ARGAN records excellent first half-year 2023
July 03 2023 - 10:45AM
ARGAN records excellent first half-year 2023
Quarterly financial information
– Monday July
3,
2023
– 5:45 pm.
ARGAN records excellent
first
half-year
2023
- Rental income grew by +11%
to
€91m
- 2023 rental income target for the year revised upwards
to
€183m
Rental income
(IFRS) at June
30,
2023 (unaudited
figures)
€m |
Financial year 2023 |
Financial year 2022 |
Change |
1st quarter (Jan.- March) |
45.2 |
40.7 |
+ 11% |
2nd quarter (April - June) |
45.7 |
41.0 |
+ 11% |
Half-year total |
90.9 |
81.7 |
+ 11% |
Strong increase in rental income:
+11% in
the first
half-year of
2023
In the first half-year of 2023, ARGAN, the
French real estate company specializing in the development and
rental of PREMIUM warehouses, pursued its growth with
rental income up a
steep +11% to
€90.9m.
This increase was mainly the result of the full-year effect of
rents coming from the developments in 2022, rents of the warehouses
delivered during the first half-year of 2023, as well as rent
reviews that took place on January 1, 2023 (+4% on average).
Significant events of the
first half-year
of 2023
Since the beginning of the year, ARGAN pursued
its development by delivering last March a logistics platform
totaling 38,000 sq.m and located in Janneyrias (38) – Lyon area –
by the A432 French highway. This platform, which is leased to BUT –
France's leading furniture retailer – for a fixed term of 9.5
years, meets the highest standards for frugal energy choices.
Under intended conditions, ARGAN also finalized
last March its sale of a logistics platform of 20,000 sq.m located
in Bonneuil-sur-Marne (94).
Finally, ARGAN joined the EPRA Europe index on
March 20, 2023.
A record development pipeline of over €300m
ARGAN plans to deliver four new development
projects and one extension in 2023, representing an investment
volume of €135m for new spaces totalling 100,000 sq.m. All these
projects are already financed through amortizing mortgage loans
that were taken out in 2022, before interest rates rose.
After 2023, the very strong business momentum
recorded in the first half of this year has already helped secure
development projects representing a volume of over €175m for more
than 155,000 sq.m of spaces to be delivered in 2024. Half of this
amount is already financed through amortizing mortgage loans and
the other half should come from the sale of warehouses at the end
of 2024 or early 2025, depending on market conditions.
Among ongoing project developments, Argan has
already announced works to extend two sites, with:
- The second phase
for its logistics warehouse at La Crèche (79) leased to EURIAL, the
milk division of the cooperative group AGRIAL, as part of a
long-term lease covering a firm 12-year period. The two new
negative cold cells represent a surface of 12,400 sq.m and will
result in total spaces extended to 32,800 sq.m. This extension
includes an improvement in the site’s carbon footprint, as
photovoltaic panels will also be installed with a total production
capacity of over 1,700 Mwh/year, thus covering 30% of the
site’s energy needs. The project’s delivery is expected in December
2023;
- The extension of the fulfillment
hub in Bruguières (31) leased to GEODIS, which will increase the
site’s size to 13,400 sq.m. These works are also an opportunity to
refurbish existing buildings and thus establish a long-term
partnership with GEODIS through a new lease for a firm 12-year
period. The project’s delivery is expected in December 2024.
In the coming weeks, new announcements should
further illustrate ARGAN’s strong business
momentum, which provides very
good visibility
on future growth and revenue
of our real estate company.
More broadly, the Group’s
ability to pursue its growth reflects the
combination of:
- Its
identity as a pure player
of the French logistics real
estate market that
remains buoyant,
characterized by a strong demand and a limited
offer;
- A
proven business model that delivers
growth with a long-term vision on
property management based on Premium
assets that meet customers’
expectations both in terms of location
and quality of
tailor-made
buildings; and
- Strong attention
to the highest standards
for frugal and efficient energy choices
both for ongoing and
future projects under
AutOnom®, the
warehouse that generates its own
green energy, but also
through an ambitious plan to refurbish existing facilities.
As at
June 30, 2023,
Argans’s rental portfolio
thus stood at
3.5 million
sq.m. and the occupancy rate
remained at 100%.
2023 rental income target for the year revised upwards
to €183m
Taking into account the
planned delivery
projects
for the second half of the year,
ARGAN is revising its yearly
target1 for
rental income upwards to
€183m (compared with
€182m initially) for the
full-year 2023.
Financial calendar
2023 (Publication of the press
release after closing of the stock exchange)
- July 19: 2023 Half-year results
- October 2: 2023 3rd quarter sales
About
Argan
ARGAN is the only French real estate company
specializing in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES
listed on EURONEXT.As at December 31, 2022, ARGAN’s portfolio
amounted to 3.5 million sq.m, comprising approximately 100
warehouses located exclusively in France, valued at €4.0 billion.
ARGAN is listed on Compartment A of Euronext Paris (ISIN
FR0010481960 - ARG) and is included in the CAC All-Share, IEIF SIIC
France and EPRA Europe indices. The company opted for the listed
real estate investment companies (SIICs) tax regime on July 1,
2007. http://www.argan.fr/en
Francis
Albertinelli – CFO Aymar de Germay – General SecretarySamy Bensaid
– Investor RelationsPhone: +33 1 47 47 47 40E-mail:
contact@argan.frwww.argan.fr |
Marlene Brisset – Media relationsPhone: +33 6 59 42 29
35E-mail: argan@citigatedewerogerson.com |
|
|
1 For more information, please refer the press release published
on January 19, 2023.
- 20230703 ARGAN - Rental income H1 2023
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