Annual results – Neuilly-sur-Seine, Thursday, January 16, 2025 – 5.45pm
2024 annual results:
A 25th vintage of exceptional quality, combining
growth (revenues: +8%) and debt reduction (LTV: 43%)
- Remarkable growth in financial indicators
- Rental income: +8% to €198 million, target fully met1
- Group share recurring net income: +9% at €137 million, target for the year overachieved2
- Consolidated (IFRS) Group share net income: €246 million, including a positive impact from portfolio fair value of €118 million
- A strengthened PREMIUM portfolio
- €180 million of investments delivered in 2024 and close to €170 million identified for 2025-2026
- A valuation of close to €4 billion (+6% vs. 2023), with a 100% occupancy rate
- NAV EPRA NTA: €86, up +8%
- Debt reduction already on its way
- EPRA LTV: 43% (vs. 50% end of 2023)
- Net debt / EBITDA: 9.2x (vs. 11x end of 2023)
- Mastered cost of debt: 2.25% (vs. 2.30% in 2023)
- 2025 targets confirm a trajectory aiming for growth and debt reduction
- Rental income: €210 million, +6% (vs. €198 million in 2024)
- Group share recurring net income: €151 million, +11% (vs. €137 million in 2024)
- EPRA LTV3: <40% (vs. 43% in 2024)
- Net debt / EBITDA: 8x (vs. 9.2x fin 2024)
- Dividend per share: €3.45, +5% (vs. €3.30 in respect of 2024)
- Successful first milestones for the ESG roadmap
- A greener portfolio: 6 sites as part of the heat pumps plan
- Biodiversity strategy unveiled: 8 targets for 2030
- Improved rating with extra-financial agencies
Jean-Claude Le Lan, Founder & Chairman of ARGAN’s Supervisory Board:
« 25 years already!
I started on my own and from a blank page on January 1, 2000. Her we are now, managing a logistics real estate portfolio appraised at close to €4 billion, made of some 100 warehouses representing close to 4 million sq.m and generating more than €200 million of rental income.
By « we », I now mean about thirty people who joined me along the years, with their expertise in their own fields, forming an actual team of talents.
25 years of development and management of a logistics real estate company: It’s a learning experience!
Financially, we have been through capitalization rates approaching 12% in 2000, that were then down to 4.3% end of 2021, following a stabilization at around 5.2% at the end of 2024. Loan rates were close to 7% in 2000, declined to close to 1% in 2021 to hike back up to 4.5% afterwards.
Following the IPO of June 2007, we went through the 2008 financial crisis by using bank mortgage loans, at a time when financial markets were closed.
We have always known how to adapt to special circumstances, seizing opportunities while reaching, or overachieving, our targets year after year.
During this period, we have contributed to building the market for warehouse development and leasing.
Regarding technical considerations, we opted for a premium positioning of our assets, which thus led us today to develop the Aut0nom®-labelled warehouse that produces energy for our
client-tenants’ self-consumption, neutralizing CO2 emissions that come from heating and lighting of our warehouses.
Of course, this successful track-record was built thanks to a partnership with our client-tenants relying on trust, and for the long run. We have supported them in their projects, and their loyalty has helped us grow!
2025-2030
Today, we presented a master plan for 2025-2030, on a backdrop of less favourable times than in the previous years in terms of political and economic landscape.
We are deploying this plan with the aim to combine growth and debt reduction.
We are targeting a net increase of our rental income of around +3% per year, mainly financed with the cash generated by asset sales, which represent a leverage to reduce our debt.
As a result, we are targeting an LTV ratio of 30% by 2030 (vs. 43% in 2024) and a Net debt to EBITDA of 6x (vs. 9x in 2024).
At the same time, we will strengthen our leadership position on the French market by capitalizing on our Aut0nom® brand that will be deployed for all our portfolio.
Our target is also to reach close to 100% of our portfolio being environmentally certified and decrease by 50%, by 2030, the CO2 emissions linked to the use of our warehouses.
