0001327978false00013279782025-06-302025-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 30, 2025

ARES REAL ESTATE INCOME TRUST INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland

    

000-52596

    

30-0309068

(State or other jurisdiction

of incorporation)

(Commission File No.)

(I.R.S. Employer

Identification No.)

One Tabor Center, 1200 Seventeenth Street, Suite 2900, Denver, CO

    

80202

(Address of Principal Executive Offices)

(Zip Code)

(303228-2200

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      

Item 8.01 Other Events.

Ares Real Estate Income Trust Inc. (referred to herein as the “Company,” “we,” “our,” or “us”) is filing this Current Report on Form 8-K in order to provide an update regarding our net asset value (“NAV”), our assets and portfolio.

Most Recent Transaction Price and Net Asset Value Per Share

August 1, 2025 Transaction Price

The transaction price for each of our share classes is equal to such share class’s NAV per share as of June 30, 2025. A calculation of the NAV per share is set forth below.

June 30, 2025 NAV Per Share

Our board of directors, including a majority of our independent directors, has adopted valuation procedures, as amended from time to time, that contain a comprehensive set of methodologies to be used in connection with the calculation of our NAV. Our most recent NAV per share for each share class, which is updated as of the last calendar day of each month, is posted on our website at www.areswms.com/solutions/areit and is also available on our toll-free, automated telephone line at (888) 310-9352. With the approval of our board of directors, including a majority of our independent directors, we have engaged Altus Group U.S. Inc., a third-party valuation firm, to serve as our independent valuation advisor (“Altus Group” or the “Independent Valuation Advisor”) with respect to helping us administer the valuation and review process for the real properties in our portfolio, providing monthly real property appraisals and valuations for certain of our debt-related assets, reviewing annual third-party real property appraisals, reviewing the internal valuations of loans (“DST Program Loans”) provided to certain investors in our program to raise capital in private placements exempt from registration pursuant to Rule 506(b) of Regulation D under the Securities Act of 1933, as amended, through the sale of beneficial interests (“DST Interests”) in specific Delaware statutory trusts holding real properties, including properties currently indirectly owned by our operating partnership (the “DST Program”), and debt-related liabilities performed by Ares Commercial Real Estate Management LLC (our “Advisor”), providing quarterly valuations of our properties subject to master lease obligations associated with the DST Program, and assisting in the development and review of our valuation procedures.

As used below, “Fund Interests” means our outstanding shares of common stock, along with the partnership units in our operating partnership (“OP Units”), which may be or were held directly or indirectly by the Advisor, our former sponsor, members or affiliates of our former sponsor, and third parties, and “Aggregate Fund NAV” means the NAV of all the Fund Interests.

The following table sets forth the components of Aggregate Fund NAV as of June 30, 2025 and May 31, 2025:

As of

(in thousands)

    

June 30, 2025

    

May 31, 2025

Investments in residential properties

$

2,497,800

$

2,499,250

Investments in industrial properties

 

2,274,400

 

2,264,950

Investments in retail properties

 

708,550

 

706,550

Investments in office properties

 

460,000

 

464,600

Investments in other properties (1)

200,600

200,100

Total investment in real estate properties

6,141,350

6,135,450

Investments in real estate debt and securities

307,764

314,668

Investments in unconsolidated joint venture partnerships

341,791

333,180

DST Program Loans

163,887

158,425

Total investments

6,954,792

6,941,723

Cash and cash equivalents

 

40,007

 

33,134

Restricted cash

 

11,106

 

9,884

Other assets

 

75,653

 

56,768

Line of credit, term loans and mortgage notes

 

(2,486,308)

 

(2,513,868)

Financing obligations associated with our DST Program

 

(1,863,223)

 

(1,816,482)

Other liabilities

 

(116,480)

 

(105,138)

Accrued performance participation allocation

 

 

Accrued advisory fees

(4,125)

(4,076)

Noncontrolling interests in consolidated joint venture partnerships

 

(19,417)

 

(19,364)

Aggregate Fund NAV

$

2,592,005

$

2,582,581

Total Fund Interests outstanding

 

335,481

 

335,231

(1)Includes self-storage properties.

