Alternative Income Reit Plc

0.60 (0.86%)
Share Name Share Symbol Market Type Share ISIN Share Description
Alternative Income Reit Plc LSE:AIRE London Ordinary Share GB00BDVK7088 ORD GBP0.01
  Price Change % Change Share Price Shares Traded Last Trade
  0.60 0.86% 70.10 29,456 14:16:44
Bid Price Offer Price High Price Low Price Open Price
69.20 71.00 70.10 69.50 70.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trust 8.10 13.17 16.40 4.34 56.43
Last Trade Time Trade Type Trade Size Trade Price Currency
16:27:10 O 5,699 70.7624 GBX

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Date Time Title Posts
05/5/202312:24Alternative Income REIT - Long leases, High yield, good NAV discount820
21/1/202212:21Alternative Income REIT PLC1

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Alternative Income Reit (AIRE) Most Recent Trades

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Posted at 08/3/2023 11:58 by spectoacc
Opposite IMO, the IC have some great analysis, some good writers on the property side, but Tommo is & has always been Sir Rampalot. His following's sufficiently large to ensure his tips always go up, but he buries the bad ones pretty quickly.

As @Makinbuks points out, he has only a superficial knowledge of AIRE, but having tipped it previously, will likely keep doing so.

Posted at 08/3/2023 09:05 by cwa1
Thommo tips AIRE in the IC:-

In the first half, operating profit of £3.5mn covered interest costs of £0.71mn almost five times, leaving surplus cash to reward shareholders with two quarterly dividends of 1.375p a share that were well covered by interim EPRA earnings per share (EPS) of 3.45p. The payout was up almost 6 per cent on the same period of 2021. The board forecast a fully covered payout of 5.7p a share for the 12 months to 30 June 2023, implying the shares offer a prospective dividend yield of 8.5 per cent and are rated on 10 times projected earnings.

Furthermore, a deep 20.5 per cent share price discount to NAV offers investors a ‘margin of safety’ to counter the risk of further falls in commercial property values. Interestingly, property consultancy CBRE made the case that commercial property prices are likely to stabilise this year in its UK Real estate market outlook for 2023, noting that the spread over gilt yields will be tighter than in the past decade. They also believe that income returns, rather than capital, will drive commercial real estate returns in the coming year. I concur.

So, although the share price is no higher than it was five months ago (‘Targeting high yield property bargains’, 3 October 2022), the improvement in the UK economic outlook and pullback in UK government gilt yields since the autumn greatly mitigate investment risk for income seekers looking to lock in a secure chunky dividend. Buy.

Posted at 06/3/2023 13:55 by nickrl
@makinbuks the RNS refers to it as 47k sq ft but not clear if building or land although looking at Hoddeson Energy accounts they refer to lease commitments as to being for land. Anyhow plot is a bit awkward its next to a gas fired power station so shouldn't be too much issue turning it into warehousing although that would need AIRE to sell it on we don't want them getting into capex. Its still got nine years till a break but depends on whether the various part owners are liable or not to provide guarantees or whether they could walk away from it.

Posted at 06/3/2023 12:07 by makinbuks
Thanks Nick, good summary

Hoddeson is indeed a concern. Mothballed for a year now. Comment in the last full year results that they are looking for a buyer. Represents c. 5% of annual rent and valued at £5m back then. Any idea the structure of that deal? Looks like it was a c. £80m investment presumably project financed. Looks like Mcquarrie were in there. Is the AIRE asset just the land?

Posted at 06/3/2023 09:15 by spangle93
Half year results to 31 Dec out this morning


"During the period under review the real estate sector as a whole has seen an upward movement in property yields, which therefore results in a downward movement in valuations. The Company's portfolio was not immune to this adverse movement and for the half year ended 31 December 2022 the Group's net asset value showed a fall of £9.7 million to £67.9 million (30 June 2022: £77.6 million) [equivalent to 84.34pps]... That said, the portfolio has shown some resilience as the valuation fall has, in the main part, been materially lower than the benchmark property indices and the Company's peer group.

"The half year results reflect the resilience of the Company's portfolio, and the Company remains on track to deliver the Board's previously announced target annual dividend of at least 5.7 pence per share1 ("pps"), which is expected to be fully covered.

Whilst not immune from the headwinds affecting the UK and wider global economy at the present time, 96% of the Group's portfolio benefits from index-linked rent reviews. Combining this with a strong balance sheet, modest overheads and low fixed borrowing costs until 2025, helps ensure the Company is well positioned to ride-out successfully the current economic storm and to continue to deliver attractive, secure and progressive income to our shareholders."

