Argan (ARG) H2 2025 earnings summary

Executive summary

• 2025 marked an exceptional year with rental income up 7% to €212 million and recurring net income up 13% to €155 million, both exceeding annual targets.

• Portfolio valuation rose 4% to €4.1Bn, with a premium logistics real estate portfolio of 3.8 million sq.m and occupancy rate above 99%.

• Maintained a diversified, blue-chip tenant base and delivered strong ESG progress, including 100% net carbon zero developments and over 50% of the 2030 Scope 3 CO2 reduction target achieved.

Financial highlights

• Portfolio valuation increased by 4% to €4.1Bn compared to end of 2024.

• Rental income grew 7% year-over-year to €212 million, driven by new deliveries and rent indexation.

• Recurring net income (Group share) rose 13% to €155 million; recurring net income per share up 8% to €6.0.

• EPRA NAV NTA per share increased to €91.5 from €85.5 at end of 2024.

• Dividend proposed at €3.45 per share (+5%), with a 5.4% yield and 58% payout ratio.

Outlook and guidance

• 2026 targets: €165 million in investments, rental income of €220 million, and recurring net income per share ~€6.

• Dividend per share expected to rise to €3.65 for 2026 (+6%).

• EPRA LTV ratio targeted at ~40%, net debt/EBITDA stable at 8.5x.

• Refinancing of €500 million bond due November 2026, with bridge facility and undrawn credit lines in place.