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Finance for Non-Financial Professionals
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October 30-31, 2008
Trump International Sonesta Beach Resort
North Miami Beach, FL
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Are you lacking a firm grasp of finance and accounting? Do you need a closer understanding and appreciation of the numbers and the significant reports — i.e., income statements and balance sheets, cash flow, return on investment analyses, and retailers’ financials — as well as a better relationship with the people who report the numbers in your organization?
Finance for Non-Financial Professionals is a comprehensive one and-a-half day seminar that will demystify finance for the non-financial shopping center professional. Unlike most seminars on this topic, the ICSC course will be taught by shopping center experts on finance and accounting, who can explain in “practical terms” what you need to know about applying financial terms and principles as they relate to the shopping center industry.
COURSES:
Talk the Talk
- The basic accounting equations
- Common accounting and finance terms and what they mean—including NOI, FFO, 10K, 10Q, amortization, CAPEX, depreciation, EBITDA, straight line rents.
- Appraisal concepts such as market rents, occupancy rates, recoveries, rate of retention, cap rates, discount rates, and return on investment.
Walk the Walk
- The accounting cycle: What is it? How to work with it.
- The difference between cash and accrual accounting and the proper application of the more popular modified accrual system.
- Accounting for assets, liabilities, revenue, and expenses.
- Debits and credits explained.
- The other GAAP: Generally Accepted Accounting Principles and their application to shopping center practices.
Why Can’t Johnny Read The
Financial Statement?
- How to read and interpret three types of financial statements: balance sheet, operating statement, and cash flow statement.
- How to examine the P & L (profit and loss) statement and understand rental revenues, recoveries, owner’s expense, and profitability.
- Identifying types of assets and liabilities.
- Employing the ten basic steps in preparing a financial statement.
- Utilizing commonly used ratios to evaluate profitability, liquidity, and leverage.
- Applying the lessons to tenant’s financial statements.
It Takes a Lease
- Tracking the payments made by a tenant through the income statement over the life of the lease.
- Calculating the recovery of expense... gross lease vs. triple net...and various types of food court CAM.
- How a tenant improvement allowance is treated in the financial statement and what happens when the tenant vacates.
- The effects of free rent on funds from operations and the center value.
The Business Plan is
Everyone’s Job
- Constructing an aggressive, yet realistic and measurable business plan to increase shopping center productivity.
- Basic elements of a budget for an operating shopping center.
- How cash flow is forecast.
- Reasonableness tests to improve your accuracy when projecting revenues.
- Analyzing variance reports and writing proper variance explanations.
- Components of a redevelopment pro forma.
Show Me the Numbers
- Leasing reports that accurately measure occupancy, productivity and revenue.
- Using sales reports for percentage rent projections and occupancy cost analyses.
- Ten other key indicators the tenant sales reports reveal.
- Managing accounts receivable and collection techniques.
- How to structure proposals and recommendations in terms of hard dollars... and get faster approval.
- Benchmarking, or understanding performance against others.
Have I Got a Deal for You
- Evaluating the financial impact of a proposed lease on rents, recoveries and the funds from operations.
- Measuring a proposed lease against expectations of redevelopment pro forma.
But What’s the Return?
- Calculating return on investment... the true lease yield.
- Considering the cost of funds for investment.
- Overview of debt and equity markets.
- Making sound investment decisions.
- How to evaluate the relative degree of risk for a project.
- Understanding the investor’s hurdle rates.
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