Posted at 02/2/2023 08:41 by frazboy
"AIRE now covering the dividend very nicely at 136% could bode well for a top up later in the year as long tenants stick around"

Anyone else bemused by that figure? The 136%.

This was from the August 3rd annoucment:

"The Adjusted EPS was 1.36 p for the quarter giving a total of 5.55 pps for the year (2021: 5.07 pps). The dividend cover for the year was 100.9%, which compares favourably with the prior year's cover of 99%."

That's quite a leap in cover - anyone care to hazard an explanation? If the cover were to stay at that level - I don't think it will - then we don't need to worry about PureGym or one or two other tenants failing to pay/going down the CVA route.

Posted at 29/9/2022 13:51 by marktime1231
The yield here is now extra superb and the share price 20p lower than a month ago is quite something.

Because the NAV recovery is over, underlying asset values are tumbling?

Or because an inflationary recession is going to clobber some tenants or limit the ability to negotiate higher rents in line with interest rates, whatever the clauses about inflation-linking?

Or because AIRE is heaviliy geared and that is bad news full stop?

The alarm in markets is creating huge value opportunities, high yields and wide discounts, but I guess there are safer targets than REITs right now, especially heavily geared ones like AIRE.

Posted at 29/9/2022 09:40 by cwa1
An 8.30pm release for Finals? Unorthodox...


· The Group is continuing to deal with a backdrop of global and recent UK-centred economic headwinds impacting the UK commercial property sector .

· The Company's resilient portfolio of 19 investment properties continues to provide investors with long-dated higher yielding income, of which 96% is linked to inflationary growth, and with a weighted average unexpired lease term to break of 17.5 years. The portfolio also provides investors with exposure to a diverse range of alternative investment sectors and its existing Canada Life senior debt facility eliminates the Group's exposure to increasing debt costs.

· Over the next 12-month financial period, 66% of the Group's incomes will be reviewed (44% annual index-linked rent reviews and 21% periodic index-linked rent reviews (5 years since the previous reviews)), helping to support our focus on delivering an increasing dividend that is fully covered.

Alan Sippetts, Non-Executive Chairman of Alternative Income REIT plc, comments:

"Against a backdrop of global and recent UK-centred economic headwinds impacting the UK commercial property sector, t he Board remains convinced by the fundamentals of the Group's resilient diversified portfolio of long-dated higher yielding income, which is 100% let and benefits from 100% rent collection. We are committed to further enhancement of both income and capital growth supported by 96% of the Group's income having inflation linked upwards only rent reviews, active asset management opportunities and opportunistic transactions.

We have met our 5.5pps fully covered dividend target and achieved an NAV increase of 12.6%, which equates to an NAV total return of 22.5% and a share price return of 24.3% in the period. Our focus is on generating an increasing dividend which is fully covered, and our recent dividend increase is testament to the Board's confidence in the long-term value we expect to deliver to our shareholders."

Posted at 02/2/2022 12:50 by marktime1231
Swapping one car showroom for another was a bit curious, "state-of-the-art" ? The rationale reads a bit like de-risking for those of you worried about that here, but the consequence of steadier prospects is lower yield.

The move in AIRE share price which I inkled about two weeks ago has turned out to be quite something, added 4-5p and still going. Still worth low 80's on balance of risk and reward in my view.

An update and dividend declaration expected tomorrow I think.

Posted at 27/10/2020 10:36 by skinny
Glenstone Property PLC Tender Offer.



Tender Offer at a Premium

Glenstone Property PLC ("Glenstone") announces its intention to acquire up to 20,125,000 ordinary shares for cash in Alternative Income REIT PLC ("AIRE"), representing up to 25.0 per cent. of AIRE's issued share capital, by way of a tender offer (the "Tender Offer") at a price of 59.25 pence per share and by way of market purchases.

-- The Tender Offer price of 59.25 pence per share represents a premium of 12.9 per cent. above the closing bid price of 52.5 pence per share as at the close of business on 26 October 2020, being the last business day prior to the publication of this announcement.

-- The Tender Offer provides AIRE's shareholders with a liquidity event, at a premium to the share price, which is being made available to all AIRE's shareholders, against the background of the prevailing macro-economic uncertainty.

-- Full details of the Tender Offer are anticipated to be sent to shareholders within seven days of this announcement; in the meantime Glenstone intends to purchase a limited number of AIRE's shares in the market subject to availability.

-- The Tender Offer will be conditional on the receipt of sufficient tenders which, when aggregated with any shares purchased by Glenstone in the market, represent a shareholding of not less than 20.0 per cent. of AIRE's issued share capital on the date that the Tender Offer is made. This condition may be waived by Glenstone in its sole discretion.

