The release of the AIMR (now GIPS) Standards in 1993 was the first step in the standardization of real estate performance returns. However, the GIPS Standards provided guidance primarily on presentation and disclosure, and very little on the calculation of real estate performance. The Real Estate Information Standards (1995) furnished performance measurement calculation standards through the presentation of industry standard formulas and related guidelines. The release of the NCREIF Performance Returns Workbook followed in 1996, providing more detail and practical guidance on the calculation process, including explanations of the inputs to the standard formulas, sample Excel spreadsheets for performing the required calculations, data sources and suggested calculation techniques for various situations.
The Calculation of Real Estate Performance Returns Seminar steers the participant through the Workbook. The Workbook provides the user with spreadsheet templates and explanatory narrative; the Seminar is a hands-on journey through those templates, with detailed discussions of the narrative and the spreadsheets.
Sitting at individual computers and working with Excel spreadsheet templates, the class reviews the inputs, formulas and calculations that generate the Investment-Level and Property-Level returns used in today’s institutional real estate environment. Each formula is examined and the inputs reviewed. The linking process that produces multi-period returns is explained and demonstrated. Finally, recommended guidance for a variety of return scenarios is presented and discussed.
The last hour of the seminar will include advanced excel techniques to make your work more efficient, more fun and more impressive. These tips and tricks will help you analyze the volumes of returns and data that you work with everyday. Specifically, we will learn ways to organize your spreadsheets, excel formulas for calculating returns and pivot tables and pivot charts for slicing, dicing and viewing the data. Excel is a powerful tool, so let’s learn how to leverage it to make our jobs more creative and more productive.
The Calculations of Real Estate Performance Returns Seminar is recommended for anyone responsible for the calculation, review, or reporting of time-weighted real estate returns.