Ares Industrial REIT Reports 1.4% Decrease to Monthly Total NAV as of Q2’s End

Ares Industrial Real Estate Income Trust Inc., a monthly net asset value real estate investment trust sponsored by Ares Management Corporation, reported that its total NAV decreased in value by 1.4% month-over-month as of the end of June, from approximately $4.03 billion to nearly $3.97 billion.

Its declared monthly NAV per share (inclusive of Class T, Class D, and Class I shares) transaction and offering prices stayed roughly the same, changing from $12.6029 per share as of May 31, 2024, to 12.6032 per share as of June 30.

Ares Industrial REIT’s leverage ratio was approximately 43.4% as of June 30, 2024.

As of the end of June, the REIT directly owned and managed a portfolio that included 250 industrial buildings totaling approximately 54.1 million square feet located in 30 markets throughout the United States and was 92.5% occupied (94.9% leased) with a weighted-average remaining lease term, based on square feet, of 3.8 years.

During the second quarter of 2024, the REIT transacted approximately 2.4 million square feet of new and renewal leases, and rent growth on comparable leases averaged 109.7%, calculated using cash-basis rental rates. Rents across the portfolio were estimated to be 26.6% below market, on a weighted-average basis.

Additionally, during the same quarter, Ares Industrial REIT disposed of six industrial properties for a gross sales price of $107.1 million. It also acquired four industrial properties for an aggregate contractual purchase price of $148.8 million.

The REIT raised gross proceeds of approximately $86.3 million, including proceeds from its distribution reinvestment plan and the sale of Delaware statutory trust interests. The aggregate dollar amount of common stock and operating partnership unit redemptions requested for the second quarter – which were redeemed in full on May 1, June 1, and July 1 – was $158.7 million.

The company paid its normal monthly gross distribution of $0.05 per share for each share class for the month of June 2024. These distributions were paid to all stockholders of record as of the close of business on June 28.

Ares Industrial Real Estate Income Trust is an industrial-focused real estate solution that seeks to deliver consistent distributions, capital preservation, and capital appreciation by investing in high-quality bulk and last-mile distribution facilities in key logistics markets across the nation.

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