Ares Real Estate Income Trust Increases Monthly Distribution Rate
Ares Real Estate Income Trust Inc., a non-traded perpetual life real estate investment trust sponsored by Ares Real Estate, announced a 3.5% increase in its monthly distribution to shareholders, effective as of July 2025. The company will pay a gross distribution of $0.03450 per share, an increase from the previous rate of $0.03333 per share that had been in place since July 2023.
Quarter-to-date through July 31, 2025, the REIT reported raising approximately $91.1 million in gross proceeds, which included funds from its distribution reinvestment plan and the sale of Delaware statutory trust interests.
The REIT had an aggregate NAV of $2.61 billion as of July 31, an approximate 0.65% increase from $2.59 billion at the end of the previous month.
The REIT’s NAV per share for each class of common stock – Classes T, S, D, I, and E – was approximately $7.78 as of July 31, a 0.74% increase from nearly $7.73 at the end of the prior month.
The company reported revenues of approximately $118.3 million to close out the second quarter of 2025, a 15% increase year-over-year. Operating expenses were also up about 22% from a year ago.
The REIT has acquired nine properties, thus far, in 2025, with an aggregate purchase price of $282.7 million. During the six months ended June 30, it sold four industrial properties for net proceeds of approximately $33.5 million and recorded a net gain on sale of $10.5 million.
According to the company, its real estate portfolio remains stable and well-occupied. As of July 31, the consolidated portfolio comprised 129 properties across 34 U.S. markets, totaling approximately 25.3 million square feet. The portfolio maintained an occupancy rate of 94.6%.
On the financial front, the company’s leverage ratio stood at 35.8% as of the end of July.
In a sign of continued liquidity, the Ares REIT was able to fully redeem all common stock and OP Unit redemption requests for July, totaling $14.5 million. The redemptions were completed in full on Aug. 1, 2025.
As of June 30, 2025, the REIT had one senior loan that was in default and on non-accrual status with a carrying value of $46.6 million. During the first half of 2025, it did not receive any principal or interest payments in cash on this investment. Also during the first half of 2025, the REIT received $47.4 million of full principal repayments on three senior loan debt-related investments.
As of June 30, the company reported one debt-related investment for which it had elected the fair value option and which is carried at fair value. The carrying amount the outstanding principal amount, and the total current commitment was $29.4 million. During Q1 and Q2 2025, it did not recognize any gains or losses on this investment.
Earlier this year, the REIT announced the departure of two long-serving directors, the appointment of two new board members, and the adoption of a new equity incentive plan.
As previously reported by AltsWire, the REIT closed its public primary offering effective July 2, 2024, and started a perpetual private offering of multiple classes of common stock, including a distribution reinvestment plan. The REIT continues to file reports as a public reporting company, and shareholders who purchased shares in the public offering. continue to have access to its share redemption program.
Ares Real Estate Income Trust was originally launched in January 2006. The property portfolio currently includes office, retail, residential, industrial, and “other” properties.
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