ARGAN SLOWS DOWN THE PACE OF DEBT REDUCTION AND STRENGTHENS ITS GROWTH

Core Viewpoint - ARGAN is adjusting its debt reduction strategy while focusing on strengthening growth, particularly in rental income and recurring net income, amidst a challenging economic backdrop in France [1][2][3]. Financial Performance - ARGAN has initiated the marketing of a portfolio of four assets, expected to generate €130 million in net cash [2]. - Revised targets for 2025 include rental income of €211 million, an increase of 7% compared to 2024, and recurring net income of €152 million, reflecting an 11% increase [6][11]. - The LTV ratio is now projected at 41.5% for 2025, up from an initial target of below 40%, while the net debt to EBITDA ratio is revised to approximately 8.7x [3][6]. Dividend and Growth Outlook - The dividend for 2026 is confirmed at €3.45 per share, indicating a 5% increase from the previous year [5][6]. - The decision to remove the CARAT portfolio from the market is expected to enhance rental growth in the short to mid-term [3][5]. Company Overview - ARGAN specializes in the development and rental of premium warehouses in France, with a portfolio of 3.7 million square meters valued at €4.0 billion, generating over €210 million in annual rental income [7]. - The company maintains a strong financial position, reflected in its investment-grade rating (BBB- with a stable outlook) from Standard & Poor's [7].