This is how we intend to build a sustainable and profitable growth. »
2025 targets: Growth and debt reduction trajectory confirmed
| Indicators | 2025 Targets |
2024 Actual data |
Change vs. 2024 |
| Rental income | €210m | €198m | +6% |
| Recurring net income – Group share | €151m | €137m | +11% |
| EPRA LTV ratio4 | <40% | 43% | -3 pts |
| Net debt / EBITDA | 8x | 9.2x | -1 x |
| Dividend per share | €3.455 | €3.306 | +5% |
FINANCIAL PERFORMANCE AS AT DECEMBER 31, 2024
2024 financial key figures:
| Consolidated income statement | Dec. 31, 2024 | Dec. 31, 2023 | Change | |
| Rental income | €198.3m | €183.6m | +8% | |
| Net income – Group share | €245.7m | -€263.5m | n.a | |
| Recurring net income – Group share | €136.7m | €125.6m | +9% | |
| Net income / share – Group share | €10.04 | -€11.4 | n.a | |
| Recurring net income / share – Group share | €5.57 | €5.5 | +2% | |
| Valuation indicators | Dec. 31, 2024 | Dec. 31, 2023 | Change | |
| Portfolio valuation excluding duties | €3.91 billion | €3.68 billion | +6% | |
| NAV EPRA NTA per share | €85.58 | €79.1 | +8% | |
| NAV EPRA NRV per share | €96.75 | €90.6 | +7% | |
| NAV EPRA NDV per share | €87.55 | €83.6 | +5% | |
| Debt indicators | Dec. 31, 2024 | Dec. 31, 2023 | Change | |
| EPRA LTV | 43.1% | 49.7% | -660 bps | |
| EPRA LTV (including duties) | 40.7% | 47.1% | -640 bps | |
| Net debt on EBITDA | 9.2x | 11.0x | -1.8x | |
| Cost of debt | 2.25% | 2.30% | -5 bps | |
2024 consolidated accounts were agreed by ARGAN’s Executive Board on January 13, 2025, and approved by the Supervisory Board on January 15, 2025. The audit procedures of our statutory auditors on these consolidated financial statements have been carried out. The certification report will be issued after the specific checks have been carried out.
Remarkable growth in financial indicators
Despite an uncertain political and economic environment, ARGAN recorded an excellent operating performance, which resulted in a strong growth in the rental income (+8%) and the group share recurring net income (+9%). These results demonstrate once again our Group’s capacity to turn its very good performance into robust cash flow, in particular thanks to tight control over our debt.
Rental income: up +8% in 2024
Rental income growth was strong (+8%) in 2024, standing at €198 million over 12 months. 2024 growth in ARGAN’s rents confirmed the success of the Group’s commercial strategy, with the full-year impact of 2023 deliveries and the effect coming from those of 2024, along rents’ indexation (+4.6%) that took place on January 1, 2024.
A 100% occupancy ratio for the 2nd year in a row
The occupancy ratio (100%) of our warehouses remained at a maximum level for the second year in a row, a unique track record on ARGAN’s market (vacancy ratio of 5.4% in France at the end of December 2024, source: CBRE). This outcome testifies once again to the company’s PRIME assets attractiveness. The EPRA vacancy ratio thus stood at 0%.
Solid increase of the Group share recurring net income: +9%
The Group share recurring net income grew strongly by +9%, to €137 million in 2024, with a still high margin of 69% of the rental income, i.e., beyond the target set for the year of €135 million9. Note that the recurring net income is the best reflection of our Group’s cash flow generation and shows ARGAN’s capacity to pursue the financing of its development model.
The effect linked to the change in the fair value variation turned back to a positive impact, with +€118 million recorded in 2024, on a backdrop of capitalization rate stabilizing, after a peak was reached in June 2024. The Group share recurring net income, which integrates this impact, turned positive (in comparison to 2023) and thus stood at €245.7 million over 12 months.
Growth in the portfolio and the NAV EPRA NTA
A Premium portfolio appraised with a rate (excl. duties) of 5.2% at €3.91 billion,
up +6% over 12 months
The delivered portfolio (excluding buildings being under development) represented 3,710,000 sq.m as at
December 31, 2024. Its valuation stood at €3.91 billion excluding duties (€4.15 billion including duties), rising
+6% from December 31, 2023.
