ARGAN: Deep Value, But Needs to Help Itself

Research evidence excerpt

ARGAN: Deep Value, But Needs to Help Itself

France | Property & Real Estate

ARGAN EquityJulyResearch21, 2026

TARGET | ESTIMATE CHANGEDeep Value, But Needs to Help Itself

H1 results confirm the resilience of its platform despite a subdued French RATING BUY

logistics market. However, we believe management is missing an opportunity PRICE €64.40^

to unlock shareholder value. While it remains the cheapest logistics company in PRICE TARGET | % TO PT €80.00 (€81.00) | +24%

our coverage at just 10.6x 2026E P/FFO (vs. 17.5x for peers), the strategic focus 52W HIGH-LOW €71.50 - €56.10

remains centred on portfolio growth rather than B/S optimisation or capital FLOAT (%) | ADV MM (USD) 46.7% | 0.85

returns. MARKET CAP €1.7B | $1.9B

TICKER ARG FP

Navigating well in a more challenging market. ARGAN reported H1-26 rental income of €109.7m ^Prior trading day's closing price unless otherwise noted.

(+4% YoY), driven by recent developments despite modest LFL rental growth of just 0.6%.

Management slightly upgraded FY-26 rental income guidance to at least €221m. Meanwhile, French

logistics market fundamentals remain soft, with take-up down 26% versus the five-year average FY (Dec) CHANGE TO JEFe JEF vs CONS

in H1 and vacancy increasing to 6.8%. Against this backdrop, ARGAN managed to return to full 2026 2027 2026 2027

occupancy and continues to see a MSD reversionary potential, primarily from Carrefour assets. REV NM <1% NM +2%

EPS NM +1% +1% NM

Refinancing secured, but timing costly (Link). In April, ARGAN issued a €500m green bond

maturing in Oct-29 at a c.3.779% coupon (MS+100bp), refinancing the €500m 5Y bond issued in

2026 (€) Q1 Q2 Q3 Q4 FY

Nov-21 (1% coupon). While the deal secures the main refinancing need, the group missed the recent

EPS -- -- -- -- 6.07

favorable credit window.