Ares Real Estate Income Trust Reports Stable NAV

Despite modest portfolio shifts, the trust maintains a consistent NAV and expands holdings across property types.

September 17, 2025

Ares Real Estate Income Trust Reports Portfolio Growth, Stable NAV, and New Capital Inflows

Ares Real Estate Income Trust shared its latest performance update, showing stable net asset values (NAV) across share classes and continued growth in both its portfolio and investor commitments. The report covers the period ending August 31, 2025, and reflects the trust’s ongoing efforts to maintain pricing transparency while expanding its national footprint.

Consistent NAV, Clear Valuation Process

NAV per Fund Interest came in at $7.8051, up slightly from $7.7835 at the end of July. This price applies uniformly across all share classes. The trust’s board-approved valuation process—supported by Altus Group as its independent valuation advisor—drives these updates. Each month, Altus delivers property-level appraisals and reviews, helping Ares translate real-world market conditions into actionable pricing for investors.

What’s not included in NAV? Future distribution fees, redemption restrictions, and potential exit costs like sales commissions or closing fees. Ares intentionally leaves those out to keep NAV focused on point-in-time asset value. Valuations are built from the ground up, using discounted cash flow models tailored to property type, market dynamics, and expected holding periods.

A Look at the Portfolio

The trust’s real estate holdings span 135 properties across 34 U.S. markets, totaling 27.2 million square feet. The portfolio was 94.5% leased at the end of August. Residential and industrial assets remain the largest segments, with $2.64 billion and $2.52 billion in value, respectively. Retail properties add another $716 million, followed by $386 million in office and $200 million in other segments, including self-storage.

In total, Ares holds $7.35 billion in investments. That includes:

Direct real estate

Real estate debt

Joint ventures

DST Program Loans

These DST loans, which support private placement sales to investors, reached $181 million.

On the liability side, the trust carries $2.70 billion in credit facilities and term loans, plus $2.09 billion in DST-related financing obligations. Cash and equivalents added $117 million to the balance sheet, and restricted cash accounted for another $12 million.

Income and Redemptions

For August, the trust authorized monthly gross distributions of $0.0345 per share across all classes. These were paid to stockholders of record as of August 29, net of distribution fees where applicable.

Redemptions were fully satisfied for both July and August, totaling $25.8 million. These were paid out on August 1 and September 1, respectively. That said, Ares reserves the right to modify or suspend the redemption program at any time.

Capital Raising and Leverage

Quarter-to-date, the trust brought in $245.7 million in gross proceeds. This figure includes capital from its distribution reinvestment plan and new DST Interest sales, $17.4 million of which were financed using DST Program Loans.

As of the end of August, the trust’s leverage ratio stood at 35.9%. This figure is calculated by subtracting cash from total debt, then dividing by the fair value of assets like real estate, securities, and qualifying debt investments.

Market Sensitivity Built In

Property values are sensitive to market assumptions. Ares uses weighted-average discount rates and exit capitalization rates to stress-test its real estate valuations. For example, a 0.25% increase in exit cap rates would reduce the value of residential assets by about 3.0% , while the same change in discount rates would bring down valuations by roughly 1.9%. These sensitivity tests are baked into the modeling process and updated monthly.

Why This Matters

Ares Real Estate Income Trust continues to provide NAV updates that reflect current market inputs—backed by a disciplined valuation process and third-party oversight. For investors, that means access to timely, data-driven pricing. The trust’s diversified portfolio, high lease rates, and ongoing capital inflows position it to keep delivering transparency and scale in a market where conditions are always moving.