REMF42-Introduction to Real Estate Finance

Module Provider: Real Estate and Planning
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Jiarong Li
Email: jiarong.li@henley.reading.ac.uk

Type of module:

Summary module description:

The moduleÌýprovidesÌýan introduction toÌýconcepts of real estate finance,Ìýboth theoretically and empirically. It introduces students to the concepts of risk and return, cost of capital and theÌýimplicationsÌýthat capital structures have on values and returns.Ìý

The targeted audience isÌýstudents without any background in Finance. Students will work from and understanding of basic calculus.Ìý

Aims:

The aim of this module is to introduce students to basic concepts of finance to be used within the context of investment appraisal of assets and realÌýestate in particular. The module will enable students to understand decisionsÌýto invest in any real estate project using a rigorous and consistent framework.ÌýBy the end of the module, students should have a basic understanding of finance and financial math (time value of money principle).

Assessable learning outcomes:

Students will be able to extract information from company accounts,Ìýas well asÌýunderstand howÌýinvestment andÌýfinancing decisions can be separated. They will be able to apply and critically evaluate different techniques for the pricing of investments.Ìý

Upon completion of the module, students should be able to:Ìý

• read, understand and analyse annual reports of companies;Ìý


• understand the principles of interest rates, time value of money and discounting;Ìý


• conceptualise and apply the principles of risk and return to the pricing of different assets;Ìý


• analyse the financial structure of a company and determine its impact on enterprise value.Ìý

Additional outcomes:

Students will also be able to:Ìý

• Develop critical thinking;Ìý


• Improve analytical and modelling skills.Ìý

Outline content:

• Principles of risk and returnÌý


• Introduction to financial accountingÌý


• The separation of financing and investment decisionsÌý


• Capital budgeting and cost of capitalÌý


• Forms of financing available for real estateÌý

Global context:

The literature and datasets that are referred to throughout the module provide a mixture of UK and international examples.ÌýWe focus on the real estate context but use examples from the field of finance.

Brief description of teaching and learning methods:

The module will consist of a mix of formal lectures and seminars/workshops. Additionally, students will be expected, on an independent basis, to read prescribed articles and prepare for class interaction.Ìý

Contact hours:

Ìý	Autumn	Spring	Summer
Lectures	10
Tutorials	5
Guided independent study:	Ìý	Ìý	Ìý
Ìý Ìý Wider reading (independent)	20
Ìý Ìý Exam revision/preparation	38	2
Ìý Ìý Advance preparation for classes	25
Ìý	Ìý	Ìý	Ìý
Total hours by term	98	2	0
Ìý	Ìý	Ìý	Ìý
Total hours for module	100

Summative Assessment Methods:

Method	Percentage
Written exam	100

Summative assessment- Examinations:

The examination for this module will require a narrowly defined time window and is likely to be held in a dedicated exam venue.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Informal feedback will be accessible via seminars/tutorials where key theoretical and empirical concepts will be applied and tested.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:
The pass-mark for this module is 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.

Additional Costs (specified where applicable):

Last updated: 30 March 2023