Exceptional growth in results 2021
Press release –
Wednesday 19
January
2022
– 5:45
p.m.
Exceptional growth in results
2021
- Net income, group
share:
€668m,
up +140%
- A dividend of €2.60/share (+24%)
- A PREMIUM
portfolio valued at
€3.75bn
excl. transfer taxes
(+24%)
- Launch and delivery of
Aut0nom®, our carbon neutral
warehouse
Consolidated income
statement |
Financial year 2021 |
Financial year 2020 |
Change |
|
Rental income |
€157m |
€142m |
+10% |
|
Recurring net
income |
€112m€5/share* |
€103m€4.6/share |
+8% |
|
Net income, group
share Incl.
change in fair value of
buildings |
€668m€29.7/share*€543m |
€279m€12.5/share€175m |
+140% |
|
Dividend per
share ** |
€2.60 |
€2.10 |
+24% |
|
Balance sheet information |
31 December
2021 |
31 December 2020 |
Change |
|
NAV EPRA NRV
/share |
€103/share |
€73/share |
+41% |
|
Value of the portfolio excl.
transfer taxes |
€3.75bn |
€3bn |
+24% |
|
LTV ratio |
43% |
54% |
-1100 bps |
|
Cost of debt |
1.50% |
1.65% |
-15 bps |
|
Occupancy
rate |
99% |
100% |
- 1 point |
|
* calculated on the weighted average number of
shares for the financial year: 22,495,656** The dividend will be
submitted for approval at the Combined GM on 24 March 2022
On 17 January 2022, the Executive Board of ARGAN
approved the consolidated financial statements 2021. The audit
procedures performed by our statutory auditors on these
consolidated financial statements have been completed. The
certification report will be issued after finalisation of the
specific verifications.
2021
Results
Recurring net income up
+8%
Recurring net income amounts to €112m,
up +8% and now represents 71% of rental income.
For the financial year 2021,
rental income amounts to
€156.8m,
an increase of
+10%
compared to the financial year
2020 (€142.4m), thus exceeding
our initial target of €154m.
EBITDA (current
operating income) amounts to
€147.1m,
up +11%.
The exceptional increase in net
income (group
share) of +140% to €668.1m is
mainly due to the very significant positive change in fair value of
the portfolio of €543m in 2021 compared to €175m
in 2020, due in particular to the contraction in capitalisation
rates which stand at 4.30% excluding transfer taxes compared to
5.05% the previous year.
A Premium portfolio
of 3.3
million sqm valued at
€3.75bn
excl. transfer taxes
(+24%)
In 2021, ARGAN has invested
€240m, representing
more than 325.000 sq. meters:
- In March,
delivery of a logistics platform of 14,200
sqm located in Gondreville, leased to
COLRUYT, a local supermarket brand, for a fixed
term of 9 years. The implementation of a rooftop
photovoltaic power plant producing 150 MWh per year dedicated to
COLRUYT’s own use saves 10 tons of CO² emissions per
year;
- In May,
delivery of the 12,000 sqm
extension consisting of two new units on the site of
Decathlon in Ferrières-en-Brie. One unit is leased to
DECATHLON under a firm 6-year lease. The second
cell is rented to XEFI, a leading IT services company for very
small / very small businesses, for a fixed term of 6 years;
-
In May, acquisition from Carrefour of 3 warehouses located
in Lens, Marseille and Plessis-Pâté for a total surface area of
70,000 sqm in the context of the creation of a joint
property company (SCI – Société Civile Immobilière) held at 60% by
ARGAN and 40% by the Carrefour Group. The warehouse of Plessis-Pâté
is fully leased to CARREFOUR and the refurbishment
of the warehouses of Lens and Marseille, which will be leased to
identified third parties, is ongoing;
-
In June, delivery of a new warehouse of
22,000 sqm in Escrennes, leased to FDG
Group, leader in the non-food retail market, for a
fixed term of 9 years
-
in August, delivery of the 185,000 sqm logistics platform
on 4 levels located near Metz and leased to AMAZON
France for a fixed term of 15 years. The
rooftop photovoltaic power plant, the rainwater collecting system,
the vegetalisation of the site and the other environmental advances
integrated into the project have enabled it to obtain a BREEAM Very
Good certification. Self-consumption saves 36 tons of CO²
emissions per year.
- In November,
delivery of the 18,000 sqm extension of the logistics
platform located in Meung-sur-Loire to a total of 32,000
sqm. Two units with a total surface area of 13,000 sqm are
leased to ASTR'IN, an operator of land transport
and logistics.