The delivered portfolio shows a capitalization rate of 5.20% (excluding duties), a slight increase from 5.10% recorded on December 31, 2023. The EPRA net initial yield (including duties) stood at 4.90%, in line with the national PRIME yield of 4.90% (source: CBRE, December 31, 2024), thus reflecting the PREMIUM-quality of our assets.
The average residual lease term was 5.3 years compared with 5.7 years as at December 31, 2023.
The weighted average age was 11.6 years.
NAV EPRA of continuation (NTA) at €86 per share
The NRV (reconstitution NAV) was €96.7 per share at December 31, 2024 (+7% over one year).
The NTA (continuation NAV) was €85.5 per share at December 31, 2024 (+8% over one year).
The NDV (liquidation NAV) was €87.5 per share at December 31, 2024 (+5% over one year).
More particularly, the growth in the NTA (continuation NAV) over the year represents, in value, an increase of +€6.4 from December 31, 2023 coming from the earnings per share (+€5.5), the change in the value of the assets that turned positive (+€4.5), the dilutive impact of the new shares created as part of the capital increase that took place in H1 2024 (-€0.5), the payment of the dividend in cash (-€2.1) and in shares (-€1.0).
Ongoing growth and debt reduction strategy over 2025-2030
Drawing on 2024 achievements, ARGAN intends to pursue over 2025-2030 its strategy combining growth, through high-yield investments (around €100 million per year at 6%) and accelerating structural debt reduction, particularly by leveraging selective asset sales. This plan should allow, by the end of 2030, to significantly reduce ARGAN’s debt ratios (LTV below 30%) while generating average annual growth (net of asset sales impacts) of around +3% over the 2025-2030 period.
Maintaining significant growth investments
€170 million of investments identified for 2025-2026
After €180 of investments representing 170,000 sq.m of newly built area in 202410 at yield on costs of 6.6% for €12 million of additional yearly rental income, ARGAN will pursue this growth momentum and has already identified €170 million of investments for 2025 and 2026 combined.
The planned investments are equally split between inhouse developments, at an average yield of about 7%, and with 2 acquisitions11 of new warehouses for the other half, for which the company has the exclusivity, with an average yield of 5.2%.
These investments will be fully financed through the cash generation of ARGAN’s business as well as the continuation of the asset sales program initiated in 2024.
€100 million per year for 2027-2030
From 2027 on, ARGAN is targeting to invest €100 million per year on average to sustain its growth on the long run:
- With the largest possible share coming from self-development, by deploying warehouses under the proprietary Aut0nom® label;
- And for the remaining share through acquisitions of new warehouses at market fair value.
Full speed on debt reduction confirmed
Asset sales program renewed
In 2024, ARGAN initiated its debt reduction program, as it successfully sold assets in an amount of €77 million, raised capital for €150 million and repaid mortgage loans for over €90 million.
ARGAN is now confirming it will pursue the self-financing of its development in the coming years: through the cash generation coming from its business and a selective asset sales program, with a targeted amount of €125 million over 2025 and 2026 combined.
From 2027 on, ARGAN intends to pursue this asset sales program to finance its growth and deploy the debt reduction strategy, while powering a younger profile of its assets and an increased share of its portfolio meeting the best possible environmental certifications
Significant and fast decrease of debt ratios
ARGAN’s policy results in a strong decrease of debt ratios. As such, ARGAN recorded at the end of December 2024:
- An EPRA LTV ratio (excluding duties) of 43%;
- A net debt to EBITDA ratio of 9.2X.
Pursuing this trajectory our Group is targeting for 2025:
- An EPRA LTV ratio (excluding duties) below 40%12 by the end of 2025;
- A net debt to EBITDA ratio of about 8X by the end of 2025.
As part of its 2025-2030 business plan, ARGAN intends to pursue debt ratios reduction on the longer run, with:
- An EPRA LTV (excluding duties) below 30%1 by the end of 2030;
- A net debt to EBITDA ratio of about 6X by the end of 2030.
Cost of debt under control
Demonstrating mastery over the financing of its model, ARGAN’s gross debt decreased by -8% compared with the end of 2023, thus standing at €1.8 billion, and net debt was €1.7 billion.
