The real estate company specializing in Argan warehouses published, last night, its figures at the end of June, which show a 7% growth in rental income over the first six months of the year, which stand at 81.7 million euros. , with a slight acceleration in the second quarter (+8% after +7% in the first quarter). The very high occupancy rate of 99% partly explains the performance, as well as the “full year” effect of the major investments made in 2021 (325,000 m²). In August last year, a 185,000m² warehouse was leased to Amazon France for a firm period of fifteen years, with a yield of 5.75%.
“In the short term, the rental risk seems relatively low to us in view of a rental activity which testifies to the maintenance of the attractiveness of the assets”, commented on in the Invest Securities analysis office. Nearly 72,000m² were signed in the first half: 22,000m² in advance for a warehouse in Gonesse, whose areas currently occupied until October 14 will be re-let to GL Events from October 15, 2022, and 50,000m² for two co-owned warehouses with Carrefour, located in Marseille and Lens, prior to the completion of their rehabilitation (July and December 2022 respectively).
Again a discount
In the second half, Argan expects the delivery of three new warehouses, for a total of 50,000m². Invest Securities finds a “In a context of development and relocations that are faster than expected. » This is pushing the real estate company to refine its annual rent target now expected upwards “ above 163 million euros “, against 163 million euros previously, where Invest Securities was already expecting this threshold to be exceeded (+4.7% to 164.1 million euros). The figures published by Argan were “Quite predictable and augurs well for the half-year results which will be communicated on July 20th. »
In the medium term, the current context of rising interest rates could however weigh on the finances of Argan and all the real estate companies, which are highly indebted companies.
On the stock market, Argan, stable today, has lost 25% since the start of the year. The property company is again discounted (by 4.5%) compared to its liquidation NAV (91.6 euros at the end of 2021), whereas at the start of the year, its shares were trading at a premium of more than 30%. It is moreover on this observation that we had recommended partial sales.