Ares Nontraded REITs Post May NAV Gains, Satisfy All Redemption Requests

Ares Real Estate Income Trust and Ares Industrial Real Estate Income Trust, the two nontraded perpetual-life real estate investment trusts managed by Ares Management Corporation, reported aggregate net asset values of $3.455 billion and $5.091 billion, respectively, as of May 31, 2026 – each posting a month-over-month gain and satisfying all investor redemption requests in full.

AREIT’s aggregate NAV rose to $3.455 billion from $3.409 billion at April 30, with NAV per fund interest increasing to $8.1908 from $8.1640 – a 0.33% monthly gain. Quarter-to-date through May 31, the fund raised gross proceeds of approximately $286.6 million, including proceeds from its distribution reinvestment plan and the sale of Delaware statutory trust interests. Redemptions for April and May totaled $25.1 million and were redeemed in full on May 1 and June 1, respectively. AREIT’s leverage ratio stood at 31.9% as of May 31.

AIREIT’s aggregate NAV increased to $5.091 billion from $5.079 billion at April 30, with NAV per fund interest rising to $13.2898 from $13.2483 – a 0.31% monthly gain. The industrial-focused fund raised $89.8 million quarter-to-date through May 31 and paid April and May redemption requests in full, totaling $54.1 million. AIREIT’s portfolio comprised 276 industrial buildings totaling approximately 58.4 million square feet across 31 U.S. markets, with occupancy of 89.4% as of May 31. Its leverage ratio was approximately 45.1%.

The May results extend a run of monthly NAV gains for both Ares funds. As previously reported by AltsWire, AREIT received a second affiliate equity commitment in late May, with an Ares-affiliated special purpose vehicle purchasing $100 million in Class B common shares – bringing total affiliate equity commitments to $400 million since October 2025. That story noted the contrast with Starwood Real Estate Income Trust, which suspended most investor redemptions and cut its distribution in late April after reporting a net loss of $112.9 million and approximately $4 billion in near-term debt maturities for the first quarter of 2026.

The operational stability of both Ares funds stands in contrast to broader distress among larger nontraded REIT peers. Starwood’s liquidity constraints have cast a spotlight on how nontraded perpetual-life vehicles manage the gap between investor redemption demand and the inherent illiquidity of their underlying assets. Both AREIT and AIREIT have met all redemptions since returning to full redemption processing – a signal their capital raise inflows and leverage levels are sufficient to absorb outflow pressure. Earlier this year, AltsWire reported that both funds posted April NAV gains and met April redemptions in full, with AIREIT’s aggregate NAV nearing $5.1 billion at that time.

AREIT’s diversified portfolio comprised 148 real estate properties totaling approximately 31.0 million square feet across 34 U.S. markets, with occupancy of 94.6% as of May 31. The fund’s portfolio spans residential, industrial, retail, office, and other property types including self-storage and data centers. AREIT raised $401 million in the first quarter of 2026, its strongest quarterly capital raise since transitioning to a perpetual private offering structure in July 2024.

AREIT authorized monthly gross distributions of $0.0345 per share for May 2026, consistent with prior months. AIREIT authorized monthly gross distributions of $0.0525 per share for May 2026. Both distributions were paid to stockholders of record as of the close of business on May 29, 2026.

The May 31 NAV per share serves as the transaction price for subscriptions accepted and distribution reinvestment plan issuances as of July 1, 2026, for both funds.

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