Ares Real Estate Income Trust Announces Equity Issuance Results

The company reports robust proceeds from share distributions under its reinvestment plan.

January 09, 2025

Ares Real Estate Income Trust's Equity Issuance Update

Ares Real Estate Income Trust Inc., a Maryland-based entity specializing in income-focused real estate investments, has disclosed key details regarding its recent equity transactions conducted from October 1, 2024, through January 2, 2025. During this period, the company issued shares of two distinct classes, generating substantial gross proceeds in a transaction exempt from registration under the Securities Act of 1933.

Strong Fundraising Momentum

The report highlighted the issuance of approximately 1.34 million shares across Class S-PR and Class I-PR shares. These shares cumulatively raised $10.1 million in gross proceeds, including activity under the company’s distribution reinvestment plan. The Class S-PR shares contributed 603,665 shares and accounted for $4.59 million, including selling commissions and fees. Meanwhile, Class I-PR shares represented the majority issuance, with 739,010 shares generating $5.54 million.

Operational Context

This successful issuance reflects Ares Real Estate Income Trust's commitment to leveraging its capital for income-focused investments. By utilizing its distribution reinvestment plan, the company provides shareholders with a streamlined mechanism to reinvest dividends and foster long-term growth. Additionally, this strategic initiative aligns with the trust's broader objective of delivering sustainable returns while diversifying its income streams.

Ares Real Estate Income Trust Inc. operates from its Denver headquarters at One Tabor Center and remains dedicated to strengthening its portfolio through active asset management. The company’s leadership team underscores its ongoing efforts to adapt to market trends and optimize investment performance for stakeholders.

By focusing on equity sales under Regulation D exemptions, Ares continues to enhance its capital structure without relying on public registration processes. This method ensures efficient fundraising while maintaining compliance with regulatory standards.

Ares Real Estate Income Trust’s update on its equity sales underscores its financial agility and effective capital deployment, setting a foundation for continued growth in its real estate income strategies.