Argan Reports a 7% Increase in Rental Income in 2025
The French real estate company specializing in premium warehouses closed the year 2025 beyond its targets, with rental income reaching 212 million euros and a recurring net income up by 13%. Its assets were valued at 4 billion euros, with an occupancy rate over 99%.
Strong Performance in Rental Income and Recurring Net Results
According to the group, Argan's rental income increased by 7% in 2025 to reach 212 million euros, surpassing the annual target. This growth mainly stems from the full-year effect of the 8 deliveries in 2024, as well as a 3.45% rent increase on January 1, 2025. The recurring net income attributable to the group saw a more pronounced acceleration, rising by 13% to 154.8 million euros, equivalent to 6.0 euros per share. According to the company, this performance reflects a record margin of 73% of rental income. The consolidated net income amounted to 245.2 million euros, incorporating a positive fair value impact of the assets by 91 million euros. The occupancy rate of the assets stands at more than 99%, with an EPRA vacancy rate of 1%.
Asset Valuation and Debt Management
Argan's assets were appraised at 4.07 billion euros excluding rights as of December 31, 2025, up by 4% over twelve months. The real estate portfolio totals 3,770,000 square meters and has a capitalization rate of 5.25% excluding rights. The EPRA NTA Net Asset Value (NAV) stands at 91.5 euros per share, up 7% in a year. Regarding debt, the group continued its reduction with an EPRA LTV ratio of 41.1% as of December 31, 2025, compared to 43.1% twelve months earlier, an improvement of 200 basis points. The net debt to EBITDA ratio decreased to 8.5 times, down by 0.7 times. The average cost of debt remains low at 2.10%, down 15 basis points, with a maturity of 4.0 years. The debt structure limits risks, with 60% at fixed rates, 39% at covered variable rates, and only 1% at uncovered variable rates.
Outlook for 2026 and Financial Strategies
For 2026, Argan aims for a 4% growth in rental income, expected to reach 220 million euros, supported by an investment pipeline of 165 million euros. New tenants include Danone, Ferrero, and Puma. The recurring net income per share is expected to remain stable at around 6.0 euros, subject to refinancing conditions. A dividend of 3.45 euros per share will be proposed at the general meeting on March 26, an increase of 5%. The company also plans a dividend of 3.65 euros for 2026, an increase of 6%. On the financial side, Argan needs to refinance a 500 million euros bond issue maturing on November 17, issued in 2021 with a coupon of 1.01%. The group is considering a new issue between 500 and 700 million euros, depending on market conditions, with an estimated coupon between 3% and 4%. To secure this operation, Argan has set up a bridging finance of 500 million euros available until November 2027, complemented by revolving credit lines increased to 400 million euros.
