ARGAN : 2023 rental income - €184 million: up +11%
Quarterly financial information – Neuilly-sur-Seine,
Wednesday, January 3, 2024 – 5.45 pm
2023 rental income€184
million: up +11%
- Occupancy rate:
100%
- Record investment pipeline
in 2023 and 2024: over €310 million
Rental income (IFRS) as of December 31, 2023
(unaudited figures)
€ million |
Year 2023 |
Year 2022 |
Trend |
1st quarter (Jan. – March) |
45.2 |
40.7 |
+ 11% |
2nd quarter (Apr. – June) |
45.7 |
41.0 |
+ 11% |
3rd quarter (Jul. – Sept.) |
46.3 |
41.2 |
+ 12% |
4th quarter (Oct. – Dec.) |
46.4 |
43.2 |
+ 7% |
Total (Jan. – Dec.) |
183.6 |
166.1 |
+ 11% |
Strong increase in rental income by + 11% in
2023
ARGAN, the leading French real
estate company specializing in the DEVELOPMENT and RENTAL of
PREMIUM WAREHOUSES, recorded a strong increase in
its rental income by +11% in 2023, which thus
stood at €184 million over the year. The strong
momentum recorded in 2023 comes from the full-year effect of rents
coming from the developments in 2022, rents of 5 warehouses
delivered in 2023, as well as the indexation that took place on
January 1, 2023 (+4% on average).
ARGAN exceeded the initial
target set at €182 million in rental income for the year, which was
then updated to €183 million and announced as part of the 2023
half-year results release1.
A solid momentum in 2023: €132 million
of investments delivered
In 2023, our Group has delivered a total
of 5 new warehouses (including one extension) in
PRIME locations, cumulating €132 million in investments for
100,000 sq.m and an average yield of
5.2%.
2023 deliveries include two acquisitions
of newly-built warehouses, at financial conditions
negotiated at the end of 2021 before rates
increased, with an average yield of 4.4%. These were made
in:
-
Janneyrias (38), close to Lyon, by the A432 French
highway, for BUT, the leading French retailer for
furniture, as part of a 9.5-year fixed-term lease. This 38,000 sq.m
platform is equipped with LED lighting with presence-sensors and a
photovoltaic power station for self-consumption; and in
- Mionnay
(01), North-East of Lyon, by delivering a total surface of
15,000 sq.m, for COVERGUARD, major player on the
market of personal protective equipment (PPE).
AutOnom®-labelled, this warehouse, with direct
access to the A46 French highway, is made of two cells of about
6,500 sq.m each, and an office bloc of 1,500 sq.m.
ARGAN has also developed three logistics
platforms, which represent half of the amount of
2023 investments, with an average yield of
6.1%. These are located in:
-
Montbartier (82), near Toulouse, at the junction
of the A62 and A20 French highways, through a strengthened
partnership with DECATHLON by delivering the retailer our
4th AutOnom®-labelled
site, a warehouse that produces its own green energy, for
a total surface of 19,000 sq.m;
-
St-Jean-sur-Veyle (01), on the A40 French highway
very near Mâcon and the A6 French highway, for the delivery of a
new tri-temperature building of a surface of 14,500 sq.m
labelled Aut0nom®. This site is operated by
BACK EUROP FRANCE, the French leading player in
the distribution of bakery-pastry (boulangerie-pâtisserie), as part
of a 12-year fixed-term lease; and in
- La
Crèche (79), East of Niort, at the crossroads of the A10
and A83 French highways, for an extension of negative cold new
spaces of 12,500 sq.m on a site dedicated to storing fresh products
for EURIAL, the Milk division of the Agrial
cooperative, with a 12-year long fixed-term lease for the whole
site, signed as part of this new delivery. This was also an
opportunity to significantly decrease the ecological footprint as
the whole site is now
labelled Aut0nom® .
Projects delivered in 2023 were
already financed through amortizing mortgage loans
that were taken out in 2022, before interest rates
rose.
At the same time, ARGAN sold a
20,000 sq.m logistics platform located in Bonneuil
(94).
