ARGO Properties (ARGO) Q4 2024 earnings summary

Executive summary

• Q4 2024 marked a return to net profit, with rental growth and €22.2m in fair-value increases; acquisitions accelerated and the residential portfolio retained significant rent and apartment-sale upside.

• Portfolio totaled 4,482 apartments across Leipzig, Dresden, Magdeburg and Hannover, with 95% occupancy and 1,527 units through completed parcelization.

Financial highlights

• Q4 rental income rose 13% YoY to ~€6.5m, supported by organic growth and acquisitions; same-property rent per sqm grew 8.9% annualized.

• Q4 fair-value increases were €22.2m, mainly reflecting organic growth; net income was €14.9m versus a €23.3m loss in Q4 2023.

• Q4 new acquisitions totaled €32.2m versus ~€4.9m in Q4 2023; purchases since the start of 2025 reached €26.3m versus ~€15.3m in Q1 2024.

• Free cash flow was €31.8m on an annualized basis; equity was €419.4m and NTA €452.3m at Q4 2024.

Outlook and guidance

• Plan to accelerate apartment sales in 2025 while maintaining high profitability; 16 units sold through March 10, 2025, at an average €4,216 per sqm.

• Current prices imply a potential gross profit pipeline of €363.2m from ~4,022 apartments, or 90% of units; a 10% increase in selling prices could lift the pipeline by ~40%.

• New letting rents are projected to continue rising amid limited supply; a completed portfolio upgrade example cites a 4%-8% annual increase in new letting rents as an outlook.