Real Estate Rules - Harm Meijer

Biographie:

Foreword xiii?

Preface xix?

Introduction - A Sector Not to Be Ignored 1?

Real Estate Is an Important Asset Class 1?

Two Undesirable Features of Real Estate 5?

Listed Real Estate Has Attractive Features 6?

But Listed Real Estate Is Not Always Preferred (Although It Should Be!) 8?

Listed Real Estate Is a Great Hunting Ground and Poised for Growth 9?

Book Organisation 11?

Notes 12?

The 20 Golden Rules of Real Estate 13?

Part I Real Estate 15?

Chapter 1 High Yield for a Reason 17?

How Is the Yield Exactly Calculated? Is It 'Dressed Up'? 18?

Is It a Good Asset? 19?

Chapter 2 Look for a Rent Compounding Machine with Minimum Capex 21?

Real Estate with Strong Supply/Demand Dynamics 22?

Ability to Capture Rental Growth Potential 29?

Minimum Capital Expenditure and Incentives 33?

Chapter 3 Scan for Value Add Potential 35?

Refurbishment, Extension and Alternative Use 35?

Cluster or Platform Creation 36?

Development 36?

Acquisitions and Disposals 37?

Services 37?

Chapter 4 Real Estate Is Cyclical 39?

Warning Signs 40?

Taking the Contrarian Side 44?

Note 45?

Chapter 5 Expected Returns Should Beat Cost of Capital 47?

Yield and Price per Square Metre 48?

Expected Return 48?

Beat the Cost of Capital 49?

Conservative Underwriting 51?

Act! 52?

Chapter 6 Central Bank and Government Stimuli (or Lack of) Can Be Game Changers 55?

Central Banks Tend to Get Their Way 58?

Engineered Volatility, but ... 58?

Bail Out if 'Majority Is in Trouble' 59?

Stimulus or Restrictive Policy Will End One Day 59?

Arbitrage Opportunities Opening Up 59?

Part II Capital Structure 61?

Chapter 7 Prudent Use of Financial Leverage: Don't Get Caught Out by Downturns 63?

Capital Markets Do Not Reward High Leverage, the Opposite! 64?

Loose or No Covenants 65?

Can Absorb a Value Decline of at Least 40% 65?

No Endless Leverage on Valuation Gains 66?

Increasingly Difficult to Degear above 50% LTV 67?

Note 69?

Chapter 8 Don't Assume That Financing Will Always Be Available 71?

Sufficient Cash Flow 72?

Spread in Maturities and Lenders 72?

Equity Should Be Raised When Conditions Are Favourable 72?

Alternative Financing 73?

Good Relationships with Debt Providers 73?

Rights Issues Value Destructive in Downturns 74?

Notes 78?

Part III Management 79?

Chapter 9 Continuous Value Creation Is Key 81?

Value Creation Leads to Superior Shareholder Value 81?

Optimising Total Returns from the Real Estate (ROIC) 83?

Optimising the Capital Structure (WACC) 84?

C?ur D?fense - An Example of Strong Value Creation 85?

M&A Can Add Value, But Frequently It Has Not 90?

Notes 97?

Chapter 10 Radical Action Needed in Case of Shareholder Value Destruction 99?

Change Management, Board and/or Governance 100?

Return of Capital 100?

Circle Property Trust: Liquidating Itself 101?

Chapter 11 Overconfidence Leads to Downfall 103?

Capital & Regional - The Remarkable Example of Overconfidence 104?

Chapter 12 Corporate Governance Should Be Top Nudge 107?

Risk Management 109?

Transparency 110?

Governance Dynamics 110?

Remuneration 111?

Compounding Goodwill 115?

Part IV Investing in Listed Real Estate 117?

Chapter 13 Scrutinise Property Investment Vehicles 119?

Sommaire:
HARM MEIJER is a Founding Partner of the real estate fund manager ICAMAP, with a strong track record in listed real estate. Before ICAMAP, he worked as a real estate analyst at ?JP Morgan, during which time he was ranked number one six times by Institutional Investor and five times by Extel. He has also held board memberships, contributed to EPRA, and is a frequent industry speaker....