What I don't Like ABout AOG, page-46

The ROA is still very low on this company, but as a lot of the income is deferred, you need to keep an eye on the future entitlements instead. Book Value does a good job of this, as long as the valuers are doing what they normally do. So the retirement village portfolio is on the books at a discount rate of 13.5% midpoint. But then you have head office costs, interest etc to deduct, but there is still a fair return coming to you, and if you can buy well under book value you might actually get that 13.5% pre tax long term, without taking too much risk.

Many people really love living in these retirement villages - I haven't personally met anybody living in one that didn't know the deal before they bought in, not that I meet so many. My grandparents certainly knew the deal inside out, and made jokes about the village hitman coming to get them.