Ares Real Estate Updates NAV and Portfolio Valuations

The firm also amended its valuation procedures to provide more clarity on foreign currency assets and liabilities.

December 16, 2025

Solid NAV Growth and Portfolio Expansion

As of November 30, 2025, Ares reported an aggregate Fund NAV of approximately $2.88 billion—up from $2.66 billion the month prior. NAV per Fund Interest landed at $7.9946, increasing from $7.9404 in October. That valuation applied consistently across all share classes.

Behind those numbers is a diversified real estate portfolio that includes residential, industrial, retail, and office assets, alongside real estate debt and joint venture positions. The firm’s third-party valuation advisor, Altus Group, supported the NAV calculation and provided monthly appraisals, applying a rigorous valuation process grounded in updated inputs and assumptions.

Cap rates and discount rates varied by property type, with residential and industrial properties holding stronger valuation metrics. Weighted-average cap rates ranged from 5.1% to 7.4% , and discount rates hovered around 7.3% overall. The valuation team also modeled sensitivity to interest rate movements, showing how shifts in cap and discount rates would affect the real estate portfolio’s value.

Snapshot of the Portfolio

Ares’ holdings span 140 properties totaling 29.6 million square feet across 34 U.S. markets. Leasing stood at 94.5%. Real estate investments totaled roughly $8.1 billion, supported by a leverage ratio of 34.0%. This figure factors in all borrowings, adjusted for cash and calculated against the fair value of qualifying assets.

The trust also manages over $450 million in joint venture interests and holds more than $499 million in real estate debt and securities. Ares continues to raise capital through its DST Program, which offers interests in Delaware statutory trusts holding real property. As of November 30, related loans in the program totaled just over $200 million.

Capital Activity and Distribution Details

Quarter-to-date through November 30, the firm raised $303.3 million in gross proceeds, including contributions from its reinvestment plan and DST Interest sales. Redemptions for October and November added up to $33.7 million and were fully processed on schedule.

Investors also received monthly distributions of $0.03450 per share for November, net of applicable distribution fees.

Key Changes to Valuation Procedures

In December, the board approved updates to the firm’s NAV and valuation procedures. These changes clarify how liabilities and unconsolidated investments are handled and now include guidance for translating foreign-denominated assets and liabilities into U.S. dollars at each reporting date. That change ensures more accurate NAV calculations, especially for any holdings affected by currency shifts.

The amended procedures are part of an ongoing effort to maintain consistency and transparency across valuation cycles. They align with how the firm’s third-party advisor supports monthly and quarterly updates.

Looking Ahead

The report closed with a reminder of the usual market risks—rate volatility, inflation, shifting real estate demand, and geopolitical uncertainty. These are all factors that could influence performance going forward. Ares also emphasized that while NAV is a useful measure of estimated value, it doesn’t equate to a guaranteed price or exit value in the market.

For investors, the takeaway is clear: Ares is staying disciplined on valuation, capital deployment, and transparency. The updated NAV reflects not just stronger portfolio performance, but also the ongoing evolution of how that performance is measured.