The following table sets forth the NAV per Fund Interest as of June 30, 2025 and May 31, 2025:

(in thousands, except 

   

    

Class T-R

    

Class S-R

    

Class D-R

    

Class I-R

    

Class E

   

Class S-PR

   

Class D-PR

   

Class I-PR

    

per Fund Interest data)

Total

Shares

Shares

Shares

Shares

Shares

Shares

Shares

Shares

OP Units

As of June 30, 2025

Monthly NAV

$

2,592,005

$

197,469

$

312,267

$

45,571

$

455,670

$

320,220

$

16,407

$

80

$

32,683

$

1,211,638

Fund Interests outstanding

 

335,481

25,558

40,417

5,898

58,977

41,446

2,124

10

4,230

156,821

NAV Per Fund Interest

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

$

7.7262

As of May 31, 2025

 

 

 

  

 

 

  

 

 

Monthly NAV

$

2,582,581

$

198,920

$

313,478

$

45,566

$

451,054

$

320,598

$

13,992

$

79

$

28,693

$

1,210,201

Fund Interests outstanding

 

335,231

25,821

40,691

5,915

58,549

41,615

1,816

10

3,724

157,090

NAV Per Fund Interest

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

$

7.7039

Under U.S. generally accepted accounting principles (“GAAP”), we record liabilities for ongoing distribution fees that we estimate we may pay in future periods for the Fund Interests. As of June 30, 2025, we estimated approximately $65.5 million of ongoing distribution fees were potentially payable. We do not deduct the liability for estimated future distribution fees in our calculation of NAV since we intend for our NAV to reflect our estimated value on the date that we determine our NAV. Accordingly, our estimated NAV at any given time does not include consideration of any estimated future distribution fees that may become payable after such date.

We include no discounts to our NAV for the illiquid nature of our shares, including the limitations on our stockholders’ ability to redeem shares under our share redemption program and our ability to make exceptions to, modify or suspend our share redemption program at any time. Our NAV generally does not reflect the potential impact of exit costs (e.g. selling costs and commissions related to the sale of a property) that would likely be incurred if our assets and liabilities were liquidated or sold today. While we may use market pricing concepts to value individual components of our NAV, our per share NAV is not derived from the market pricing information of open-end real estate funds listed on stock exchanges.

Our NAV is not a representation, warranty or guarantee that: (i) we would fully realize our NAV upon a sale of our assets; (ii) shares of our common stock would trade at our per share NAV on a national securities exchange; and (iii) a stockholder would be able to realize the per share NAV if such stockholder attempted to sell his or her shares to a third party.

The valuations of our real properties as of June 30, 2025, excluding certain newly acquired properties that are currently held at cost which we believe reflects the fair value of such properties, were provided by the Independent Valuation Advisor in accordance with our valuation procedures. Certain key assumptions that were used by the Independent Valuation Advisor in the discounted cash flow analysis are set forth in the following table based on weighted-averages by property type.

    

Residential

    

Industrial

    

Retail

    

Office

    

Other

Weighted-Average
Basis

 

Exit capitalization rate

 

5.2

%  

5.7

%  

6.4

%  

7.3

%  

5.6

%  

5.7

%

Discount rate / internal rate of return

 

7.1

%  

7.4

%  

7.3

%

8.8

%  

7.7

%  

7.4

%

Average holding period (years)

 

10.0

10.0

9.9

10.0

10.0

10.0

A change in the exit capitalization and discount rates used would impact the calculation of the value of our real property. For example, assuming all other factors remain constant, the changes listed below would result in the following effects on the value of our real properties, excluding certain newly acquired properties that are currently held at cost which we believe reflects the fair value of such properties:

Input

    

Hypothetical
Change

    

Residential

    

Industrial

    

Retail

    

Office

    

Other

Weighted-Average
Values

 

Exit capitalization rate (weighted-average)

 

0.25% decrease

 

3.2

%  

3.0

%  

2.3

%  

2.5

%  

2.8

%

3.0

%

 

0.25% increase

 

(2.9)

%  

(2.8)

%  

(2.2)

%  

(2.3)

%  

(2.6)

%

(2.7)

%

Discount rate (weighted-average)

 

0.25% decrease

2.0

%  

2.0

%  

1.9

%  

2.0

%  

1.9

%

2.0

%

 

0.25% increase

(1.9)

%  

(2.0)

%  

(1.8)

%  

(2.0)

%  

(1.9)

%

(1.9)

%

Distributions

We authorized monthly gross distributions for each class of shares of our common stock in the amount of $0.03333 per share for the month of June 2025. These distributions were paid to all stockholders of record as of the close of business on June 30, 2025, net of, as applicable, distribution fees that are payable monthly with respect to certain classes of shares of our common stock.

