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Beacon FinTrain

Provides an array of professional business and financial training services that stem from improving a corporate's treasury workflow —all the way to efficient, finance training programs.

Course Overview

Real Estate Discounted Cash Flows (DCF) & Valuation workshop is an important, comprehensive, and essential program that is dedicated to explaining the meaning of the DCF and valuation. Also, how and where will it be used, and also what are the benefits of using DCF and other valuation methods. The DCF is the tool used in Real Estate projects and discount any future cash flows with the levered and un-levered beta considering the Real Estate projects’ financing, constructions start and end phase, development, and sales phases as well. Also, it considers the Real Estate projects’ cost of equity, and the after-tax cost of debt calculations to get the WACC.
With the help of practical application and examples, participants shall understand the Real Estate financial valuation methods, financing, constructions, development, sales phases schedules, time value of money, compounding returns, terminal value calculations, multiples method, discounting cash flows at a weighted average cost of capital (WACC), intrinsic value, enterprise value, equity value, detailed and comprehensive data analysis, sensitivity, tables analysis to the price per share with the rationale of investments fundamental, and risk and return.
During the workshop period, participants will learn and explore Discounted Cash Flows (DCF) & Valuations practical examples and best practice application with quantitative data, giving participants a deep understanding of how the decision making is made to support investors with deep business insights of corporate finance and capital budgeting. Also, financial modeling techniques will be used to master participants’ advanced analysis skills and investment opportunities with sensitivity and scenario analysis.
Participants will also learn how to analyze the WAAC, calculate terminal values by the methods of exit multiple and the perpetuity growth, discount the free cash flows to arrive at enterprise values and calculate the implied share price. Once the valuation is complete participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.

Learning Outcome

Understand advanced and efficient techniques to establish Real Estate projects and forecast free cash flow to the enterprise with best practice analysis to save time

Apply best practices techniques and scenarios, and manage the Real Estate projects’ discounted cash flow and valuation efficiently

Understand the Real Estate projects’ equity and enterprise value

Learn the most common multiples: EV/Revenue, EV/EBITDA, EV/EBIT, P/E

Explore how to value a business using Real Estate projects’ discounted cash flow techniques

Discover the Real Estate projects’ DCF & valuation approaches and apply them across several industries.

Course Outline

  • Introduction to the DCF Model
  • Free cash flows
  • The meaning of unlevered free cash flow
  • The meaning of cash flow discounted
  • Building the cash flow forecast in a DCF model
  • Drivers of cash flow
  • The real estate projects terms and definitions
  • The real estate projects development timeline
  • The real estate projects finance vs corporate finance

  • Overview of the real estate projects cap rates and net operating income (NOI)
  • The real estate projects net operating income (NOI) calculations
  • The real estate projects sensitivity analysis calculations
  • The real estate projects valuation matrix
  • The real estate projects land loan, and funding construction loan case study

  • The main drivers of free cash flows
  • Calculating the un-levered free cash flows (FCF)
  • The real estate projects typical priority of payments (acquisition, preconstruction, construction, and financing interest)
  • Building a cash flow cascade
  • Accounts integration.

  • Real estate projects assumptions overview
  • Real estate projects assumptions linking
  • Building the real estate projects development assumptions
  • Building the real estate projects sales/revenue assumptions
  • Building the real estate projects financing assumptions
  • Building the real estate projects dynamic periods
  • Building the real estate dynamic projects phases with the periods
  • Building the real estate projects sales/revenue schedule
  • Building the real estate projects development schedule (land acquisition, preconstruction, construction, etc.)
  • Building the real estate projects expenses schedule (building costs, servicing, consulting, warranty, etc.)
  • Building the real estate projects costs to fund and proceeds to repay the capital
  • Building the real estate projects financing schedule (draws, pre-payment, interest, etc.).
  • Building the real estate projects working capital forecast
  • Building the real estate projects loans and financing (debt) schedule forecast.
  • Building the real estate projects levered and unlevered free cash flow and IRR
  • Building the real estate projects capital assets equity contributions modeling
  • Building the real estate projects total cash flow for distribution
  • The real estate projects supporting schedules
  • The real estate projects dynamic statement- financial model
  • The real estate projects scenarios
  • The real estate projects sensitivity and scenario analysis through powerful Excel techniques.

  • The meaning of the real estate projects capital structure
  • The real estate projects capital structure analysis
  • The real estate projects cost of debt and cost of equity
  • The risk-free rate, the equity risk premium, and beta
  • Un-levering and re-levering the beta
  • The real estate projects WACC calculation.

  • Understanding the Residual Method of Valuation
  • Overview of Land Valuation Techniques
  • Principles of Residual Valuation
  • Calculation Process for Residual Land Value
  • Factors Considered in Residual Land Valuation
  • Application of the Residual Method in Real Estate Development
  • Adjustments for Risk and Market Conditions
  • Case Studies and Examples of Residual Land Valuation
  • Comparisons with Other Valuation Approaches
  • Evaluating the Accuracy and Reliability of Residual Valuation
  • Future Trends in Land Valuation Techniques

Who Should Attend

Professionals who need to build, modify, and understand financial models associated with D C F & valuation models=Analysts, managers, senior managers, and associate directors=Professionals with some modeling experience who have the responsibility of developing or maintaining D C F & valuation models=Corporate finance and structured finance professionals who want to increase the depth and breadth of their knowledge=Accountant analysts, investment bankers, and projects managers who need to develop the skills to build or interpret integrated Excel-based models and corporate financial manager.

Mina Nasif

Chief Visionary Officer