Ares Real Estate Income Trust Inc. Enters Material Agreement

TL;DR

Ares REIT just signed a big deal, expect financial moves.

AI Summary

On October 1, 2024, Ares Real Estate Income Trust Inc. entered into a material definitive agreement and created a direct financial obligation. The filing does not specify the other parties involved or the financial terms of the agreement.

Why It Matters

This filing indicates a significant new financial commitment or partnership for Ares Real Estate Income Trust Inc., which could impact its future operations and financial performance.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and creating financial obligations can introduce new risks related to the terms, counterparty, and execution of the agreement.

Key Players & Entities

• Ares Real Estate Income Trust Inc. (company) — Registrant
• October 1, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $475.0 million — ") for an aggregate principal amount of $475.0 million (the "JPM Facility"). The JPM Facility

Filing Documents

• are-20241001x8k.htm (8-K) — 32KB
• 0001327978-24-000125.txt ( ) — 148KB
• are-20241001.xsd (EX-101.SCH) — 4KB
• are-20241001_def.xml (EX-101.DEF) — 3KB
• are-20241001_lab.xml (EX-101.LAB) — 16KB
• are-20241001_pre.xml (EX-101.PRE) — 10KB
• are-20241001x8k_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The information discussed under Item 2.03 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01 . I tem 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Arrangement of a Registrant. On October 1, 2024, Ares Real Estate Income Trust Inc. (the "Company"), through certain indirect subsidiaries (collectively, the "Borrower"), entered into a secured loan agreement with JPMorgan Chase Bank, National Association, Morgan Stanley Bank, N.A. and Natixis Real Estate Capital LLC (collectively, the "Lender") for an aggregate principal amount of $475.0 million (the "JPM Facility"). The JPM Facility is non-recourse except for standard carve-outs including those relating to "bad boy" acts by the Borrower, AREIT Operating Partnership LP (the "Operating Partnership") and/or certain parties affiliated with and controlled by the Operating Partnership, and environmental matters. The Operating Partnership executed a recourse carve-out guaranty with respect to such "bad boy" acts, provided that the Operating Partnership's full recourse liability shall be limited to customary bankruptcy carve-outs and the full recourse liability shall be limited to twenty percent of the outstanding principal balance of the loan at the time of the occurrence of such event plus the costs of enforcement. In connection with the terms of the guaranty, the Operating Partnership is required to maintain certain net worth requirements during the term of the JPM Facility. The JPM Facility bears a floating interest rate based on the sum of (i) the Secured Overnight Financing Rate for a one-month period ("Term SOFR") and (ii) a spread at a blended rate of 2.224940%, requires interest-only monthly payments for the term of the loan and has a contractual maturity of October 9, 2026 which may be extended for three successive terms of one year each upon satisfaction of certain terms and condit

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Ares Real Estate Income Trust Inc. October 7, 2024 By: /s/ TAYLOR M. PAUL Taylor M. Paul Managing Director, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR