Hi Steve,
Christian Chartier

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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