CERTIFIED REAL ESTATE FINANCIAL MODELLER

An internationally renowned financial consultant and trainer over the past 18 years. With global experience in the fields of financial analysis, modelling, corporate governance, consultation and training, Hamed has been consistently acclaimed as one of the top financial consultants in many countries around the world. The presenter is widely renowned as a seasoned valuation modelling expert. Hamed is the founder and CEO of Radix Training Academy (Pty) Ltd and cofounder and CEO of Radix Corporate Governance (Pty) Ltd based in Cape Town, South Africa. His clients include multinational corporates, pension funds, asset management companies, among others in South Africa, The United States of America, Hong Kong, Singapore, Malaysia, Saudi Arabia, the UAE and other countries. Hamed is arguably one of the best financial trainers globally. Hamed has extensive training experience. His workshops combine professional knowledge along with excellent presentation skills. Participants’ comments of Hamed’s workshops indicate that they leave with deep understanding of the material

covered and conclusive ability to apply these concepts at their workplace upon completion of his courses. He has substantial experience in training corporate executives on strategic matters including valuation modelling, corporate restructuring, M&A modelling, applied corporate finance modelling, advanced financial modelling using Excel and VBA, attribution analysis modelling and other modelling courses. He currently lectures postgraduate students at the University of Cape Town certain subjects including Valuation Modelling, Portfolio Optimization and Financial Modelling. He is the founder of the charitable organization “Do It Project”. Hamed is a Chartered Financial Analyst (CFA). He qualified with BCom (honours) in accounting - cum laude with first class honour, and BCom (honours) in Financial Analysis and Portfolio Management - cum laude, with first class honour. Hamed’s hands-on training approach is mixed with energy, humour and continuous interaction with delegates. The systematic build up of his workshops ensures a bottom-up explanation, leading delegates quickly from the basics through the more advanced topics.

Hamed Behairy

Expert Trainer

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5 KEY TAKE AWAYS

1Learn how to create a valuation framework for analyzing the financial performance of commercial and investment real estate

2 Learn how to build your own risk analysis and development cost monitor within your models

3Evaluate the outcome of different valuation techniques and recognize the cost of capital for real estate and implement discounted cash flow techniques

4 Learn the methods of practical application of valuation models in investment analysis

5Understand the most widely-practiced property income valuation techniques and be able to crit-ically analyses a real estate investment proposal

Attend this course and address fundamental questions like: » How to conduct Risk analysis, simulation and real

options pricing? » How to calculate the difference between value, price

and worth in the context of property investment? » How to use debt in a real estate investment context

and project cash flows? » How to calculate capitalizations rates in valuing

properties? » How to use commercial property valuations as part

of the decision-making investment activities.

LEARNINGOUTCOMES

This course is aimed at people with several years’ real estate or finance/investment experience:

» Real estate investors and analysts » Real estate managers » Planning and development professionals in real

estate businesses » Property Developers » Bankers and lenders » Corporate financiers » Real Estate Portfolio managers » Finance managers and analysts » Property owners » Hedge fund managers » Mortgage brokers » Private banking Relationship managers responsible

for Real Estate Investments » Anyone pursuing career in real estate

WHO SHOULDATTEND?

PROGRAMTIMINGS

Registration will begin at 08.00 on Day One. The program will commence at 08.30 each day and continue until 16.30. There will be two refreshment breaks and lunch at appropriate intervals.

Delivery Type Group Live

Prerequisites None

Level Advanced

This Program is worth 35 NASBA CPE credits

CASE STUDY

Full Excel model of real estate investment decision analysis of a residential compound in Saudi Arabia including 40 villas with full details including assumptions, waterfall analysis, sensitivity analysis, development cost monitor, project re-turn vs equity return, return on investment and investment management fees among others. It is the model that top professionals typically use in the region.

LEORON Professional Development Institute is registered with the Na-tional Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Spon-

sors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be sub-mitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org

The International Academy of Business and Financial Management™ is one of the world’s fastest growing pro-

fessional associations with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.

