Ares REIT NAV Dips in August

Ares Real Estate Income Trust reported a 0.93% decrease in its August NAV, raised $124.7 million in gross proceeds for the quarter, and originated a $29.4 million debt-related investment.

September 18, 2024

Ares Real Estate Income Trust (formerly Black Creek Diversified Property Fund) reported a total net asset value (NAV) of $2.37 billion as of August 31, 2024, marking a 0.93% decline from the previous month’s $2.4 billion. NAV per share for all stock classes (T, S, D, I, and E) dropped to $7.47, a 0.4% decrease from $7.50 at the end of July.

For the quarter through August, Ares REIT raised approximately $124.7 million in gross proceeds, which included contributions from its distribution reinvestment plan and sales of Delaware statutory trust interests. In July and August, the REIT redeemed $40.9 million in common stock and operating partnership units.

The trust’s portfolio consists of 108 real estate properties, totaling 21.1 million square feet across 33 U.S. markets, with a 94.5% occupancy rate. In August, Ares REIT originated a debt-related investment, a senior loan with a commitment of up to $29.4 million.

The REIT’s leverage ratio stood at 38.6% at the end of August. It also issued a regular monthly distribution of $0.03333 per share to shareholders of record as of August 30.

While Ares REIT closed its public primary offering on July 2, 2024, it continues to offer multiple classes of stock through a private offering and maintains public reporting for its shareholders. Originally launched in 2006, Ares REIT's portfolio includes office, retail, residential, industrial, and other property types.