📊 ZARE Key Takeaways
Is Ares Real Estate Income Trust Inc. (ZARE) a Good Investment?
ZARE demonstrates strong revenue growth and exceptional operating cash flow, but fundamental profitability and solvency concerns outweigh these positives. With high leverage (4.53x D/E), negative net income (-13.6% margin), weak interest coverage (2.3x), and minimal cash reserves relative to $3B debt, the company faces significant refinancing risk and shareholder value destruction.
Ares Real Estate Income Trust Inc. Key Strengths (ZARE)
- Robust revenue growth of 19.5% YoY reaching $498.8M
- Strong operating margins of 66.5% and exceptional free cash flow ($253.6M, 50.8% FCF margin)
- Large asset base of $7.3B providing operational scale
ZARE Stock Risks: Ares Real Estate Income Trust Inc. Investment Risks
- Severe negative net income (-$68M) and declining EPS (-85% YoY) despite revenue growth indicates structural profitability failure
- Dangerous leverage ratio of 4.53x D/E with only 2.3x interest coverage—minimal cushion for debt service if operations deteriorate
- Critical liquidity crisis: only $40.1M cash against $3.0B long-term debt creates imminent refinancing/covenant risk
Key Metrics to Watch
- Net income trend and path to profitability—negative margins must reverse
- Interest coverage ratio maintenance above 2.5x—any deterioration signals default risk
- Debt reduction and cash position buildup—current reserves inadequate for leverage level
Ares Real Estate Income Trust Inc. (ZARE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 50.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
ZARE Profit Margin, ROE & Profitability Analysis
ZARE vs Real Estate Sector: How Ares Real Estate Income Trust Inc. Compares
How Ares Real Estate Income Trust Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ares Real Estate Income Trust Inc. Stock Overvalued? ZARE Valuation Analysis 2026
Based on fundamental analysis, Ares Real Estate Income Trust Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ares Real Estate Income Trust Inc. Balance Sheet: ZARE Debt, Cash & Liquidity
ZARE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ares Real Estate Income Trust Inc.'s revenue has grown significantly by 128% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.31 indicates the company is currently unprofitable.
ZARE Revenue Growth, EPS Growth & YoY Performance
ZARE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $116.4M | -$18.0M | $-0.10 |
| Q3 2025 | $107.3M | -$2.3M | $-0.01 |
| Q2 2025 | $102.8M | -$14.3M | $-0.08 |
| Q1 2025 | $99.4M | -$15.0M | $-0.08 |
| Q3 2024 | $91.2M | -$2.3M | $-0.01 |
| Q2 2024 | $84.4M | -$14.3M | $-0.08 |
| Q1 2024 | $83.7M | -$2.0M | $-0.01 |
| Q3 2023 | $78.5M | -$9.4M | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ares Real Estate Income Trust Inc. Dividends, Buybacks & Capital Allocation
ZARE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ares Real Estate Income Trust Inc. (CIK: 0001327978)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZARE
What is the AI rating for ZARE?
Ares Real Estate Income Trust Inc. (ZARE) has an AI grade of C with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZARE's key strengths?
Claude: Robust revenue growth of 19.5% YoY reaching $498.8M. Strong operating margins of 66.5% and exceptional free cash flow ($253.6M, 50.8% FCF margin).
What are the risks of investing in ZARE?
Claude: Severe negative net income (-$68M) and declining EPS (-85% YoY) despite revenue growth indicates structural profitability failure. Dangerous leverage ratio of 4.53x D/E with only 2.3x interest coverage—minimal cushion for debt service if operations deteriorate.
What is ZARE's revenue and growth?
Ares Real Estate Income Trust Inc. reported revenue of $498.8M.
Does ZARE pay dividends?
Ares Real Estate Income Trust Inc. pays dividends, with $94.6M distributed to shareholders in the trailing twelve months.
Where can I find ZARE SEC filings?
Official SEC filings for Ares Real Estate Income Trust Inc. (CIK: 0001327978) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZARE's EPS?
Ares Real Estate Income Trust Inc. has a diluted EPS of $-0.37.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ZARE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ares Real Estate Income Trust Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ZARE stock overvalued or undervalued?
Valuation metrics for ZARE: ROE of -10.4% (sector avg: 8%), net margin of -13.6% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is ZARE's AI grade for 2026?
Our dual AI analysis gives Ares Real Estate Income Trust Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZARE's free cash flow?
Ares Real Estate Income Trust Inc.'s operating cash flow is $253.6M, with capital expenditures of N/A. FCF margin is 50.8%.
How does ZARE compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -13.6% (avg: 20%), ROE -10.4% (avg: 8%), current ratio N/A (avg: 1.5).
Is Ares Real Estate Income Trust Inc. carrying too much debt?
ZARE has a debt-to-equity ratio of 4.53x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.