Ares Industrial REIT Reports Strong Leasing Activity and Portfolio Growth

The company expands industrial portfolio while navigating economic headwinds.

March 07, 2025

Leasing Activity and Portfolio Growth

Ares Industrial Real Estate Income Trust closed out 2024 with strong leasing activity and continued expansion. The company now owns 255 industrial properties across 30 U.S. markets , totaling 54.7 million square feet . Demand for its properties remains high— 92.6% occupied and 94.6% leased —as industrial real estate continues to attract tenants looking for logistics and distribution space.

Leasing momentum was a highlight of the year. Ares completed 7.0 million square feet of new and renewal leases, with rental rates rising 61.4% on a cash basis and 76.9% under GAAP .

Raising Capital and Expanding Investment Channels

Ares brought in $195.5 million in gross proceeds from stock sales in 2024, with a portion coming from its distribution reinvestment plan (DRIP) . The company also saw continued success with its Delaware Statutory Trust (DST) program , an investment structure that allows private investors to participate in industrial real estate. Ares sold $156.4 million in DST interests , with $11.5 million financed through DST program loans .

These capital-raising efforts support Ares' long-term growth strategy, providing flexibility to invest in high-demand logistics markets.

Financial Position and Market Challenges

As of December 31, Ares held $139.4 million in real estate debt securities with a weighted average term of 3.5 years . The company also managed $388.7 million in floating-rate senior loans , with a weighted average interest rate of 8.26% .

Rising interest rates, inflation, and shifting supply chain dynamics continue to challenge the broader real estate market. Ares is keeping a close eye on these trends while focusing on liquidity and debt management to maintain financial stability.

Looking Ahead

Ares plans to stay active in key logistics hubs while optimizing its portfolio for long-term growth. Leasing activity remains strong, and disciplined financial management will be key as economic conditions evolve.

With a focus on strategic expansion and capital efficiency, Ares Industrial is positioning itself to meet demand while adapting to market shifts.