Alternative Income REIT Plc (AIRE) AI Stock Analysis

• Market Cap: £60.38M
• Dividend Yield: 8.23%
• Average Volume (3M): 166.79K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.24
• Revenue Growth: 8.48%
• EPS Growth: 207.85%
• Country: UK
• Employees: 220
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.05
• Shares Outstanding: 80,500,000
• 10 Day Avg. Volume: 114,573
• 30 Day Avg. Volume: 166,788
• PEG Ratio: 0.04
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 6.95
• P/FCF Ratio: 6.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 83.00p ▲(11.86% Upside)

The score is driven primarily by solid financial performance (strong operating profitability and improved FY2025 cash generation, albeit with earnings/cash-flow volatility) and attractive valuation (low P/E and high dividend yield). Technicals add support via an uptrend and positive momentum, while corporate events are supportive due to refinancing certainty, portfolio resilience, and value-accretive asset activity.

Positive Factors

Stable Cash Flow

AIRE's ability to generate solid operating cash flow ensures financial stability and supports ongoing dividend payments, crucial for investor confidence.

Portfolio Resilience

A resilient portfolio with index-linked leases provides AIRE with predictable income, reducing risk from inflation and economic fluctuations.

Improved Profit Margins

High gross profit margins reflect efficient cost management, enhancing profitability and enabling reinvestment in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining growth, which could impact long-term financial performance and strategic initiatives.

Free Cash Flow Pressure

Decreasing free cash flow growth may limit AIRE's ability to fund new investments or increase dividends, affecting its growth prospects.

Shareholder Dynamics

Changes in major shareholder voting rights can influence corporate governance and strategic decisions, potentially affecting company direction.

Alternative Income REIT Plc Business Overview & Revenue Model

Company Description

Alternative Income REIT PLC aims to generate a sustainable, secure and attractive income return for shareholders from a diversified portfolio of UK property investments, predominately in alternative and specialist sectors. The majority of the assets in the Group's portfolio are let on long leases which contain inflation linked rent review provisions, which help to underpin income distributions to shareholders with the potential for income and capital growth.

How the Company Makes Money

Alternative Income REIT Plc generates revenue primarily through the rental income derived from its property portfolio. This income is typically secured through long-term leases with inflation-linked rent reviews, ensuring stable and predictable cash flows. The company focuses on properties with high-quality tenants, which helps minimize vacancy risks and maintain a steady income stream. AIRE may also engage in strategic property acquisitions and disposals to optimize its portfolio and capitalize on market opportunities, potentially enhancing overall returns. Additionally, the company may benefit from appreciating property values, although rental income remains the primary source of revenue.

Alternative Income REIT Plc Financial Statement Overview

Summary

Operating profitability and cash generation are strong (high operating margins; FY2025 free cash flow improved sharply and covered net income), supported by a stable asset base and moderate leverage. The main offset is volatility in reported net income and operating cash flow across years, reducing predictability.

Income Statement

Revenue has been relatively small and somewhat uneven year-to-year (down in FY2024, then rebounding in FY2025), but profitability at the operating level looks consistently strong with very high gross and EBIT margins across most years. The key weakness is bottom-line volatility: net income swung from losses (FY2020, FY2023) to strong profits (FY2022, FY2025), which reduces earnings quality and predictability despite the strong FY2025 net margin.

Balance Sheet

The balance sheet appears stable with moderate leverage for a REIT profile: debt-to-equity sits around ~0.53–0.63 across the period and total assets are steady. Return on equity improved meaningfully in FY2025 versus FY2024 and recovered from negative years, but the prior losses and ROE volatility highlight that shareholder returns can fluctuate materially even with a fairly steady capital structure.

Cash Flow

Cash generation is generally positive, with free cash flow matching operating cash flow in every period shown and improving sharply in FY2025 versus FY2024. FY2025 cash flow also covered net income (free cash flow to net income at 1.0), which is supportive of earnings quality. The main concern is volatility: operating cash flow was very low in FY2020 and declined in FY2024 before rebounding, indicating cash conversion can swing materially year-to-year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.57M	8.57M	7.90M	8.66M	7.90M	7.41M
Gross Profit	7.79M	7.79M	7.22M	7.54M	7.00M	6.49M
EBITDA	0.00	0.00	6.15M	0.00	0.00	5.99M
Net Income	7.26M	7.26M	2.36M	-5.24M	13.17M	5.57M
Balance Sheet
Total Assets	111.16M	111.16M	108.84M	111.52M	121.70M	112.82M
Cash, Cash Equivalents and Short-Term Investments	3.15M	3.15M	3.29M	3.48M	2.54M	2.12M
Total Debt	40.96M	40.96M	40.83M	41.02M	40.95M	40.89M
Total Liabilities	43.83M	43.83M	43.72M	43.77M	44.10M	43.93M
Stockholders Equity	67.33M	67.33M	65.12M	67.75M	77.60M	68.89M
Cash Flow
Free Cash Flow	8.94M	8.94M	4.02M	5.06M	4.90M	6.73M
Operating Cash Flow	8.94M	8.94M	4.02M	5.06M	4.90M	6.73M
Investing Cash Flow	-2.72M	-2.72M	2.08M	606.00K	21.00K	-2.91M
Financing Cash Flow	-5.71M	-6.36M	-6.29M	-4.73M	-4.49M	-3.99M

Alternative Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 74.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AIRE, the sentiment is Neutral. The current price of 74.2 is below the 20-day moving average (MA) of 76.35, above the 50-day MA of 74.14, and above the 200-day MA of 70.25, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AIRE.

Alternative Income REIT Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRE	73 Outperform	£60.38M	8.31	10.96%	8.23%	8.48%	207.85%
AEWU	71 Outperform	£171.37M	13.43	7.37%	7.43%	-10.95%	-30.09%
PCA	66 Neutral	£42.88M	23.07	4.34%	7.14%	-41.22%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	£423.89M	10.88	7.51%	5.15%	-3.98%	412.08%
RLE	54 Neutral	£55.43M	48.03	1.28%	5.02%	-9.28%	―
TOWN	46 Neutral	£51.35M	-14.90	-2.97%	3.94%	16.08%	56.94%

Alternative Income REIT Plc Corporate Events

Alternative Income REIT PLC Secures Shareholder Approval at AGM

Alternative Income REIT PLC announced that all resolutions were passed at its Annual General Meeting, reflecting strong shareholder support. The resolutions included re-electing directors, approving financial statements, and authorizing share allotments, indicating stability and strategic alignment within the company.

Alternative Income REIT PLC Declares Interim Dividend and Updates on Portfolio Valuation

Alternative Income REIT PLC announced an interim dividend of 1.40 pence per share for the quarter ended 30 September 2025, aligning with its annual dividend target of 5.6 pence per share. The company’s unaudited Net Asset Value increased by 0.4% to £67.6 million, and its portfolio valuation rose by £0.2 million to £107.6 million. The company completed new long-term financing arrangements with HSBC, providing certainty of financing for at least the next five years. The refinancing is expected to result in increased finance costs due to higher base interest rates, but it offers improved terms and financial covenants. The company’s portfolio remains resilient, with 100% rent collection and a significant portion of leases subject to index-linked rent reviews.

Alternative Income REIT PLC Sells Crawley Petrol Station at Premium

Alternative Income REIT PLC has announced the sale of its Applegreen Petrol Filling Station in Crawley for £4.5 million, achieving a 12.5% premium over its book value as of June 2025. This transaction reduces the company’s loan-to-value ratio and interest cover ratio, allowing the company to reinvest the proceeds into new investment opportunities, potentially enhancing its portfolio and financial performance.