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| Preface | |
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| Acknowledgements | |
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| Real Estate as an Investment: an Introduction | |
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| Real estate � the global asset | |
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| The global property investment universe | |
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| Market players | |
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| Property � its character as an asset class | |
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| Conclusions | |
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| Global property markets and real estate cycles | |
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| Introduction | |
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| The United States | |
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| The UK property market � a performance history | |
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| Continental Europe | |
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| Asia | |
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| Conclusions | |
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| Market fundamentals and rent | |
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| Introduction: the global property cycle | |
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| The economics of rent | |
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| Forecasting rents | |
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| Conclusions | |
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| Asset pricing, portfolio theory and real estate | |
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| Risk, return and portfolio theory | |
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| A property appraisal model | |
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| The model components | |
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| The required return for property assets | |
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| Forecasting real estate returns | |
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| Conclusions: a simple way to think about real estate returns | |
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| Making Investment Decisions at the Property Level | |
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| Basic valuation and investment analysis | |
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| Introduction | |
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| Estimating future cash flows | |
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| The discount rate | |
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| Conclusions | |
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| Leasing | |
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| Introduction | |
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| Legal characteristics of leases | |
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| The leasing process | |
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| Important economic elements of a lease | |
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| Lease economics and effective rent | |
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| Conclusions | |
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| Valuing commercial real estate: the unleveraged case | |
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| Introduction: the investment opportunity | |
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| Developing a pro-forma income statement | |
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| Valuation using the cap rate | |
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| Valuation using cash flows | |
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| Applying discounted cash flow to analyze investment feasibility | |
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| Conclusions | |
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| Mortgages: an introduction | |
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| Introduction | |
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| What is a mortgage? | |
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| The risks and returns of mortgage investment | |
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| The fi nancial components of a mortgage | |
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| The mortgage menu | |
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| An introduction to mortgage mathematics | |
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| Conclusions | |
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| Commercial mortgage underwriting and leveraged feasibility analysis | |
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| Introduction | |
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| The mortgage underwriting process | |
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| Investment feasibility with leverage: before-tax analysis | |
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| Investment feasibility with leverage: after-tax analysis | |
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| Global variations in real estate debt | |
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| Conclusions | |
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| Valuing the private real estate entity | |
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| Introduction: the four quadrants and private equity | |
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| Sponsor economics | |
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| The life cycle of a private equity fund | |
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| Fund economics | |
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| Waterfall structures | |
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| Private equity structures in the credit crisis | |
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| Conclusions | |
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| Real Estate Investment Structures | |
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| Unlisted real estate funds | |
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| Introduction to unlisted real estate funds | |
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| The growth of the unlisted real estate fund market | |
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| Unlisted fund structures | |
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| Characteristics of unlisted real estate funds | |
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| Liquidity and valuation issues | |
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| The case for and against unlisted real estate funds | |
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| Conclusions | |
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| Public equity real estate | |
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| Introduction | |
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| REITs and REOCs | |
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| Listed funds and mutual funds | |
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| Exchange-traded funds (ETFs) | |
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| The US REIT experience | |
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| The global market | |
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| REIT pricing | |
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| Conclusions | |
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| Real estate debt markets | |
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| Introduction | |
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| A brief history lesson | |
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| Wall Street Act I: the early residential mortgage-backed securities market | |
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| Wall Street Act II: senior-subordinated securities, the advent of structured finance | |
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| Wall Street Act III: the evolution of structured finance | |
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| Collateralized debt obligations (CDOs) | |
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| Summary | |
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| Mezzanine debt | |
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| Cash-out refinancing | |
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| All good things must come to an end | |
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| Conclusions | |
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| Real estate derivatives | |
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| Introduction | |
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| A short history of the real estate derivatives market | |
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| Total return swaps | |
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| Structured real estate index notes | |
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| Traded property futures and options | |
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| Pricing property derivatives | |
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| Property derivatives: pros and cons | |
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| Property derivatives: spin-offs | |
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| Conclusions | |
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| Creating a Global Real Estate Strategy | |
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| International real estate investment: issues | |
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| Introduction: the growth of cross-border real estate capital | |
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| The global real estate market | |
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| The case for international real estate investment | |
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| The problems: an introduction | |
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| Technical issues | |
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| Formal barriers | |
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| Informal barriers | |
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| Conclusions | |
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| Building the global portfolio | |
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| The top-down portfolio construction process | |
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| Strengths, weaknesses, constraints: portfolio analysis | |
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| A pricing approach for international property | |
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| Managing currency exposure and currency risk | |
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| Portfolio construction | |
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| Conclusions | |
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| Performance measurement and attribution | |
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| Performance measurement: an introduction | |
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| Return measures | |
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| Attribution analysis: sources of return | |
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| Attribution analysis: the property level | |
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| Attribution analysis: the portfolio level | |
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| Attribution and portfolio management: alpha and beta | |
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| Performance measurement and return attribution for property funds | |
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| Conclusions | |
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| Conclusions | |
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| Why property? | |
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| Liquid structures | |
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| Unlisted funds | |
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| International investment | |
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| Best-practice real estate investment | |
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| Pricing | |
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| The future | |