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Ares Industrial Real Estate Income Trust (AIREIT)

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Overview

Overview

Ares Industrial Real Estate Income Trust (AIREIT or the "Fund") is an industrial-focused real estate solution that seeks to deliver consistent distributions,2 capital preservation and capital appreciation by investing in high-quality bulk and last-mile distribution facilities in key logistics markets across the U.S.

Our goal is to help investors harness the power of the e-commerce and logistics industries by offering a portfolio of industrial real estate assets through an accessible structure. AIREIT is one of the only single-sector NAV REITs exclusively focused on industrial assets available to individual investors.

Distribution payments are not guaranteed. AIREIT may pay distributions from sources other than cash flow from operations, including without limitation from the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and AIREIT may be required to fund its monthly distributions from a combination of its operations and financing activities, which include net proceeds of these offerings and borrowings (including borrowings secured by its assets), or to reduce the level of their monthly distributions. AIREIT has not established a cap on the amount of the distributions that may be paid from any of these sources.

Why consider Ares Industrial Real Estate Income Trust?

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Well-researched portfolio

Well-researched portfolio of bulk and last-mile distribution facilities in high-barrier-to-entry markets across the U.S.

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Accessible structure

Offers monthly income,2
valuations and liquidity3.

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Risk-managed investment process

Seeks to offer compelling long-term returns while preserving stockholders’ capital. We thoroughly vet every potential acquisition using our proprietary 400+ step due diligence process.

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Experienced team

25+ years of experience acquiring, operating and developing industrial real estate. Our in-market asset management teams have real-time knowledge of tenant demands and seek to capitalize on the global logistics and e-commerce revolution.

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Consistent distributions2

Capital appreciation and current income potential. We seek to identify properties with the potential for cash flow growth, targeting major transportation and logistics hubs.

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Enhanced transparency

Monthly valuations performed by an independent valuation advisor and reflected in our clients’ monthly statements.4

AIREIT Portfolio At-a-Glance

As of May 31, 2024
Total Asset Value 5
$8.9bn
Total Buildings 6
253
Geographic Markets 6
29
Net Rentable SQ FT 6
54.4mm
Leased 7
94.3%
Tenants 6
425

Share Class Overview

As of May 31, 2024

$12.601

NAV per share and Transaction Price For subscriptions accepted as of July 1, 2024

(and repurchased as of June 28, 2024)

4.76% Annualized Distribution Rate

Offering Terms8

Availability: Through transactional/brokerage accounts, registered investment advisors and other institutional and fiduciary accounts.

Minimum Initial Investment9$1 million (unless waived)

Share Class Specific Fees:

  • Up-front Selling Commission: None
  • Up-front Dealer Manager Fee: None
  • Annualized Distribution Fee (trailing compensation): None

Advisory Fees:

  • Asset Management Fee: 1.25% per annum of NAV, payable monthly
  • Performance Participation Allocation: 12.50% of the annual total return, subject to a 5% hurdle amount, catch-up and loss carryforward
  • Development Fee: 4.0% of total project cost of a development property

$12.601

$13.20 Offering Price For subscriptions accepted as of July 1, 2024

(and repurchased as of June 28, 2024)

3.96% Annual Distribution Rate
3.78% Annual Distribution Rate with Sales Charge

Offering Terms8

Availability: Through transactional / brokerage accounts

Minimum Initial Investment9$2,000 ($2,500 for NY residents, except for IRAs)

Share Class Specific Fees10:

  • Up-front Selling Commission: Up to 2.0% of offering price
  • Up-front Dealer Manager Fee: Up to 2.5% of offering price
  • Annualized Distribution Fee (trailing compensation): 0.85% of NAV per share

Advisory Fees:

  • Asset Management Fee: 1.25% per annum of NAV, payable monthly
  • Performance Participation Allocation: 12.50% of the annual total return, subject to a 5% hurdle amount, catch-up and loss carryforward
  • Development Fee: 4.0% of total project cost of a development property

$12.601

NAV per share and Transaction Price For subscriptions accepted as of July 1, 2024

(and repurchased as of June 28, 2024)

