Black Creek Diversified Property Fund 424B3 Prospectus supplement

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-222630

ARES REAL ESTATE INCOME TRUST INC.

SUPPLEMENT NO. 4 DATED FEBRUARY 14, 2022

TO THE PROSPECTUS DATED DECEMBER 3, 2021

This prospectus supplement (this “Supplement”) is part of and should be read in conjunction with the prospectus of Ares Real Estate Income Trust Inc. (f/k/a Black Creek Diversified Property Fund Inc.), dated December 3, 2021 as supplemented by Supplement No. 1 dated December 3, 2021, Supplement No. 2 dated December 15, 2021, and Supplement No. 3 dated January 14, 2022 (the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus.

The purpose of this Supplement is to disclose:

● the transaction price for each class of our common stock as of March 1, 2022;

● the calculation of our January 31, 2022 net asset value (“NAV”) per share, as determined in accordance with our valuation procedures, for each of our share classes;

● the status of this offering;

● an update on our assets and performance;

● an update to the nominating and corporate governance committee; and

● updated experts information.

●             MARCH 1, 2022 TRANSACTION PRICE

The transaction price for each share class of our common stock for subscriptions accepted (and distribution reinvestment plan issuances) as of March 1, 2022 (and redemptions as of February 28, 2022) is as follows:

Share Class	Transaction Price (per share)
Class T	$	8.2533
Class S		8.2533
Class D		8.2533
Class I		8.2533
Class E		8.2533

The transaction price for each of our share classes is equal to such class’s NAV per share as of January 31, 2022. A calculation of the NAV per share is set forth below. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees.

●             JANUARY 31, 2022 NAV PER SHARE

Our board of directors, including a majority of our independent directors, has adopted valuation procedures, as amended from time to time, that contain a comprehensive set of methodologies to be used in connection with the calculation of our NAV. Our most recent NAV per share for each share class, which is updated as of the last calendar day of each month, is posted on our website at www.blackcreekgroup.com/investment-solutions/AREIT and is also available on our toll-free, automated telephone line at (888) 310-9352. With the approval of our board of directors, including a majority of our independent directors, we have engaged Altus Group U.S. Inc., a third-party valuation firm, to serve as our independent valuation advisor (‘‘Altus Group’’ or the “Independent Valuation Advisor”) with respect to providing monthly real property appraisals, reviewing annual third-party real property appraisals, reviewing the internal valuations of debt-related assets and liabilities performed by Black Creek Diversified Property Advisors LLC for periods prior to July 1, 2021 and Ares Commercial Real Estate Management LLC for periods thereafter (“our Advisor”), helping us administer the valuation and review process for the real properties in our portfolio, and assisting in the development and review of our valuation procedures.

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As used below, “Fund Interests” means our outstanding shares of common stock, along with the partnership units in our operating partnership (“OP Units”) which may be or were held directly or indirectly by the Advisor, our former sponsor Black Creek Diversified Property Advisors Group LLC, members or affiliates of the former sponsor, and third parties, and “Aggregate Fund NAV” means the NAV of all the Fund Interests.

The following table sets forth the components of Aggregate Fund NAV as of January 31, 2022 and December 31, 2021:

	As of
(in thousands)	January 31, 2022		December 31, 2021
Investments in office properties	$	672,450	$	668,700
Investments in retail properties		848,050		890,700
Investments in residential properties (1)		1,089,150		988,250
Investments in industrial properties		1,048,000		983,700
Total investment in real estate properties		3,657,650		3,531,350
Investment in unconsolidated joint venture partnership		41,534		31,278
Debt-related investments		106,528		106,463
DST Program Loans		64,332		62,123
Total investments		3,870,044		3,731,214
Cash and cash equivalents		18,333		10,912
Restricted cash		3,337		3,878
Other assets		55,883		54,112
Line of credit, term loans and mortgage notes		(1,466,996)		(1,421,583)
Financing obligations associated with our DST Program		(738,023)		(682,748)
Other liabilities		(50,296)		(54,302)
Accrued performance participation allocation		(2,090)		(15,327)
Accrued advisory fees		(2,204)		(2,097)
Noncontrolling interests in consolidated joint venture partnerships		(6,633)		(5,776)
Aggregate Fund NAV	$	1,681,355	$	1,618,283
Total Fund Interests outstanding		203,720		197,960

(1)Residential properties include multi-family and student housing.

