Corporate Valuation | Best Practice

Corporate Valuation | Best Practice

Dominic Burke MRICS

Dominic Burke MRICS

Corporate Valuation Services

dominic.burke@cbre.com

Kate Robinson

Kate Robinson

Corporate Valuation Services

kate.robinson@cbre.com

Corporate Valuation | Best Practice

This article concludes our series on the valuation of corporate real estate. Our first article on Cost Accounting questioned the validity of accounting for real estate at cost rather than Fair Value. The second article on Impairment Testing highlighted the risk of insufficient property knowledge in assessing for impairment. Both articles emphasised the increasing pressure from regulatory bodies and shareholders for greater transparency in financial reporting.

Today we turn our attention to corporate real estate Best Practice. Over the last few years there has been a growing trend amongst the corporate community to greater align the needs of the business with its operational property portfolio. Several corporates now lead the way in implementing a regular valuation programme as a means to support financial reporting and to better inform their wider real estate strategy.

Find out more

Download the full report
Impairment Testing

Impairment Testing

Dominic Burke MRICS

Dominic Burke MRICS

Corporate Valuation Services

dominic.burke@cbre.com

Kate Robinson

Kate Robinson

Corporate Valuation Services

kate.robinson@cbre.com

Impairment Testing

  • The threats companies face if property they own is inadequately tested for impairment
  • Companies perform impairment testing when ‘indications of impairment’ are shown
  • Properties can become impaired for many reasons and this effect is often exaggerated in periods of economic downturn
  • Distribution units single let to retailers proving less attractive.
  • Often when a company’s core business function is removed from real estate, physical asset value is rarely considered and impairment testing becomes an afterthought
  • If impairment is assessed too late it can lead to problems. An obvious example is when a company fails to achieve the anticipated sale price on disposal of a property. Events like this can trigger uncertainty across a wider property portfolio and lead to large scale impairment testing

 

Find out more

Download the full report
UK Monthly Index Call – January 2019

UK Monthly Index Call – January 2019

UK commercial property off to a subdued start in 2019.

  • At the All Property level, capital values fell marginally by -0.1% in January 2019
  • Rental values were flat and total returns turned positive.
  • The Retail sector experienced a -0.7% fall in capital values, while Industrial values increased 0.3% and Office values were flat.

Listen to the January Monthly Index Call

Featuring Nick Knight, Robin Honeyman, David Tudor

Further Reading: Office and Industrial

Uncovering asset level performance

Further Reading: Retail

Uncovering asset level performance

Find out more

Download the full report