Market Overview

Research and Markets: Assessing Real Estate Risk - Applied Models, Concepts, Methods


Research and Markets ( has announced the addition of the "Assessing Real Estate Risk - Applied Models, Concepts, Methods" book to their offering.

This book is a practical guide for those wishing to gain further skills and knowledge in financial modelling for real estate investments not only in Europe, but all around the world.

The book can be seen as an inter-disciplinary approach to analyse real estate risk using quantitative and qualitative methods. It presents essential concepts, principles, and tools for the analysis of commercial real estate in the areas of real estate equity, debt and derivative instruments. In addition, it bridges the gap between the pure quantitative financial modeller and the professional analyst.

It provides financial modelling for real estate debt, equity and derivates to underpin investment and credit decisions.

- comprehensive analysis guidelines for real estate equity and debt instruments and investments

- working examples how to use models and analysis tools

- integrated excel/ VBA examples

- introduction to key financial ratios and probability models

Key benefits

- Learn to use quantitative models in real estate analysis: All necessary Excel/VBA techniques are explained.

- Learn to use qualitative concepts in risk models: score card model explained

- In-depth guide to real estate equity analysis: Key financial ratio analysis for real estate, working examples

- Learn how to build a cash flow model for real estate investments: excel step-by step guide and working example

- Learn how to build probability of default models: Step by step guide to build Monte Carlo simulation model

- Learn how to assess and model risk in different loan structures

- Learn to distinguish between credit and market risk and the tools used to analyse these risks

- Also, CFA (Chartered Financial Analyst) Institute has approved this publication for 9 CE credits for its voluntary Continuing Education Program.

Key Topics Covered:

Part I - Introduction

1 Introduction

Part II - Statistics for real estate analysis

  • 2 Statistics for real estate risk analysis
  • 3 Probability and characteristics of probability distributions
  • 4 Financial formulae in Excel
  • 5 Further reading

Part III - Real estate private equity

  • 6 The real estate private equity market
  • 7 Core property types and segmentation
  • 8 Cash-flow modelling
  • 9 Key portfolio ratios
  • 10 Calculating lease renewal probabilities
  • 11 Identifying and analysing concentration risks
  • 12 Qualitative risk analysis tools for real estate
  • 13 Modern portfolio theory and risk adjusted returns
  • 14 Investor types and risk profiles
  • 15 Data sources
  • 16 Further reading

Part IV - Real estate securities

  • 17 The European REIT/REOC market
  • 18 Fundamental corporate analysis for a property company
  • 19 Key financial ratios for corporate analysis
  • 20 Assessing market risk in REITs and REOCs
  • 21 How to select the right equity risk premium
  • 22 Using value-at-risk for risk-return analysis
  • 23 Modern portfolio theory for real estate securities portfolios
  • 24 Investment strategies for real estate equities
  • 25 Investor types and risk profiles
  • 26 Data sources
  • 27 Further reading

Part V - Real estate debt

  • 28 Development of real estate debt markets
  • 29 Real estate debt structures
  • 30 Measuring credit risk in real estate debt structures
  • 31 Analysing debt structures
  • 32 Risk mitigation techniques
  • 33 Hedging interest rate risk in property loans
  • 34 Key ratios used in credit-risk analysis
  • 35 Calculating probability of loan default
  • 36 Modelling PD using NOI cash-flow model
  • 37 Probability of default and diversification
  • 38 Analysing risk in junior loans or loan participations
  • 39 Capital requirements for banks
  • 40 Investor categories and risk profiles
  • 41 Data sources
  • 42 Further reading

Part VI - Real estate derivatives

  • 43 The European market evolution
  • 44 Forward and future contracts
  • 45 Property swap contracts
  • 46 Structured notes
  • 47 How to trade in the property futures market
  • 48 Portfolio strategies
  • 49 Real options in real estate
  • 50 Risk management issues with derivatives
  • 51 Investor types and risk profiles
  • 52 Sources of regular pricing
  • 53 Further reading

For more information visit

Research and Markets
Laura Wood, Senior Manager.
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Property

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