ARGO Properties (ARGO) Q3 2024 earnings summary

Executive summary

• Significant turnaround with net and comprehensive income of €20.3 million for the nine months ended September 30, 2024, compared to a loss of €20.2 million in the same period last year.

• Strong growth in revenues from rental properties and property management, as well as the introduction of apartment sales as a new revenue stream.

• Expansion of the portfolio with the acquisition of 128 apartments and agreements for 229 more, plus the launch of apartment sales in Leipzig and Dresden.

Financial highlights

• Revenues from rental properties rose to €18.5 million for the nine months ended September 30, 2024, up from €15.6 million year-over-year.

• Gross profit from rental activities increased to €15.9 million from €12.8 million year-over-year.

• Net income for the nine months was €20.3 million, a significant improvement from a €20.2 million loss in the prior year.

• Basic earnings per share for the nine months was €1.12, compared to a loss per share of €1.11 in the prior year.

• Cash and cash equivalents increased to €67.3 million as of September 30, 2024, from €11.6 million at year-end 2023.

Outlook and guidance

• Ongoing expansion with further acquisitions and continued sales of apartments, with 40 apartments sold or under exclusivity agreements by November 1, 2024.

• Additional loan agreements and refinancing activities to support future growth and acquisitions.