Ares Real Estate Income Trust Inc. Files 2023 10-K

TL;DR

<b>Ares Real Estate Income Trust Inc. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

Ares Real Estate Income Trust Inc. (ZARE) filed a Annual Report (10-K) with the SEC on March 13, 2024. Ares Real Estate Income Trust Inc. filed its 10-K for the fiscal year ending December 31, 2023. The company was formerly known as Black Creek Diversified Property Fund Inc., Dividend Capital Diversified Property Fund Inc., and Dividend Capital Total Realty Trust Inc. The filing includes financial data for the fiscal year 2023. Key financial statement items such as Real Estate Investment Property Net, Other Assets, and Other Liabilities are referenced. The company is incorporated in Maryland (MD).

Why It Matters

For investors and stakeholders tracking Ares Real Estate Income Trust Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Ares Real Estate Income Trust Inc.'s financial performance and position for the fiscal year 2023, which is crucial for investors to assess the company's stability and growth prospects. Understanding the company's historical names and structure (e.g., former names, operating partnership units) is important for tracking its evolution and understanding its current corporate identity and reporting.

Risk Assessment

Risk Level: medium — Ares Real Estate Income Trust Inc. shows moderate risk based on this filing. The filing is a standard 10-K for a REIT, which inherently involves market and financial risks associated with real estate investments, but no immediate red flags are apparent from the header information alone.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the specific performance drivers and potential challenges for Ares Real Estate Income Trust Inc. in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240313 — Filing Date (Filed as of date)
• 118 — Public Document Count (Total number of documents in the filing)
• 300309068 — IRS Number (Company's IRS identification number)

Key Players & Entities

• Ares Real Estate Income Trust Inc. (company) — Filer name
• Black Creek Diversified Property Fund Inc. (company) — Former company name
• Dividend Capital Diversified Property Fund Inc. (company) — Former company name
• Dividend Capital Total Realty Trust Inc. (company) — Former company name
• MD (location) — State of incorporation
• DENVER (location) — Business and mailing city
• CO (location) — Business and mailing state
• 80202 (location) — Business and mailing zip code

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-13: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document for investors to assess a company's annual financial health and operations.)

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. (Indicates the company's business sector and regulatory framework, impacting its financial structure and tax obligations.)

Key Financial Figures

• $0.01 — Act: Class T Shares of Common Stock, $0.01 par value Class S Shares of Common St
• $88.1 million — ecurities Act"). During 2023, we raised $88.1 million of gross proceeds from the sale of comm
• $32.6 million — ur ongoing public primary offerings and $32.6 million from the sale of common stock under our
• $479.2 million — statutory trusts. During 2023, we sold $479.2 million of gross interests related to the DST P
• $51.4 million — s interests related to the DST Program, $51.4 million of which were financed by DST Program L

Filing Documents

• are-20231231x10k.htm (10-K) — 6996KB
• are-20231231xex10d23.htm (EX-10.23) — 141KB
• are-20231231xex21d1.htm (EX-21.1) — 151KB
• are-20231231xex23d1.htm (EX-23.1) — 3KB
• are-20231231xex31d1.htm (EX-31.1) — 11KB
• are-20231231xex31d2.htm (EX-31.2) — 13KB
• are-20231231xex32d1.htm (EX-32.1) — 15KB
• are-20231231xex99d1.htm (EX-99.1) — 6KB
• 0001558370-24-003073.txt (&nbsp;) — 25850KB
• are-20231231.xsd (EX-101.SCH) — 131KB
• are-20231231_cal.xml (EX-101.CAL) — 103KB
• are-20231231_def.xml (EX-101.DEF) — 515KB
• are-20231231_lab.xml (EX-101.LAB) — 925KB
• are-20231231_pre.xml (EX-101.PRE) — 735KB
• are-20231231x10k_htm.xml (XML) — 6242KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 4 Item 1B. Unresolved Staff Comments 64 Item 1C. Cybersecurity 65 Item 2.

Properties

Properties 66 Item 3.

Legal Proceedings

Legal Proceedings 70 Item 4. Mine Safety Disclosures 70 PART II 70 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 70 Item 6. [Reserved] 79 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 80 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 94 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 95 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 139 Item 9A.

Controls and Procedures

Controls and Procedures 139 Item 9B. Other Information 139 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 140 PART III 140 Item 10. Directors, Executive Officers and Corporate Governance 140 Item 11.

Executive Compensation

Executive Compensation 140 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 140 Item 13. Certain Relationships and Related Transactions, and Director Independence 140 Item 14. Principal Accountant Fees and Services 140 PART IV 141 Item 15. Exhibits and Financial Statement Schedules 141 Item 16. Summary of Form 10-K 149 i Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the "Securities Act," and Section 21E of the Securities Exchange Act of 1934, as amended, or the "Exchange Act." Such forward-looking statements relate to, without limitation, our future capital expenditures, distributions, acquisitions and dispositions (including the amount and nature thereof), other developments and trends of the real estate industry, business strategies, and the expansion and growth of our operations. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements are subject to a number of assumptions, risks and uncertainties which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements are generally identifiable by the use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "project," "continue," or the negative of these words, or

BUSINESS

ITEM 1. BUSINESS The Company Ares Real Estate Income Trust Inc. is a net asset value ("NAV")-based perpetual life REIT formed on April 11, 2005, as a Maryland corporation. We are primarily focused on investing in and operating a diverse portfolio of real property and investing in other real estate-related assets. As of December 31, 2023, our consolidated real property portfolio consisted of 99 properties, totaling approximately 20.1 million square feet located in 33 markets throughout the U.S. As used herein, the terms "AREIT," the "Company," "we," "our" or "us" refer to Ares Real Estate Income Trust Inc. and its consolidated subsidiaries, except where otherwise indicated or the context otherwise requires. We have operated and elected to be treated as a REIT for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2006, and we intend to continue to operate in accordance with the requirements for qualification as a REIT. We utilize an Umbrella Partnership Real Estate Investment Trust ("UPREIT") organizational structure to hold all or substantially all of our assets through AREIT Operating Partnership LP (the "Operating Partnership"), a Delaware limited partnership, of which we are the sole general partner and a limited partner. We rely on the Advisor, a related party, to manage our day-to-day activities and to implement our investment strategy pursuant to the terms of the second amended and restated advisory agreement (2023), effective as of June 3, 2023 (the "Advisory Agreement"), by and among us, the Operating Partnership, and the Advisor. The current term of the Advisory Agreement ends on April 30, 2024, subject to renewal by our board of directors for an unlimited number of successive one-year periods. The Advisor performs its duties and responsibilities under the Advisory Agreement as a fiduciary of us and our stockholders. We intend to offer shares of our common stock on a continuous basis. We also intend to conduct an ongo

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View this 10-K filing on SEC EDGAR