Alternative Income REIT Board rejects Glenstone’s offer

The independent directors of Alternative Income REIT (AIRE) are urging shareholders to reject a cash offer of 70 pence per share from Glenstone REIT.

Alternative Income REIT

The Independent Board, consisting of Simon Bennett and Stephanie Eastment, has significant reservations about the offer, primarily because it represents a substantial 17% discount to AIRE's Net Asset Value (NAV) of 84.4 pence per share as of 31 March 2026.

The 70p offer is considerably lower than AIRE's NAV. If AIRE pays its expected dividend, the effective offer price would drop even further to 68.6 pence, widening the discount to 19% of NAV.

The offer provides almost no premium over AIRE's share price before the offer was announced (69.7 pence on 14 May 2026) and is actually below AIRE's average share price over the past three, six, and twelve months.

This offer is less attractive than a previous all-share offer from AEW UK REIT, which was only a 3% discount to NAV and which the Board (including Glenstone's representative) was willing to endorse.

The Glenstone offer is conditional on securing over 50% of voting rights, creating uncertainty. Even if successful, minority shareholders might not be fully bought out if Glenstone acquires less than 90% of shares, leaving them in a company controlled by Glenstone without the benefits of full acquisition.

Glenstone plans to bring management in-house, sell off AIRE's assets over time, and delist AIRE shares. The Independent Board fears these actions would reduce independent oversight, remove protections for a listed company, create potential conflicts of interest as Glenstone might keep some AIRE assets for itself, and eliminate liquidity for minority shareholders.

AIRE boasts a portfolio of 19 fully leased properties worth £103.4 mln (€121.8 mln), with 100% rent collection, mostly long-term leases with inflation-linked rent increases, and an average lease term exceeding 15 years.

The Independent Board believes Glenstone's offer undervalues AIRE's high-quality, stable, and inflation-protected income streams. Despite constructive engagement, the current offer is not considered good enough to recommend to shareholders.

AIRE shareholders are therefore strongly advised to take no action regarding Glenstone's offer.