ARGAN Adjusts Its Debt Management Strategy
Despite facing a dynamic market landscape, ARGAN is taking significant steps to manage its debt while ensuring robust growth. As part of its strategy unveiled earlier in the year, ARGAN is now marketing a portfolio of assets mainly leased to food distribution businesses. This initiative is aimed at bolstering cash flow with an expected generation of €130 million.
Fiscal Challenges Prompt Strategic Changes
The recent rise in long-term debt rates in France, combined with increasing public financial concerns and challenges with property tax adjustments, has led ARGAN to reassess its asset management strategy. Recognizing the current climate, the company has decided to withdraw the CARAT portfolio from the market to better align with its long-term financial goals.
Revised Financial Projections for 2025
In light of these changes, ARGAN has updated its financial expectations for 2025, adjusting its targeted loan-to-value (LTV) ratio to 41.5% from the previous 40%. Previously, this ratio was anticipated to be 43.1% by the end of 2024. Moreover, the company aims to achieve a net debt to EBITDA ratio of approximately 8.7x compared to the earlier target of 9.2x.
Strengthening Rental Growth
By revising its strategy, ARGAN aims to enhance rental growth in the short and medium term. The company has elevated its projections for rental income and recurring net income by an additional €1 million each, forecasting figures of €211 million for rental income and €152 million for recurring net income. This indicates a significant growth of 7% and 11%, respectively, when compared to the previous year.
Future Dividend Outlook
ARGAN remains committed to returning value to its shareholders, confirming a dividend of €3.45 per share for 2026, highlighting its dedication to delivering consistent financial performance.
Summary of Revised Targets for 2025
With a clear vision and solid actions in place, ARGAN has redefined its financial objectives for 2025:
- Rental Income: Increased to €211 million, a 7% increase from last year.
- Recurring Net Income: Revised to €152 million, reflecting an 11% growth.
- LTV EPRA Ratio: Adjusted target of 41.5%.
- Net Debt / EBITDA Ratio: Set to approximately 8.7x.
- Dividend per Share: Maintained at €3.45.
Looking Ahead: Financial Calendar
Looking forward, ARGAN remains focused on maintaining transparency and will provide updates on its financial performance as follows:
- October 1: Net sales for the third quarter of 2025.
- January 5: Net sales for the fourth quarter of 2025.
- January 22: Full annual results for 2025.
- March 26: General Assembly for the year 2026.
About ARGAN
ARGAN stands out as the sole French real estate enterprise devoted to the development and leasing of premium warehouses, listed on EURONEXT. The company leads its market in France with a strong commitment to providing exceptional services throughout the entire project lifecycle. As of mid-2025, ARGAN manages a colossal portfolio spanning 3.7 million square meters and generating more than €210 million in annual rental income. The company’s philosophy centers around sustainability, evidenced by its high credit rating and robust ESG policies, recognized by industry accolades.
For more information, contact ARGAN:
Francis Albertinelli – CFO
Aymar de Germay – General Secretary
Samy Bensaid – Head of Investor Relations
Phone: +33 1 47 47 47 40
Email: contact@argan.fr
Frequently Asked Questions
What is ARGAN's new debt strategy?
ARGAN is slowing the pace of its debt reduction while focusing on enhancing its growth and financial health.
How will ARGAN's changes affect its rental income?
The company has revised its targets upward for rental income, now forecasting €211 million for 2025.
What dividend is ARGAN confirming for the next fiscal year?
ARGAN has confirmed a dividend of €3.45 per share for 2026, reflecting its commitment to shareholder returns.
What are ARGAN's revised financial targets for 2025?
Key targets include a rental income of €211 million and a net debt to EBITDA ratio of approximately 8.7x.
Where can I find more information about ARGAN?
More information about ARGAN can be found on their official website and through their investor relations department.
