ARGAN slowed down asset sales for increased growth

In accordance with the announced plan early this year1, confirmed as part of the half-year results, ARGAN started the marketing of a portfolio of four assets rented to food distribution companies. This was projected to generate €130 million of net cash.

Meanwhile, the increase in French long term debt rates (OAT) on a backdrop of deteriorating public finances, debates around the rebilling of property taxes to tenants in France, and the fall of Mr. Bayrou’s Government have changed the landscape.

Taking this unfavourable backdrop into account, ARGAN has decided to remove the CARAT portfolio from the market.

As a consequence, debt ratios targeted for the end of 2025 are slightly revised. ARGAN is thus, from now on, forecasting an LTV ratio of 41.5% at a constant capitalisation rate excluding duties of 5.25% vs. 43.1% at the end of 2024 and an initial target of 40%1
for 2025. Net debt to EBITDA ratio is now aimed at around 8.7x vs. 9.2x at the end of 2024 (and compared with around 8x aimed at the end of 20251).

The balance of cash flows remains preserved as this new context does not generate any financing issue and does not prevent ARGAN from financing its operations and its investment plan for 2025-2026.

The decision announced today strengthens rental growth in the short and mid-term:

• The targets for rental income and recurring net income are revised upwards for €1 million each up to €211 million (i.e., +7% vs. 2024) and €152 million1 (+11% vs. 2024); and
• Following this decision, the 2026 growth in revenues is now significantly more favourable and will be specified on January 22, as part of the presentation of 2025 results and 2026 targets.

2026 dividend (€3.45 per share) is confirmed².

OVERVIEW OF 2025 REVISED TARGETS