Alternative Income REIT Plc (AIRE) AI Stock Analysis

• Market Cap: £61.18M
• Dividend Yield: 8.23%
• Average Volume (3M): 166.79K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.36
• Revenue Growth: 8.48%
• EPS Growth: 207.85%
• Country: UK
• Employees: 220
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• 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: 89.00 p ▲(19.95% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

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

Operating profitability & cash generation

Consistently high operating margins and a sharp FY2025 free cash flow rebound that covered net income indicate durable earnings quality. This strengthens dividend coverage and internal funding capacity, supporting capital allocation and resilience across several months.

Moderate leverage and stable balance sheet

A moderate debt-to-equity range and a steady asset base provide structural financial flexibility typical of a defensive REIT. Improved ROE in FY2025 shows recovery from earlier losses, enabling the company to navigate interest cycles and fund operations without aggressive recapitalisation.

Refinancing secured and value-accretive asset activity

Securing long-term refinancing reduces rollover risk and the premium asset sale cut leverage and added NAV. These moves strengthen liquidity and capital structure durability, supporting stable distributions and the ability to pursue selective accretive investments over the medium term.

Negative Factors

Earnings and cash-flow volatility

Material swings from losses to profits and variable operating cash flow reduce predictability of earnings and free cash flow. This volatility complicates forecasting, raises dividend sustainability risk in weak periods, and demands larger liquidity buffers for multi-month stresses.

Small, uneven revenue base

A limited and uneven revenue base constrains scale benefits and magnifies asset-level performance swings. With revenue variability, fixed costs and debt service have a disproportionate impact, weakening long-term margin stability and reducing room to absorb sector headwinds.

Higher finance costs from refinancing

While refinancing extends maturities, higher ongoing finance costs create a structural drag on net income and free cash flow. Elevated interest expense can compress distributable cash, limit reinvestment capacity, and reduce margin headroom during prolonged rate or cost pressures.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	8.88M	8.57M	7.90M	8.66M	7.90M	7.41M
Gross Profit	7.82M	7.79M	7.22M	7.54M	7.00M	6.49M
EBITDA	3.98M	0.00	6.15M	0.00	0.00	5.99M
Net Income	6.91M	7.26M	2.36M	-5.24M	13.17M	5.57M
Balance Sheet
Total Assets	106.72M	111.16M	108.84M	111.52M	121.70M	112.82M
Cash, Cash Equivalents and Short-Term Investments	2.35M	3.15M	3.29M	3.48M	2.54M	2.12M
Total Debt	35.69M	40.96M	40.83M	41.02M	40.95M	40.89M
Total Liabilities	38.72M	43.83M	43.72M	43.77M	44.10M	43.93M
Stockholders Equity	68.00M	67.33M	65.12M	67.75M	77.60M	68.89M
Cash Flow
Free Cash Flow	5.84M	8.94M	4.02M	5.06M	4.90M	6.73M
Operating Cash Flow	5.84M	8.94M	4.02M	5.06M	4.90M	6.73M
Investing Cash Flow	4.46M	-2.72M	2.08M	606.00K	21.00K	-2.91M
Financing Cash Flow	-10.87M	-6.36M	-6.29M	-4.73M	-4.49M	-3.99M

Alternative Income REIT Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.20
• 50DMA: Negative
• 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 Positive. The current price of 74.2 is below the 20-day moving average (MA) of 77.00, below the 50-day MA of 76.30, and above the 200-day MA of 70.68, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 51.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£61.18M	4.85	10.22%	8.23%	8.48%	207.85%
AEWU	71 Outperform	£166.93M	9.16	7.37%	7.43%	-10.95%	-30.09%
PCA	66 Neutral	£40.25M	54.66	4.33%	7.14%	-41.22%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	£411.63M	6.81	7.51%	5.15%	-3.98%	412.08%
RLE	54 Neutral	£54.90M	42.46	1.28%	5.02%	-9.28%	―
TOWN	46 Neutral	£48.40M	-16.58	-2.97%	3.94%	16.08%	56.94%

Alternative Income REIT Plc Corporate Events

Alternative Income REIT posts steady NAV growth despite higher debt costs

Alternative Income REIT reported a resilient quarter to 31 December 2025, declaring a 1.4p interim dividend covered 106.4% by earnings, booking a small NAV uplift to £68m (84.5p per share) and an unaudited total return of 2.3%, aided by the premium sale of its Crawley forecourt. Portfolio metrics remained steady with 19 fully let assets valued at £103.5m, a 34.3% loan-to-GAV ratio and 92.1% of leases tied to indexation, though higher financing costs from new HSBC facilities trimmed adjusted EPS and dividend cover compared with the prior quarter.

The most recent analyst rating on (GB:AIRE) stock is a Buy with a £84.00 price target. To see the full list of analyst forecasts on Alternative Income REIT Plc stock, see the GB:AIRE Stock Forecast page.