At the same time, ARGAN sold a portfolio of four
logistics hubs with a total area of more than 53,000 sqm to OPPCI
GROUPAMA GAN REIM in October 2021.
After these
transactions, the built
portfolio (excluding property assets under development)
amounts to
3,265,000
sqm as at 31
December
2021,
compared to 2,990,000 sqm at the end of 2020. Its
valuation amounts to
€3,745m
excluding transfer taxes,
i.e.
€3,934m
including transfer taxes.
The valuation of the portfolio is thus
increasing by +24%, from €3,012m at the end of 2020 to €3,745m
excluding transfer taxes, resulting in a capitalisation rate of
4.30%
excluding transfer taxes
(4.10% including transfer
taxes), down compared to the rate of 5.05% excluding
transfer taxes as at 31 December 2020.
The weighted average remaining fixed
length of the leases, calculated as at 1st January 2022,
is 5.9 years (in
progress vs. 5.7 years as at 1st January 2021).
The occupancy rate for the portfolio
is 99% and its weighted average
age is 9.6
years (vs. 9.2 years as at 31 December 2020).
Decrease of the
LTV ratio to
43% and cost of
debt down at
1.50%
Gross financial debt amounts to €2,164m,
including bond issues for €655m.Including residual cash,
net LTV (net financial debt/appraisal value
excluding transfer taxes) stands at
43% at the end of 2021.
Debt consists of 30% of fixed rates bonds, 35%
of fixed rates amortising loans, 29% of hedged variable rates and
6% of variable rates.
The average cost of debt as of 31
December 2021 fell to
1.50% compared to 1.65%
as at 31 December 2020. Its maturity is
6.8
years.
+41%
increase in the NAV EPRA
Net Reinstatement Value (NRV)
at
€103
per
share
NAV EPRA Net
Reinstatement Value (NRV) amounts
to €102.5
per
share as at 31 December 2021
(+€29.5,
+41%
over 1
year).NAV EPRA Net Tangible
Asset (NTA) amounts to
€91.8
per
share as at 31 December 2021
(+€27.6,
+43%
over 1
year). NAV EPRA Net
Disposal Value (NDV) amounts to
€91.6
per
share as at 31 December 2021
(+€27.9,
+44%
over 1
year).
This significant increase of €29.50 in the NAV
EPRA NRV per share comes from net income (+€5.0), the change in the
fair value of the portfolio (+€23.6), the result of disposals
(+€0.9), the payment of the dividend in cash (- €1.1) and in
shares (-€0.9) and the transfer taxes (+€2.0).
A dividend of
€2.60
per
share, up
+24%
Given the excellent 2021 results,
the payment of a dividend up +24%
at €2.60 per
share will be proposed at the
Annual General Meeting on
24 March
2022. This
dividend represents a yield of 2.30% on the basis of the average
share price in December 2021 (€113.34) and a distribution rate of
51% of the net cash-flows. Its payment is scheduled for April
2022.
Targets
2022
Key
indicators |
Targets
end-2022 |
Change vs.
end-2021 |
Rental income |
€163m |
+4% |
Recurring net income |
€117m |
+5% |
NAV EPRA NRV / share |
€107 |
+4% |
Dividend per share * |
€2.75 |
+6% |
* The dividend would be submitted for approval at the Combined
GM approval in 2023
- Launch and delivery of our carbon neutral
warehouse Aut0nom®
Aut0nom® is now our warehouse standard. Aut0nom®
is s a PREMIUM warehouse equipped with a photovoltaic power
plant and a battery energy storage for self-consumption
only, which delivers over a year more electrical energy than it
consumes for heating - cooling and lighting.
Documentation relating to the presentation of
the company's results is available on www.argan.fr.