-- If the Tender Offer is oversubscribed, such that the aggregate number of tendered AIRE shares would result in Glenstone holding in excess of 20,125,000 AIRE shares, tenders will be scaled back pro rata to the number of shares in AIRE that have been tendered.

Glenstone is a public limited company incorporated in England & Wales which qualifies as a UK real estate investment trust and which is listed on The International Stock Exchange (TISE) in Guernsey. It is an internally managed, diversified property investor with a portfolio of more than 100 properties across the UK and is actively seeking opportunities to reinvest the proceeds of recent asset disposals in pursuit of its investment objectives.

As at the date of this announcement, Glenstone does not hold any shares in AIRE.

Glenstone does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of AIRE pursuant to Rule 2.7 of the Code nor does it intend to seek a direct role in the management of AIRE's portfolio or any combination of its own assets with those owned by AIRE.

Further on Glenstone's Intentions

In the event that the Tender Offer is accepted in full, Glenstone will have a 25.0 per cent. shareholding in AIRE which it will hold as an investment.

Glenstone will seek representation on AIRE's Board and will be supportive of a low operating cost base and other initiatives which seek to maximise returns to shareholders.

Glenstone notes the recent announcement by AIRE of its proposed amendments to AIRE's investment policy. Glenstone will carefully evaluate these and all of the resolutions which have been proposed by the Board of AIRE for consideration by shareholders at AIRE's forthcoming AGM due to be held on 26 November 2020.

Further Information on the Tender Offer and Timetable

The Tender Offer will be made by means of a tender offer document including a tender form (collectively, the "Tender Offer Document") which is expected to be sent within seven days of this announcement (the "Posting Date"), to each shareholder of AIRE (each, an "AIRE Shareholder") whose name appears on the register of shareholders at the latest practicable date prior to despatch.

Glenstone intends to purchase a limited number of shares in the market from the date of this Announcement and to cease market purchases prior to the Posting Date.

The Tender Offer will be open from the Posting Date and is expected to close 21 days following the date of this announcement at 1.00 p.m. on 17 November 2020 (as shall be specified in the Tender Offer Document, being the "Closing Date"). The Tender Offer will only be available to AIRE Shareholders who are on its shareholder register as of 6.00 p.m. on the Closing Date.

The maximum number of shares of AIRE which may be tendered by AIRE Shareholders pursuant to the Tender Offer (the "Tender Shares") will be specified in the Tender Offer Document. To the extent that Glenstone purchases shares of AIRE in the market it shall make announcements to this effect and the number of Tender Shares will be such that the maximum number of shares in AIRE which Glenstone will own following the completion of the Tender Offer will be 20,125,000, representing 25.0 per cent. of AIRE's issued share capital as at the date of this announcement.

If the Tender Offer is oversubscribed such that the aggregate number of tendered AIRE shares exceeds the maximum number of Tender Shares, tenders will be scaled back pro rata to the number of shares in AIRE that were tendered.

The Tender Offer will be conditional on the receipt of sufficient tenders which, when aggregated with the number of shares purchased in the market by Glenstone, represent a shareholding in AIRE by Glenstone of 20.0 per cent. of the issued share capital of AIRE on the date that the Tender Offer is made. This condition may be waived by Glenstone in its sole discretion. Accordingly, if this condition is not satisfied (or waived) by the Closing Date, the Tender Offer will be void. Subject to this condition, any tender forms submitted by AIRE Shareholders shall be irrevocable.

Shares in AIRE that are successfully tendered will be acquired by Glenstone fully paid and free from all liens, charges, equitable interests and encumbrances and together with all rights attaching thereto, including the right to all dividends and other distributions declared on or after the date of this announcement, and the right to attend and vote at any meeting of AIRE held after such date.

Settlement of the consideration to which any AIRE Shareholder is entitled pursuant to valid tenders accepted by Glenstone will be made in accordance with the terms of the Tender Offer Document.

The availability of the Tender Offer to AIRE Shareholders who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdictions. AIRE Shareholders who are not so resident should inform themselves about, and observe, such applicable requirements.

In this announcement, all share capital details are based on the latest publicly available information and certain figures have been subjected to rounding adjustments. This Announcement is for information purposes only and does not constitute an offer to sell or an invitation to purchase any securities or the solicitation of an offer to buy any securities. There is no guarantee that the Tender Offer will be made nor that AIRE Shareholders will be able to sell all of their Tender Shares. The Tender Offer shall be made solely by means of the Tender Offer Document which shall contain the full terms and conditions of the Tender Offer, including details of how to tender your shares and so should be read carefully. The Tender Offer Document is important and will require your immediate attention.

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