Significant increase of 59% in recurring net income for the first half of 2020
July 10 2020 - 11:47AM
Significant increase of 59% in recurring net income for the first
half of 2020
Press release
– Friday 10 July 2020 – 5:45 p.m.
Significant increase of
59%in recurring net income for the first half of
2020
Consolidated income
statement |
First half 2020 |
First half 2019 |
Change |
|
Rental income |
€69.5m |
€45.1m |
+54% |
|
Recurring net income |
€50.6m€2.3/share |
€31.9m€2.0/share |
+59% |
|
Net income Incl. change in fair
value of properties |
€49.6m€2.2/share €5.7m |
€157.2m€9.5/share €127.7m |
-68% |
|
Balance sheet information |
30 June 2020 |
31 December 2019 |
Change (6 months) |
|
Triple NAV/ share |
|
|
|
|
·Including transfer taxes |
€61.4 |
€61.1 |
+0.5% |
|
·Excluding transfer taxes |
€56.0 |
€55.8 |
+0.4% |
|
Value of the portfolio excluding transfer
taxes |
€2.68bn |
€2.68bn |
NM |
|
LTV ratio |
56% |
56% |
NM |
|
Cost of debt |
1.65% |
1.7% |
-5 bps |
|
Occupancy rate |
98% |
99% |
-1 point |
|
On 08 July 2020, the Executive Board approved
the interim consolidated accounts as at 30 June 2020. 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.
Commenting on the results, Jean-Claude
Le Lan, Founder and Chairman of the Supervisory Board
said: « In the context of the Covid-19
pandemic, our priority has been to ensure the safety and health of
our teams whom I thank for their reactivity and their unfailing
mobilisation. Changing consumption patterns, and in particular the
development of e-commerce, reinforce our strategy and position
logistics warehouses as key players at the heart of distribution
networks. Despite uncertainties that remain, notably as to the
economic consequences of this crisis, we believe that we are in a
good position to deal with these and we maintain our €140m rental
income guidance for the financial year 2020. This is driven by the
quality of our tenants, operating in sectors that have shown
resilience. »
Recurring net income up +59%
Significant increase of the recurring
net income up +59% to €50.6m as at 30 June 2020, now
representing 73% of the rental income compared to
71% for the previous financial year. In contrast, the decrease of
68% in net income at €49.6m is mainly due to the drop in the
creation of value within the portfolio to €5.7m in the first half
of 2020 compared to €127.7m last year.
Premium portfolio valued at €2.69bn
excluding transfer taxes (€2.81bn including transfer
taxes)
The built portfolio (excluding
real estate assets under development) amounts to 2,865,000
sqm as at 30 June 2020, compared to 2,860,000 sqm at the
end of 2019. The portfolio’s total valuation (including
land reserves valued at €12m) was worth €2.69bn excluding transfer
taxes (€2.81bn including transfer taxes).
In details, the valuation of the built portfolio
amounts to €2.68bn excluding transfer taxes (€2.80bn including
transfer taxes) resulting in a capitalisation rate of 5.30%
excluding transfer taxes (5.10% including transfer taxes)
unchanged vs. 31 December 2019.
The average remaining fixed
length of the leases is down slightly at 5.4
years compared to 5.8 years as at 31 December 2019.
The occupancy rate for the portfolio is
98% and its weighted average age is 8.9 years.
LTV ratio unchanged at 56% and cost of debt down at
1.65%
Gross financial debt relating to assets
delivered amounts to €1.53bn, including bond issues of
€155m.Including residual cash, net LTV (net
financial debt/appraisal value excluding transfer taxes)
remains at 56% as of 30 June 2020.
Debt consists of 10% of fixed rate bonds, 42% of
fixed rate amortising loans, 38% of hedged variable rate amortising
loans and 10% of variable rate amortising loans. The
average cost of debt as of 30 June 2020 fell to 1.65% compared to
1.70% as at 31 December 2019 and its maturity is 8
years.
Stable triple NAV /share: €56.0
excluding transfer taxes, €61.4
including transfer taxes
The triple NAV excluding transfer taxes
amounts to €1.25bn as of 30 June 2020, compared to €1.24bn
as at 31 December 2019. The NAV per share excluding
transfer taxes is up +0.4% to €56.0 per share compared to
€55.8 per share as at 31 December 2019. This increase of 20 cents
comes from net income (+€2.1), the change in the fair value of the
portfolio (+€0.2), the payment of the dividend in cash (-€1.7) and
in shares (-€0.2) and the change in the value of hedging
instruments (-€0.2).
