Argan exceeds its growth targets in 2022

The Argan group, owner of 3,5 million square meters of logistics warehouses in France, has exceeded its growth objectives in 2022 amid a boom in e-commerce and raised its objectives for 2023, according to a press release published a few days ago.

Its 2022 net profit fell to 95,1 million euros against 668 million a year earlier, but this figure for 2021, up 140%, was an unrepresentative explosion because mainly due to the revaluation of its assets. .

Recurring net profit, more representative of the performance of a property company, increased by 6% in 2022 to 119 million euros, slightly exceeding the target set of 118 million.

As for Argan's rental income, it climbed to 166 million euros (+6%), also slightly above the target (165 million).

This growth was driven by the creation or acquisition of new sites, including the purchase from Renault of a 153.000 square meter warehouse in Yonne.

"Given the return to 100% of the occupancy rate and a rental market in a situation of undersupply (vacancy at 3,8% in France)", Argan anticipates for 2023 a 10% increase in its income rental income to 182 million euros and a 4% increase in its recurring net profit, according to the press release.

In addition, "faced with the change in the economic cycle of 2022, which led to a sudden increase in interest rates", Argan indicates that he will now "close (er) the borrowing tap" by self-financing.

In total, Argan owns 3,5 million square meters valued at 4 billion euros. Sign of the good health of the logistics real estate market, it expects to have 100% occupancy rate in the first quarter.

Its main customers are traditional retail groups, primarily Carrefour, followed by Casino, Auchan, Decathlon and Castorama.

It also rents to logisticians (FM, Geodis) and to the e-commerce giant Amazon.

The group intends to pay its shareholders a dividend of 3 euros per share.