Financial calendar
202 (Publication of the press
release after closing of the stock exchange)
- 24 March: Annual General Meeting of Shareholders
- 04 April: 1st quarter sales 2022
- 04 July: 2nd quarter sales 2022
- 20 July: Half-year results 2022
- 03 October: 3rd quarter sales 2022
About
Argan
ARGAN is the only French real estate company
specialising in the DEVELOPMENT & RENTAL OF PREMIUM WAREHOUSES
listed on Euronext.As at 31 December 2021, ARGAN’s portfolio
amounted to 3.3 million sq. meters, comprising approximately 100
warehouses located exclusively in France, valued at €3.75 billion
and generating annual rental income of €162 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
Albertinelli – Chief Financial and Administrative Officer
Marie-Caroline Schwartz – General CounselTel: +33 1 47 47 05 46
E-mail: contact@argan.frwww.argan.fr |
Aude Vayre – Media relationsTel: +33 6 14 64 15 65E-mail:
argan@citigatedewerogerson.com |
|
|
Simplified consolidated income statement
(IFRS)
In millions of € |
2019 |
2020 |
2021 |
Rental income |
100.2 |
142.4 |
156.8 |
Rebilling of rental charges and taxes |
20.8 |
25.8 |
25.7 |
Rental charges and taxes |
-21.3 |
-27.3 |
-27.7 |
Other property income (IFRS 16) |
2.6 |
2.8 |
3.1 |
Other property expenses |
-0.2 |
-0.3 |
-0.3 |
Net property income |
102.1 |
143.4 |
157.7 |
EBITDA (excl. acquisition costs for the « Cargo »
portfolio) |
89.2 |
132.2 |
147.1 |
Acquisition costs for « Cargo » |
-47.1 |
- |
- |
EBITDA (Current Operating Income) |
42.1 |
132.2 |
147.1 |
Including impact of IFRS 16 |
0.6 |
0.4 |
3.1 |
Change in fair value of the portfolio |
197.1 |
174.6 |
544.6 |
Change in fair value IFRS 16 |
- |
- |
-2.1 |
Income from disposals |
-0.3 |
9.3 |
18.5 |
EBITDA, after value adjustments (FV) |
238.9 |
316.1 |
708.2 |
Income from cash and equivalents Interest on loans and overdrafts
Interest on IFRS 16 lease liabilities Borrowing costs Borrowing
costs for the bridge « Cargo » Change in fair
value of the derivative instruments |
0.2-17.1-1.5-0.6-4.8-1.9 |
0.1-26.4-1.6-2.3-3.0-1.7 |
0.2-29.5-1.6-2.8--1.7 |
Income before tax |
213.2 |
281.2 |
672.7 |
Other financial expenses |
-1.0 |
-2.0 |
3.6 |
Tax |
1.4 |
- |
- |
Share of profit of equity-accounted companies |
1.4 |
-0.3 |
- |
Consolidated net income |
215.0 |
278.9 |
676.3 |
Net income, group share |
215.0 |
278.9 |
668.1 |
Diluted earnings per share (€) |
12.1 |
12.5 |
29.7 |
Recurring net income
In millions of € |
2019 |
2020 |
2021 |
Consolidated net income |
215.0 |
278.9 |
676.3 |
Acquisition costs for « Cargo » |
47.1 |
- |
- |
Borrowing costs for the bridge
« Cargo » |
4.8 |
3.0 |
- |
Change in fair value of the derivative instruments |
1.9 |
1.7 |
1.7 |
Change in fair value of the portfolio |
- 197.1 |
-174.6 |
-544.6 |
Income from disposals |
0.3 |
-9.3 |
-18.5 |
Other financial expenses |
1.0 |
2.0 |
-3.6 |
Other non recurring expenses |
- |
0.2 |
- |
Tax Share of profit of equity-accounted companies |
-1.4-1.4 |
-0.3 |
-- |
Impact of IFRS 16 |
0.9 |
1.2 |
0.6 |
Recurring net income |
71.1 |
103.4 |
111.9 |
Recurring net income per share (€) |
4.0 |
4.6 |
5.0 |
NAV EPRA
|
31 December 2020 |
31 December 2020 |
|
NRV |
NTA |
NDV |
NRV |
NTA |
NDV |
Shareholders’ equity (in €m)Shareholders’
equity (in €/share) |
1 478.666.3 |
1 478.666.3 |
1 478.666.3 |
2 125.694.1 |
2 125.694.1 |
2 125.694.1 |
|
|
|
|
|
|
|
+ Fair value of financial instruments (in €m) |
9.8 |
9.8 |
- |
3.2 |
3.2 |
- |
- Goodwill in the balance sheet (in €m) |
- |
- 55.6 |
- 55.6 |
- |
- 55.6 |
- 55.6 |
+ Transfer taxes (in €m) |
139.3 |
- |
- |
186.9 |
- |
- |
|
|
|
|
|
|
|
= NAV (in €m) = NAV (in
€/share) |
1 627.773.0 |
1 432.764.2 |
1 422.963.8 |
2 315.7102.5 |
2 073.191.8 |
2 070.091.6 |
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