Update on Our Assets and Activities

As of June 30, 2025, our consolidated investments include 129 real estate properties totaling approximately 25.2 million square feet located in 34 markets throughout the U.S., which were 94.6% leased.

As of June 30, 2025, our leverage ratio was 35.9% (calculated as outstanding principal balance of our borrowings less cash and cash equivalents, divided by the fair value of our real property, net investments in unconsolidated joint venture partnerships, investments in real estate-related securities and debt-related investments not associated with the DST Program, as determined in accordance with our valuation procedures) and the weighted-average interest rate of our consolidated borrowings was 4.95%.

For the quarter ended June 30, 2025, we raised gross proceeds of approximately $257.9 million, including proceeds from our distribution reinvestment plan and the sale of DST Interests (including $15.7 million of DST Interests financed by DST Program Loans). The aggregate dollar amount of common stock and OP Unit redemptions requested for April, May and June, which were redeemed in full on May 1, 2025, June 1, 2025 and July 1, 2025, respectively, was $31.7 million.

Update on Real Properties

As of June 30, 2025, our consolidated investments include 129 real estate properties totaling approximately 25.2 million square feet located in 34 markets throughout the U.S., which were 94.6% leased. Rent growth on comparable commercial leases executed during the trailing 12 months ended June 30, 2025 averaged 27.4% when calculated using cash basis rental rates and 42.9% when calculated using GAAP basis rental rates. For our industrial properties, rent growth on comparable leases executed during the trailing 12 months ended June 30, 2025 averaged 36.7% when calculated using cash basis rental rates and 55.5% when calculated using GAAP basis rental rates. Rent decline on new and renewal residential leases executed during the trailing 12 months ended June 30, 2025 averaged 1.0%. As of June 30, 2025, rents across our residential properties and industrial properties, our two largest categories, were estimated to be 6.2% and 21.0% below market (on a weighted-average basis).

As used herein, the term “commercial” refers to our industrial, retail and office properties or customers, as applicable.

Acquisitions. During the three months ended June 30, 2025, we acquired five industrial properties and one residential property for an aggregate contractual purchase price of $251.3 million.

Dispositions. During the three months ended June 30, 2025, we sold one industrial property for a contractual sales price of $8.3 million. Our total accounting basis, which is inclusive of straight-line rent receivables and net of accumulated depreciation and amortization, for this property as of the closing date was approximately $7.4 million.

Portfolio Overview. We currently group our real property portfolio into five categories: residential, industrial, retail, office and other. The following table summarizes our real property portfolio by category as of June 30, 2025:

Average

% of Total

Effective Annual  

% of

 

($ and square feet in thousands,

    

Number of

    

Number of

    

Rentable

    

Rentable  

    

Base Rent per  

    

%

    

Aggregate

    

Aggregate  

except for per square foot data)

Markets (1)

Real Properties

Square Feet

Square Feet

 

Square Foot (2)

Leased

Fair Value

Fair Value

Residential properties

 

12

 

23

6,479

 

25.7

%  

$

28.47

 

92.7

%  

$

2,497,800

40.7

%

Industrial properties

 

27

 

71

14,271

 

56.5

 

7.43

 

97.0

 

2,274,400

 

37.0

Retail properties

 

8

 

18

2,292

 

9.1

 

20.83

 

96.7

 

708,550

 

11.5

Office properties

 

6

 

7

1,381

 

5.5

 

38.21

 

81.7

 

460,000

 

7.5

Other properties

5

10

811

3.2

18.86

84.4

200,600

3.3

Total real property portfolio

 

34

 

129

 

25,234

 

100.0

%  

$

15.75

 

94.6

%  

$

6,141,350

 

100.0

%

(1)Reflects the number of unique markets by category and in total. As such, the total number of markets does not equal the sum of the number of markets by category as certain categories are located in the same market.
(2)Amount calculated as total annualized base rent, which includes the impact of any contractual tenant concessions (cash basis) per the terms of the lease, divided by total lease square footage as of June 30, 2025.

