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 up to €138 million, reflecting strong operational performance and cash generation.

• Portfolio valuation increased to €4.02 billion, with a 100% occupancy rate maintained at June 30, 2025.

• 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.

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

• Maintains strong market position as France's leading premium logistics REIT.

Financial highlights

• H1 2025 rental income: €105.8m (+8% year-over-year); recurring net income: €78m (+16%); net income: up to €138m (+52%).

• EPRA NTA per share increased to €87.3 (+2% in 6 months); NAV EPRA NRV at €98.9/share.

• LTV ratio reduced to 42% from 43% at end-2024, targeting below 40% by year-end; net debt/EBITDA improved to 8.6x.

• Cost of debt stable at 2.10%, with average maturity of 4.5 years and 99% of debt fixed or hedged.

• Dividend per share set to rise 5% to €3.45 for 2025, subject to shareholder approval.

Outlook and guidance

• 2025 guidance reaffirmed: rental income to reach €210m (+6%), recurring net income €151m (+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.

• Asset sale program ongoing, targeting €130 million net cash by end-2025.

• No new loans planned; investments to be funded by cash flow and disposals.