Financial calendar 2020 (Publication of the
press release after closing of the stock exchange)
- 01 October: 3rd quarter sales 2020
- 04 January: Annual revenue 2020
- 20 January: Annual results 2020
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 2019, ARGAN’s portfolio
amounted to 2.9 million sq. meters, comprising 85 warehouses
located exclusively in France, valued at €2.7 billion and
generating annual rental income of €140 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
OfficerMarie-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 65Philippe Ronceau – Investor relationsTel: +33 6 64 12 53 61
E-mail: argan@citigatedewerogerson.com |
|
|
Simplified consolidated income statement
(IFRS)
In millions of € |
30 June 2019(6 months) |
31 December 2019(12 months) |
30 June 2020(6 months) |
Rental income |
45.1 |
100.2 |
69.5 |
Rental income and expenses |
0 |
-0.5 |
-1.2 |
Other IFRS 16 income and expenses |
1.2 |
2.4 |
1.2 |
EBITDA (excl. acquisition costs for the « Cargo »
portfolio) |
40.3 |
89.2 |
64.2 |
Acquisition costs for « Cargo » |
- |
-47.1 |
- |
EBITDA (Current Operating Income) |
40.3 |
42.1 |
64.2 |
Including impact of IFRS 16 |
0.4 |
0.6 |
0.7 |
Change in fair value of the portfolio |
127.7 |
197.1 |
5.7 |
Income from disposals |
-0.3 |
-0.3 |
-0.1 |
EBITDA, after value adjustments (FV) |
167.7 |
238.9 |
69.8 |
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 |
0.1-7.7-0.7-0.3--0.9 |
0.2-17.1-1.5-0.6-4.8-1.9 |
0.0-12.4-0.8-1.0-3.0-0.8 |
Income before tax |
158.2 |
213.2 |
51.8 |
Other financial expenses |
-2.1 |
-1.0 |
-2.0 |
Tax |
-0.3 |
1.4 |
0 |
Share of profit of equity-accounted companies |
1.4 |
1.4 |
-0.2 |
Consolidated net income |
157.2 |
215.0 |
49.6 |
Diluted earnings per share (€) |
9.5 |
12.1 |
2.2 |
Recurring net income
In millions of € |
30 June 2019(6 months) |
31 December 2019(12 months) |
30 June 2020(6 months) |
Consolidated net income |
157.2 |
215.0 |
49.6 |
Acquisition costs for
« Cargo » |
- |
47.1 |
- |
Borrowing costs for the bridge
« Cargo » |
- |
4.8 |
3.0 |
Change in fair value of hedging instruments |
0.9 |
1.9 |
0.8 |
Change in fair value of the portfolio |
-127.7 |
-197.1 |
-5.7 |
Income from disposals |
0.3 |
0.3 |
0.1 |
Other financial expenses |
2.1 |
1.0 |
2.0 |
Tax |
0.3 |
1.4 |
0 |
Share of profit of equity-accounted companies |
-1.4 |
-1.4 |
0.2 |
Impact of IFRS 16 |
0.3 |
0.9 |
0.7 |
Recurring net income |
31.9 |
71.1 |
50.6 |
Recurring net income per share (€) |
2.0 |
4.0 |
2.3 |
Simplified consolidated balance sheet
(IFRS)
In millions of € |
31 December 2019 |
30 June 2020 |
|
ASSETS |
2,946.4 |
3,041.2 |
|
Non-current assets |
2,794.4 |
2,863.2 |
|
Non-current assets- IFRS 16 rights of use |
64.1 |
65.0 |
|
Current assets |
87.9 |
113.0 |
|
Assets held for sale |
- |
- |
|
LIABILITIES |
2,946.4 |
3,041.2 |
|
Shareholders’ equity |
1,241.9 |
1,249.0 |
|
Shareholders’ equity – impact of first application of IFRS
16 |
-3.2 |
- |
|
Non-current liabilities |
831.9 |
1,495.2 |
|
Non-current liabilities –IFRS 16 lease liabilities |
67.4 |
68.5 |
|
Current liabilities |
806.9 |
227.0 |
|
Current liabilities – IFRS 16 lease liabilities |
1.5 |
1.5 |
|
Liabilities held for sale |
- |
- |
|
- 20200710 - ARGAN - Half year results 2020
Argan (EU:ARG)
Historical Stock Chart
From Apr 2024 to May 2024
Argan (EU:ARG)
Historical Stock Chart
From May 2023 to May 2024