Real-Estate Funds Risk Management
Main Features
Real-Estate Risk Drivers
To this effect, RiskValue incorporates an extensive liquidity forecasting framework spanning over multi-year horizons using existing detailed Lease, Financing, and Collateral agreements combined with real estate risk driver such as:
- Inflation rates
- Renewal rates
- Absorption periods
- Default rates
- Rent indices
- Property value indices
- Maintenance costs
- Energy costs
- Income, Property value, and other taxes
Stress-Testing
Stress scenarios can be derived using all of the above and other real estate risk drivers in order to obtain a detailed liquidity profile of the fund at future periods for the baseline and different stress scenarios under consideration. Various analytics including liquidity coverage, loan-to-value and other ratios are presented in comprehensive reports.