Hi Steve,
Christian Chartier
1

Thanks Christian. Real estate investors typically value lease income using cap rates whereas most operational investors are more comfortable thinking in terms of multiples. However, the terminology isn’t important — the multiple is just the inverse of the cap rate so a 7% cap rate is equivalent to a 14.3x pretax multiple. There was no science behind the 6x pretax multiple for the other segments. They are very small compared to total company value and I wanted to be conservative. Let me know if you have any thoughts or questions.

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