...Fixed Income, Hedged 19% Australian Index-Linked Bonds 0% Australian Cash 1% FIXED INCOME 33% Australian Listed Property 8% Australian Direct Property 9% PROPERTY 17% Hedge Funds 9% Commodities 1% US Private Equity 2% ALTERNATIVES 12% TOTAL 100% Contents Some critical assumption……………………………2 Asset Class Considerations………………………….2 Equities…………………………………………………..2 Fixed Income………………………………………….3 Alternatives and Property………………………4 Analysis Mothod………………………………………….5 Historical 3 Year Rolling Returns…………….5 Bootstrap Analysis………………………………….5 Mean-Variance Optimizer……………………..6 Results…………………………………………………………7 Final Recommendation……………………………….8 Building a Concrete Portfolio for Jane and Douglas Breighton………………………………….8 Appendices………………………………………………….9 References………………………………………………..13 Minggang Gu|u5108473 Kejie Wang|u5133766 Tutorial Thursday 4pm Suggested Asset Allocation Breighton Holdings 14% Australian Equities 0% World Equities, Unhedged 0% World Equities, Hedged 11% Emerging Markets 13% EQUITIES 38% Australian Fixed Income 13% World Fixed Income, Hedged 19% Australian Index-Linked Bonds 0% Australian Cash 1% FIXED INCOME 33% Australian Listed Property...
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...Investment analysis November 2015 Jaime J. Delgado Code Unit STR364 Student Num. Q12576077 TABLE OF CONTENTS 1. Introduction…….………………………………………………………................... 2 p 2. Overview of Land Securities..…….................................................................... 2 p 3. The market trends, opportunities and risks..…...…………................................ 2 p a. Housing in London 2 p b. Commercial real estate in the UK 3 p 4. Strategy for management and marketing.……………………………………….. 3 p c. Business model .……........................................................................... 3 p d. Performance.……................................................................................ 4 p 5. Specific project analysis …………....…………………........................................ 4 p e. Stakeholders aspirations …………………………………………………... 4 p f. Operational performance …………………………………………………… 5 p 6. Conclusion and recommendation ………………………………………….............. 8 p 7. References …………………………………………………………………………….. 9 p 8. Appendix………………………………………………………..…..............…..…....... 11 p 1. INTRODUCTION This report aspires to critically evaluate the performance of Land Securities and provide enough evidence to allow non-professional investors to understand the Company performance, the market where it operates and decide if investing in Land Securities is...
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...(GAAP) influence in property management industry. The study focuses on two basic accounting principles in valuing assets, which are fair value and historical cost. The property refers to the land and building, as those are the main part of total fixed assets of a company. Asset is the most important element in the balance sheet, hence the method used for assets valuation is very important to avoid over or under estimation. This is the reason why the choice for measurement method is importance in determining the value of assets because it will affects the acquisition price and the comprehensive income of the firm in terms off income and shareholder equity. The author too focuses on the accounting treatment in accordance to International Financial reporting Standard (IFRS), US GAAP and Greek GAAP. With reference to the article, asset can be defined as a good able to provide a constant flow of services such as housing services and a source of cash flow. Assets are ruled by a set of basic aspects such as the cost (cost of land or construction cost), the residual value, the useful life estimation and depreciation charge. These elements are correlated with the type and use form of assets. The author also apply some accounting principles in their study such as prudence, historical costs, substance over form, going concern, true and fair view and many more. Data Methodology/approach The topic is approach by using an integration of fixed assets into four main portfolio categories, which...
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...OF PROJECT Developing the property risk scoring matrix for investors investing in investment grade commercial yield assets. INTRODUCTION At the point when a speculator is putting resources into any benefit, the sole choice is focused around the valuation report. However in valuation report the primary attention is given on deciding the estimation of an advantage. As the Valuer deals with all the danger included in the advantage for deciding the estimation of property yet the these danger are not legitimately imparted to customer for instance the amount of danger is included in useful obsolesce of the benefit. So our gathering is enthused about determining the danger scoring framework for customer that can all the more unequivocally...
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...Portfolio Strategy Assignment Demetrie M. Howard University of Phoenix Introduction The organization I have chosen to plan a portfolio strategy for is O’Connor and Associates. This organization is my current employer and it will be a challenge to create one for them. The organization is a property tax firm, it assist clients with reducing the appraised value of their property, which in turn reduces the amount of property taxes due. The organization is diversifying; it is going into third party collections, judgment recovery, and mortgage loans. This firm has made substantial errors in the past therefore to understand the cause and effect of those errors we will attempt to model their market and business behaviour. This model is an effort to estimate the expected results of alternative strategies and processes. Consumer expectations and other variables as well as technology, the internet, telecommunications and globalization have accelerated the pace of change, and shortened product lifecycles has contributed to this strategic plan. Technology has augmented the capability to amass information and respond to change immediately and analytically. It is also important for corporations to achieve and maintain their competitive advantages. Cash Infusion The cash infusion allocated to enhance the company and to manage is $40 million dollars. Following is the description of portfolio strategy and a portfolio of assets in relation to the investment of $40 million...
