Filing Flows › Ares Real Estate Income Trust (ZARE) › Q1 2025
Ares Real Estate Income Trust (ZARE) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Ares Real Estate Income Trust (ZARE) reported revenue of $116M for the first quarter 2025 (Q1 2025), +17% from a year earlier and +8% from the quarter before. Operating margin was 65.9%, net loss $34.1M (29.3% of revenue).
Ares Real Estate Income Trust, Q1 2025: revenue $116M (+17% year over year), operating margin 65.9%, net loss $34.1M, operating cash flow $201M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $116M | +8% | +17% |
| Operating profit | $76.7M | +2% | — |
| Net earnings | −$34.1M | — | — |
| Operating cash flow | $201M | — | 26× |
| Free cash flow | $195M | — | — |
What changed
Revenue was $116.4M in Q1 2025, up 17% year over year and up 8% from the previous quarter.
Operating profit was $76.7M, a 65.9% margin (down 1.4 points year over year). Of the extra revenue versus a year earlier, 57% reached operating profit, below the 67% margin then. Total costs grew 22% against revenue growth of 17%. The fastest-growing cost line was Other operating costs (+26%). The quarter ended with a net loss of $34.1M, wider than the previous quarter's $10.1M loss. Minority interests bore $16.1M of it: to shareholders the quarter was a loss of $18.0M. Net interest and other expense of $106.1M was the main reason.
Operating cash flow was $201.0M (up 2480% year over year). Non-cash charges added back $45.9M of depreciation and amortization. Working capital and other items added $189.3M. Capital expenditures of $6.4M left free cash flow of $194.7M.
Questions
What was Ares Real Estate Income Trust's revenue in the first quarter 2025?
Ares Real Estate Income Trust (ZARE) reported revenue of $116M for the first quarter 2025 (Q1 2025), +17% from a year earlier and +8% from the quarter before.
Was Ares Real Estate Income Trust profitable in the first quarter 2025?
Operating profit was $76.7M (65.9% of revenue) and net loss $34.1M.