What Investors Should Know About This Non-Traded Real Estate Investment Trust
Shepherd Smith Edwards and Kantas AIREIT Loss Recovery Attorneys (investorlawyers.com) are offering a free case consultation to those of you who have suffered losses in Ares Industry Income REIT (AIREIT). This perpetual life non-traded REIT, which focuses on US industrial real estate, is open to retail investors. However, there are concerns that financial advisors selling this alternative investment may not have fully apprised customers of the risks.
AIREIT’s recent financial filings disclose higher costs, bigger losses, and a continued reliance on new capital to pay for distributions. Meanwhile, its portfolio, which includes last-mile logistics properties and bulk distribution, continues to grow.
This non-traded REIT reported a bigger net loss for the first nine months of 2025—$118.5M— than it did in 2024—$92.2M. This appears to be mostly because property sales were not recorded this year unlike last year when substantial gains were made from building dispositions. Lower financial gains and high interest costs were also identified as reasons for the bigger losses in 2025.
Even with the losses, however, this non-traded REIT saw a $49M revenue increase year over year to $437.2M. Net Asset Value (NAV)/share rose to $13.05, in part due to higher base rents, new acquisitions, and a better portfolio performance.
Meanwhile, 48.7% of investor distributions were paid with new capital and not operating cash flow. AIREIT still depends on fundraising and leverage to support operations.
AIREIT Class 1 shares have seen strong long-term returns, but results can be impacted by timing, fees, and market conditions. In 2023, its Class T shares experienced a 12.4% slide. This was an example of how industrial-focused REITS can be impacted by volatility.
Other risks that can affect industrial non-traded REITs include an oversupply of properties, tenant issues, rising interest rates, and vulnerability to market downturns.
How Can Our Non-Traded REIT Loss Recovery Lawyers Help?
Just because an investment is open to retail investors doesn’t necessarily mean it is a suitable recommendation for every customer. Non-traded REITs tend to be illiquid, have a NAV that doesn’t reflect their true market value, and can be easily impacted by their market. They tend to charge high upfront fees, including commissions and ongoing distribution fees. It is not uncommon for non-traded REIT investors to later report that they had no idea how risky or illiquid an investment their money had been placed in.
Shepherd Smith Edwards and Kantas AIREIT Loss Recovery Attorneys have worked with many investors who suffered losses in non-traded real estate investment trusts that were sold to them by their broker-dealers. If your broker marketed AIREIT to you and you sustained serious losses, we can help you determine whether you have grounds for an investment loss recovery claim to pursue damages.
With over 100 years of collective experience in the securities industry, we know how to maximize an investor’s chances for full financial recovery against a broker-dealer or investment adviser.
Contact our AIREIT Loss Recovery Attorneys:
Call (800) 259-9010 or fill out this online form today.