ARGO Properties (ARGO) Q3 2025 earnings summary

Executive summary

• Achieved 11.3% year-over-year growth in rental income for Q3 2025, reaching €7.1M, driven by organic rent increases and new acquisitions.

• Net profit for Q3 2025 was €26.8M, up from €9.3M in Q3 2024, including €8.4M in deferred tax income due to a reduced German tax rate.

• Sold 88 apartments for €22.1M at an average price of €4,219/m² between January and November 2025, compared to 40 units in 2024.

• Operating profit rose 13.6% year-over-year to €6.5M, supported by higher rental income and apartment sales.

• Fair value gains on investment property totaled €17.1M in Q3 2025.

Financial highlights

• Total assets as of September 30, 2025: €839.4M; equity attributable to shareholders: €482.8M.

• Rental portfolio: 4,454 units, annualized rental income of €33.6M, book value €836.4M.

• Q3 2025 rental income: €7.1M; Q3 2025 net profit: €26.8M; Q3 2025 operating profit: €6.5M.

• Free cash flow (annualized): €27.4M; cash and restricted deposits: €93M.

• LTV ratio: 42.88%; S&P rating: ilA+ with positive outlook.

Outlook and guidance

• Expects continued significant growth in new property acquisitions in 2026.

• Ongoing focus on acquiring, upgrading, and selling residential assets in core German cities.

• Management anticipates further improvement in return on equity as leverage approaches 50% and apartment sales segment expands.