Market Diversification. The following table summarizes certain operating metrics of our real property portfolio by market and by category as of June 30, 2025:

($ and square feet in thousands)

Number of Properties

Investment in Real Estate Properties

% of Gross Investment Amount

Rentable Square Feet

% of Total Rentable Square Feet

% Leased (1)

Residential properties:

Atlanta, GA

2

$

179,434

3.1

%

567

2.3

%

91.8

%

Central Florida

3

437,160

7.5

958

3.8

91.1

Charlotte, NC

2

168,954

2.9

487

1.9

92.1

Dallas, TX

4

361,776

6.2

1,124

4.5

93.4

D.C. / Baltimore

1

96,722

1.6

288

1.1

93.0

Denver, CO

1

81,039

1.4

201

0.8

95.0

Pennsylvania

1

93,413

1.6

235

0.9

91.4

Phoenix, AZ

1

137,717

2.4

409

1.6

85.2

San Antonio, TX

2

151,769

2.6

592

2.4

94.8

Seattle, WA

1

123,493

2.1

208

0.8

95.0

South Florida

4

465,983

8.0

1,202

4.8

94.5

Tucson, AZ

1

125,755

2.1

208

0.8

96.4

Total residential properties (7,126 units)

23

2,423,215

41.5

6,479

25.7

92.7

Industrial properties:

Atlanta, GA

1

66,470

1.1

798

3.2

100.0

Bay Area, CA

3

168,819

2.9

614

2.4

88.0

Central Florida

6

243,968

4.2

1,413

5.6

92.9

Charlotte, NC

1

22,625

0.4

208

0.8

100.0

Chicago, IL

1

9,496

0.2

110

0.4

100.0

Cincinnati, OH

2

34,061

0.6

395

1.6

100.0

Columbus, OH

4

95,291

1.6

1,006

4.0

100.0

Dallas, TX

1

19,759

0.3

230

0.9

100.0

D.C. / Baltimore

3

35,270

0.6

138

0.6

100.0

Denver, CO

2

59,237

1.0

365

1.4

100.0

Greater Boston

3

107,106

1.8

427

1.7

100.0

Houston, TX

5

138,964

2.4

1,210

4.8

90.5

Indianapolis, IN

7

135,257

2.3

1,591

6.3

100.0

Las Vegas, NV

2

33,790

0.6

276

1.1

100.0

Louisville, KY

1

19,393

0.3

235

0.9

82.2

Metro New York

2

29,798

0.5

172

0.7

100.0

New Jersey

4

68,547

1.2

571

2.3

100.0

Pennsylvania

3

95,248

1.6

564

2.2

81.9

Phoenix, AZ

3

65,945

1.1

337

1.3

100.0

Portland, OR

3

65,049

1.1

395

1.6

100.0

Reno, NV

1

69,075

1.2

723

2.9

100.0

Richmond, VA

4

78,047

1.3

618

2.5

100.0

Salt Lake City, UT

2

144,086

2.5

916

3.6

100.0

San Antonio, TX

3

50,387

0.9

538

2.1

100.0

San Diego, CA

1

26,452

0.5

136

0.5

100.0

South Florida

1

14,495

0.3

76

0.3

100.0

Southern California

2

68,984

1.2

209

0.8

100.0

Total industrial properties

71

1,965,619

33.7

14,271

56.5

97.0

Retail properties:

Atlanta, GA

1

58,384

1.0

328

1.3

99.4

Birmingham, AL

1

45,452

0.8

193

0.8

94.9

D.C. / Baltimore

1

41,182

0.7

131

0.5

100.0

Greater Boston

10

267,362

4.6

982

3.9

95.5

New Jersey

1

67,119

1.1

226

0.9

96.5

Raleigh, NC

1

45,265

0.8

125

0.5

96.1

South Florida

2

116,058

2.0

206

0.8

98.1

Tulsa, OK

1

36,156

0.6

101

0.4

97.7

Total retail properties

18

676,978

11.6

2,292

9.1

96.7

($ and square feet in thousands)

Number of Properties

Investment in Real Estate Properties

% of Gross Investment Amount

Rentable Square Feet

% of Total Rentable Square Feet

% Leased (1)

Office properties:

Austin, TX

1

85,163

1.5

272

1.1

79.5

Dallas, TX

1

53,673

0.9

161

0.6

94.5

D.C. / Baltimore

1

93,849

1.6

128

0.5

81.2

Metro New York

1

270,090

4.6

597

2.4

78.8

Minneapolis / St. Paul, MN

1

38,567

0.7

100

0.4

62.6

New Jersey

2

47,390

0.8

123

0.5

100.0

Total office properties

7

588,732

10.1

1,381

5.5

81.7

Other properties:

Central Florida

3

34,482

0.6

186

0.7

85.6

New Jersey

1

23,953

0.4

90

0.4

82.1

Pennsylvania

3

63,101

1.1

274

1.1

90.3

Richmond, VA

1

16,679

0.3

100

0.4

73.4

South Florida

2

44,173

0.7

161

0.6

81.2

Total other properties

10

182,388

3.1

811

3.2

84.4

Total real property portfolio

129

$

5,836,932

100.0

%

25,234

100.0

%

94.6

%

(1)Percentage leased is based on executed leases as of June 30, 2025.

