This study suggests a model to analyze the inflationís hedging characteristics of direct real estate investments taking into consideration the lease structure, the indexationís typology and the current and forecasted state of the market. Using both Monte-Carlo simulations for the price of the...

This paper aims to show that the accuracy of real estate portfolio valuations can be improved through the simultaneous use of Monte Carlo simulations and options theory. Our method considers the options embedded in Continental European lease contracts drawn up with tenants who may move before...

This paper aims to show that the accuracy of real estate portfolio valuations can be improved through the simultaneous use of Monte Carlo simulations and options theory. Our method considers the options embedded in Continental European lease contracts drawn up with tenants who may move before...

This paper aims at showing that using simultaneously Monte-Carlo Simulations and options theory may improve real estate portfolio valuations accuracy. Our method considers the options embedded in lease contracts, especially as conceded to tenant in continental Europe. We combine Monte-Carlo...

Real Estate valuation in France has known dramatic improvements since sophisticated Anglo-Saxon investors came to buy large portfolios of assets using the discounted cash-flow technique. We argue that the DCF approach is probably a first step into the financial revolution of Real Estate, and...

Yields and capitalisation rates have remained untouched for some months now, yet the rental markets have been down significantly. One can say it is due to the flow of capital in a context of depressed bonds and stock markets: but would this be considered irrational? The interest rates, quite...

[abstract missing - contribution appeared in the programme]

"Real estate prices across Europe offer, for homogenous types, quite comparable yields. But are risk levels that close together? What about different lease structures and the related flexibility granted to occupiers? Bearing in mind the separation of real estate occupiers and investors markets,...

Purpose – The purpose of this paper is to demonstrate the impact of lease duration and lease break options on the optimal holding period for a real estate asset or portfolio. Design/methodology/approach – The authors use a Monte Carlo simulation framework to simulate a real estate asset’s...

The purpose of this paper is to exhibit the impacts of lease duration and lease break options on the optimal holding period for a real estate asset or portfolio Methodology / approach We use a Monte Carlo simulation framework to simulate a real estate assets cash-flows in which lease structures...