REMB19-Real Estate Securities

Module Provider: Real Estate and Planning
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Summer term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Chen Zheng
Email: chen.zheng@henley.reading.ac.uk

Type of module:

Summary module description:

This module aims to provide students with knowledge of market structures and pricing of financial products available for indirect investments in real estate. The focus will be given to listed real estate, especially real estate investment trusts (REITs). Students will learn how to value any listed real estate company globally,?what?the difference?is?between a?REIT?and a non-REIT, and how listed real estate is used in asset management.

Aims:

This module introduces students to primary securitised real estate markets. Equity vehicles examined will include listed companies, with a focus on Real Estate Investment Trusts. The module will also examine debt and debt-related products (e.g., residential mortgages and mortgage-backed securities) and other real estate derivative products and investment vehicles. The module will present how the different vehicles are structured and their applications in the investment context.

Assessable learning outcomes:

The module provides students with the core knowledge required to appreciate the unique characteristics of real estate securities. Students will be able to use current research to critically analyse several real estate securities.

On completion of the module, students will be able to:Ìý

• Understand what differentiates direct and indirect investments in r eal estate;?Ìý


• analyse the market structure and dynamics of different real estate securities;


• explain key differences between various real estate securities in terms of structure and pricing;Ìý


• Ìýbe familiar with asset pricing theory and current pricing models used for different products;Ìý


• Ìýunderstand the key determinants in the growth of such markets/products and their usefulness.

Additional outcomes:

The module will aid students in developing an overall awareness of the determinants of real estate market performance and the importance of alternative vehicle and funding structures. The moduleÌýwill also aid in the development ofÌýtheÌýquantitativeÌýand spreadsheet skillsÌýof students.Ìý

Outline content:

The module will introduce market structures and investment dynamics of various indirect real estate vehicles, including:Ìý

• Listed vehicles: Real Estate Investment Trusts and Listed Property CompaniesÌý


• Mortgage-Backed SecuritiesÌý


• Real Estate Derivative ProductsÌý


• Subprime Crisis

Global context:

This module will have a focus on the US and UK markets, incorporating other international situations and examples.Ìý

Brief description of teaching and learning methods:

The moduleÌýwill be delivered as a block release with on-line post moduleÌýsupport. The block release teaching will comprise lectures, presentations and problem-solving computer workshops.Ìý

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

The assessment will be based on a report where the student will usually apply several aspects of the module to analyse investment opportunities in real estate securities. This will involve analytic andÌýquantitativeÌýwork. The report should be 3,500Ìýwords including tables, graphs, spreadsheets, referencesÌýetc. (equivalent to a 5,000 word essay).Ìý

Assignment Submission Deadline: Week 48Ìý

Formative assessment methods:

As this is a core Module of Special Significance, studentsÌýcompletingÌýthe MScÌýinÌýReal Estate Investment & FinanceÌýmustÌýachieve a mark of at least 40 in order to be awarded the MSc.Ìý

Students completing the IPF DiplomaÌýand/or MSc IPF Entry routeÌýmust achieve a mark of at least 50 in order to achieve the IPF Qualification.Ìý

Penalties for late submission:

Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
50%

Reassessment arrangements:

Reassessment will be by the same method as for the module's original assessment requirements, subject to variation by the Examination Board where appropriate.Ìý

Additional Costs (specified where applicable):

Last updated: 22 September 2022