The following table sets forth the top 10 geographic allocations of our real property portfolio based on fair value as of June 30, 2025:

($ in thousands)

Number of Properties

Fair Value of Real Properties

% of Fair Value

South Florida

9

$

694,550

11.3

%

Central Florida

12

693,150

11.3

Dallas, TX

6

433,550

7.1

Greater Boston

13

382,000

6.2

Atlanta, GA

4

359,800

5.9

D.C. / Baltimore

6

276,000

4.5

Pennsylvania

7

271,100

4.4

New Jersey

8

242,250

3.9

Metro New York

3

229,850

3.7

Phoenix, AZ

4

212,200

3.5

Other

57

2,346,900

38.2

Total real properties

129

$

6,141,350

100.0

%

Lease Terms. Commercial lease terms typically range from one to 10 years, and often include renewal options. Substantially all of our commercial properties are subject to leases on a “triple net basis” in which customers pay their proportionate share of real estate taxes, insurance, common area maintenance, and certain other operating costs. Most of our commercial leases include fixed rental increases or Consumer Price Index-based rental increases and are not based on the income or profits of any person. The majority of our residential and self-storage leases expire within 12 months.

Lease Expirations. As of June 30, 2025, the weighted-average remaining term of our total leased commercial portfolio was approximately 4.3 years based on annualized base rent and 3.8 years based on leased square footage, excluding renewal options. The following table summarizes the lease expirations at our commercial properties for leases in place as of June 30, 2025, without giving effect to the exercise of renewal options or termination rights, if any. The table excludes our residential and self-storage properties as substantially all leases at such properties expire within 12 months.

($ and square feet in thousands)

Number of
Commercial Leases

Annualized
Base Rent (1)

% of Total
Annualized
Base Rent (1)

Leased
Square Feet

% of Total
Leased
Square Feet

Remainder of 2025 (2)

23

$

9,346

4.9

%

605

3.5

%

2026

69

21,279

11.0

2,370

13.8

2027

71

25,280

13.1

2,746

16.0

2028

90

30,491

15.8

2,825

16.4

2029

75

29,869

15.5

3,277

19.0

2030

67

23,841

12.4

1,758

10.2

2031

35

12,806

6.6

1,398

8.1

2032

26

13,224

6.9

955

5.6

2033

27

7,784

4.0

412

2.4

2034

23

6,435

3.3

353

2.1

Thereafter

36

12,483

6.5

503

2.9

Total leased

542

$

192,838

100.0

%

17,202

100.0

%

(1)Annualized base rent is calculated as monthly base rent including the impact of any contractual tenant concessions (cash basis) per the terms of the lease as of June 30, 2025, multiplied by 12.
(2)Includes one lease totaling approximately 900 square feet that expired on June 30, 2025.

Customer Diversification. We believe that the customer base that occupies our real property portfolio is generally stable and well-diversified. As of June 30, 2025, there were no customers that represented more than 10.0% of total annualized base rent or more than 10.0% of total leased square feet. The following table reflects our 10 largest customers, based on annualized base rent, as of June 30, 2025:

($ and square feet in thousands)

Number of
Locations (1)

Annualized
Base Rent (2)

% of Total
Annualized
Base Rent (2)

Leased
Square Feet

% of Total
Leased
Square Feet

Stop & Shop

7

$

8,163

2.2

%

449

1.9

%

S.P. Richards Company

7

7,579

2.0

954

4.0

Amazon.com / Whole Foods

5

5,532

1.5

604

2.5

FedEx

3

5,349

1.4

1,063

4.5

Mizuho Bank Ltd.

1

4,570

1.2

110

0.5

Harvest Right

1

3,055

0.8

340

1.4

Apple, Inc.

