Ares Real Estate Income Trust Inc. 8-K

What Happened
Ares Real Estate Income Trust Inc. filed a Form 8‑K on January 16, 2026 to update its net asset value (NAV), portfolio holdings and recent distributions. The company reported Aggregate Fund NAV of $3,122,500 thousand (about $3.1225 billion) as of December 31, 2025, producing a NAV per Fund Interest of $8.0353 (up from $7.9946 as of Nov. 30, 2025). The transaction price for all share classes for the February 1, 2026 purchase date equals the NAV per share as of December 31, 2025. The board engaged Altus Group U.S. Inc. as the independent valuation advisor for monthly property valuations and related reviews.

Key Details

• Aggregate Fund NAV (Dec. 31, 2025): $3,122.5 million; NAV per Fund Interest: $8.0353 (Nov. 30, 2025 NAV per share was $7.9946).
• Portfolio: 143 consolidated properties totaling ~30.5 million sq. ft. across 34 U.S. markets, 94.9% leased; consolidated real property fair value $7,565.2 million.
• Capital & leverage: Leverage ratio 35.6%; weighted‑average interest rate on consolidated borrowings 4.85%. Raised ~$457.4 million gross in Q4 2025; acquired 4 industrial + 2 data center properties for $768.1 million in Q4.
• Cash flow & distributions: Authorized monthly gross distribution of $0.03450 per share for December 2025 (paid to holders of record Dec. 31, 2025).
• Valuation notes: Independent valuations use weighted‑average exit cap rates (e.g., industrial ~5.7%, office ~7.4%) and discount rates (weighted avg ~7.3%); a 0.25% cap rate move changes property values by ~2–3% (varies by property type). NAV excludes estimated future distribution fees and illiquidity or exit‑cost discounts.
• Other: Updated suitability standards for Alabama investors in the distribution reinvestment plan effective Feb. 20, 2026.

Why It Matters
This filing gives investors a current view of the company’s reported NAV, occupancy and recent capital activity. NAV increased month‑over‑month and the trust shows high portfolio occupancy (94.9%) and active capital deployment (large acquisitions and $457M of capital raised in Q4). Leverage is moderate at 35.6% and borrowing costs are shown (4.85% avg), which matter for income stability and interest‑rate sensitivity. Note the company’s disclosure that NAV is an estimated value (based on independent and internal valuations), does not guarantee realizable liquidation value, and excludes potential future distribution fees and exit costs—important limits for investors relying on NAV as a sale or trade price.