Serious investment thinking that doesn’t take itself too seriously.
Our professorial contributors illuminate the latest academic research in real estate and economic policy
Central banks hate shocks, but the shocks they hate the most are adverse supply-side shocks: the kind that simultaneously threaten to damage economic activity and inflict upward pressure on prices. The US president is the personification of a supply-side shock, a one-stop shock machine. Despite...
Like all economies, the UK needs better infrastructure in order to function more efficiently. It also needs more infrastructure in order to provide more people with essential...
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...
“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.