Average cost of debt as at December 31, 2024 remained low at 2.25%, showcasing a slight decrease from December 31, 2023 (2.30%), for an average maturity of 5.0 years. This cost of debt ratio is expected to still decline to around 2.10% for 2025, assuming a 3-month Euribor rate projected on average at 2.50% over the full-year.
The cost of debt structure limits risks, as it is mostly incurred with fixed or hedged variable rates:
- 59% fixed-rate debt;
- 39% of hedged variable debt;
- Only 2% of non-hedged variable debt.
New ESG roadmap: successful first milestones
Improved green standards for our portfolio: 6 projects already part of the heat pumps program
In line with its 2024-2030 investment plan, ARGAN has already finalized or initiated the process to invest
€4 million in total through 6 projects to replace highly-CO2 emitting gas boilers with air/water electric heat pumps.
Next to developments through Aut0nom®-labelled assets, i.e., “Net Zero” in-use warehouses, these investments will contribute to reduced CO2 emissions coming from the operations in ARGAN’s warehouses. This being aligned with a trajectory set to limit global warming to 1.5°C. Remaining emissions linked to our developments will, additionally, be compensated, from now on, through a reforestation initiative that benefits from the Low carbon label (Label bas carbone) delivered by the French state.
Biodiversity strategy unveiled: 8 targets for 2030
Still committed to a continuous improvement approach, as part of its ESG roadmap for 2023-203013, ARGAN has finalized its biodiversity strategy, published at the end of 2024. Structured around eight ambitious targets, this strategy aims at limiting the negative externalities associated with the Group’s operations, and even contribute to a net positive impact on ecosystems, particularly through reforestation efforts and the implementation of measures to protect wildlife and flora.
Ambitious in scope, this strategy aligns with the Companies Committed to Nature initiative (Entreprises engages pour la nature) led by the French government, which ARGAN actively supports.
The comprehensive biodiversity strategy is available on the company’s website, argan.fr, under the “ARGAN Charters” section within the “ESG Commitments” tab.
Improved rating from extra-financial agencies
The success of ARGAN’s ESG approach was demonstrated in 2024 by an improvement in its non-financial ratings from third-party organizations Sustainalytics and Ethifinance, now assessed as “low” extra-financial risk (compared to “medium” in 2023) and awarded a gold medal (up from silver in 2023), respectively.
Additionally, as announced, ARGAN expanded the range of agencies evaluating its non-financial performance with a first rating in 2024 by Ecovadis, which ranked ARGAN in the top 15% of assessed companies, equivalent to a silver medal, and our company initiated the rating process with GRESB.
———————————————————————————
2025 financial calendar (Publication of the press release after closing of the stock exchange)
- March 20: General Assembly 2025
- April 1: Net sales of 1st quarter 2025
- July 1: Net sales of 2nd quarter 2025
- July 17: Half-year results 2025
- October 1: Net sales of 3rd quarter 2025
2026 financial calendar (Publication of the press release after closing of the stock exchange)
- January 5: Net sales of 4th quarter 2025
- January 22: Annual results 2025
- March 19: General Assembly 2026
About ARGAN
ARGAN is the only French real estate company specializing in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES listed on EURONEXT and is the leading player of its market in France. Building on a unique customer-centric approach, ARGAN develops PREMIUM and Au0nom® -labelled – i.e., carbon-neutral in use – pre-let warehouses for blue-chip companies, with tailor-made services throughout all project phases from the development milestones to the rental management.
As at December 31, 2024, ARGAN represented a portfolio of 3.7 million sq.m, with about a hundred warehouses solely located in the continental area of France. Appraised at a total of €3.9 billion, this portfolio generates a yearly rental income of close to €205 million (yearly rental income based on the portfolio delivered as at Dec. 31, 2024).
Profitability, well-mastered debt and sustainability are at the heart of ARGAN’s DNA. The financial solidity of the Group’s model is notably reflected in its Investment-grade rating (BBB- with a stable outlook) with Standard & Poor’s. ARGAN is also deploying a committed ESG policy addressing all its stakeholders. Achievements as part of this roadmap are regularly recognized by third-party agencies such as Sustainalytics (low extra-financial risk), Ethifinance (gold medal) and Ecovadis (sliver medal – top 15% amongst rated companies).
