Real Estate Portfolio Optimization Midpoint Presentation Monday - PowerPoint PPT Presentation

Real Estate Portfolio Optimization Midpoint Presentation Monday March 4, 2019 Iowa State University Senior Design ARIN: Analytics Research Intelligence Network analytics@scale Classification: Company Confidential

The Team Blake Kevin Nickolas Roberts Johnson Moeller Project Lead / Quality Control / Report Manager / Backend Frontend Backend Software Computer Software Engineering Engineering Engineering Leelabari Colton Goode Fulbel Meeting Scribe / Backend Meeting Facilitator / Frontend Computer Engineering, Management of Software Engineering Information Systems 2 Classification: Company Confidential Classification: Company Confidential

BLUF Bottom Line Up Front Our mission is to design and develop a portfolio optimization system that meets the unique needs of a commercial real estate portfolio manager. Project Scope 1 2 3 Gather requirements. Master the real estate Design the system and Test, iterate, and report out. domain and portfolio create a working prototype. optimization. 3 Classification: Company Confidential

Intro to Portfolio Optimization The Problem and Plan Agenda Demonstration Next Steps 4 Classification: Company Confidential Classification: Company Confidential

Intro to Portfolio Optimization The Problem and Plan Agenda Demonstration Next Steps 5 Classification: Company Confidential Classification: Company Confidential

Calculate Inputs Local Knowledge Portfolio optimization requires Allow the user to express their estimates of expected return and beliefs about a given asset, the asset covariance matrix market, lifecycle, or property type 2 1 Portfolio Optimization Algorithm searches for the The user defines portfolio 3 Compare thousands of runs to 4 constraints. mixture of assets that minimizes identify the best strategies or maximizes the objective e.g. The portfolio’s allocation to function (e.g. risk-adjusted NYC must be 35-40% return) Optimize Define Constraints 6 Classification: Company Confidential

Balancing Risk & Reward Help PMs efficiently allocate capital and reduce portfolio risk 7 Classification: Company Confidential

Intro to Portfolio Optimization The Problem and Plan Agenda Demonstration Next Steps 8 Classification: Company Confidential

The Problem The Solution No portfolio optimization currently being A Software that enables PM’s to optimize done in house and compare their portfolios in real time Market level data analysis is outsourced Control data visuals through Microsoft’s - Costar is expensive, slow, and Power BI uncustomizable 9 Classification: Company Confidential

System Block Diagram 10 Classification: Company Confidential

Quality of Approach Strengths Weaknesses Challenges Dash Modern Portfolio Theory - callbacks limit UI possibilities Markowitz Optimization - can’t use JQuery Dash UI/UX - difficult to use JavaScript Power BI Integration 11 Classification: Company Confidential

Intro to Portfolio Optimization The Problem and Plan Agenda Demonstration Next Steps 12 Classification: Company Confidential

App Demo Classification: Company Confidential Classification: Company Confidential

Intro to Portfolio Optimization The Problem and Plan Agenda Demonstration Next Steps 14 Classification: Company Confidential

Next Steps Real Time Results UI Iteration and User Documentation and Testing Handoff Optimization results need Iterate Power BI dashboard Document code and be sent to Power BI for design procedures visualization Iterate web application Deliver all project interface design materials to the Principal Data Science team 15 Classification: Company Confidential

Project Timeline Sometimes you will want to use a subtitle​ Connect database to dashboard Current progress Update the dashboard automatically Perform optimization with Semester and Project End with newly formed optimization data constraints March Embed a Power BI dashboard 11th, 2019 April 29th, 2019 - May 3rd, 2019 May 9th, 2019 March 4th, April 1st, 2019 2019 Authentication Final Automatic authentication Presentation so anyone can view the ISU CPRE 492 optimization results requirement 16 Classification: Company Confidential

Thank You – Questions? Classification: Company Confidential Classification: Company Confidential