Alternativeome REITLSE:AIRE 43 Return-on-Tangible-Equity is 9.02% as of Dec. 2025, which is 63% above its 10-year median of 5.54. GuruFocus rates LSE:AIRE with a GF Score™ of 43/100 and a GF Value™ of £1.36 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 933 REITs companies, Alternativeome REIT ranks better than 72.88% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alternativeome REIT's annualized net income for the quarter that ended in Dec. 2025 was £6.11 Mil. Alternativeome REIT's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £67.67 Mil. Therefore, Alternativeome REIT's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 9.02%.
The historical rank and industry rank for Alternativeome REIT's Return-on-Tangible-Equity or its related term are showing as below:
LSE:AIRE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.21 Med: 5.54 Max: 17.98
Current: 10.3
During the past 8 years, Alternativeome REIT's highest Return-on-Tangible-Equity was 17.98%. The lowest was -7.21%. And the median was 5.54%.
LSE:AIRE's Return-on-Tangible-Equity is ranked better than 72.88% of 933
companies
in the REITs industry
Industry Median: 6.26
vs LSE:AIRE: 10.30
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alternativeome REIT Return-on-Tangible-Equity Related Terms
Alternativeome REIT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alternativeome REIT's Return-on-Tangible-Equity can be seen below:
* 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.
LSE:AIRE vs VICI, WPC: Return-on-Tangible-Equity Comparison
For the REIT - Diversified subindustry, Alternativeome REIT's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alternativeome REIT Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Alternativeome REIT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alternativeome REIT's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.02% mean?
Alternativeome REIT (LSE:AIRE) has a Return-on-Tangible-Equity of 9.02% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alternativeome REIT and its competitors. This is 63% above median its historical median of 5.54. According to the industry distribution chart, Alternativeome REIT ranks #253 out of 933 companies in the REITs industry, placing it in the top 27.1%.
Is Alternativeome REIT's Return-on-Tangible-Equity too high?
Alternativeome REIT's current Return-on-Tangible-Equity of 9.02% is 63% above median its 10-year median of 5.54. The REITs industry median Return-on-Tangible-Equity is 6.26. Alternativeome REIT's value of 9.02% is 44.1% above this industry median. Based on the distribution chart, Alternativeome REIT ranks #253 out of 933 companies in the REITs industry, which is above the industry midpoint. Overall, Alternativeome REIT has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alternativeome REIT's Return-on-Tangible-Equity compare to VICI and WPC?
According to the REITs industry distribution chart, Alternativeome REIT ranks #253 out of 933 companies for Return-on-Tangible-Equity. This puts Alternativeome REIT in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.26. Alternativeome REIT's value of 9.02% is 44.1% above this benchmark. While the company's 10-year median is 5.54 vs. the industry median of 6.26, Alternativeome REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.26, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alternativeome REIT's current Return-on-Tangible-Equity of 9.02% is 44.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alternativeome REIT and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alternativeome REIT's current Return-on-Tangible-Equity is 9.02%, which is 63% above median its own 10-year median of 5.54. 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 £1.36, compared to a current price of £0.70 — trading 48.9% below its estimated fair value. The current Return-on-Tangible-Equity is 9.02%, which is 63% above median its 10-year median of 5.54 and 44.1% above the REITs industry median of 6.26. Alternativeome REIT's overall GF Score™ is 43/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alternativeome REIT (LSE:AIRE), the current Return-on-Tangible-Equity is 9.02% 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 £0.70 is trading 48.9% below its estimated GF Value™ of £1.36.
GuruFocus considers Alternativeome REIT to be Possible Value Trap.
Key valuation signals for LSE:AIRE:
Return-on-Tangible-Equity: 9.02% (63% above median its 10-year median of 5.54)
GF Value™: £1.36 vs. price of £0.70 (48.9% below fair value)
Industry Position: 44.1% above the REITs median (#253 of 933)
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.
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.
43GF Score
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