December 16-20, 2018 | Dubai, UAE

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» Use of the Present Value of an Annuity Factors » Determining Yields, or Internal Rates of Return, on

Investments

Residential housing projects - Single Family Housing: Pricing, Investment, and Tax Considerations

» Overview » House Prices » Income and Employment » Renting versus Owning » Analysing expected house prices » Economic Base Analysis—Location Quotients » Capitalization Effects: Price Premiums » Investing in “Distressed Properties” » Financial Framework for Analysing Distressed

Properties » Acquisition Phase » Holding Period Phase » Disposition Phase—Exit Strategies » Financing residential properties

Residential housing projects - Underwriting and Financing Residential Properties

» Underwriting Default Risk » Classification of Mortgage Loans » Conventional Mortgage Loans » Insured Conventional Mortgage Loans » FHA Insured Mortgage Loans » VA Guaranteed Mortgage Loans » The Underwriting Process » Borrower Income » Verification of Borrower Assets » Assessment of Credit History » Estimated Housing Expense » Other Obligations » Compensating Factors » The Underwriting Process Illustrated » Conventional and Insured Conventional Mortgages » FHA Insured Mortgages » Guaranteed Mortgages » Underwriting and Loan Amounts—A Summary » The Closing Process » Fees and Expenses » Prorations, Escrow Costs, and Payments to Third

Parties » Statutory Costs » Requirements under the Real Estate Settlement and

Procedures Act (RESPA) » Settlement Costs Illustrated » Federal Truth-in-Lending (FTL) Requirements » Truth-in-Lending Sample Disclosure » Establishing the APR under Federal Truth-in-Lending

Requirements » ARMs and Truth-in-Lending Disclosure

Income-Producing Properties: Leases, Rents, and the Market for Space

» The “Market” for Income-Producing Real Estate » Income Potential—Real Estate Assets » Vacancy » Underwriting Tenants » General Contents of Leases » Leases and Rental Income

COURSE OUTLINE Real Estate Investment: Basic Concepts

» Two General Classifications of Estates » Estates Not Yet in Possession (Future Estates) » Examples of Leasehold Estates » Interests, Encumbrances, and Easements » Methods of Title Assurance » Abstract and Opinion Method » The Title Insurance Method » Limitations on Property Rights » Notes and mortgages » Seller financing » Reconstructing a mortgage loan

Important mathematics in real estate » Compound Interest » Compound or Future Value » Yields on Investment Annuities » Calculating Compound Interest Factors » Equivalent Nominal Annual Rate (ENAR): Extensions » Solving for Annual Yields with Partial Periods: An

Extension » Present Value » A Graphic Illustration of Present Value

COURSE OVERVIEWThe recent turmoil in world financial markets, which has been closely tied to events in the real estate market, sug-gests that investors, lenders, and others who participate in the real estate market need to better understand how to evaluate the risk and return associated with the various ways of investing and financing commercial and residential real estate. The course is designed not only to help dele-gates understand the characteristics of the various vehicles for lending and investing in real estate, recognize the valua-tion techniques practically utilized in the valuation of prop-erties, comprehend the full picture of risk-return analysis in the real estate market, but also to model these concepts in best-practice Excel models. This is the only way to make sure that delegates can apply these concepts professionally and to avoid costly mistakes.

Concepts and techniques included in this 5-days intensive program course are used in many careers related to real estate. These include investing, development financing, appraising, consulting, managing real estate portfolios, leasing, managing property, and managing corporate real estate. This material is also relevant to individuals who want to better understand real estate for their own personal in-vestment and financing decisions.

Every participant in the event will receive a copy of a lead-ing textbook in the real estate investment. The course will lead participants form the basics of the real estate indus-try all the way to the very advanced topics. The presenter, Hamed Behairy, has international reputation in conducting very practical and in-depth training programs. Above all, most of the knowledge will be delivered through actual Ex-cel models that top professionals in this market utilize.

December 16-20, 2018 | Dubai, UAE

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» Leases and Responsibility for Expenses (Recoveries) » Comparing Leases: Effective Rent » Developing Statements of Operating Cash Flow » Case Example: Office Properties » Rent Premiums and Discounts for Office Space » Pro Forma Statement of Cash Flow—Office Properties » Case Example: Industrial and Warehouse Properties » Pro Forma Statement of Cash Flow—Industrial/

Warehouse Properties » Case Example: Retail Properties » The Retail Leasing Environment » CAM Charges—Recoveries » Pro Forma Statement of Cash Flow—Retail Properties

Case Example: Apartment Properties

Valuation of Income Properties: Appraisal and the Market for Capital

» Introduction » Valuation Fundamentals » Appraisal Process and Approaches to Valuation » Sales Comparison Approach » Income Approach » Capitalization Rate » Capitalization Rates—A Note of Caution » Discounted Present Value Techniques » Land Values: Highest and Best Use Analysis » Volatility in Land Prices » “Highest and Best Use” Analysis––Vacant Site » “Highest and Best Use” Analysis––Improved Property » Mortgage-Equity Capitalization » Reconciliation: Sales Comparison and Income

