Glenstone defends Alternative Income offer, alleges 'uncertain future'
Glenstone REIT PLC on Thursday urged Alternative Income REIT PLC shareholders to accept its acquisition offer, saying AIRE's board offers an "uncertain future" and criticising what it called "uncertainty" around potential dividend income.
On Monday, Glenstone said it had received valid acceptances for 1.92 million shares, representing 2.4% of Alternative Income REIT's issued share capital.
Glenstone is offering 71.4 pence per share, comprising 70.0 pence in cash plus Alternative Income REIT shareholders' entitlement to retain the 1.4 pence fourth-quarter dividend.
Glenstone already owns 20.44 million shares, or 25.4% of the company, it said on Monday. This includes acceptances for all 1.90 million shares covered by an irrevocable undertaking from director Adam Smith, but none for the 4.52 million shares subject to a letter of intent from Hawksmoor Investment Management.
Glenstone's final offer requires acceptances representing more than 50% of Alternative Income REIT's voting rights to become unconditional
Glenstone on Thursday asked AIRE shareholders to question why the board has not published a dividend target for the year to June 30 2027, "given its assertion that AIRE is well positioned to continue to generate secure and predictable income returns."
"Shareholders should not assume that dividend income for the current year will be 5.6 pence per share", Glenstone said, as it was in financial 2026. Dividend income was 6.2 pence per share in 2025.
Glenstone asked shareholders to "act quickly" and accept the offer once AEW UK REIT PLC confirms its position, which it has until 17:00 BST on August 28 to do.
Glenstone's offer is currently open to acceptances until 13:00 BST on September 4, though retail investor platforms have earlier internal deadlines.
Prior to making its offer, Glenstone requested that AIRE commence a managed wind down as it failed to complete a sale of the company.
Should the offer lapse, Glenstone said it "intends to renew its support for a managed wind down of AIRE in order to return capital to AIRE Shareholders over the medium term."
"Glenstone...believes that AIRE is subscale and that its portfolio of assets requires increasingly resource-intensive asset management to preserve both income and capital. The possible vacancies which may be created by Meridian Steel's closure are indicative of Glenstone's wider concerns around issues which may arise within the portfolio," the company added.
Alternative Income REIT PLC shares closed down 2.5% at 70.01 pence each on Thursday in London.
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