ARGAN is a listed real estate investment company (French SIIC), on Compartment A of Euronext Paris (ISIN FR0010481960 – ARG) and is included in the Euronext SBF 120, CAC All-Share, EPRA Europe and IEIF SIIC France indices.
www.argan.fr
|
Francis Albertinelli – CFO |
Marlène Brisset – Media relations
|
Appendices
Consolidated net income (IFRS)
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Rental income | 183.6 | 198.3 |
| Rebilling of rental charges and taxes | 33.9 | 37.1 |
| Rental charges and taxes | -35.0 | -37.7 |
| Other property income | 3.2 | 3.6 |
| Other property expenses | -0.2 | -0.4 |
| Net property income | 185.5 | 200.9 |
| EBITDA (Current Operating Income) | 172.1 | 185.7 |
| Of which IFRS 16 impact | 3.0 | 3.2 |
| Change in fair value of the portfolio | -370.8 | 120.4 |
| Change in fair value IFRS 16 | -2.4 | -2.4 |
| Other operational expenses | – | – |
| Income from disposals | -0.2 | -1.6 |
| EBITDA, after value adjustments (FV) | -201.2 | 302.2 |
| Income from cash and equivalents Interest on loans and overdrafts Interest on IFRS 16 lease liabilities Borrowing costs Change in fair value of the derivative instruments
|
1.6 -41.4 -1.9 -3.7 -0.2
|
1.3 |
| -43.9 | ||
| -1.9 | ||
| -3.3 | ||
| -0.1 | ||
| Early repayment penalties | – | – |
| Income before tax | -246.8 | 254.4 |
| Other financial income and expenses | -19.7 | -4.9 |
| Tax | – | – |
| Share of profit of equity-accounted companies | – | 0.1 |
| Consolidated net income Consolidated net income – group share
|
-266.4 -263.5
|
249.6 |
| 245.7 | ||
| Diluted Consolidated net income per share (€) | -11.4 | 10.0 |
Net recurring income
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Consolidated net income | -266.4 | 249.6 |
| Change in fair value of hedging instruments | 0.2 | 0.1 |
| Change in fair value of the portfolio | 370.8 | -120.4 |
| Income from disposals | 0.2 | 1.6 |
| Other financial expenses | 19.7 | 4.9 |
| Tax | – | – |
| Share of profit of equity-accounted companies | – | -0.1 |
| Early repayment penalties | – | – |
| Allocation of free shares | 0.6 | 0.9 |
| Other operating expenses non-recurring | – | – |
| Impact of IFRS 16 | 1.3 | 1.1 |
| Net recurring income | 126.2 | 137.6 |
| Minority interests | 0.6 | 0.9 |
| Net recurring income – Group share (EPRA) | 125.6 | 136.7 |
| (EPRA) Group share recurring net income margin on revenues | 68% | 69% |
| Recurring net income per share (€) | 5.5 | 5.5 |
EPRA rental vacancy
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Estimated rental value of vacant space (A) | 0.0 | 0.0 |
| Total estimated rental value (B) | 200.7 | 204.2 |
| EPRA vacancy rate (A/B) | 0.0% | 0.0% |
Simplified consolidated balance sheet
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Non-current assets | 3,935.5 | 4,105.4 |
| Current assets | 118.1 | 156.9 |
| Assets held for sale | 17.5 | – |
| Total Assets | 4,071.1 | 4,262.3 |
| Shareholders’ equity | 1,887.8 | 2,226.1 |
| Minorities | 34.6 | 38.5 |
| Non-current liabilities | 1,864.5 | 1,793.5 |
| Current liabilities | 276.2 | 204.2 |
| Liabilities classified as held for sale | 8.0 | – |
| Total Liabilities | 4,071.1 | 4,262.3 |
NAV EPRA
| December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
|||||
| NRV | NTA | NDV | NRV | NTA | NDV | |
| Shareholders’ equity (in €m) Shareholders’ equity (in €/share) |
1,887.8 81.8 |
1,887.8 81.8 |
1,887.8 81.8 |
2,226.1 87.6 |
2,226.1 87.6 |
2,226.1 87.6 |
| + Fair value of financial instruments (in €m) | -5.5 | -5.5 | – | 1.6 | 1.6 | – |
| – Goodwill in the balance sheet (in €m) | – | -55.6 | -55.6 | – | -55.6 | – 55.6 |
