Ares Real Estate Income Trust Swaps Pair of Board Members, Adopts Equity Incentive Plan

Ares Real Estate Income Trust Inc., a non-traded perpetual life real estate investment trust sponsored by Ares Real Estate, announced governance and leadership changes last week, including the departure of two long-serving directors, the appointment of two new board members, and the adoption of a new equity incentive plan.

According to a company filing, effective April 3, 2025, board members Rajat Dhanda and Daniel J. Sullivan stepped down from their director positions. Sullivan had served on the board since January 2006, marking a very lengthy tenure. Dhanda, a director since March 2020, will transition from his board role but continue supporting the company’s sponsor as partner, global head of wealth management within Ares Wealth Management Solutions. The company confirmed that neither resignation resulted from any disagreement regarding management, operations, policies, or practices.

Simultaneously, the board appointed Andrew E. Holm and Paula Schaefer as new directors.

Holm, who serves as partner and head of U.S. diversified equity for the sponsor, Ares Real Estate, brings extensive experience from his time at Ares since 2013, as well as previous roles at AREA Property Partners and Lazard’s real estate investment banking group. He holds a bachelor’s degree from Harvard College. Due to his role with the sponsor, Holm is not considered an independent director.

Schaefer joins the board as an independent director and has been appointed to serve on the company’s audit committee and nominating and corporate governance committee. According to the REIT, Schaefer possesses a deep background in real estate finance, investment, and asset management. Her previous experience includes senior roles at Clarion Partners, including senior vice president of Multifamily Asset Management from 2015 to 2024 and chief executive officer of Clarion Partners Securities from 2013 to 2024.

In 2012, Schaefer served as chief operating officer at Christie’s International Real Estate; and various leadership positions at Morgan Stanley Real Estate over 15 years, 1995 to 2010, including managing director and head of European asset management. Schaefer holds a bachelor’s degree from Georgetown University and an M.B.A. from the Wharton School at the University of Pennsylvania.

Additionally, the board adopted a new equity incentive plan on April 3, 2025, which it plans to administer. The plan allows for granting cash-based and stock-based awards – including options, restricted stock, and stock units – to independent directors, potential future employees, and employees or consultants of the company’s adviser and its affiliates. An aggregate maximum of 5 million shares of common stock is reserved for issuance under the plan, with specific annual limits per individual for different award types.

Click here to visit the AltsWire directory page.