The following table sets forth the NAV per Fund Interest as of January 31, 2022 and December 31, 2021:

			Class T		Class S		Class D		Class I		Class E
(in thousands, except per Fund Interest data)	Total		Shares		Shares		Shares		Shares		Shares		OP Units
As of January 31, 2022
Monthly NAV	$	1,681,355	$	142,393	$	307,017	$	58,114	$	472,065	$	462,868	$	238,898
Fund Interests outstanding		203,720		17,253		37,200		7,041		57,197		56,083		28,946
NAV Per Fund Interest	$	8.2533	$	8.2533	$	8.2533	$	8.2533	$	8.2533	$	8.2533	$	8.2533
As of December 31, 2021
Monthly NAV	$	1,618,283	$	134,274	$	292,305	$	55,171	$	444,755	$	460,468	$	231,310
Fund Interests outstanding		197,960		16,425		35,757		6,749		54,406		56,328		28,295
NAV Per Fund Interest	$	8.1748	$	8.1748	$	8.1748	$	8.1748	$	8.1748	$	8.1748	$	8.1748

Under GAAP, we record liabilities for ongoing distribution fees that (i) we currently owe the Dealer Manager under the terms of our dealer manager agreement and (ii) we estimate we may pay to the Dealer Manager in future periods for shares of our common stock. As of January 31, 2022, we estimated approximately $35.4 million of ongoing distribution fees were potentially payable to the Dealer Manager. We do not deduct the liability for estimated future distribution fees in our calculation of NAV since we intend for our NAV to reflect our estimated value on the date that we determine our NAV. Accordingly, our estimated NAV at any given time does not include consideration of any estimated future distribution fees that may become payable after such date.

We include no discounts to our NAV for the illiquid nature of our shares, including the limitations on our stockholders’ ability to redeem shares under our share redemption program and our ability to suspend or terminate our share redemption program at any time. Our NAV generally does not consider exit costs (e.g. selling costs and

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commissions related to the sale of a property) that would likely be incurred if our assets and liabilities were liquidated or sold today. While we may use market pricing concepts to value individual components of our NAV, our per share NAV is not derived from the market pricing information of open-end real estate funds listed on stock exchanges.

Our NAV is not a representation, warranty or guarantee that: (i) we would fully realize our NAV upon a sale of our assets; (ii) shares of our common stock would trade at our per share NAV on a national securities exchange; and (iii) a stockholder would be able to realize the per share NAV if such stockholder attempted to sell his or her shares to a third party.

The valuations of our real properties as of January 31, 2022, excluding certain newly acquired properties that are currently held at cost which we believe reflects the fair value of such properties, were provided by the Independent Valuation Advisor in accordance with our valuation procedures. Certain key assumptions that were used by the Independent Valuation Advisor in the discounted cash flow analysis are set forth in the following table based on weighted-averages by property type.

	Office		Retail		Residential		Industrial		Weighted-Average Basis
Exit capitalization rate	6.15	%	6.28	%	4.91	%	5.01	%	5.54	%
Discount rate / internal rate of return	6.67	%	6.89	%	6.10	%	5.83	%	6.34	%
Average holding period (years)	9.6		10.0		10.0		10.0		9.9

A change in the exit capitalization and discount rates used would impact the calculation of the value of our real property. For example, assuming all other factors remain constant, the changes listed below would result in the following effects on the value of our real properties, excluding certain newly acquired properties that are currently held at cost which we believe reflects the fair value of such properties:

Input	Hypothetical Change	Office		Retail		Residential		Industrial		Weighted-Average Values
Exit capitalization rate (weighted-average)	0.25% decrease	3.04	%	2.48	%	3.55	%	3.73	%	3.23	%
	0.25% increase	(2.79)	%	(2.29)	%	(3.20)	%	(3.37)	%	(2.94)	%
Discount rate (weighted-average)	0.25% decrease	2.06	%	1.89	%	2.01	%	2.07	%	2.01	%
	0.25% increase	(2.01)	%	(1.85)	%	(1.96)	%	(2.02)	%	(1.96)	%

