Alternative Income REIT (LSE:AIRE)'s annual report for the year to 30 June 2026 shows NAV per share broadly flat at 83.27p and dividends of 5.6p, with Glenstone REIT now holding or having acceptances for about 87% of the shares under its 70p cash offer.

What was announced

Alternative Income REIT plc published its 2026 annual financial report and notice of annual general meeting on 29 October. For the year ended 30 June 2026, net asset value fell 0.4% to £67.0 million, or 83.27p per share, from 83.64p. EPRA net tangible assets were also 83.27p per share. The NAV total return was 6.4%, compared with 11.1% a year earlier, while the share price total return was 1.3% (21.6%).

The report sets out a year dominated by corporate activity. Glenstone REIT plc announced a cash offer of 70.0p per share on 12 June 2026, later raised to 71.4p and then adjusted back to 70.0p after shareholders kept a 1.4p dividend. The offer became unconditional on 9 September 2026, after which the board supported acceptance. Glenstone holds or has valid acceptances for about 87.08% of the shares, or 70,101,776 shares, and intends to delist the company and re-register it as a private company. Compulsory acquisition applies once it reaches 90%.

The numbers

Profit before tax fell 41.4% to £4.3 million from £7.3 million, and earnings per share dropped to 5.39p from 9.02p. EPRA earnings per share were 6.34p (6.57p), down 3.5%, and adjusted earnings per share were 5.59p (6.72p). The year included one-off corporate activity costs of £732,000, about 0.91p per share. Gross passing rent was £8.0 million (£8.1 million).

Dividends for the year totalled 5.6p per share, down 9.7% from 6.2p and in line with the target, with cover of 99.8% (108.4%). The board said it will stop paying quarterly dividends and will in future declare dividends in line with REIT rules.

The fair value of the investment property portfolio fell 4.0% to £103.1 million, mainly reflecting the sale of a petrol filling station in Crawley in October 2025 for £4.5 million gross, a gain of about £0.5 million. On a like-for-like basis, values slipped by about £240,000. The 19-property portfolio was fully let, with a weighted average unexpired lease term of 15.0 years to break, and 81.9% of rent was inflation-linked (92.3%). Nine rent reviews added about £179,000 of rent. In Chiswick, Snap Fitness surrendered its lease for a £225,000 premium and Pure Gym signed a new 15-year lease at £120,000 a year.

Debt and board changes

The £41.0 million Canada Life loan was repaid on 20 October 2025 and replaced with HSBC facilities of a £31 million term loan and a £10 million revolving credit facility, priced at 1.7% over SONIA. Drawn debt fell to £36.6 million and loan to gross asset value to 34.4% (36.9%). On 28 October 2026, HSBC agreed to the change of control and the delisting and waived any right to require repayment.

Earlier in the year AEW UK REIT considered an all-share offer before walking away in April 2026; a renewed possible approach in July was withdrawn in August. Following the Glenstone offer, Simon Bennett and Stephanie Eastment resigned, and a new board of Adam Smith as chair, Ben Green and Rob Maybury was appointed on 30 September 2026.

What to watch next

The AGM will be held on 7 December 2026 at 10am in London. The key outstanding question is whether Glenstone reaches the 90% threshold needed for compulsory acquisition, and the timing of the planned delisting. The report noted that 41.9% of income faces rent reviews in the coming year. The chairman said the board believes "the portfolio will continue to deliver an attractive and sustainable yield."