Alternative Income REIT Board Rejects Glenstone Bid, Highlights Potential AEWU Alternative

The board of Alternative Income REIT (AIRE) is formally advising shareholders to decline the cash takeover bid from Glenstone REIT. Directors argue that the offer significantly undervalues the company and poses risks to minority investors regarding liquidity and governance. While Glenstone has proposed 71.4p per share, the board notes that this figure is misleading; once a planned 1.4p fourth interim dividend is accounted for, the effective cash offer drops to 70p. This valuation represents a 17% discount to AIRE's unaudited net asset value of 84.4p as of 31 March 2026. Furthermore, the board is exploring a potential all-share offer from AEW UK REIT (AEWU), which was valued at approximately 77.4p per share based on 15 July 2026 pricing—a 10.6% premium over Glenstone’s effective offer. Beyond price, AIRE expressed concern over Glenstone’s intention to potentially delist the company from the London Stock Exchange and move to The International Stock Exchange, a move the board fears would weaken independent oversight. Additionally, the board cautioned that Glenstone’s proposed three-year managed wind-down lacks a firm timetable, potentially trapping shareholders in an illiquid investment. Glenstone requires approval from over 50% of voting rights to proceed with its current proposal.