Press releaseThursday 15July 20215:45 p.m.

Exceptional increase in net income
group share to €338m
for the first half of 2021

Consolidated income statementFirst half 2021First half 2020Change 
Rental income76.2m€69.5m+10% 
Recurring net income55.4m
2.5/share*
€50.6m
2.3/share
+9% 
Net income group share

 

Incl. change in fair value of properties
338.3m
15.1/share*

 

286.2m
€49.6m
2.2/share

 

5.7m
+582% 
Balance sheet information30 June 202131 December 2020Change
(6 months)
 
NAV EPRA NRV**/ share€87/share€73/share+19% 
Value of the portfolio excluding transfer taxes3.3bn€3bn+9% 
LTV ratio 49%54%-500bps 
Cost of debt1.65%1.65%- 
Occupancy rate99%100%-1 point 

*Calculated on the weighted average number of shares of 22,402,294
**ARGAN applies the EPRA best practices recommendations as part of the new EPRA metrics relating to the NAV
On 12 July 2021, the Executive Board approved the interim consolidated accounts as at 30 June 2021. Limited review procedures on these accounts have been completed and the report of the statutory auditors regarding the half-year financial information is about to be issued.

Recurring net income up +9%

Recurring net income is up +9% to €55.4m as at 30 June 2021, representing 73% of the rental income, which is stable year-on-year. The exceptional increase in net income group share of +582% to338.3m is mainly due to the very large positive change in the fair value of the portfolio of 286m in the first half of 2021 compared to €5.7m last year, reflecting in particular the contraction in capitalisation rates.

Premium portfolio valued at €3.3bnexcluding transfer taxes (3.45bn including transfer taxes)

The delivered portfolio (excluding real estate assets under development) amounts to 3,100,000 sqm as at 30 June 2021, compared to 2,990,000 sqm at the end of 2020. Its valuation amounted to3.3bn excluding transfer taxes (€3.45bn including transfer taxes), up +9% compared to 31 December 2020.

The valuation of the delivered portfolio at €3.3bn excluding transfer taxes results in a capitalisation rate of 4.70% excluding transfer taxes (4.50% including transfer taxes), down compared to 5.05% excluding transfer taxes as at 31 December 2020.

The average remaining fixed length of the leases remains stable at 5.5 years compared to 5.7 years as at 31 December 2020.

The occupancy rate for the portfolio is 99% and its weighted average age is 9.8 years.

LTV ratio down at 49% and cost of debt stable at 1.65%

Gross financial debt relating to assets delivered amounts to €1.64bn, including bond issues of €155m.
Including residual cash, net LTV (net financial debt/appraisal value excluding transfer taxes) falls to 49% as of 30 June 2021.

Debt consists of fixed rate bonds for 9% of the total, fixed rate amortising loans for 47%, hedged variable rate amortising loans for 39% and variable rate amortising loans for the remaining 5%. The average cost of debt as of 30 June 2021 remains stable at 1.65% and its maturity is 7.8 years.

The exceptional drop in the debt ratio at the end of June is transitory and given the deliveries expected for the second half of the year, ARGAN maintains its objective of a 53% LTV ratio at the end of 2021.

+19% increase in the NAV EPRA Net Reinstatement Value (NRV) at 87 per share

In accordance with the updated EPRA recommendations, ARGAN applies the new standards for determining the net asset value since 1st January 2020.

NAV EPRA Net Reinstatement Value (NRV) amounts to €86.7 per share as at 30 June 2021 (+19% over 6 months).
NAV EPRA Net Tangible Asset (NTA) amounts to €77.2 per share as at 30 June 2021 (+20% over 6 months).
NAV EPRA Net Disposal Value (NDV) amounts to €77 per share as at 30 June 2021 (+21% over 6 months).

This significant increase of €13.8 in the NAV EPRA NRV per share compared to 31 December 2020comes from net income (+€2.5), the change in the fair value of the portfolio (+€12.4), the payment of the dividend in cash (-€1.1) and in shares (-€0.9) and the transfer taxes (+€0.9).