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...REIT Analysis Project: Corporate Finance- Dr. Hardin (Fall 2014) Group Members: Clara Arango Derek Croissiert Raymond Diaz Marianela Muniz Alina Plasencia Table of Contents EXECUTIVE SUMMARY 3 BACKGROUND: 3 INVESTMENT STRATEGY: 3 REAL ESTATE PORTFOLIO & TENANT DIVERSIFICATION: 4 DIVIDEND GROWTH: 5 REVENUE GROWTH: 7 RISKS/MITIGANTS: 8 RISK: MARKET RISKS 8 MITIGANTS: 8 RISKS/MITIGANTS: 10 RISK: INTEREST RISK 10 MITIGANTS: 10 MITIGANTS: 11 ANALYSIS: 13 MARKET PREVIEW & HOW THE FIRM FITS IN: 13 GROWING CONSUMER CONFIDENCE: 15 SHAREHOLDER DIVIDENDS INVESTMENT VEHICLE: 16 ACCESS TO CAPITAL: 17 INDUSTRY RANK: 17 EARNINGS TRENDS: 17 COMPETITORS: 18 FINANCIAL STATUS: 19 BALANCE SHEET: 21 INCOME STATEMENT: 22 CASH FLOW: 23 ANALYSIS WITH ASSUMPTIONS & SUPPORT 25 TABLES: 25 EXHIBITS FROM SPREADSHEETS 30 SUMMARY & CONCLUSION 33 REAFFIRMED HIGHLIGHTS: 34 STRENGTH, LIQUIDITY AND PERFORMANCE: 34 OUTLOOK: 35 EXECUTIVE SUMMARY Background: Realty Income Corporation (“Realty Income” or “RIC” or “REIT”) is an equity real estate investment trust (REIT). Realty Income is a publicly traded (NYSE: Ticker symbol “O”) and is also known as “the monthly dividend company” which parallels its dividend payout structure. The Company is engaged in acquiring and owning freestanding retail and other properties that generate rental revenue under long-term lease agreements (primarily 10 to 20 years). In January 2013, it acquired American Realty Capital...
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...Sub-Market Trends Supply and Demand: According to CoStar and Property Portfolio Research (PPR) 3Q 2012 report, the supply is much smaller than demand from 2006 to 2012 in retail submarket----- the 4907 dalas street 5 mile radius submarket. This space is cooled in the past time, during the year of 2010 and 2011. The average demand is 71 times greater than the average supply. The forecasted supply grows fast in 2013 and 2014, but the total amount is still smaller than the forecasted demand. The demand for the 4907 dalas street 5 mile radius sub-market is estimated to drop in the future, however the demand is still higher than the supply, which mean this space is a potential sub market.(Exhibit #18) Exhibit #18: Source: CoStar Occupancy: According to Costar and Property Portfolio Research (PPR) 3Q 2012 report, the 4907 dalas street 5 mile radius submarket has averaged 1.1% greater occupancy than the Denver MSA from 2006 to 2011. The forecasted occupancy for the 4907 dalas street 5 mile radius submarke is estimated using the Costar and Property Portfolio Research. At our anticipated completion date in 2014, the 4907 dalas street 5 mile radius for retail occupancy should be at 93.3% (Exhibit 19). Exhibit #19 Source: Costar & US & Denver PPR 3Q12 Rent Trends: According to Costar and Property Portfolio Research (PPR) 3Q 2012 report, The 4907 dalas street 5 mile radius submarket has averaged $2.1 psf smaller retail rental rents than the Denver MSA from 2006 to...
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...Background / History of the Company(CD) 6 Mission Statement(CD) 7 Business(CD) 7 Major Goals(CD) 7 Corporate Philosophy(CD) 7 Strategic Evolution (KH) 8 Intended Strategies (KH) 8 Emergent Strategies (KH) 8 Stakeholders (AB) 9 Internal (AB) 9 External (AB) 9 General Growth Properties Organizational Structure (KM) 9 Purpose of the Report (CD) 10 External Analysis (KM) 11 Basic Industry Information (AB/KM) 11 Industry Growth (KM) 12 Industry Profits 12 Industry Segments (AB/KM) 13 External/ General (Macro) Environment (AB/CD) 13 General Economic Conditions and Global (CD) 13 Population Demographics(CD) 14 Societal Values and Lifestyles (Sociocultural) (CD) 14 Political, Regulatory and Legal (AB) 15 Technological (AB/CD) 15 Summary of Analysis and Impact (AB/CD) 16 Industry Analysis/Porter’s Five Forces (CD) 16 Threat of New Entrants (CD) 16 Current Rivalry Among Existing Firms (CD) 17 Supplier Power (CD) 17 Bargaining Power of Buyers (CD) 18 Threat of Substitute Services (CD) 18 Industry Attractiveness/Profitability (CD) 18 porters five forces model (JS) 19 Strategic Groups (KH) 19 Internal Analysis (AB) 20 Value Chain Analysis (AB 20 Primary Activities (AB) 20 Inbound Logistics (AB) 20 Strength: 20 Weakness: 20 Operations (AB) 20 Strength: 20 Weakness: 21 Outbound Logistics (AB) 21 Strength: 21 Weakness: 21 Marketing & Sales (AB) 21 Strength: 21 Weakness: 21 Customer Service (AB) 21 ...
