Ann: AOG Half Year Results Presentation, page-21

" Fair value has been determined by Directors’ valuation using the discounted cash flow valuation
methodology. These valuations are based on projected cash flows using resident contracts and the
current market value of individual retirement units. In determining these market values, a rolling
program of external valuations is undertaken so that each unit is independently valued every three
years. During the intervening period, management separately assesses the value of individual units
on a six-monthly basis to incorporate current pricing and market conditions. "

They are saving some money by only doing an independent val every 3 years on every unit, but they wouldn't be far off if they apply the valuers assumptions to other units that are not evaluated in that period. They wouldn't be expected to have much wriggle room with the auditor on this, unless they are dealing with an Arthur Anderson, which is unlikely. IMO the assumptions seem to be reasonable as far as discount rates and property value capital growth are concerned. They have cut the property growth rates in the latest update, and raised the average tenure by half a year. So the current number is more conservative than it has been in recent times - I imagine dictated by the latest val reports they have received.

All IMO