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Ares REIT Acquires Two Industrial Properties and Reports Slightly Lower NAV Per Share

Ares Real Estate Income Trust Inc., a publicly registered NAV-based perpetual life real estate investment trust formerly known as Black Creek Diversified Property Fund, announced the company acquired two properties and has updated its net asset value per share for its Class T, Class S, Class D, Class I and Class E shares of common stock, as of April 30, 2023.

During the first quarter of 2023, Ares REIT acquired one industrial property for a purchase price of approximately $17.4 million. Subsequent to the close of the first quarter, the company also acquired an industrial property for a purchase price of $33.4 million.

Ares REIT also sold one partial retail property for net proceeds of approximately $53.7 million. The company says they recorded a net gain on sale of approximately $36.9 million.

Each class of stock were valued at $8.606 per share, compared to $8.633 the previous month. The fund’s aggregate NAV decreased from $2.27 billion in March to $2.26 billion in April.

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. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.

Total investments in real estate properties increased from $4.568 billion in March to $4.574 billion in April. Investments in unconsolidated joint venture partnerships increased from $149.0 million to $149.6 million. Debt related investments slightly increased from $259.3 million to $259.4 million month-over-month, while DST program loans increased from $93.6 million to $102.1 million.

There were 263.0 million shares outstanding at the end of April compared to 263.3 million the previous month.

The company also reported that it “fully satisfied all stockholder redemption requests in April.”

Ares Real Estate Income Trust launched in January 2006 and has raised more than $3 billion in multiple offerings. As of March 31, 2023, the REIT owned a portfolio of 91 real estate properties totaling approximately 18.6 million square feet that were 95.0% leased and had a leverage ratio of 31.7%.

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