Cash Flow forecasting – Roundtable event

The RES Roundtables gather individuals responsible for modelling real estate assets and portfolios. The purpose is to discuss any deficiencies in data or analytical techniques and to specify the solutions required (hence the interest of RES).

We would like the discussion to reflect the industry, so to ensure the conversation is balanced we ask participants to contribute their ideas, experience and insights. Malcolm Frodsham will run the session and notes of the discussion will be distributed after the event.

The previous RES Roundtable focused on income risk. We discussed the pros and cons of incorporating income risk drivers directly into the cash flow, versus capturing the risk in the discount rate. We also discussed the implication of income risk for the required return from a property, particularly in the portfolio context.

Although the largest component of the return from real estate is income, the largest component of return volatility is from the capital component. So how should this capital risk be modelled?

As before RES will put forward an approach for the groups consideration. The approach raises questions for debate on data availability, investment theory and practicality. We expect a variety of opinions in the room so we hope that you can join us on the 13th June.

The session will take place over a light lunch in the We Work building at 1 Fore Street.

Please email alex.roebuck@realestatestrategies.co.uk for further details or to register your interest.