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AIRE

Alternative Income REITLSE:AIRE Stock Report

Last Price

UK£0.73

Market Cap

UK£58.6m

7D

-0.4%

1Y

19.3%

Updated

18 Jan, 2022

Data

Company Financials
AIRE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends3/6

AIRE Stock Overview

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.

Price History & Performance

Summary of all time highs, changes and price drops for Alternative Income REIT
Historical stock prices
Current Share PriceUK£0.73
52 Week HighUK£0.76
52 Week LowUK£0.56
Beta0.86
1 Month Change1.25%
3 Month Change0%
1 Year Change19.34%
3 Year Change-18.66%
5 Year Changen/a
Change since IPO-27.11%

Recent News & Updates

Shareholder Returns

AIREGB REITsGB Market
7D-0.4%1.1%-1.0%
1Y19.3%23.0%8.3%

Return vs Industry: AIRE underperformed the UK REITs industry which returned 22% over the past year.

Return vs Market: AIRE exceeded the UK Market which returned 9.4% over the past year.

Price Volatility

Is AIRE's price volatile compared to industry and market?
AIRE volatility
AIRE Average Weekly Movement1.0%
REITs Industry Average Movement2.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.5%

Stable Share Price: AIRE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: AIRE's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017n/aRobert Wilkinsonhttps://www.alternativeincomereit.com

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.

Alternative Income REIT Fundamentals Summary

How do Alternative Income REIT's earnings and revenue compare to its market cap?
AIRE fundamental statistics
Market CapUK£58.60m
Earnings (TTM)UK£5.57m
Revenue (TTM)UK£7.41m

10.5x

P/E Ratio

7.9x

P/S Ratio

Is AIRE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIRE income statement (TTM)
RevenueUK£7.41m
Cost of RevenueUK£647.00k
Gross ProfitUK£6.76m
ExpensesUK£1.19m
EarningsUK£5.57m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.069
Gross Margin91.27%
Net Profit Margin75.21%
Debt/Equity Ratio58.8%

How did AIRE perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

49%

Payout Ratio

Valuation

Is Alternative Income REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIRE (£0.73) is trading below our estimate of fair value (£2.28)

Significantly Below Fair Value: AIRE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIRE is good value based on its PE Ratio (10.5x) compared to the UK REITs industry average (13.2x).

PE vs Market: AIRE is good value based on its PE Ratio (10.5x) compared to the UK market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIRE's PB Ratio (0.9x) is in line with the GB REITs industry average.


Future Growth

How is Alternative Income REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.7%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alternative Income REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Alternative Income REIT performed over the past 5 years?

-5.1%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: AIRE has a large one-off gain of £1.1M impacting its June 30 2021 financial results.

Growing Profit Margin: AIRE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AIRE's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: AIRE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AIRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (150.1%).


Return on Equity

High ROE: AIRE's Return on Equity (8.1%) is considered low.


Financial Health

How is Alternative Income REIT's financial position?


Financial Position Analysis

Short Term Liabilities: AIRE's short term assets (£5.8M) exceed its short term liabilities (£3.1M).

Long Term Liabilities: AIRE's short term assets (£5.8M) do not cover its long term liabilities (£40.9M).


Debt to Equity History and Analysis

Debt Level: AIRE's net debt to equity ratio (55.7%) is considered high.

Reducing Debt: Insufficient data to determine if AIRE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AIRE's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: AIRE's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

What is Alternative Income REIT current dividend yield, its reliability and sustainability?

7.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIRE's dividend (7.06%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: AIRE's dividend (7.06%) is in the top 25% of dividend payers in the UK market (4.05%)


Stability and Growth of Payments

Stable Dividend: AIRE has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AIRE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), AIRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average board tenure


CEO

Robert Wilkinson

no data

Tenure

Mr. Robert Wilkinson serves as a European Chief Executive Officer of AEW Europe at Alternative Income REIT PLC. Mr. Wilkinson has 26 years of experience in real estate and corporate finance. Since joining...


Board Members

Experienced Board: AIRE's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alternative Income REIT PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Alternative Income REIT PLC
  • Ticker: AIRE
  • Exchange: LSE
  • Founded: 2017
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: UK£58.604m
  • Shares outstanding: 80.50m
  • Website: https://www.alternativeincomereit.com

Location

  • Alternative Income REIT PLC
  • 1 King William Street
  • London
  • Greater London
  • EC4N 7AF
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/18 21:25
End of Day Share Price2022/01/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.