Capitalization Approaches » Exploring the Relationships between Changing Market

Conditions, Cap Rates, and Property Values » A Closing Note on Cap Rates and Market Conditions » A Word of Caution—Simultaneous Effects of Real

Market Forces and Interest Rates on Property Values » Leases: Valuation of a Leased Fee Estate » Cost Approach » Valuation Case Study—Oakwood Apartments » ARGUS Solution

Investment Analysis and Taxation of Income Properties (when investing in tax-paying countries)

» Motivations for Investing » Real Estate Market Characteristics and Investment

Strategies » The “Real Estate Cycle” » Investment Strategies » Market Analysis » Supply of Space » Market Rents » Forecasting Supply, Demand, Market Rents, and

Occupancy » Making Investments: Projecting Cash Flows » Office Building Example » Base Rent » CPI Adjustment » Expense Stops » Net Operating Income » Expected Outlays for Replacements and Capital

Improvements

» Estimated Sale Price » Introduction to Investment Analysis » Internal Rate of Return (IRR) » Present Value » ARGUS Solution » Introduction to Debt Financing » Measures of Investment Performance Using Ratios » Before-Tax Cash Flow from Sale » Summary of Investment Analysis Calculations » Taxation of Income-Producing Real Estate » Taxable Income from Operation of Real Estate » Depreciation Allowances

» Loan Points » Tax Liability and After-Tax Cash Flow » Taxable Income from Disposal of Depreciable Real Property » After-Tax Investment Analysis » After-Tax Cash Flow from Operations » After-Tax Cash Flow from Sale » After-Tax IRR » Effective Tax Rate » A Note about Passive Losses » Special Exceptions to PAL Rules » Approaches to Metro Area Market Forecasting: Basic

Concepts and Data Sources

Financial Leverage and Financing Alternatives » Introduction to Financial Leverage » Conditions for Positive Leverage - Before Tax » Conditions for Positive Leverage - After Tax » Break-Even Interest Rate » Risk and Leverage » Underwriting Loans on Income Properties » Market Study and Appraisal » Borrower Financials » The Loan-to-Value Ratio » The Debt Coverage Ratio » Other Loan Terms and Mortgage Covenants » Alternatives to Fixed Rate Loan Structures » Participation Loans » Lender Motivations » Investor Motivations » Participation Example » Sale-Leaseback of the Land » Effective Cost of the Sale-Leaseback » Interest Only Loans » Accrual Loans » Structuring the Payment for a Target Debt Coverage Ratio » Convertible Mortgages » Lender’s Yield on Convertible Mortgages » Comparison of Financing Alternatives » Monument Office Building Example - ARGUS Solution

with a Loan » Other Financing Alternatives

Risk Analysis » Introduction » Comparing Investment Returns » Types of Risk » Due Diligence in Real Estate Investment Risk Analysis » Sensitivity Analysis » Partitioning the IRR » Variation in Returns and Risk » Retail Case Study - Westgate Shopping Center

December 16-20, 2018 | Dubai, UAE

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» Westgate Shopping Center Scenario Analysis » Westgate Shopping Center - ARGUS Analysis » Lease Rollover Risk » Market Rent » Industrial Case Study - Worthington Distribution Center » Solution with ARGUS » Risk and Leverage » A “Real Options” Approach to Investment Decisions » Traditional Approach to Land Valuation

Disposition and Renovation of Income Properties

» Disposition Decisions » A Decision Rule for Property Disposition » IRR for Holding versus Sale of the Property » Return to a New Investor » Marginal Rate of Return » Refinancing as an Alternative to Disposition » Incremental Cost of Refinancing » Leveraged Return from Refinancing and Holding an

Additional Five Years » Refinancing at a Lower Interest Rate » Other Disposition Considerations - Portfolio Balancing » Tax-Deferral Strategies upon Disposition » Installment Sales » Tax-Deferred Exchanges » Renovation as an Alternative to Disposition » Renovation and Refinancing » Rehabilitation Investment Tax Credits » Low-Income Housing

