Ares Raises Distributions Across Both Its Nontraded REITs

Ares Management raised the monthly distribution at both of its nontraded real estate investment trusts for August. The increases came even as leverage climbed back up at the diversified Ares Real Estate Income Trust, and as its sister fund, Ares Industrial Real Estate Income Trust, disclosed a new $2.4 billion logistics joint venture with the Public Sector Pension Investment Board, known as PSP Investments.

Ares Real Estate Income Trust authorized a monthly gross distribution of $0.03583 per share for August, up from the $0.03450 per share rate the REIT had paid since July 2025, a roughly 3.9% increase. The fund’s leverage ratio stood at 34% as of Aug. 31, up from the 28% it reported five weeks earlier. The diversified vehicle’s direct real estate portfolio spans 35 markets and was 95% leased as of the end of August. The company has raised approximately $145 million in gross proceeds through Aug. 31, including sales of Delaware statutory trust interests, and it fully redeemed the $19 million in share and OP unit repurchase requests submitted for July and August.

Ares Industrial Real Estate Income Trust authorized a monthly gross distribution of $0.0550 per share for August, up from $0.0525 per share, an increase of about 4.8%. The industrial-focused REIT’s leverage ratio was approximately 40% as of the end of August, and its portfolio was 89% occupied (90% leased) across 31 markets. On Aug. 31, the fund’s operating subsidiary and PSP Investments formed a joint venture to invest up to approximately $2.4 billion in U.S. logistics real estate, including leverage. Ares holds a 51% interest in the venture and PSP Investments holds the remaining 49%. Separately, the REIT raised approximately $281 million in gross proceeds quarter-to-date and fully redeemed $52 million in repurchase requests for July and August.

Ares disclosed both distribution increases on the same day. Combined, the two REITs raised roughly $426 million in gross proceeds and met all share repurchase requests for July and August, while leverage at the diversified fund reversed the decline it reported five weeks earlier. Ares described the PSP venture as a source of additional investment capacity as it builds out its logistics portfolio.

Both REITs are advised by affiliates of Ares Management and distributed through Ares Wealth Management Solutions.

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