ARGAN: 2025 annual results - An exceptional year!

Core Insights - 2025 was an exceptional year for the company, with key financial indicators exceeding expectations despite a challenging macroeconomic environment [2] - The company achieved a 7% increase in rental income and a 13% rise in recurring net income, while reducing the loan-to-value (LTV) ratio to 41% [2][8] - The portfolio is valued at €4 billion, with an occupancy rate exceeding 99% [2][8] Financial Performance - Rental income reached €212 million, up 7% from €198.3 million in 2024 [6][11] - Recurring net income attributable to the Group increased by 13% to €154.8 million, with a margin of 73% of rental income [13][10] - The EPRA NAV NTA per share rose to €91.5, reflecting a 7% increase from the previous year [17][8] - The company maintained a low cost of debt at 2.10%, down from 2.25% in 2024 [19][9] Portfolio and Valuation - The portfolio valuation, excluding duties, increased by 4% to €4.07 billion, with an occupancy rate above 99% [15][12] - The average residual lease term was 5.0 years, and the weighted average age of the portfolio was 12.4 years [16][15] - The EPRA vacancy rate stood at 1%, significantly lower than the national vacancy rate of 6.3% [12][10] Debt Management - The company reduced its EPRA LTV to 41.1%, down 200 basis points from 43.1% in 2024 [6][20] - Net debt to EBITDA ratio improved to 8.5x, down from 9.2x [9][20] - A €500 million bond issued in 2021 is set to mature in November 2026, with plans for refinancing through a new bond issuance [24][26] ESG Initiatives - The company achieved over 50% of its target to halve Scope 3 energy CO₂ emissions by 2030, reducing emissions from 25,000 tonnes in 2022 to approximately 12,500 tonnes [30][29] - ARGAN's biodiversity program received recognition from the French State, earning the 'Companies Committed to Nature' label [31][29] - The company continues to enhance sustainability through its AutOnom® warehouse concept, which produces its own energy [29][30] Future Outlook - For 2026, the company targets a 4% growth in rental income, with revenues expected to reach €220 million [4][21] - A significant investment program of approximately €165 million is planned for 2026, focusing on new developments and acquisitions [22][21] - The company aims to propose a dividend of €3.65 per share for fiscal year 2026, representing a 6% increase compared to the previous year [28][21]