Serious investment thinking that doesn’t take itself too seriously.
Our professorial contributors illuminate the latest academic research in real estate and economic policy
Discounted cash flow (DCF) modelling seems to be emerging as a mainstream valuation procedure in the United Kingdom. The November 2023 RICS paper “calls for…greater consideration and, where appropriate, adoption of explicit discounted cash flow (DCF) methods for valuing [real estate investment]...
“The only constant is change, everything else is a variable” Heraclitus, 535 BC. The mantra above is one of my favourite quotes which I have referenced throughout my real estate...
In the last Property Chronicle, we considered a simple conceptual framework for assessing market mispricing. This involved comparing the market cap rate (K) with a cap rate...
The decision by the Bank of England’s rate-setting committee to reduce Bank Rate from 5.25% to 5% on 31 July was clearly a nail-biting affair, succeeding by the narrowest of...
Centuries are a bit like late-blooming teenagers; they don’t really develop their full character until their mid-twenties. The electric, modern age of the 20th century didn’t...
The investor's conundrum. The first quarter of the 21st century has been a rough ride for financial markets and consequently for the investors that they serve. Is there any good...
I’ve taken part in industry events recently discussing target rates, discount rates, hurdle rates and their relationship to yields—partly in the context of the RICS recommendations on use of DCF in valuations following the Pereira-Gray report.
It is also tempting to look backwards to see what the delivered risk premium has been on real estate over time.
As a professor, I have probably spent a full decade of my life in the classroom trying to explain the concept, the detail, the assumptions and the need for market anchoring in...
Property fund managers are currently under significant pressure. The current higher interest rate environment, sustainability necessities and the macro and micro impact of...