Financing Corporate Real Estate » Lease-versus-Own Analysis » Leasing versus Owning—An Example » Cash Flow from Leasing » Cash Flow from Owning » Cash Flow from Owning versus Leasing » Return from Owning versus Leasing » Importance of the Residual Value of Real Estate » The Investor’s Perspective » A Note on Project Financing » Factors Affecting Own-versus-Lease Decisions » The Role of Real Estate in Corporate Restructuring » Sale-Leaseback » Refinancing » Investing in Real Estate for Diversification » Real Estate Asset Pricing and Capital Budgeting

Analysis: A Synthesis

Financing Project Development » Introduction » Overview: The Planning Process » The Development of Income-Producing Property » Market Risks and Project Feasibility » Project Risks » Project Development Financing - An Overview » Lender Requirements in Financing Project Development » Loan Submission Information for Loan Requests - An

Overview » Contingencies in Lending Commitments » The Construction or Interim Loan

» Methods of Disbursement—Construction Lending » Interest Rates and Fees » Project Development Illustrated » Sensitivity Analysis, Risk, and Feasibility Analysis

Financing Land Development Projects

» The Land Development Process—An Overview » Financing and Development » Lender Requirements in Financing Land Development » Detailed Cost Breakdowns » Residential Land Development Illustrated » Estimating Development Cost and Interest Carry » Repayment Schedule » Project Feasibility and Profitability » Project IRR and Net Present Value » Sensitivity Analysis

Structuring Real Estate Investments: Organizational Forms and Joint Ventures

» Introduction » Sole Proprietorships » Partnerships » Limited Liability Companies » Corporations » Joint Ventures » Organizational Forms » Profit Sharing » Initial Capital Contributions » Sharing Cash Flow from Operations » Sharing of Cash Flow from Sale » Summary of Cash Flows Distributed in Each Operating Year » Cash Flow from Sale » IRR to Each Joint Venture Party » Variation on the Preferred IRR—IRR Lookback » Syndications » Use of the Limited Partnership in Private and Public

Syndicates » Private Syndication Problem Illustrated » Financial Considerations - Partnership Agreement » Operating Projections » Statement of Before-Tax Cash Flow (BTCF) » Calculation of Net Income or Loss » Calculation of Capital Gain from Sale » Capital Accounts » Distribution of Cash from Sale of Asset » Calculation of After-Tax Cash Flow and ATIRR on Equity » Partnership Allocations and Substantial Economic Effect » Capital Accounts and Gain Charge-Backs » Use of the Limited Partnership in Private and Public

Syndicates » Use of Corporate General Partners » Private versus Public Syndicates » Accredited Investors » Syndicates » Investment Objectives and Policies » Promoters’and Managers’Compensation » Investor Suitability Standards

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How can you list in the US as Real Estate Investment Trusts (REITs) ?

» Introduction » Legal Requirements » Tax Treatment » Violation Penalties and Status Termination » Taxable REIT Subsidiaries » Types of Trusts » Equity Trusts » The Investment Appeal of Equity Trusts » Private REITs » Importance of FFO (Funds from Operations) » REIT Expansion and Growth » Important Issues in Accounting and Financial

Disclosure: Equity REITs » Tenant Improvements and Free Rents: Effects on FFO » Leasing Commissions and Related Costs » Use of Straight-Line Rents » FFO and Income from Managing Other Properties » Types of Mortgage Debt and Other Obligations » Existence of Ground Leases » Lease Renewal Options and REIT Rent Growth » Occupancy Numbers: Leased Space or Occupied Space? » Retail REITs and Sales per Square Foot » Additional Costs of Being a Public Company » The Investment Appeal of Mortgage REITs » Financial Analysis of an Equity REIT Illustrated » Valuing REITs as Investments » Valuation of Midwestern America Property Trust

Real Estate Investment Performance and Portfolio Considerations

» Introduction » The Nature of Real Estate Investment Data » Sources of Data Used for Real Estate Performance

Measurement

» NCREIF Property Index: Property Values » Data Sources for Other Investments » Cumulative Investment Return Patterns » Computing Holding Period Returns » Comparing Investment Returns » Risk, Return, and Performance Measurement » Risk-Adjusted Returns: Basic Elements » Calculating Portfolio Returns » Portfolio Risk » Example - Swap Office for Retail

Practical Case Study: Full Excel model of real estate investment decision analysis of a residential compound in Saudi Arabia including 40 villas with full details including assumptions, waterfall analysis, sensitivity analysis, development cost monitor, project return vs equity return, return on investment and investment management fees among others. It is the model that top professionals typically use in the region.

