Real Estate FP&A Position

Wiggle369's picture
Rank: Chimp | 6

Can anyone provide me insight into the work done in an FP&A position? I've worked in direct acquisition and a great opportunity has come up for a senior FP&A role.

Comments (2)

Most Helpful
Jul 10, 2019

worked as a senior FP&A in a prior life. Great role, great company with excellent management.

I came from a financial analyst for a top MF developer, so was in a similar situation to you. I would say go for it. The FP&A role gave me great insight to how a company truly runs. Meaning, how the cash flows through, and what really drives the decision making. Depending how it is structured, there won't be much you won't be involved in. While FP&A, I was closely involved with acq, dispo, asset management, etc etc. It was a lot of fun doing supplemental prep and quarterly earnings analysis -- much more technical than I ever got on the acquisition side working in PE. below is a list of typical items I remember completing and being involved with..both on the PE side and the FPA side. as you can tell there was a lot of overlap, and also specifics not shared by the other. In summary, FP&A was much more technical and IMO involved a more rounded skill set (AM, accounting, finance, econometrics, etc)...REPE was still technical but more model heavy and really the same 3-4 items (find a deal, underwrite it, find a bank, find a JV partner, build it and monitor it, sell it, calculate returns to it again).

REPE (MF dev/acq):
- bank loan/term sheet underwriting. take terms, and analyze how they effect the deal and which term sheet is best for us
- JV partner modelling...look at waterfall terms, and same as above, analyze how each one effects the deal's returns to us and which is best
- Asset management tracking/performance review. On a monthly basis, review all assets leasing performance and identify problem assets or most importantly soon to be problem assets
- Budget vs Actual analysis...on a monthly basis, review the asset's rev and opex budget vs actuals to ensure we are trending properly...identify any variances and learn why
- disposition analysis...when time came to sell...analyze BOV's and run potential sale terms through our waterfall to give to senior management
- company financial mangement...quarterly board meeting presentation prep, financial data compilation...we had an accounting corporate function so luckily I didn't have to dive too deep on that side
- other one-off tasks that might come up: new portfolio buy sell opps that require large capital , which never end up happening; exec wants a specific analysis run for some item he/she deems a concern; meet with tax appraisers to negotiate/deal with an appeal; meet with banks to ensure draws are working corrrectly, get them items they need; maintain a liquidated value of books at all times, and gross asset value of company

Public traded FP&A role:
- work in acquisitions and much more with Argus as we did majority office
- run regular disposition summaries for potential sale assets
- run accretion analysis for potential acquisitions
- work closely with asset management on budget vs actual analysis...always be on top of where NOI is trending
- on a monthly basis, run the internal company master model...likely the largest and most important part of the job...provides a top to bottom analysis and $/share/ffo projection for analyst guidance
- review monthly financials...not just same store NOI with asset management, but with great detail to below the line items and corporate / GAAP items...especially G&A
- review revolving line of credit balances, and our debt positions to make sure we are still in the money on our obligations
- being public traded, work with banks and audit companies on a number of tasks/reports
- prepare demographic/economic reports to drive acq decisions and markets to target
- summarize/compile financial data for the supplemental filings
- earnings season responsibilities involve mostly everything 10Q/10K related...and is by far the busiest time of the year and also the most critical.
- monitor share prince movement and effect on any potential bond issuance decisions
- large portfolio/company acquisitions involving significant analysis of debt options, equity options, accretion analysis, etc etc.
- prepare one-off reports for CFO/CEO/SVPFnce as requested
- monitor competitor positions and workings within the industry.

    • 5
Jul 10, 2019