A record pipeline: €180 million of
investments planned for 2024
This very upbeat business
momentum is now continuing in 2024 with a secured
volume of developments nearing €180 million for 170,000 sq.m in
total, with an average yield approaching
7%. The high profitability of
deliveries planned for 2024 testifies to
ARGAN’s ability to pursue its profitable growth
momentum, driven by a portfolio of
Aut0nom® -labelled warehouses on
strategic locations, as part of a long-term
partnership approach with reliable and blue-chip
clients.
Projects for the year include
developments already announced, and launched
in:
-
Mondeville (14), near Caen, between the French
“Nationale 814” – the ring road of Caen – and “A13”, where
the construction of a new AutOnom® -labelled site has
started for a surface of 82,000 sq.m for
CARREFOUR. This project takes place on a
former industrial brownfield of Stellantis, with an
exemplary environmental approach. The lease is set for a
9-year fixed term;
- Eslettes
(76), close to Rouen, for a 4,600 sq.m
distribution centre for DSV, which is
AutOnom® -labelled, as part of a 9-year fixed-term lease;
and in
-
Bruguières (31), also for a distribution
centre, rented to GEODIS, an operation
that increases the site’s size to 13,400 sq.m, a few
kilometres North of Toulouse and along the A62 French highway. The
delivery of the extension will mark the start of a new long-term
lease of 12 years.
These projects that were previously announced
are moreover completed by ongoing new developments
in:
- Bolbec
(76), for DACHSER (a new client)
for the construction of an Aut0nom®
-labelled warehouse of 15,200 sq.m
located alongside a site previously rented to DIDACTIC in 2022; and
in
-
St-Jean-sur-Veyle (01), near Mâcon, for U
PROXIMITE – also a new client – as part of a
tri-temperature warehouse of a surface of 31,300 sq.m that is
Aut0nom® -labelled, with a delivery planned in the
2nd quarter of 2024 and that will be adjacent to the one rented to
BACK EUROP France since 2023. The lease is set for a 12-year
fixed-term.
Half of 2024 developments were
pre-financed through mortgage amortizing loans, and the other half
will be through warehouses disposals in 2024 and in
2025.
Overall, 2023 and 2024 are two record
years in terms of investments for ARGAN, with a
total of over €310 million for 270,000 sq.m of new lettable
areas.
More generally, recent projects mark
ARGAN’s shift towards Aut0nom® as its standard for
developments. As such, about ten warehouses, whose
principle is to produce their own green energy for their own self
consumption, are already delivered or being
constructed. This results in strongly reduced
CO2 emissions.
A PREMIUM portfolio of 3.6 million sq.m,
appraised at €3.7 billion excluding transfer duties at the end of
December 2023:
As at December 31, 2023, the portfolio of
buildings represented 3,580,000 sq.m. Standing at €3.68
billion excluding duties (compared with €3.94 billion at
the end of 2022), the decrease in value over the year (-7 %)
mainly came from the mechanical impact of decompressing
capitalization rates, that increased from 4.45% excluding
duties at the end of 2022 (4.2% including duties) to 5.10%
excluding duties as at December 31, 2023 (i.e., 4.85%
including duties).
The weighted average residual lease
term, computed as at December 31, 2023, increased
to 5.7 years (compared with 5.5 years at the end of
December 2022).
The occupancy rate of the portfolio
remained at a maximum of 100% with a weighted
average age at 11.1 years (compared with 10.4 years
as at December 31, 2022).
2024 financial calendar (Publication of the
press release after closing of the stock exchange)
- January 18: Annual results 2023
- March 21: General Assembly 2024
- April 2: Net sales of 1st quarter 2024
- July 1: Net sales of 2nd quarter 2024
- July 24: Half-year results 2024
- October 1: Net sales of 3rd quarter 2024
2025 financial calendar (Publication of the
press release after closing of the stock exchange)
- January 3: Net sales of 4th quarter 2024
- January 16: Annual results 2024
- March 20: General Assembly 2025
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 recorded 184 million Euros in yearly rental
income in 2023. Moreover, as of December 31, 2023, our portfolio
consists in spaces of 3.6 million sq.m, across about a hundred
warehouses all located in France, which are worth 3.7 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 |
Marlène Brisset – Media relationsPhone: +33 6 59 42 29
35E-mail: argan@citigatedewerogerson.com |
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1 For more information on ARGAN’s 2023 targets,
please refer to the press releases published on July 19 and January
19, 2023.
- 20240103 - Rental Income 2023
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