4.53% Annual Distribution Rate

Offering Terms8

Availability: Through fee-based (wrap) programs, transactional/brokerage accounts, registered investment advisers and other institutional and fiduciary accounts

Minimum Initial Investment9$2,000 ($2,500 for NY residents, except for IRAs)

Share Class Specific Fees11:

  • Up-front Selling Commission: None
  • Up-front Dealer Manager Fee: None
  • Annualized Distribution Fee (trailing compensation): 0.25% of NAV per share

Advisory Fees:

  • Asset Management Fee: 1.25% per annum of NAV, payable monthly
  • Performance Participation Allocation: 12.50% of the annual total return, subject to a 5% hurdle amount, catch-up and loss carryforward
  • Development Fee: 4.0% of total project cost of a development property

Properties

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1

NAV is calculated in accordance with valuation procedures adopted by AIREIT’s board and is not subject to accounting principles generally accepted in the United States (“GAAP”). NAV will likely differ from the GAAP value of our equity reflected in our financial statements. As of December 31, 2023, our total equity under GAAP, excluding third party JV interests, if any, was approximately $1,795,000 and our GAAP total equity per share/unit was approximately $6.05. GAAP total equity per share/unit is presented on a “blended” share class/unit basis and is calculated as total equity divided by the aggregate number of outstanding shares issued by AIREIT and units issued by AIREIT Operating Partnership LP. Please click here for a reconciliation of our GAAP total equity, excluding third party JV interests, if any, to our NAV. Investors should review this information prior to making an investment decision.

2

Distribution payments are not guaranteed. AIREIT may pay distributions from sources other than cash flow from operations, including without limitation from the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and AIREIT may be required to fund its monthly distributions from a combination of its operations and financing activities, which include net proceeds of these offerings and borrowings (including borrowings secured by its assets), or to reduce the level of their monthly distributions. AIREIT has not established a cap on the amount of the distributions that may be paid from any of these sources.

3

The terms of AIREIT’s share redemption program (“SRP”) are presented for informational purposes and qualified in their entirety by the more detailed information set forth in the AIREIT prospectus. Generally, shares that are redeemed but were held for less than one year will be redeemed at 95% of NAV. AIREIT’s board of directors reserves the right to reject any request for redemption for any reason, or to modify or suspend the SRP at any time. Investors should not assume that their shares will be redeemed by AIREIT pursuant to the SRP. As a result, AIREIT's shares should be considered as having only limited liquidity and at times may be illiquid.

4

See the prospectus for full information regarding AIREIT’s NAV valuation process and policies

5

Total asset value is calculated as fair value of AIREIT’s real estate investments, fair value of AIREIT’s net investment in an unconsolidated joint venture partnership, fair value of AI-REIT’s investments in real estate debt and securities plus cash and cash equivalents.

6

Represents portfolio information for our wholly owned properties.

7

Percent leased represents AIREIT's wholly owned Operating Portfolio, which includes properties that are more than 90% leased or have been owned for more than a year.

8

Terms summarized are for informational purposes and qualified in their entirety by the more detailed information set forth in the AIREIT prospectus. See prospectus for complete descriptions of these and other fees and expense reimbursements payable to AIREIT’s advisor and its affiliates. Certain financial professionals may have different suitability standards and may not offer all share classes.

9

Minimum initial investment may vary by state and/or broker dealer.

10

The amount of selling commissions and dealer manager fees paid to certain broker dealers may vary, provided that the sum will not exceed 4.5% of the public offering price. The distribution fees are subject to a cap as described in the prospectus, and these expenses are allocated to all Class T Shares and reduce the distributions otherwise payable to all Class T stockholders.

11

The distribution fees are subject to a cap as described in the prospectus. These expenses are allocated to all Class D Shares and reduce the distributions otherwise payable to all Class D stockholders.

Please read the applicable Ares Fund or Real Estate Income Trust ("REIT") Prospectus prior to making any investment decision and consider carefully the REIT’s or Funds’ investment objectives, risks, charges, expenses and other important information described therein. A copy of the REIT and Funds Prospectuses, which contain this and other information about the REIT or Fund, must be made available to you in connection with any offering of the Shares. Click here to view the REIT and Funds' Prospectuses. The REIT and Funds prospectuses do not constitute an offer to sell securities, nor a solicitation of an offer to buy their Shares in any state where the offer or sale is not permitted.

