Ares REIT Reports 2.7% Decrease in Total Monthly NAV, Acquires Three Properties

Ares Real Estate Income Trust, a publicly registered net asset value-based perpetual life real estate investment trust formerly known as Black Creek Diversified Property Fund, had an aggregate NAV of $2.15 billion as of June 30, an approximate 2.7% decrease from $2.21 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 $7.49 as of June 30, 2024, about a 1.6% decrease from $7.61 at the end of the prior month.

For the quarter ended on June 30, the Ares REIT had raised gross proceeds of approximately $189.6 million, including proceeds from its distribution reinvestment plan and the sale of Delaware statutory trust interests. The aggregate dollar amount of common stock and operating partnership unit redemptions requested for the second quarter, which were redeemed in full on May 1, June 1 and July 1, respectively, was $74.6 million.

The company also reported that, for the second quarter of 2024, its consolidated investments included 102 real estate properties totaling approximately 21 million square feet located in 33 markets throughout the United States, which were 95% leased. Additionally, the REIT stated that during the same quarter, the company acquired two industrial properties and one residential property for an aggregate contractual purchase price of $229.9 million.

The REIT’s leverage ratio was 37.8% as of June 30.

The REIT also paid its normal monthly gross distribution of $0.03333 per share for each share class for the month of June 2024. These distributions were paid to all stockholders of record as of the close of business on June 28.

As previously reported by AltsWire, the REIT closed its public primary offering effective July 2 and started a perpetual private offering of multiple classes of common stock, including a distribution reinvestment plan. The REIT will continue to file reports as a public reporting company, and shareholders who purchased shares in the public offering will 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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