REIT) Modeling

The REIT Modeling course is designed to help investment banking, equity research and real estate professionals understand and analyze a REIT. The course is structured in two parts: Part 1 focuses on financial modeling and Part 2 covers the valuation of REITs.

In Part 1 of the course, we will first learn about the unique drivers and challenges of the REIT industry, followed by building REIT financial models from scratch. We will use a step-by-step approach to model an actual company, BRE Properties, to give trainees a hands-on experience of the real estate modeling best practices. We’ll cover segment-level modeling (same store properties), acquisitions, developments, and dispositions and deconstruct key REIT profit metrics such as FFO, AFFO, and CAD.

In Part 2, we will dive into the valuation of REITs, with a focus on the Net Asset Value (NAV) approach. The course will cover the calculation of NAV, NAV growth, NAV per share, NAV discount/premium, and NAV yield. We’ll also discuss the impact of leverage on NAV, and how to apply the NAV method to a proprietary REIT valuation model.

At the end of the course, trainees will have a comprehensive understanding of REITs and be able to confidently build financial and valuation models for REITs. Through the hands-on experience in the course, trainees will gain the skills necessary to make effective decisions and produce accurate financial models for real estate investments.