Argan (ARG) H1 2024 TU earnings summary

Executive summary

• H1 2024 rental income reached €98 million, up 8% year-over-year, driven by rent indexation and new warehouse deliveries.

• Investments of €180 million in 2024 for 170,000 sq.m of new premium warehouse developments in prime locations.

• Asset sales program targets €78 million in 2024 as part of a €180 million plan through 2026.

Financial highlights

• Q1 2024 rental income: €48.1 million (+6% year-over-year); Q2 2024: €50.0 million (+9% year-over-year).

• H1 2024 total rental income: €98.1 million, up from €90.9 million in H1 2023 (+8%).

• Average yield on 2024 developments approaches 7%.

Outlook and guidance

• Full-year 2024 rental income target confirmed at €197 million, a 7% increase over 2023.

• Remaining €60 million in asset disposals planned for H2 2024.