Argan (ARG) H2 2024 earnings summary

Executive summary

• Achieved 8% year-over-year rental income growth to €198 million, fully meeting targets.

• Group share recurring net income rose 9% to €137 million, exceeding annual goals.

• Consolidated net income (IFRS) reached €246 million, benefiting from a €118 million positive fair value impact.

• Portfolio valued at €3.91 billion (+6% vs. 2023) with 100% occupancy for the second consecutive year.

• Initiated and executed a strategy combining growth investments and significant debt reduction.

Financial highlights

• Rental income: €198.3 million (+8% year-over-year); recurring net income: €136.7 million (+9%).

• Net income per share: €10.04; recurring net income per share: €5.54.

• EBITDA: €185.7 million; net property income: €200.9 million.

• Portfolio valuation: €3.91 billion; NAV EPRA NTA per share: €85.5 (+8%).

• EPRA vacancy rate remained at 0% for the second year.

Outlook and guidance

• 2025 targets: rental income €210 million (+6%), recurring net income €151 million (+11%).

• EPRA LTV ratio targeted below 40% in 2025 and below 30% by 2030.

• Net debt/EBITDA expected to improve to 8x in 2025 and 6x by 2030.

• Dividend per share set to rise 5% to €3.45 for 2025.

• Average annual rental income growth of ~3% targeted for 2025-2030, mainly funded by asset sales.