B8336: Real Estate Portfolio Management
Prof. Michael Giliberto
mg2786@columbia.edu
Course Description
This six-week course (offered in the A term spring 2015) provides students with an
understanding of challenges real estate portfolio managers face and some possible
solutions. The focus is “macro” aspects of portfolio management rather than decisions to
buy or sell individual assets. A couple examples: (1) How much more return should one
receive for taking on higher levels of risk? (2) What key decisions affect performance?
The majority of time will be spent on private equity real estate, although a segment on
fund-of-funds approaches and/or portfolios that mix private and public market
investments may be included.
After completing this course students should be familiar with issues that arise in
designing a portfolio strategy, managing diversification and liquidity and measuring
performance and risk.
Please be aware that content order and assignments may change from what is
printed below. Changes will be announced and posted to Canvas in advance. However, it
is unlikely that assignment due dates will vary.
Method of Instruction
Class sessions will be made up of lectures, guest speaker and student presentations and
discussions. There will be several assignments, including a final project. All are group
assignments. The final project is due after class meetings have ended. Grading will be
based on class participation and written assignments.
Pre-Readings: Pre-reading assignments will be posted to Canvas. All reading
assignments must be completed prior to the class session. Students who have not taken
Real Estate Capital Markets should anticipate a heavier reading load before the first class
meeting.
Expectations and Grading
Grading will be based on two components:
Written assignments (80%)
There will be three written assignments. These assignments are done in teams of two or
three people. Each team turns in a single paper, and all members receive the same grade
for the assignment. The final project will be due after class sessions end. The final project
is weighted more heavily than the other two assignments.
Class participation (20%) Grades will be based on the frequency and relevance of
contributions to class discussions.
I anticipate a grade distribution consistent with that promulgated by GSB for elective
courses.
Spring 2015 Syllabus
Tuesdays, 9:00am to 12:15pm, Uris333
Session 1
01/27
Course Overview, Portfolio Strategy Framework
1. Course housekeeping
2. The levers of portfolio strategy
3. Benchmarking and performance analysis
4. Core open-end fund performance example
Session 2
02/03
Open-end Core Portfolios
1. Presentation on performance attribution by Investment Property Databank
2. Discussion and takeaways from presentation
3. Liability and liquidity management
Session 3
02/10
Written Assignment Due
Risk, Return, Diversification and Structure
Core fund sector rotation analysis
1. Presentation and discussion of assignment
2. Diversification dimensions
3.
Dissecting portfolio risk
Session 4
02/17
Higher Risk Real Estate Portfolios
1. (TBD) Presentation by outside speaker on non-core, i.e., value-add and opportunistic
portfolios
2. Comparison with core portfolio: what needs to be different when running a higher risk
strategy?
Session 5
02/24
Written Assignment Due
Managing a Global Portfolio
How much more return should an investor get for more
risk?
1. (TBD) Presentation by outside speaker on global strategies
2. Comparison with core portfolio: what needs to be different when running a higher risk
strategy
Session 6
03/03
Portfolio Manager Summit
1. Presentations by and conversations with real estate portfolio managers.
2. Course summary and wrap up.
FINAL PROJECT: Will be due on March 10. There is no class meeting that day.