Argan announces a capital increase

The real estate company has slightly raised its financial objectives, with recurring net profit, its benchmark indicator, expected to increase by 7% to 135 million euros at the end of 2024 and to 152 million (+13% additional) at the end of 2025.

It hopes to offer its shareholders a dividend of 3,30 euros per share in 2025, an increase of 5%.

Argan will allocate the funds from its capital increase to an investment plan of 380 million euros by the end of 2026, as well as to its debt reduction.

This also allows it to reduce the scale of its future disposal plan. The group intends to sell 180 million euros worth of assets by the end of 2026, instead of 380 million planned until then.

The increase in interest rates over the past two years has been detrimental to real estate groups, and particularly real estate companies, whose business model consists of acquiring buildings to rent them out.

Many are therefore seeking to reduce their debt, and to finance their investments other than through borrowing.

The new Argan shares are on sale at 74 euros per unit, a discount of 6% compared to the previous day's price.

The Le Lan family, founder of the group, will see its shares increase from 40 to 37% of the capital. Those of Crédit Agricole Assurances will return from 16 to 15%, while floating securities will increase from 44 to 48%.

On the Paris Stock Exchange, shortly before 10:00 a.m., Argan shares lost 7,50%, to 72,80 euros, in a stable market.