| + Fair value of fixed-rate debt (in €m) | – | – | 98.2 | – | – | 51.3 |
| + Transfer taxes (in €m) | 208.4 | – | – | 229.2 | – | – |
| = NAV (in €m) = NAV (in €/share) |
2,090.7 90.6 |
1,826.6 79.1 |
1,930.4 83.6 |
2,456.9 96.7 |
2,172.0 85.5 |
2,221.7 87.5 |
EPRA LTV
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Include | ||
| Borrowings from Financial Institutions | 1,299.8 | 1,247.8 |
| Lines of credit | 70.0 | 0.0 |
| Bond loans | 500.0 | 500.0 |
| Finance lease | 68.6 | 48.1 |
| Liabilities related to assets held for sale | 8.0 | 0.0 |
| Exclude | ||
| Cash and cash equivalents | -52.0 | -85.7 |
| Net Debt (a) | 1,894.4 | 1,710.2 |
| Include | ||
| Owner-occupied property | 11.3 | 11.2 |
| Investment properties at fair value | 3,661.0 | 3,914.7 |
| Properties under development | 119.1 | 39.9 |
| Properties held for sale | 17.5 | – |
| Total Property Value (b) | 3,808.9 | 3,965.9 |
| LTV (a) / (b) | 49.7% | 43.1% |
| Real Estate Transfer Taxes – RETTs (c) | 210.0 | 232.0 |
| LTV (incl. RETTS) (a)/((b)+(c)) | 47.1% | 40.7% |
Cost of debt
| In millions of € | December 31, 2023 (12 months) |
December 31, 2024 (12 months) |
| Gross debt | 1,946 | 1,796 |
| Annualized cost of financial debt | 44 | 40 |
| Cost of debt (SPOT at the end of the year) | 2.30% | 2.25% |
Disclaimer
Some elements or statements included in this press release may contain forward looking data or prospective estimates regarding potential future events, trends, roadmaps or targets. Although ARGAN considers these forward-looking statements rely on reasonable assumptions at the time this document is released, forward looking projections and announced trends are by nature subject to risks, identified or not as of today. These can lead to significant discrepancies between actual results and those indicated or implied in elements or statements contained in this press release. For more detailed information regarding risks, readers can refer to the latest version of the Universal Registration Document of ARGAN, filed with the Autorité des marchés financiers (AMF) and available in a digital format on the AMF website (www.amf-france.org) as well as ARGAN’s (www.argan.fr).
ARGAN makes no undertaking in any form to publish updates or revise its forward-looking statements, nor to communicate new pieces of information, new future events or any other circumstances that may question these statements.
1 For more information, please refer to the press release dated October 1, 2024.
2 For more information, please refer to the press release dated January 18, 2024.
3 At constant capitalisation rate compared with the end of December 2024 (5.20% excluding duties).
4 At constant capitalisation rate compared with the end of December 2024 (5.20% excluding duties).
5 Subject to approval during the Shareholders Annual Meeting of March 19, 2026.
6 Subject to approval during the Shareholders Annual Meeting of March 20, 2025.
7 Calculated on the weighted average number of shares of 24,657,305.
8 Calculated on the number of shares at the end of December 2024 of 25,402,673.
9 For more information, please refer to the press release dated April 24, 2024.
10 For more information regarding 2024 delivered investments, please refer to the press release dated January 3, 2025.
11 Subject to standard conditions precedent.
12 Assuming a capitalization rate (excluding duties) of 5.20% (stable compared with the one recorded at the end of 2024).
13 For more information regarding ARGAN’s ESG commitments and progress, please refer to the ESG report published on June 27, 2024.
Attachment
- 20250116 – ARGAN_2024_Annual_Results
