Ares industrial real estate income trust, one of the largest nontraded real estate investment trusts available to individual investors, provides a pure-play industrial solution. Utilizing long-term investing strategies with inflation protection to generate monthly distributions and capital appreciation. Furthermore, Ares invests in high-quality industrial properties in markets with high barriers-to-entry that are close to major distribution hubs or dense populations – thus giving its investors access to monthly distributions and capital appreciation opportunities.
The REIT’s annual distributions have ranged between 4.4 percent and 5.5 percent, with an average distribution rate of 5 percent. Last November it paid out 5.08 cents per share to its shareholders. Furthermore, it has had great success reducing debt; currently operating with an adjusted interest expense rate of approximately 4.7%.
As reported in its most recent quarterly report, the company owns 99 industrial assets with total gross leasable area of 20.1 million square feet, across 33 markets throughout the US. Many are leased out to tenants from various industries; most commonly transportation and logistics businesses.
Ares announced in a statement that it has initiated the search process to hire a new CEO and CFO to replace Rajat Dhanda when he leaves in December 2024. Martin A. Edmondson was appointed to its board as an independent director; Scott Recknor will depart as head of asset management on January 20, 2022.
Ares is in the midst of transitioning its two REITs from public offerings to private sales in order to reduce costs and comply with stricter securities regulations, while lower yields on offer may attract more capital toward other real estate and alternative investments.
Ares has built its success on providing consistent returns to its shareholders. Unfortunately, REITs currently face challenges in an environment marked by rising interest rates that has had an adverse impact on their sector resulting in many REITs reporting disappointing results.
Ares is confident that the industrial property market is strong and expects it to outshone other sectors for several reasons, including strong rent growth, low vacancy rates and exceeding supply.
Ares Industrial Real Estate Income Trust is comprised of four shares available for purchase by investors. You can select among Class T, Class S, Class D and Class I shares; these trade on the NASDAQ Global Select Market with symbol AIREIT. Each type has different fees and charges that could impact overall return on investment; so it is crucial for those considering investing in Ares Industrial Real Estate Income Trust to understand how their fees and charges may impact performance of their investment portfolio.