French logistics property group Argan expects rental income growth to slow to about 4% in 2026, forecasting €220 million, after exceeding its 2025 target with €212 million. The company, which develops warehouses for clients like DHL and L'Oréal, saw 7% growth last year but faces higher debt costs.

The slowdown reflects rising borrowing expenses, with Argan's cost of debt expected to climb to 3% from 2.1%. Its net debt stood at €1.7 billion at year-end, and it guides for a loan-to-value ratio of around 40% for 2026. The company plans €165 million in new investments.

Recurring net income fell 4% per share in 2025 to €9.60. Argan projects €6 per share for 2026 and a €3.65 dividend. Shares rose 1% in Paris following the update, as investors weigh the company's stable leverage against a cooling growth outlook.