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Ares Real Estate Income Trust (ZARE) Q2 2025 earnings results (second quarter 2025)

10-Q filed Aug 13, 2025

Ares Real Estate Income Trust (ZARE) reported revenue of $118M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +2% from the quarter before. Operating margin was 66.1%, net loss $42.5M (35.9% of revenue).

Revenue$118M
Year over year+15%
Quarter over quarter+2%
Operating margin66.1%
Net earnings−$42.5M

Ares Real Estate Income Trust, Q2 2025: revenue $118M (+15% year over year), operating margin 66.1%, net loss $42.5M, operating cash flow $17.4M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$118M+2%+15%
Operating profit$78.1M+2%—
Net earnings−$42.5M——
Operating cash flow$17.4M-91%+16%
Free cash flow$9.9M-95%—

What changed

Revenue was $118.3M in Q2 2025, up 15% year over year and up 2% from the previous quarter.

Operating profit was $78.1M, a 66.1% margin (down 0.7 points year over year). Of the extra revenue versus a year earlier, 61% reached operating profit, below the 67% margin then. Total costs grew 17% against revenue growth of 15%. The fastest-growing cost line was Other operating costs (+19%). The quarter ended with a net loss of $42.5M, wider than the previous quarter's $34.1M loss. Minority interests bore $19.9M of it: to shareholders the quarter was a loss of $22.6M. Net interest and other expense of $119.0M was the main reason.

Operating cash flow was $17.4M (up 16% year over year). Non-cash charges added back $46.9M of depreciation and amortization. Working capital and other items added $13.0M. Capital expenditures of $7.5M left free cash flow of $9.9M.

Questions

What was Ares Real Estate Income Trust's revenue in the second quarter 2025?

Ares Real Estate Income Trust (ZARE) reported revenue of $118M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +2% from the quarter before.

Was Ares Real Estate Income Trust profitable in the second quarter 2025?

Operating profit was $78.1M (66.1% of revenue) and net loss $42.5M.

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Source: Ares Real Estate Income Trust 10-Q on SEC EDGAR.