Arabian Centres says occupancy hits 92.9% in FY2020/21; footfall down to 63.2 mln

Logo of Arabian Centres Co.

Arabian Centres Co. (ACC) said occupancy rates in only 19 malls reached 92.9% in the fiscal year ended March 31, 2021, compared with 93.1% a year earlier.

Commenting on its FY2020/2021 financial results, the Tadawul-listed firm said that the occupancy rate rose in Q4 2020/2021, compared to 90.2% in Q3 2020/2021, as commercial activity continued to recover.

ACC counted 21 shopping centers in its portfolio at the end of FY2020/2021, with a gross leasable area spanning 1.21 million square meters, down 0.5% year-on-year (YoY).

The company replenished its stock of presently unleasable areas, which are expected to be allocated to construct cineplex or entertainment facilities.

The mall operator inaugurated cineplexes at 10 out of its 21 portfolio locations and is expected to launch cineplexes in nine more centers by December 2021.

According to the statement, ACC received nearly 63.2 million visitors in FY2020/2021, down 44.9%, compared with 114.7 million a year earlier, due to the temporary closure of malls in Q1 2020/2021.

Footfall numbers fell 16.2% to 16.7 million in Q4 2020/2021, compared with 20 million in Q3 2020/2021.

The company sustained its momentum on the leasing front, renewing 1,767 leases during FY2020/2021, representing nearly 100% leases due to expire in the same year.

"However, pressure on rental rates resulted in a decrease in the rental rates applied to contracts renewed during the period, particularly shopping centres of the B and C category,” the statement noted.

In Q4 2020/21, ACC’s net profit rose 21% to SAR 129.5 million, from SAR 106.7 million in the prior-year period.