Ares Industrial REIT to Commence Perpetual Private Offering; Reports 7.4% Increase in Total NAV
Ares Industrial Real Estate Income Trust Inc., a monthly net asset value real estate investment trust sponsored by Ares Management Corporation, announced that it will begin a perpetual private offering of multiple classes of common stock, including through a distribution reinvestment plan. The per share purchase price will vary and will generally equal the company’s most recently disclosed net asset value per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees.
In conjunction with the news, the REIT reported that it will close its public primary offering of shares effective July 2, 2024. It noted that it was not currently considering a liquidity event and would remain an active buyer of real estate assets. Ares Industrial REIT further guided that the close of the public offering was “not reflective of adverse developments at the company or an unfavorable view of the real estate fundamentals.” It will continue to file reports as a public reporting company, and shareholders who purchased shares in the public offering will continue to have access to its share redemption program, according to public filings.
Similarly, Ares Real Estate Income Trust announced its intention to commence a perpetual private offering of multiple classes of common stock earlier this month. It, too, will close its public primary offering of shares effective July 2.
In monthly NAV news for Ares Industrial REIT, the company reported an aggregate NAV of $4.07 billion as of the close of business, April 30, 2024. This was an increase in value by 7.4% month-over-month since $3.79 billion at the end of March.
Its declared monthly NAV per share (inclusive of Class T, Class D, and Class I shares) transaction and offering prices increased month-over-month by approximately 0.31%, from $12.556 per share as of March 31, to $12.5946 per share as of April 30. The exception was its offering price for Class T NAV per share, which was $13.1881 and included sales commissions and fees.
Ares Industrial REIT’s leverage ratio was approximately 42.3%.
Regarding acquisitions and dispositions since the end of March 2024, the REIT acquired two industrial properties for an aggregate contractual purchase price of $78.5 million. It sold two industrial properties for a gross sales price of $23.9 million. Ares Industrial REIT’s accounting basis (net of accumulated depreciation and amortization) for these properties as of the disposition date was approximately $14 million.
Ares Industrial REIT reported total assets of $7.4 billion and total liabilities of $5.4 billion in its most recent quarterly report. The company owns 252 industrial properties comprising over 53 million square feet located in 29 markets throughout the United States.
The company paid its normal monthly gross distribution of $0.05 per share for each share class for the month of April 2024 and were paid to all stockholders of record as of the close of business on April 30.
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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