Briefings in Real Estate Finance 

About: Briefings in Real Estate Finance is an academic journal. The journal publishes majorly in the area(s): Real estate & Real estate investment trust. It has an ISSN identifier of 1473-1894. Over the lifetime, 65 publications have been published receiving 356 citations.

Structural breaks, diversification and international real estate markets — some new evidence

Abstract: This paper presents further evidence that real estate markets around the world are interrelated. Although it is shown that an initial examination may reveal that international real estate markets are not linked, once structural changes are accounted for, it becomes apparent that there are long-running relationships in securitised real estate returns across the world. This paper also shows that monetary changes in the USA – the world's leading economy – can impact on international real estate markets. This has major implications for investment and fund managers alike, who must reconsider the benefits of international real estate diversification. Copyright © 2002 Henry Stewart Publications

Managing risk in apartment development

Abstract: Multifamily investment is popular with US institutional investors at present despite weak fundamentals in the rental market. There is evidence that apartments provide some protection from recessionary forces and are the first product type to recover from a downturn. Capital flows have increased to the sector, putting downward pressure on capitalisation rates. Development of new stock allows investors to capture the spread between return on cost to build and capitalisation rates on existing properties. Managing the risks inherent in development is a different prospect than underwriting existing properties. This paper examines methods for managing the risks associated with construction, marketing, financing and interest rate risk, among other factors. Copyright © 2002 Henry Stewart Publications

A critique of using real options pricing models in valuing real estate projects and contracts

Abstract: Discounted cash flow (DCF) models have been criticised for using risky discount rates and subjective estimates of future cash flows. In addition, DCF models do not incorporate valuations of implicit options imbedded in capital projects. Recently, researchers have applied real options pricing models to evaluate real estate projects and contracts. However, the required assumptions and criteria for using these models may be absent in real estate projects, which raises the question whether these models produce better results or create more uncertainties for end users. This paper contains a review of the conditions and methods that have been proposed for applying real option models in real estate valuations. Copyright © 2002 Henry Stewart Publications

Risk assessment in development lending

Abstract: This paper looks at one approach that lenders can use to assess the risk of property development loans. It focuses on a pre-approval analysis of several key elements of the construction process and presents a means of developing an overall risk rating for a given project to assist the underwriter with the approval and pricing process. In addition, the paper reviews the post-approval requirements for the appointment of qualified consulting professionals and the information required from them, enabling the lender to react immediately to any major construction or cost variance. It also includes an attempt to clarify ‘cost to complete’, a confusing concept used to ensure that sufficient funds remain at all times to complete the approved project. Copyright © 2003 Henry Stewart Publications