Ares Industrial Real Estate Income Trust is a real estate investment trust that invests in an array of industrial properties. Tenants utilize its warehouses and logistics facilities as integral parts of their supply chains, creating rental income streams for Ares. E-commerce growth has driven an uptick in demand for industrial REITs – making this sector an attractive investment option.
Ares Industrial REIT has an expansive portfolio of distribution warehouses and logistics centers that are strategically located, well equipped, and leased out to creditworthy corporations. Their assets span across North America (primarily the US, Canada, and Australia ). Furthermore, Ares also owns industrial mortgage-backed securities as well as equity investments in opportunistic industrial real estate projects.
Ares Industrial REIT began operations on August 12, 2014 and is headquartered in Denver, CO. Additionally to operating income, Ares receives rent from its tenants as well as interest from debt investments that it holds. All income generated is distributed regularly back to shareholders.
As an investor, it is essential that you are aware of all costs and fees associated with investing in an AREIT. Failure to consider them in your analysis could greatly decrease returns from this investment vehicle. These costs include startup and ongoing fees charged by these funds which must also be factored in.
AREITs must submit estimated net asset values (NAVs) monthly with the SEC, calculated based on actual operating results and projected cash flows for future cash flows. NAVs are then discounted using discount rates to generate present value estimates of future cash flows; typically these calculations also include assumptions for discount rate assumptions as well as sensitivities that affect them when conducting calculations of NAV estimates. AREITs typically publish these assumptions along with NAV calculations along with an assessment of any changes to these parameters that affect estimates for NAV calculations or estimates as part of an SEC filing obligation.
Ares Commercial Real Estate Management LLC provides external management of the Company. As of July 1st 2021, after closing on the acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business including former advisor BCI IV Advisors LLC (“Former Advisor”) as their previous advisor (ie “Former Advisor”), their advisor changed to Ares Commercial Real Estate Management LLC (“New Advisor”).
Before investing in an AREIT, it’s advisable to seek guidance from a financial professional specializing in REITs. They can assess your risk tolerance, financial capacity and investment objectives while offering invaluable industry insights. Once done, open a brokerage account and purchase shares that align with your goals – be sure to compare brokers who specialize in stock trading or asset orders to minimize transaction costs that will reduce ROI significantly! Ultimately, success lies with choosing carefully researched REITs – good luck with this!