ARGAN: Third quarter 2023 rental income up +12%
02 Oktober 2023 - 5:45PM
ARGAN: Third quarter 2023 rental income up +12%
Quarterly financial information
– Neuilly sur Seine,
Monday, October
2,
2023
– 5.45
pm
Third quarter
2023 rental incomeup
+12%
- Rental
income for the first nine months:
€137
million
- Occupancy
rate: 100%
- 2023
targets confirmed
- Yearly rental
income:
€183
million, up
+10%
- Recurring net
income:
€124
million, up
+4%
- 2023
dividend:
€3.15
per share, i.e.,
up +5%
Rental income (IFRS) at September 30, 2023
(unaudited figures)
€ million |
Financial year
2023 |
Financial year
2022 |
Trends |
1st quarter (Jan. – March) |
45.2 |
40.7 |
+11% |
2nd quarter (April – June) |
45.7 |
41.0 |
+11% |
3rd quarter (Jul. – Sept.) |
46.3 |
41.2 |
+12% |
Total (Jan. –
Sept.) |
137.2 |
122.9 |
+12% |
Sustained growth in rental income of
+12%
since the beginning of the year
ARGAN, the French real estate
company specializing and leading player in the development and
rental of PREMIUM warehouses, recorded €137
million in rental income in the
first nine months of the year,
increasing
+12% compared
with the same period of the year before. This sustained growth
essentially resulted from the full-year effect of rents coming from
the developments in 2022, rents of the warehouses delivered during
the first nine months of 2023, as well as the indexation that took
place on January 1, 2023 (+4% on average).
Significant
events of the third quarter
2023
Carried by a record pipeline
– with total
investments of €315 million for close to
270,000 sq.m of new developed
surfaces for 2023 and 2024 –
ARGAN has pursued its strong growth
momentum.
During the third quarter,
our Group has thus delivered two new
warehouses on
PRIME locations:
-
Montbartier (82), close to
Toulouse, by accompanying
DECATHLON with the
delivery of a fourth
AutOnom®-labelled warehouse,
which produces its own green energy, for a total surface of
19,000 sq.m;
-
Mionnay (01), in the North-East
of Lyon, by delivering a total surface of 15,000 sq.m, for
COVERGUARD, a leading player on the market of
personal protective equipment (PPE). This warehouse, which is also
AutOnom®-labelled, is made of two
different cells of around 6,500 sq.m each, and one bloc for
offices of 1,800 sq.m.
These developments complement the one in
Janneyrias (38), close to Lyon as well, as part of
a first transaction for
BUT with a 38,000 sq.m platform, with a long-term
9.5-year fixed lease. Combined, the sites
already delivered to this day
in 2023 total a surface
of close to 72,000 sq.m.
Two new developments will
moreover be delivered by the end of this year for
a total of close to
28,000
sq.m, including the extension
of a cold storage warehouse for
EURIAL at La Crèche
(79) (for two new negative cold cells for additional
12,400 sq.m).
Together, 2023
projects total
100,000
sq.m in new surfaces for
an overall investment of
€135 million,
already financed through amortizing mortgage loans that
were taken out in 2022, before interest rates rose.
For 2024,
the very upbeat business momentum
secured a
development
pipeline of close to
€180 million
for
170,000
sq.m in total. These projects
comprise developments already
announced, including the start
of the construction
of an AutOnom®
site for a surface of 82,000 sq.m for
Carrefour, on a former brownfield
of PSA in
Caen, a project led with an exemplary
approach in terms of environmental
standards. ARGAN also
announced the construction of a
distribution centre for 4,600 sq.m in
Rouen for DSV,
and the extension of another distribution
centre in Bruguières
(31) for GEODIS,
thus increasing the site’s size to 13,400 sq.m.
Half of investment amounts is already
financed through amortizing mortgage loans and the other half
should come from the sale of warehouses in 2024 or early 2025,
depending on market conditions.
All announced or already rolled-out initiatives
this year confirm ARGAN’s
leadership in France,
which testifies both to our proven ability
to secure PRIME
locations, on a
backdrop of scarcer land availability,
and to a solid positioning
as a trust partner to
our clients, to support them
along projects that are crucial for their
good
development.
2023 targets,
updated1 as part of the
half-year results, are
confirmed:
Based on the
performance in
the first nine months of 2023,
and taking into account an
occupancy rate standing at 100% in a rental market with very little
availability, ARGAN is confirming the targets
that were previously updated as
part of the 2023 half-year results:
Indicators |
2023 updated1
targets |
2023
initial1targets |
Full-year 2022 |
Changevs 2022 |
Rental income |
€183m |
€182m |
€166m |
+10% |
Recurring net income |
€124m |
€124m |
€119m |
+4% |
Dividend per share |
€3.152 |
A minimum of
€3 |
€3.0 |
+5% |
Financial calendar 2024 (Publication of the
press release after closing of the stock exchange)
- January 3: 2023 Annual Sales
- January 18: 2023 Annual Results
- March 21: Annual General Meeting
About ARGAN
ARGAN is the only French real estate company
specializing in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES
listed on EURONEXT and is the leading player of its market in
France. Building on a unique customer-centric approach – which
consists in tailor-made and innovative support throughout all
project phases from the development milestones to the rental
management – ARGAN has grown strongly since it first started in
2000. The company is thus now generating more than 180 million
Euros in yearly rental income in 2023. Moreover, as of now, our
portfolio consists in spaces of 3.5 million sq.m, across about a
hundred warehouses all located in France, which are worth 3.6
billion Euros. ARGAN’s development model takes into account all its
stakeholders and aims at pursuing a growth path that is profitable,
with a debt kept under control, while ensuring to fully minimise
its environmental and societal impact.ARGAN is a listed real estate
investment company (French SIIC), on Compartment A of Euronext
Paris (ISIN FR0010481960 - ARG) and is included in the Euronext SBF
120, CAC All-Share, EPRA Europe and IEIF SIIC France
indices.www.argan.fr
Francis
Albertinelli – CFO Aymar de Germay – General SecretarySamy Bensaid
– Head of Investor RelationsPhone: +33 1 47 47 47 40 E-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 releases
published on July 19 and January 19, 2023.2 Subject to approval
during the Shareholders Annual Meeting of March 21, 2024.
- 20231002 - Q3 2023 Rental Income
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