Ares REIT Sees NAV Drop, Adds Three Properties in Q2

Ares Real Estate Income Trust reported a 2.7% decrease in NAV to $2.15 billion as of June 30, 2024, while acquiring three new properties for $229.9 million.

July 23, 2024

Ares Real Estate Income Trust, formerly known as Black Creek Diversified Property Fund, has reported a total net asset value (NAV) of $2.15 billion as of June 30, marking a 2.7% decline from $2.21 billion at the end of May.

The NAV per share for all classes of common stock (T, S, D, I, and E) stood at $7.49 as of June 30, 2024, down 1.6% from $7.61 the previous month.

In the second quarter ending June 30, Ares REIT raised approximately $189.6 million in gross proceeds, including contributions from its distribution reinvestment plan and sales of Delaware statutory trust interests. Redemption requests for common stock and operating partnership units, fully processed on May 1, June 1, and July 1, totaled $74.6 million.

The trust's portfolio at the end of Q2 2024 consisted of 102 properties, covering roughly 21 million square feet across 33 U.S. markets, with a 95% occupancy rate. During this period, Ares REIT acquired two industrial properties and one residential property for a combined cost of $229.9 million. As of June 30, the REIT's leverage ratio was 37.8%.

In June 2024, the REIT distributed its regular monthly gross dividend of $0.3333 per share to all stockholders on record as of June 28.

Following the closure of its public primary offering on July 2, the REIT has launched a continuous private offering of various classes of common stock, which includes a distribution reinvestment plan. Despite this transition, the REIT will continue to operate as a public reporting company, ensuring that shareholders from the public offering can still access the share redemption program.

Ares Real Estate Income Trust, established in January 2006, currently manages a diverse portfolio that includes office, retail, residential, industrial, and other property types.