Argan (ARG) Q1 2025 TU earnings summary

Executive summary

• Rental income rose 10% year-over-year to €52.9 million in Q1 2025, driven by new warehouse deliveries and rent indexation.

• ARGAN maintains its position as France's leading developer and lessor of premium warehouses, with a focus on sustainability and blue-chip clients.

Financial highlights

• Q1 2025 rental income: €52.9 million, up from €48.1 million in Q1 2024.

• Full-year 2025 rental income target set at €210 million, reflecting a 6% increase despite planned asset sales.

• Portfolio appraised at €3.9 billion as of December 31, 2024, with annualized rental income near €205 million.

Outlook and guidance

• Annual rental income expected to grow 6% in 2025, factoring in asset disposals in H2 2025.

• Investment plan for 2025-2026 increased to €220 million, with all projects pre-let to leading clients.

• Targeting LTV ratio below 40% and net debt/EBITDA around 8x by year-end 2025.