Financial modelling

Question 1

walk me through your UK PBSA portoflio valaution, what was the purpose of sensitivity analysis?

Answer 1

“adjusting the discount rate and terminal capitalisation rate
by ±100 basis points in increments of 25 basis points. This analysis
demonstrated how fluctuations in these critical valuation parameters
could impact the portfolio’s value, providing insights into its sensitivity
to changes in inflation and interest rates. “

Question 2

what was the discount rate and terminal cap rate for PBSA?

Answer 2

case by case basis , by normally i see 7% DR, 5-6% Terminal cap rate

Question 3

what key valuation assumption you have assumed in the DCF mdoel analyssi under financial modelling?

Answer 3

i consutrcuted a dcf model to double chekc the valuation from the valuer. first, I collected rental comparables to find out the market rent for the industrial portoflio in Milan (italy), and cross check with local agents

and then put on a suitable discount rate (7-8%) and terminal cap rate (5-6)for each assets which is supported by various reports published by the established and checked it against the model provided by the valuer.