IN-HOUSE If interested to run this course in-house please contact Goran Gakidev at +971 4 447 5711 or e-mail: goran.gakidev@leoron.com

DISTANCE LEARNING PROG.If interested to run this course with our distance learning program please contact Agron Kurtishi at +971 4 447 5711 or e-mail: agron.kurtishi@leoron.com

December 16-20, 2018 | Dubai, UAE

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TERMS & CONDITIONS

1. Payment Terms for LEORON Professional Development Institute (hereafter LEORON PDI)a. 100% payment of the amount in maximum 15 days upon the receipt of the invoice. b. The payment shall be conducted either in cash, credit/debit card, cheque or bank transfer. c. The stated amount is exclusive of Withholding Tax and other duties, taxes and transfer related charges which if

applicable are payable by the client in addition to the stated amount.2. Cancelation and Postponement Policy

a. All cancelations and postponements shall be done in written form.b. In case of client cancelation:

i. No cancelation fee if the cancelation takes place not less than 14 days prior to the beginning of the course,ii. 50% cancelation fee if the cancelation takes place between 7 days and 14 days prior to the beginning of the course,iii. 100% cancelation fee if the cancelation takes place less than 7 days prior to the beginning of the course,

c. In case of client postponement, i. LEORON PDI issues a credit note which states that the paid amount can be used for participation in any of the

company’s courses which are scheduled in a period of 12 months from the date of the credit note.ii. A 25% postponement fee if the postponement takes place less than 10 days prior to the beginning of the course

d. In case of LEORON PDI cancelation:i. A 100% refund shall be applicable if LEORON PDI decides to cancel the event - the client has an option to receive

a credit note which can be used for any course for a period of 12 months.ii. In case of LEORON PDI postponement - the client may choose to participate on the same course at the later date or

to be issued a credit note which states that the paid amount can be used for participation of any of the company’s courses which are scheduled in a period of 12 months from the date of the credit note.

3. Selection of Trainer and LocationSelection of the trainer and training location shall be at the discretion of LEORON PDI. Every effort shall be made to maintain continuity, but, if necessary, LEORON PDI can change the trainer and training location any time prior to commencement of the course.

4. Intellectual PropertyThe copyright, intellectual property and design rights of the learning materials are property of LEORON PDI and its expert trainers. It cannot be copied, shared or reproduced without prior written consent of LEORON PDI.

5. Health and SafetyThe clients must conform to and comply with the Health and Safety Policy and Procedures as laid down by LEORON PDI or its partner organizations when the course is delivered in leased premises. Breaches of these policies and procedures may result with the client being suspended or excluded from the course and premises.

6. Complaints and Refunds Procedurea. LEORON PDI shall deem relevant the following types of complaints:

i. If the contents of a course or the training materials are incorrect or inappropriate.ii. If the duration of the course is significantly different to that invoiced.iii. If the conduct or actions by the LEORON PDI trainer are inappropriate or offensive.iv. If the training delivery is not on a satisfactory level

b. Enquiries and complaints shall be made in written form and have to contain sufficient detail to allow LEORON PDI to compile an official written response.

c. All official enquiries and complaints shall be submitted electronically to Val Jusufi, Managing Director of LEORON PDI, at val@leoron.com

d. LEORON PDI shall officially respond to the complaint no later than 7 days from the date of its reception.7. Force Majeure

LEORON PDI shall not be liable to the clients or be deemed to be in breach of any agreement it has concluded with them for any delay in performing or failure to perform any of the LEORON PDI’s obligations in respect of the services if the delay or failure was due to any cause such as war, warlike activities, fire, storm, explosion, national emergency, labor dispute, strike, lock-out, civil disturbance, actual or threatened violence by any terrorist group, newly enacted law or regulation or any other cause not within the control of LEORON PDI.

8. Governing LawThis contract shall be governed by and construed in accordance with the Laws and Regulations of the DMC-CA Authority in Dubai, UAE.

I have read and agreed to the following terms and conditions!

COURSE DETAILSCERTIFIED REAL ESTATE FINANCIAL MODELLER

Date: December 16-20, 2018 Location: Dubai, UAE

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COURSE FEE: US$ 4390SAVINGS & DISCOUNTS

GET US$ 400 DISCOUNT if you register 2 months before the course

GET US$ 200 DISCOUNTif you register 1 months before the course

GROUP DISCOUNTS*

3-4 Delegates 20%

5 Delegates 25%

*please note that all group discounts are given on the original course fee** all prices are VAT-exclusive.

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