Alternativeome REIT (LSE:AIRE) Financial Strength: 3 (As of Dec. 2025) — Near Median

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LSE:AIRE Alternative Income REIT PLC LSE:AIRE
41 GF Score
Price £0.72
GF Value £1.33
Valuation Possible Value Trap
! 6 Warning Signs
View Full Analysis

What is Alternativeome REIT Financial Strength?

Alternativeome REIT LSE:AIRE 41 Financial Strength is 3 as of Dec. 2025, which is at its 10-year median of 3.00. GuruFocus rates LSE:AIRE with a GF Score™ of 41/100 and a GF Value™ of £1.33 (Possible Value Trap). The stock has 6 warning signs investors should review.

Alternativeome REIT has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Alternative Income REIT PLC displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Alternativeome REIT's interest coverage with the available data. Alternativeome REIT's debt to revenue ratio for the quarter that ended in Dec. 2025 was 5.10. Altman Z-Score does not apply to banks and insurance companies.


Alternativeome REIT  (LSE:AIRE) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Alternativeome REIT has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Alternativeome REIT Financial Strength Related Terms

LSE:AIRE
41GF Score
Alternative Income REIT PLC LSE:AIRE
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Alternativeome REIT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Alternativeome REIT's Interest Expense for the months ended in Dec. 2025 was £-0.84 Mil. Its Operating Income for the months ended in Dec. 2025 was £0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was £35.69 Mil.

Alternativeome REIT's Interest Coverage for the quarter that ended in Dec. 2025 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Alternativeome REIT's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 35.694) / 7.002
=5.10

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 3 mean?
Alternativeome REIT (LSE:AIRE) has a Financial Strength of 3 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alternativeome REIT and its competitors. This is near median its historical median of 3.00. Over the past decade, Alternativeome REIT's Financial Strength has ranged from 2.00 to 5.00.
Is Alternativeome REIT's Financial Strength too high?
Alternativeome REIT's current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 5.00. Overall, Alternativeome REIT has a GF Score™ of 41/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alternativeome REIT's Financial Strength compare to VICI and WPC?
Alternativeome REIT's Financial Strength of 3 can be compared against companies in the REITs industry. Historically, Alternativeome REIT's own Financial Strength has ranged from 2.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Alternativeome REIT and its competitors. Alternativeome REIT's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternativeome REIT stock overvalued right now?
Based on GuruFocus' analysis, Alternativeome REIT (LSE:AIRE) is currently considered Possible Value Trap. The stock's GF Value™ is £1.33, compared to a current price of £0.72 — trading 46% below its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Alternativeome REIT's overall GF Score™ is 41/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Alternativeome REIT (LSE:AIRE), the current Financial Strength is 3 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Alternativeome REIT (LSE:AIRE) Overvalued in 2026?

Based on GuruFocus' analysis, Alternativeome REIT stock appears to be undervalued. The current stock price of £0.72 is trading 46% below its estimated GF Value™ of £1.33. GuruFocus considers Alternativeome REIT to be Possible Value Trap.

Key valuation signals for LSE:AIRE:

  • Financial Strength: 3 (near median its 10-year median of 3.00)
  • GF Value™: £1.33 vs. price of £0.72 (46% below fair value)
  • GF Score™: 41/100 with 6 warning signs

No single metric tells the full story. See the LSE:AIRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Alternativeome REIT Business Description

Industry Real EstateREITs
Address 52 Lime Street, The Scalpel 18th Floor, London, GBR, EC3M 7AF
Alternative Income REIT PLC is a United Kingdom-based real estate investment trust focused on generating secure, diversified, and inflation-linked income returns while maintaining capital values through investments in UK properties. Its portfolio concentrates on alternative and specialist real estate sectors such as leisure, hotels, healthcare, education, logistics, automotive, supported living, and student accommodation. The company acquires freehold and long leasehold properties across the UK, emphasizing long leases and inflation-linked rent reviews to ensure income stability. Revenue is generated through rental income from a broad range of commercial properties with long-term leases to various tenants, supporting steady cash flow from its diversified portfolio.
41GF Score

Get the complete analysis for LSE:AIRE

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.72
Price
£1.33
GF Value