ARES INDUSTRIAL REAL ESTATE INCOME TRUST Inc.

CIK:0001625941|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Rental revenues	$ 145,687	$ 135,931	$ 286,402	$ 269,850
Debt-related income	12,786	10,855	26,114	21,338
Total revenues	158,473	146,786	312,516	291,188
Operating expenses:
Rental expenses	38,678	32,642	76,258	66,853
Real estate-related depreciation and amortization	79,022	73,530	158,331	151,106
General and administrative expenses	4,146	3,794	9,027	8,662
Advisory fees	18,139	16,583	35,805	33,138
Performance participation allocation	11,812	0	11,812	0
Acquisition costs and reimbursements	2,070	614	3,652	1,205
Total operating expenses	153,867	127,163	294,885	260,964
Other income (expenses):
Equity in income from unconsolidated joint venture partnerships	16	38	44	14
Interest expense	(74,218)	(67,305)	(144,729)	(137,193)
Loss on financing obligations	(3,858)	(1,485)	(10,406)	(2,320)
(Loss) gain on financial assets	(103)	611	(130)	623
Gain on extinguishment of debt and financing obligations, net	0	41,001	0	40,840
Net gain on sale of real estate property	2,609	0	2,609	0
Other income and expenses	1,152	1,236	1,614	2,901
Total other income (expenses)	(74,402)	(25,904)	(150,998)	(95,135)
Net loss	(69,796)	(6,281)	(133,367)	(64,911)
Net loss attributable to redeemable noncontrolling interests	1,421	138	2,717	1,542
Net loss attributable to noncontrolling interests	17,467	1,380	33,524	11,972
Net loss attributable to common stockholders	$ (50,908)	$ (4,763)	$ (97,126)	$ (51,397)
Weighted-average shares outstanding-basic (in shares)	279,867	273,015	279,230	272,025
Weighted-average shares outstanding-diluted (in shares)	383,695	360,065	383,476	350,456
Net loss attributable to common stockholders per common share - basic (in dollars per share)	$ (0.18)	$ (0.02)	$ (0.35)	$ (0.19)
Net loss attributable to common stockholders per common share - diluted (in dollars per share)	$ (0.18)	$ (0.02)	$ (0.35)	$ (0.19)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net loss	$ (133,367)	$ (64,911)
Adjustments to reconcile net loss to net cash provided by operating activities:
Real estate-related depreciation and amortization	158,331	151,106
Amortization of deferred financing costs	9,133	8,414
Equity in income from unconsolidated joint venture partnerships	(44)	(14)
Loss on changes in fair value of interest rate caps	112	4,721
Amortization of interest rate cap premiums	13,951	9,085
Loss on financing obligations	10,406	2,320
Paid-in-kind interest on borrowings, net of repayments	0	277
Paid-in-kind interest on investments in real estate debt and securities, net of repayments	(8,201)	(6,659)
Unrealized loss on DST Program Loans	130	0
Performance participation allocation	11,812	0
Straight-line rent and amortization of above- and below-market leases	(12,522)	(16,440)
Gain on extinguishment of debt and financing obligations, net	0	(40,840)
Net gain on sale of real estate property	(2,609)	0
Other	2,929	3,991
Changes in operating assets and liabilities
Other assets, accounts payable and accrued liabilities and other liabilities	5,340	(3,317)
Net cash provided by operating activities	55,401	47,733
Investing activities:
Real estate acquisitions	(180,977)	(65,269)
Proceeds from disposition of real estate properties	17,838	0
Capital expenditures	(28,458)	(41,517)
Investments in debt-related investments	(29,767)	(47,257)
Investments in unconsolidated joint venture partnerships	(180)	(1,753)
Distributions from joint venture partnerships	3,377	5,702
Collection of principal on available-for-sale debt securities	34,951	4,588
Collection of principal on debt-related investments	49,864	96,736
Disbursement of escrows and reserves for debt-related investments, net	(390)	0
Other	15	0
Net cash (used in) investing activities	(133,727)	(48,770)
Financing activities:
Proceeds from line of credit	600,000	361,284
Repayments of line of credit	(620,000)	(711,284)
Proceeds from term loan	0	109,000
Repayments of term loan	0	(109,000)
Net repayments of secured funding agreement	(25,635)	(9,228)
Proceeds from mortgage note	0	563,955
Repayments of mortgage note	0	(120,085)
Debt issuance costs paid	(410)	(25,574)
Interest rate cap premiums	(16,616)	(18,653)
Proceeds from issuance of common stock, net	109,878	128,708
Proceeds from financing obligations, net	210,662	88,759
Offering costs paid in connection with issuance of common stock and private placements	(2,691)	(2,004)
Cash payout of DST Interests	0	(3,567)
Distributions paid to common stockholders, redeemable noncontrolling interest holders and noncontrolling interest holders	(63,726)	(52,372)
Distribution fees paid to affiliates	(9,494)	(8,363)
Redemptions of common stock	(116,044)	(142,185)
Redemptions of redeemable noncontrolling interests and noncontrolling interests	(18,342)	(24,919)
Other	(983)	(1,195)
Net cash provided by financing activities	46,599	23,277
Net (decrease) increase in cash, cash equivalents and restricted cash	(31,727)	22,240
Cash, cash equivalents and restricted cash, at beginning of period	76,318	28,797
Cash, cash equivalents and restricted cash, at end of period	$ 44,591	$ 51,037

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Net investment in real estate properties	$ 6,903,808	$ 6,852,623
Investments in unconsolidated joint venture partnerships	16,494	19,647
Investments in real estate debt and securities, at fair value	647,075	693,861
Cash and cash equivalents	31,596	63,037
Restricted cash	12,995	13,281
Derivative instruments	40,395	24,992
DST Program Loans, at fair value	46,158	30,372
Other assets	105,215	100,614
Total assets	7,803,736	7,798,427
Liabilities
Accounts payable and accrued liabilities	90,775	76,407
Debt, net	4,707,801	4,709,322
Secured financings on investments in real estate debt securities	46,949	72,584
Intangible lease liabilities, net	45,514	52,230
Financing obligations, at fair value	731,063	494,109
Distribution fees payable to affiliates	141,057	142,465
Other liabilities	79,696	70,396
Total liabilities	5,842,855	5,617,513
Commitments and contingencies (Note 15)
Redeemable noncontrolling interests	103,214	102,373
Stockholders’ equity:
Preferred stock, $0.01 par value per share — 200,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value per share (Note 9)	2,804	2,772
Additional paid-in capital	3,192,944	3,176,212
Accumulated deficit and distributions	(1,822,292)	(1,641,945)
Accumulated other comprehensive income	11,332	2,097
Total stockholders’ equity	1,384,788	1,539,136
Noncontrolling interests	472,879	539,405
Total equity	1,857,667	2,078,541
Total liabilities and equity	$ 7,803,736	$ 7,798,427