1

2,839

0.8

94

0.4

TJX Companies

4

2,629

0.7

198

0.8

Bridgetown Natural Foods, LLC

2

2,422

0.6

216

0.9

NJ Biopharmaceuticals LLC

1

2,235

0.6

79

0.3

Total

32

$

44,373

11.8

%

4,107

17.2

%

(1)Reflects the number of properties for which the customer has at least one lease in-place.
(2)Annualized base rent is calculated as monthly base rent including the impact of any contractual tenant concessions (cash basis) per the terms of the lease as of June 30, 2025, multiplied by 12.

The majority of our customers do not have a public corporate credit rating. We evaluate creditworthiness and financial strength of prospective commercial customers based on financial, operating and business plan information that such prospective customers provide to us, as well as other market, industry and economic information that is generally publicly available. As a result of this assessment, we may require that the customers enhance their credit by providing us with security deposits, letters of credit from established financial institutions, or personal or corporate guarantees. Customer creditworthiness often influences the amount of upfront tenant improvements, lease incentives, concessions or other leasing costs. We evaluate creditworthiness of our residential customers based on standard market practice, which includes credit checks.

Industry Diversification. We intend to maintain a well-diversified mix of customers to limit our exposure to any single customer or industry. Our diversified investment strategy inherently provides for customer diversity, and we continue to monitor our exposure relative to our larger customer industry sectors. The following table reflects the 10 largest industry concentrations within our portfolio, based on annualized base rent, as of June 30, 2025 and assumes that our residential and self-storage investments are not concentrated within any specific industry:

($ and square feet in thousands)

Number of
Leases

Annualized
Base Rent (1)

% of Total
Annualized
Base Rent

Leased
Square Feet

% of Total
Leased
Square Feet

Storage / Warehousing

23

$

18,596

4.9

%

2,595

10.9

%

Professional Services

56

16,840

4.5

686

2.9

Supermarket

17

14,953

4.0

843

3.5

Food & Beverage

84

14,598

3.9

863

3.6

Financial

24

14,447

3.8

337

1.4

Transportation / Logistics

14

9,828

2.6

1,347

5.6

Healthcare Services

40

7,785

2.1

255

1.1

Apparel / Clothing

18

7,160

1.9

786

3.3

Post & Courier Services

8

6,286

1.7

1,167

4.9

Manufacturing

12

6,110

1.6

999

4.2

Total

296

$

116,603

31.0

%

9,878

41.4

%

(1)Annualized base rent is calculated as monthly base rent including the impact of any contractual tenant concessions (cash basis) per the terms of the lease as of June 30, 2025, multiplied by 12.

Forward-Looking Statements

This Current Report on Form 8-K includes certain statements that are intended to be deemed “forward-looking statements” within the meaning of, and to be covered by the safe harbor provisions contained in, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or other similar words or terms and include, without limitation, statements regarding the estimates and assumptions used in the calculation of our NAV per Fund Interest. These statements are based on certain assumptions and analyses made in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. Such statements are subject to a number of assumptions, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Among the factors that may cause results to vary are the negative impact of increased inflation, changes in interest rates, developments related to tariffs and trade policies and the resulting impacts on market volatility and global trade, the conflict between Russia and Ukraine, and/or the ongoing conflict in the Middle East on our financial condition and results of operations being more significant than expected, general economic and business (particularly real estate and capital market) conditions being less favorable than expected, the business opportunities that may be presented to and pursued by us, changes in laws or regulations (including changes to laws governing the taxation of real estate investment trusts (“REITs”)), risk of acquisitions, availability and creditworthiness of prospective customers, availability of capital (debt and equity), interest rate fluctuations, competition, supply and demand for properties in current and any proposed market areas in which we invest, our customers’ ability and willingness to pay rent at current or increased levels, accounting principles, policies and guidelines applicable to REITs, environmental, regulatory and/or safety requirements, customer bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, and other factors, many of which are beyond our control. For a further discussion of these factors and other risk factors that could lead to actual results materially different from those described in the forward-looking statements, see “Risk Factors” under Item 1A of Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent periodic and current reports filed with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

Item 9.01 Financial Statements and Exhibits.

(d)          Exhibits

Exhibit
Number

    

Description

99.1*

Consent of Altus Group U.S. Inc.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

*          Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Ares Real Estate Income Trust Inc.

July 16, 2025

By:

/s/ TAYLOR M. PAUL

Taylor M. Paul
Managing Director, Chief Financial Officer and Treasurer