Cenomi Centers reports 94.2% occupancy rate, assets grow to SAR 27 bln: CFO

Walead Al-Rebdi, Chief Financial Officer (CFO)

Arabian Centres Co. (Cenomi Centers) reported a record occupancy rate of 94.2%, exceeding the pre-pandemic level of nearly 93%, Walead Al-Rebdi, Chief Financial Officer (CFO), said.

Revenue grew by 11% year-on-year in the nine-month period mainly because of better occupancy and high-performance malls. “We believe occupancy will continue to be in the 94 to 95% range,” Al-Rebdi told Argaam on the sidelines of the Saudi Capital Market Forum 2023.

The fair value model adopted by the company is a new accounting policy, which is deemed more transparent for investors and reflects the fair market value of assets in a better and clearer manner.

Al-Rebdi added that Cenomi Centers’ total assets increased to SAR 28 billion from SAR 18 billion. Shareholders’ equity rose to SAR 16 billion from SAR 6 billion, after adopting the fair value model, which improved the company’s balance sheet.

Cenomi Centers is going to open two new malls this year. It will open Al-Jubail Marina Mall in June and will manage it on behalf of the owner, Alghanim International. Jeddah Walk is expected to open next August, the CFO added.

The company will reassess its shopping centers on a quarterly basis. Any difference in valuation will increase or reduce net profit every quarter. Any change will be separately recognized in the income statement.

Cenomi Centers aims to focus on its core business of mall development and operation. It also decided to sell land plots worth up to SAR 2 billion. The company sold two land plots in Riyadh for SAR 875 million, and recognized the value of the second land, which reached SAR 645 million, in the first quarter of FY2023. It still has other plots worth nearly SAR 1 billion, to be sold this year, Al-Rebdi concluded.

The mall operator reported a net profit after Zakat and tax of SAR 804.7 million in the first nine months ended Dec. 31, 2022, a 2.4% increase from SAR 786.1 million a year earlier. The third-quarter net profit jumped 22.2% YoY to SAR 455.7 million on higher revenues and operating profits.