Ares Real Estate Income Trust Inc. 10-Q

Financial Statements (unaudited)

ITEM 1. FINANCIAL STATEMENTS ARES REAL ESTATE INCOME TRUST INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of (in thousands, except per share data) June 30, 2026 December 31, 2025 (Unaudited) ASSETS Net investment in real estate properties $ 6,408,192 $ 6,210,266 Investments in real estate debt and securities (includes $ 320,772 and $ 259,378 at fair value as of June 30, 2026 and December 31, 2025, respectively) 362,770 303,798 Investments in unconsolidated joint venture partnerships (includes $ 92,181 and $ 77,703 at fair value as of June 30, 2026 and December 31, 2025, respectively) 532,900 438,997 Cash and cash equivalents 41,129 40,059 Restricted cash 14,697 5,693 DST Program Loans (includes $ 208,776 and $ 170,865 at fair value as of June 30, 2026 and December 31, 2025, respectively) 208,776 191,502 Other assets 109,081 78,209 Total assets $ 7,677,545 $ 7,268,524 LIABILITIES AND EQUITY Liabilities Accounts payable and accrued expenses $ 103,398 $ 92,572 Debt, net 2,542,960 2,971,842 Intangible lease liabilities, net 197,115 187,051 Financing obligations, net (includes $ 2,597,161 and $ 2,126,267 at fair value as of June 30, 2026 and December 31, 2025, respectively) 2,597,161 2,350,050 Distribution fees payable to affiliates 104,618 72,974 Other liabilities 98,329 71,515 Total liabilities 5,643,581 5,746,004 Commitments and contingencies (Note 15) Redeemable equity (Notes 9 and 10) 423,218 211,540 Equity Stockholders’ equity: Preferred stock, $ 0.01 par value per share— 200,000 shares authorized, none issued and outstanding — — Common stock, $ 0.01 par value per share (Note 8) 1,969 1,819 Additional paid-in capital 2,161,966 2,004,947 Distributions in excess of earnings ( 1,418,395 ) ( 1,351,087 ) Accumulated other comprehensive income (loss) 4,647 ( 232 ) Total stockholders’ equity 750,187 655,447 Noncontrolling interests 860,559 655,533 Total equity 1,610,746 1,310,980 Total liabilities and equity $ 7,677,545 $ 7,268,524 See accompanying Notes to Condensed Consolidated Financial Statements. 3 Table of contents ARES REAL ESTATE INCOME TRUST INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands, except per share data) 2026 2025 2026 2025 Revenues: Rental revenues $ 140,642 $ 109,218 $ 278,010 $ 215,614 Debt-related income 10,517 9,065 18,284 19,054 Total revenues