Upward revision of 2021 targets

Given the excellent half-year results and the significant increase in the value of the portfolio according to expert appraisals, ARGAN is revising upwards its 2021 targets as follows:

Key indicatorsIncreasedtargetsInitial targets
Value of the portfolio€3.5bn€3.2bn
NAV ANR NRV/share9080

Financial calendar 2021 (Publication of the press release after closing of the stock exchange)

  • 01 October: 3rd quarter sales 2021
  • 03 January: Annual revenue 2021
  • 19 January: Annual results 2021

About Argan

ARGAN is the only French real estate company specialising in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES listed on Euronext.
As at 30 June 2021, ARGAN’s portfolio amounted to 3.1 million sq. meters, comprising approximately 100 warehouses located exclusively in France, valued at €3.3 billion and generating annual rental income of €155 million.   ARGAN is listed on Compartment A of Euronext Paris (ISIN FR0010481960 - ARG) and is included in the CAC All-Share and IEIF SIIC France indices. The company opted for the listed real estate investment companies (SIICs) tax regime on 01 July 2007.
www.argan.fr




 

Francis AlbertinelliChief Financial and Administrative Officer
Marie-Caroline Schwartz – General Counsel
Tel: +33 1 47 47 05 46
E-mail: contact@argan.fr
www.argan.fr



 

 

Aude Vayre – Media relations
Tel: +33 6 14 64 15 65
Philippe Ronceau – Investor relations
Tel: +33 6 64 12 53 61
E-mail: argan@citigatedewerogerson.com
  

Simplified consolidated income statement (IFRS)

In millions of €30 June 2020
(6 months)
31 December 2020
(12 months)
30 June 2021
(6 months)
Rental income 69.5142.476.2
Rental income and expenses-1.2-1.5-1.1
Other IFRS 16 income and expenses1.1 2.51.4
EBITDA (Current Operating Income)64.2132.272.4
Including impact of IFRS 160.10.41.4
Change in fair value of the portfolio5.7174.6286.2
Income from disposals -0.19.3-
EBITDA, after value adjustments (FV)69.8316.1357.6
Income from cash and equivalents
Cost of gross financial debt
Interest on IFRS 16 lease liabilities
Borrowing costs
Borrowing costs for the bridge « Cargo »
Change in fair value of hedging instruments
0.0
-12.4
-0.8
-1.0
-3.0
-0.8
0.1
-26.4
-1.6
-2.3
-3.0
-1.7
0.0
-14.2
-0.8
-1.3
-
-0.5
Income before tax51.8281.2340.7
Other financial expenses-2.0-2.02.0
Tax---
Share of profit of equity-accounted companies-0.2-0.3-
Consolidated net income49.6278.9342.7
Net income group share49.6278.9338.3
Diluted earnings per share (€)2.212.515.1

Recurring net income

In millions of €30 June 2020
(6 months)
31 December 2020
(12 months)
30 June 2021
(6 months)
Consolidated net income 49.6278.9342.7
   Borrowing costs for the bridge « Cargo »3.03.0-
Change in fair value of hedging instruments0.81.70.5
Change in fair value of the portfolio-5.7-174.6-286.2
Income from disposals0.1-9.3-
Other financial expenses2.02.0-2.0
Tax---
Share of profit of equity-accounted companies0.20.3-
Impact of IFRS 160.71.20.4
Recurring net income50.6103.455.4
Recurring net income per share (€)2.34.62.5

Simplified consolidated balance sheet (IFRS)

In millions of €31 December 202030 June 2021 
ASSETS3,393.93,758.9 
   Non-current assets3,272.83,581.6 
   Current assets121.1108.9 
   Assets held for sale-68.4 
LIABILITIES3,393.93,758.9 
   Shareholders’ equity1,478.61,828.0 
   Non-current liabilities1,685.81,679.0 
   Current liabilities229.5233.5 
   Liabilities held for sale-18.4 

Attachment

  • 20210715 - ARGAN Half year results 2021

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