Argan: Rental Income Up 4% in H1 2026, but Debt Cost Rises to 2.50%
In the first half of 2026, Argan consolidated its trajectory with a 4% increase in rental income to €110M and a revalued asset portfolio of €4.3B. However, behind this controlled progress, a less comfortable trade-off emerges: the cost of debt has risen to 2.50% (from 2.10% at the end of 2025), while the 2026 investment plan reached a record level of €200M, signaling an acceleration of development that could weigh on the financial flexibility of the group.
Revenues and 100% Occupancy, but Recurring Results Stall
Rental income for the first half of 2026 increased by 4% to €109.7M, setting the annual target to over €221M (compared to €220M initially). This growth primarily stems from the full-year effect of the 2025 deliveries and a limited rent revision of 0.6% in January. The occupancy rate is now at 100%, with Argan finalizing the leasing of 32,000 sqm at Coudray-Montceaux to JS Logistics, bringing the EPRA vacancy rate down to 0.1%. However, the recurring net income per share remains almost stable at €3.0 for the semester, in line with the annual target of €6 per share. This stagnation of recurring results (which better reflects cash generation) contrasts with the revenue growth and is explained by the financial expenses related to the €500M bond issue carried out in April 2026.
Accelerated Investments, Yields Over 6% Despite Rising Financing Costs
Argan is accelerating its development plan in 2026 by advancing two projects initially scheduled for 2027: Jung Logistics (30,000 sqm in Tournan-en-Brie) and a 13,000 sqm warehouse in Sorigny for a new client. The annual pipeline thus reaches a historic level of €200M in investments, representing ten projects, seven of which have already been delivered, with an average yield exceeding 6%. This momentum is accompanied by an increase in financing costs: the average cost of debt has increased by 40 basis points to 2.50% as of June 30, 2026, and is expected to reach about 3% by the end of the year. Net debt has increased to €1.8B (from €1.7B at the end of 2025), while the EPRA LTV ratio stands at 42.1% (from 41.1% at the end of 2025), gaining 100 basis points. The net debt to EBITDA ratio comes out at 8.8x, up 0.3x from the end of 2025.
Moderate Increase in NAV, Dividend Confirmed at €3.65
The revalued net asset value (EPRA NTA) increased by 3% over six months to reach €93.8 per share as of June 30, 2026. This increase stems from the recurring net income (+€3.0 per share) and a positive change in the value of the assets (+€2.9), partially offset by the cash dividend payment (−€3.5). The delivered portfolio, valued at €4.27B excluding rights, grew by 5% in six months. The dividend for 2026 is confirmed at €3.65 per share (+6% compared to 2025), subject to approval at the general meeting.