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...Strengths: Maintaining a centralized management structure with personal interactions of the owner, Roy Kelley (1970’s). Expanding the business and adding more property agreements with 3rd parties and creating international property chain to make the business gain geographic diversity. Creating brand awareness to the budget traveler under their new branch name, OHANA, providing affordable condos. Creating multicultural environments at good locations with multicultural and multilingual employees. Pleasing employees created less turn-over rates and non-unionized labor market. As a result, this created a differentiated service and created priceless appeal. Having good relationships with local tourism authorities to improve the appeal of destinations the hotel chain operates in. Having a deep local knowledge and community ties. Having above average performance levels of the global industry in Hawaiian market, which directly affects the hotel chain’s success. Being able to compete with other worldwide brand-recognized hotels, Their commitment of hospitality didn’t change even if they added properties (Both on-beach properties/condominiums and off-beach budgeted properties) in their portfolio. Condominiums customers (families with $90,000-$150,000 income) had four times as many reservations coming directly from the Internet, recovering faster after a soft economy. Having centralized services such as accounting, IT, finance, engineering...
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...Property Finance and Tax Assignment 1 Cromwell Property Group Table of Contents 2.0 Introduction 3 3.0 Background of company 4 3.1 Cromwell Property Securities limited 4 3.2 Cromwell Property Services Pty Ltd 4 4.0 Current Quantitative Considerations 5 5.0 Cromwell Position Prior to Global Financial Crisis 6 6.0 2007 Overview 7 7.0 2008 Overview 8 8.0 2009 10 9.0 2010 11 10.0 2011 12 10.1 Hedging 12 11.0 Cromwell’s financial position post GFC 13 End of 2010 figures 13 End of 2007 figures 13 12.0 Comparison to Mirvac Group and Stockland Corp 14 13.0 Conclusion 14 14.0 References 15 Introduction Before the 2007 global financial crisis Australia had a strong property market, the decade of 1999 to 2009 produced a 9.4% (national) average increase in median property values, at this rate, properties doubled in value in less than eight years. Once the affects of 2008 had settled in, a 3.8% decline was apparent in median values. However due to stimulus spending and a historically low interest rates there was a quick rebound. The property market was generally flat for the rest of the year. Continuing to a decline in 2011 with undervalued stocks. This was considered a buyers market, this has been taken advantaged of by a listed property company called Cromwell Property Group. The GFC had resulted in listed companies losing substantial amounts of capital, Cromwell Group was affected however not as bad as other companies...
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...Different models can be used to arrive at the closest estimate of value and yet certain issues will always arise. This case attempts to tackle two approaches in real asset valuation: Discounted Cash Flow (DCF) analysis and the issues surrounding such, as well as the Black-Scholes Model for Real Options. Questions to be addressed in the study are: 1. Evaluate Amoco’s and Apache’s corporate objectives and strategies. Is it reasonable to expect that the MW properties are more valuable to Apache than to Amoco? What sources of value most plausibly account for the difference between buyer and seller? 2. Structure and execute a DCF valuation of all the MW reserves. How much are the reserves worth? Is your estimate more likely to be biased high or low? What are the sources of bias? 3. How would you structure an analysis of MW as a portfolio of assets in place and options? Specifically, which parts of the business should be regarded as assets in place and which as options? What kinds of options are present? Should this approach yield a higher or lower value that the DCF approach? 4. Execute the analysis you structured in Question 3, beginning with assets in place. How risky are the assets that underlie the options; i.e. how would you estimate SD for each? How much is the whole portfolio worth? 5. Assuming a sale goes through, how does Apache exercise each of the various options? When should it do so? BACKGROUND In a case prepared by Barbara Wall at the Harvard Business School, entitled...