Ares Wealth Management Solutions does not offer investment advice. Individuals should consult a professional investment advisor.

Investments in the Ares Private Markets Fund, Ares Strategic Income Fund, or Ares REITs are not suitable for all investors. Investing in shares of the Funds or REITs involves a high degree of risk, including the risk that payment of distributions is uncertain and cannot be guaranteed, the risk that an investment is not liquid, and the risk that stockholders may lose the entire amount of their investment. Please review the AREIT Summary Risk Factors and the Prospectus, AIREIT Summary Risk Factors and the Prospectus, and the APMF Summary Risk Factors and the Prospectus, and the ASIF Summary Risk Factors and the Prospectus for a complete list of the risks associated with the REITs, Ares Private Markets Fund, and Ares Strategic Income Fund investments.

No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the SEC nor any other state securities regulator has approved or disapproved of the securities described in the prospectus or determined if the prospectus is truthful or complete. In addition, the Attorney General of the state of New York has not passed on or endorsed the merits of the offering. Any representation to the contrary is a criminal offense. Fund and REIT shares will be offered to the public through Ares Wealth Management Solutions, LLC, member of Financial Industry Regulatory Authority (FINRA) and SIPC, which will act as the dealer manager, and through other members of FINRA or with the assistance of registered investment advisors.

Check this firm’s Form CRS Customer Relationship Summary.

Check the background of this firm on FINRA’s Broker Check.

Our prospectuses are provided in Adobe PDF format. The Adobe Reader software can be downloaded here.

NOT A DEPOSIT • NOT FDIC INSURED • NOT GUARANTEED BY THE BANK • MAY LOSE VALUE • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

You Must First Receive a Copy of the Prospectus - AI-REIT

This website is neither an offer to sell nor a solicitation of an offer to buy the securities described in the Ares Industrial Real Estate Income Trust Inc. (AI-REIT) prospectus. Offerings are made only by means of a prospectus, which should be read in order to fully understand all of the implications and risks associated with an offering.

Please acknowledge that you have received a copy of the AI-REIT prospectus prior to entering our website. If you have not yet received a copy, please use the following link to access a copy of the AIREIT prospectus:

View Ares Real Estate Income Fund Prospectus

Each person investing through an employee pension benefit plan subject to the Employee Retirement Income Security Act of 1974, such as a profit sharing, section 401(k) or pension plan, or any other retirement plan or account subject to Section 4975 of the Internal Revenue Code of 1986, as amended, such as an IRA, or any entity that includes such assets, which we refer to collectively as the “Benefit Plans,” should only view these materials in consultation with a qualified independent fiduciary, such as an independent financial advisor. Ares Industrial Real Estate Income Trust Inc., its advisor, its dealer manager and their affiliates have financial interests associated with an investment as outlined in the prospectus. These materials do not constitute a recommendation to invest, and should not be construed as investment advice. If you are a person investing through a Benefit Plan, you must agree that you will only view these materials in consultation with your independent financial advisor or other qualified independent fiduciary.

By clicking " I Agree" below, you acknowledge that you are either (a) a United States resident or (b) have otherwise received authorization from AIREIT or your broker-dealer/ registered investment advisor to access the contents to its website.

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AccessAres is the thought-leadership and educational division of Ares Wealth Management Solutions. The materials distributed by AccessAres are for informational purposes only and do not constitute investment advice or a recommendation to buy, sell or hold any security, investment strategy or market sector. Ares Wealth Management Solutions is a global brand of Ares Management Corporation.

You are now leaving the AccessAres website

AccessAres is the thought-leadership and educational division of Ares Wealth Management Solutions. The materials distributed by AccessAres are for informational purposes only and do not constitute investment advice or a recommendation to buy, sell or hold any security, investment strategy or market sector. Ares Wealth Management Solutions is a global brand of Ares Management Corporation.