Ares Industrial REIT Increases Distributions, Reports Lower Monthly NAV Per Share
Ares Industrial Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust managed by Ares Management Corporation (NYSE: ARES) and formerly known as Black Creek Industrial REIT IV Inc., announced the company has raised distributions and declared a monthly net asset value per share for its classes of common stock, as of May 31, 2023.
On June 14, 2023, Ares Industrial’s board of directors authorized an increase to the amount of monthly gross distributions for each class of their common stock. According to a filing they made with the Securities and Exchange Commission, distributions in the amount of $0.05000 per share will be paid to stockholders of record on July 31, 2023, August 31, 2023 and September 29, 2023. The new monthly gross distribution per share reflects an increase to the amount of the previous monthly gross distribution of $0.04542 per share that has been paid since July 31, 2017. The distributions will be paid to stockholders on or around the last business day of each respective month.
At the end of May 2023, the REIT’s Class T, Class D and Class I shares were valued at approximately $14.51 per share, compared to $14.91 per share the previous month. The fund’s aggregate NAV lowered slightly from $4.77 billion in April to $4.61 billion in May.
Class T shares are available to the general public; Class W shares are generally available through fee-based programs known as wrap accounts; and Class I shares are available to institutional investors. Shares were originally priced at $10.00 each plus applicable selling commissions and fees.
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of May 31, 2023. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.
The REIT had 317.7 million fund interests (shares of common stock along with partnership units in the fund’s operating partnership) outstanding in May, compared to 319.7 million the previous month.
The company redeemed all shares submitted for repurchase during the first quarter of 2023, totaling 8.9 million shares repurchased for $135 million.
As of March 31, 2023, Ares Industrial REIT’s real estate portfolio is comprised of 244 industrial buildings totaling approximately 50.7 million square feet. The portfolio was 97.5% occupied (98.4% leased) with a weighted-average remaining lease term of 4.2 years. As of Feb. 28, 2023, the REIT’s leverage ratio was approximately 32.4%.
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