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...to the principles, uses and interpretation of regression analysis most commonly employed in applied economics; to provide participants with sufficient knowledge of regression methods to critically evaluate and interpret empirical research. On completion of this module students should be able to: demonstrate understanding of the assumptions and properties underlying regression analysis and the principle of ‘least squares’; interpret and manipulate the coefficients of multiple regression and performance criteria; conduct diagnostic checking of the validity of regression equations coefficients; appreciate the problems of misspecification, multicollinearity, heteroscedasticity and autocorrelation. Content: 1. Simple Regression Analysis 2. Multiple Regression Analysis 3. Dummy Variables 4. Heteroscedasticity 5. Autocorrelation Main Textbook: Dougherty, C. (2011). Introduction to Econometrics, 4th edition, Oxford. 2. Module Name: Computational Finance Code: P12614 Credits: 10 Semester: Spring 2011/12 Programme classes: 12 1-2 hour lectures/workshops Aims: The module aims to describe and analyse the general finance topics and introduces students to implement basic computational approaches to financial problems using Microsoft Excel. It stresses the fundamentals of finance; provides students with a knowledge and understanding on the key finance subjects such as money market, return metric, portfolio modelling, asset pricing, etc.; and equips students with the...
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...Introduction to corporate portfolio analysis Bashundhara Group is one of the leading corporate giant in the business world. It has started operation “For the People, for the country” as a real estate venture known as “Bashundhara” under the aegis of the Group’s first concern – the East West Property Development (Pvt) Ltd in 1987. This project turned out to be a very successful one and had helped foster the growth of trust and confidence of the urban people in “Bashundhara”. More enterprises were established in the early 1990s, the group experienced this tremendous growth in a span of less than 10 years. The Group now has over 20 major concerns located in different areas of the country. The multi-faceted shopping mall and recreation centre called the Bashundhara City has added glamour to the growth of the group. The Bashundhara City Development Ltd is one step ahead in the longstanding effort to strengthen links with the general people through the unique offering of commercial operations and recreation facilities under single roof. Company summary Bashundhara Group is one of the most prestigious and experienced commercial and industrial conglomerates in Bangladesh. The Group took off from the incipient period after establishment of East West Property Development (Pvt.) Ltd. a real estate concern, which is known as “Bashundhara”. Since inception, Bashundhara Group has been actively contributing to the national as well as global economy by way of effective utilization...
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...ScholarsArchive@JWU MBA Student Scholarship The Alan Shawn Feinstein Graduate School 2-9-2012 Analysis of the Real Estate Investment Trust (REIT) Industry Frederic Juillet Johnson & Wales University - Providence, fredjuillet@gmail.com Follow this and additional works at: http://scholarsarchive.jwu.edu/mba_student Part of the Accounting Commons, Business Administration, Management, and Operations Commons, Business and Corporate Communications Commons, Finance and Financial Management Commons, Marketing Commons, Real Estate Commons, and the Strategic Management Policy Commons Repository Citation Juillet, Frederic, "Analysis of the Real Estate Investment Trust (REIT) Industry" (2012). MBA Student Scholarship. Paper 6. http://scholarsarchive.jwu.edu/mba_student/6 This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. It has been accepted for inclusion in MBA Student Scholarship by an authorized administrator of ScholarsArchive@JWU. For more information, please contact egearing@jwu.edu. G Feinstein Graduate School Analysis of the Real Estate Investment Trust (REIT) Industry An industry Analysis Submitted in Partial Fulfillment of the Requirements for the MBA Degree Course: MGMT 6800 Instructor, Gary Gray Ph.D Faculty Advisor, Martin Sivula, Ph.D. Frédéric Juillet February 9, 2012 INDUSTRY ANALYSIS Executive Summary In 2009, most REITs opted for the recapitalization of their balance...
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...Business Plan and Strategy for Fannie Mae: Foreclosure Profit Generation Firmus Consulting Tennessee Technological University MBA Program BMGT 6950 Strategic Management October 7, 2012 Recommendations Issues Facts and Analysis Summary Recommendations Fannie Mae is confronted with two obligations – the first to taxpayers and the second to shareholders. “Goal A” is for FNMA to reduce its portfolio by 15% each year until the end of their government obligation (2018). “Goal B” is to pay back the treasury taxpayer capital to once again retain profit. Once profit is realized, public trading will likely increase. Implementing a rental program on foreclosed homes is a logical and profitable way to both bolster economic growth and incur funds for loan repayment. The homes still have caretakers, so value will not drop further as with most foreclosed buildings. Those homes which are not yet foreclosed upon, but are rapidly approaching, should be considered for a refinanced ARM or low-payment fixed mortgage to prevent foreclosure and ensure sales on the secondary market. The securities required for the 15% reduction should be pooled into CDOs or CMOs where the low-class securities are once again made more attractive through pairing with similarly aged Class-A bonds. If there is a tranche for risky/reliable mortgages which pay an overall higher coupon for the investor, it makes the purchase more worthwhile while the revenue from rentals...
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