Argan (ARG) H1 2025 earnings summary

Executive summary

• Rental income rose 8% year-over-year to €106 million in H1 2025, with recurring net income up 16% to €78 million and net income reaching €138 million; portfolio valuation increased to €4.02 billion with 100% occupancy and an average asset age of 12 years.

• 2025 targets confirmed: rental income to grow by 6% to €210 million, recurring net income by 11% to €151 million, and dividend per share to rise 5% to €3.45.

• Portfolio fair value reached €4.02 billion, with a cap rate of 5.25% and EPRA NTA per share at €87.3.

• Occupancy rate remained at 100% at end of June 2025, outperforming the national vacancy rate of 6.1%.

• Continued focus on sustainability, with all new developments under the Net Carbon Zero AUTONOMⓇ label and biodiversity initiatives underway.

Financial highlights

• IFRS net income surged nearly 50% year-over-year, driven by positive fair value changes, with H1 2025 net income at €135.9 million and EPS at €5.32.

• Rental income for 2025 is targeted at €210 million, marking nine consecutive years of growth and a 14% CAGR since 2016.

• EPRA NTA increased by €1.8 per share in H1 2025, reflecting strong net income and asset revaluation.

• Net debt stable at €1.7 billion; net LTV improved to 42% from 43% at end-2024; net debt/EBITDA improved to 8.6x.

• Cost of debt reduced to 2.10%, with average maturity of 4.5 years and only 1% floating rate exposure.

Outlook and guidance

• 2025 guidance reaffirmed: rental income to reach €210 million (+6%), recurring net income €151 million (+11%), and dividend per share €3.45 (+5%).

• EPRA LTV ratio targeted below 40% by year-end, assuming successful asset sales and stable cap rates.

• Over €200 million in investments planned for 2025-2026, with average yields above 6%, fully funded by internal cash flow and asset sales.

• About €130 million in asset sales targeted by end-2025 to optimize portfolio and fund growth.

• No significant post-closing events reported.