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Our friends at Cenomi Centers reported a 78.1% y-o-y increase in adjusted net income to SAR 185.6 mn, it said in an earnings release (pdf). The company’s net income for the quarter fell 52.2% y-o-y on an unadjusted basis due to the base effect from a one-off SAR 238.7 mn land sale agreement in Al Raed in 1Q 2023, the release says. The dip in unadjusted net income also comes on the back of a write-off of SAR 50.6 mn in non-amortized financing cost associated with a previous Islamic facility and its sukuk issuances this year.
Growth drivers: Cenomi Centers reported SAR 585.8 mn in revenues during the quarter, up 1.6% y-o-y on the back of an increase in net rental revenue, media sales, and a constant occupancy rate of 92.5% across its portfolio. It said the opening of U Walk Jeddah in February contributed to higher sales.
Footfall hit an all-time high: Cenomi Centers saw record-high footfall across its portfolio for any first quarter with 31.7 mn visits, up 7.8% y-o-y, while occupancy rates remained stable at 92.5%. It brought in 43 new brands — including Charlotte Tilbury and Ralph Lauren — bringing the total to 135 brands by the end of the quarter.
And pushed forward with its asset sales program: Cenomi agreed terms for the sale of Sahara Plaza at SAR 200 mn. The gain, which will be realized later this year, brings the total sales generated from the program to SAR 1.1 bn with a remaining SAR 800 mn to be realized from further transactions. It said the program comes under its efforts to “streamline its portfolio of assets with the aim of future-proofing its portfolio and focusing on the development of large-scale malls.”
Cenomi Centers’ board is recommending a dividend of SAR 178.1 mn at SAR 0.375 apiece for 1Q, it said in a disclosure to Tadawul.
What’s next: The construction of Cenomi Centers’ flagship and lifestyle centers Jawharat Riyadh and Jawharat Jeddah was underway with openings set for the second half of 2025. Its third project, Jawharat, is set to open in 2027.
We know what Cenomi is looking to offer: “These assets will have improved design features and circulation with a best-in-class retail offering,” CEO Alison Rehill-Erguven told EnterpriseAM Saudi last month. “The flagships specifically will have luxury precincts, immersive and digital experiences, a refined delivery on food and beverage, international-level multi-age entertainment experiences.”
Looking ahead: “With our robust flagship development pipeline, including Jawharat Riyadh and Jawharat Jeddah progressing toward their 2025 unveilings and our core focus on A grade malls in key cities, we are well-positioned to deliver unmatched premium shopping experiences. We will continue capitalizing on emerging opportunities, forging new partnerships, and solidifying our leadership position in crafting world-class retail destinations across the Kingdom.” Rehill-Erguven said.
