Ann: Affinity enters contracts to acquire 20 centres, page-4

I believe they were bought at c. 5.2x. The definition of forward EBIT is likely the difference between the multiples. There is no way GEM is buying large inner city centres at 4x while AFJ is buying less central smaller centres at 5x+. My guess is the AFJ calculation is likely less optimistic in terms of EBIT calculation.

I believe AFJ is trying to move the market towards thinking about EPS accretion, which rightly or wrongly is what most people really focus on in terms of M&A in most industries, rather than a GEM defined 4x EV/EBIT multiple.

However, it would be helpful if AFJ gave some quantum of the EPS accretion.

In any event, AFJ appears to be executing well and clearly feel comfortable enough with their integration to start buying more centres.

Let the PE re-rate continue - AFJ at 10x v GEM at 18x and both growing strongly.