Filing Flows › Ares Real Estate Income Trust (ZARE) › Q1 2026
Ares Real Estate Income Trust (ZARE) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 13, 2026
Ares Real Estate Income Trust (ZARE) reported revenue of $145M for the first quarter 2026 (Q1 2026), +25% from a year earlier and +3% from the quarter before. Operating margin was 68.9%, net loss $40.6M (28.0% of revenue).
Ares Real Estate Income Trust, Q1 2026: revenue $145M (+25% year over year), operating margin 68.9%, net loss $40.6M, operating cash flow −$163M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $145M | +3% | +25% |
| Operating profit | $100M | +3% | +30% |
| Net earnings | −$40.6M | — | — |
| Operating cash flow | −$163M | -200% | -181% |
What changed
Revenue was $145.1M in Q1 2026, up 25% year over year and up 3% from the previous quarter.
Operating profit was $100.0M, a 68.9% margin (up 3.0 points year over year). Of the extra revenue versus Q1 2025, 81% reached operating profit, above the 66% margin then. Total costs grew 14% against revenue growth of 25%. The fastest-growing cost line was Other operating costs (+14%). The quarter ended with a net loss of $40.6M, wider than the previous quarter's $35.0M loss. Minority interests bore $19.3M of it: to shareholders the quarter was a loss of $21.3M. Net interest and other expense of $136.7M was the main reason.
Operating cash flow was −$162.6M. Non-cash charges added back $58.4M of depreciation and amortization. Working capital and other items used $180.4M. Capital expenditures of $16.3M exceeded it, leaving free cash flow of −$178.9M.
Questions
What was Ares Real Estate Income Trust's revenue in the first quarter 2026?
Ares Real Estate Income Trust (ZARE) reported revenue of $145M for the first quarter 2026 (Q1 2026), +25% from a year earlier and +3% from the quarter before.
Was Ares Real Estate Income Trust profitable in the first quarter 2026?
Operating profit was $100M (68.9% of revenue) and net loss $40.6M.