From September 30, 2017 through November 30, 2019, we valued our debt-related investments and real estate-related liabilities generally in accordance with fair value standards under GAAP. Beginning with our valuation for December 31, 2019, our property-level mortgages and corporate-level credit facilities that are intended to be held to maturity (which for fixed rate debt not subject to interest rate hedges may be the date near maturity at which time the debt will be eligible for prepayment at par for purposes herein), including those subject to interest rate hedges, were valued at par (i.e. at their respective outstanding balances). In addition, because we utilize interest rate hedges to stabilize interest payments (i.e. to fix all-in interest rates through interest rate swaps or to limit interest rate exposure through interest rate caps) on individual loans, each loan and associated interest rate hedge is treated as one financial instrument which is valued at par if intended to be held to maturity. This policy of valuing at par applies regardless of whether any given interest rate hedge is considered as an asset or liability for GAAP purposes. As of January 31, 2022, we classified all of our debt as intended to be held to maturity.

●             STATUS OF THIS OFFERING

As of February 1, 2022, we had raised gross proceeds of approximately $700.3 million from the sale of approximately 91.1 million shares in this offering, including proceeds from our distribution reinvestment plan of approximately $47.4 million. As of February 1, 2022, approximately $2.3 billion in shares remained available for sale pursuant to this offering, including approximately $452.6 million in shares available for sale through our distribution reinvestment plan.

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●             UPDATE ON OUR ASSETS AND PERFORMANCE

As of January 31, 2022, our investments include 69 real estate properties totaling approximately 13.9 million square feet located in 31 markets throughout the U.S., which were 94.2% leased.

As of January 31, 2022 our leverage ratio was 38.1% (calculated as outstanding principal balance of our borrowings less cash and cash equivalents, divided by the fair value of our real property, net investment in an unconsolidated joint venture partnership and debt-related investments not associated with the DST Program, as determined in accordance with our valuation procedures).

The following table sets forth the total shareholder returns for the periods ended January 31, 2022:

	Trailing One-Month (1)		One-Year (Trailing 12-Months)(1)		Since NAV Inception Annualized (1)(2)
Class T Share Total Return (with upfront selling commissions and dealer manager fees) (3)	(2.15)	%	9.75	%	6.58	%
Class T Share Total Return (without upfront selling commissions and dealer manager fees) (3)	1.27		13.59		6.73
Class S Share Total Return (with upfront selling commissions and dealer manager fees) (3)	(2.15)		9.75		6.58
Class S Share Total Return (without upfront selling commissions and dealer manager fees) (3)	1.27		13.59		6.73
Class D Share Total Return (3)	1.32		14.27		7.07
Class I Share Total Return (3)	1.35		14.56		7.47
Class E Share Total Return (3)	1.35		14.56		7.52

(1) Performance is measured by total return, which includes income and appreciation (i.e., distributions and changes in NAV) and is a compound rate of return that assumes reinvestment of all distributions for the respective time period, and excludes upfront selling commissions and dealer manager fees paid by investors, except for returns noted “with upfront selling commissions and dealer manager fees” (“Total Return”). Past performance is not a guarantee of future results. Current performance may be higher or lower than the performance data quoted.

(2) NAV inception was September 30, 2012, which is when we first sold shares of our common stock after converting to an NAV-based REIT on July 12, 2012. Investors in our fixed price offerings prior to NAV inception on September 30, 2012 are likely to have a lower return.

(3) The Total Returns presented are based on actual NAVs at which shareholders transacted, calculated pursuant to our valuation procedures. From NAV inception to November 30, 2019, these NAVs reflected mark-to-market adjustments on our borrowing-related interest rate hedge positions; and from September 1, 2017 to November 30, 2019, these NAVs also reflected mark-to-market adjustments on our borrowing-related debt instruments. Prior to September 1, 2017, our valuation policies dictated marking borrowing-related debt instruments to par except in certain circumstances; therefore, we did not formally track mark-to-market adjustments on our borrowing-related debt instruments during such time.

●             UPDATE TO NOMINATING AND CORPORATE GOVERNANCE COMMITTEE

On February 2, 2022, Brian P. Mathis was appointed to the Nominating and Corporate Governance Committee of our board of directors.

●             EXPERTS

The statements included in this Supplement under the section titled “January 31, 2022 NAV Per Share,” relating to the role of Altus Group U.S. Inc. have been reviewed by Altus Group U.S. Inc., an independent valuation advisor, and are included in this Supplement given the authority of such advisor as experts in real estate valuations.

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