A financial model oriented toward a prudent, asset-based strategy that supports growth
As a family-owned real estate company, ARGAN’s strategy is to develop PREMIUM warehouses. To maintain this ‘PREMIUM’ portfolio, selective arbitrage is carried out periodically. The Group undertakes occasional, targeted acquisitions of high-quality, modern warehouses that ideally complement its existing assets.
The Management teams pay close attention to the profitability of the projects they develop, to their sustainability, and to responsible financing, with the ambition of maintaining sustainable debt ratios within a long-term asset-based strategy.
Expert words from…
Francis Albertinelli
CFO
Our financial model prioritizes operational efficiency to support steady and controlled growth, while keeping debt ratios under control. Now the leading logistics real estate company in France, ARGAN aims, for example, to bring its LTV down to 41.5% as early as 2025. Listed on the stock exchange since 2007, the company has delivered an exceptional track record, with a TSR (dividends reinvested) of over 13%, reflecting the lasting confidence of our investors and our ability to meet — and even exceed — our objectives year after year.
2025-2030 ambition
ARGAN’s strategy aims for continuous development over the 2025–2030 period, based on a combined approach of growth — through in-house development and acquisitions — and deleveraging, via selective arbitrage. The Company therefore aims to:
- A steady growth rate in rental income: Growth of +7% in 2025, followed by a minimum CAGR of +3% over 2025–2030;
- A recurring net income of about €152 million end of 2025, up +11% from 2024;
- An LTV ratio excluding duties of about 41.5% end of 2025, that should afterwards gradually decrease by the end of 2030;
- A det net to EBITDA ratio of about 8.7X end of 2025, that should then decrease to about 6X by 2030.
A strong attention to risks
ARGAN regularly reviews its most significant risks. These risks are assessed not only based on their severity but also on their likelihood, according to their potential adverse impact on the business. The risks related to ARGAN’s activities fall into five categories, presented below:
- Risks related to the level of indebtedness;
- Risks related to development;
- Risks related to the company’s real estate operations;
- Risks related to the logistics real estate market;
- Risks related to internal operations.
ARGAN’s financing
ARGAN’s prudent approach is reflected in a rigorous financing policy: the company finances its development through the strong cash generation of its operations and, additionally, through selective asset disposals over the 2024–2026 period.
Thus, the company’s current level of indebtedness reflects the existing stock of previously contracted mortgage loans, which naturally amortize by approximately €100 million per year, as well as the €500 million mandatory bond issued in November 2021 and maturing in November 2026.
Debt elements (December 31, 2024)
2.1%
Average cost of debt
“BBB-“, stable outlook
Rating S&P
> €300 million
Available RCF lines
8.6x
Net debt / EBITDA
Data at June 30, 2025
Bond
isin CODE
FR0014006FB8
CURRENCY
EUR
DAY OF ISSUANCE
11/17/2021
MATURITY
11/17/2026
AMOUNT (M€)
500
Coupon
1.011%
Prospectus
