Cenomi Centers reports robust performance in H1, eyes 94% occupancy by year-end: CEO

Alison Erguven, CEO of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co. (Cenomi Centers) delivered a strong performance across all key financial and operational metrics in the first half of 2024, with a primary focus on cost control initiatives to drive savings, CEO Alison Erguven told Argaam in an interview.

She stated that the company is in a major expansion phase for Jawharat Riyadh and Jawharat Jeddah projects, with construction work reaching 90.1% and 91.0%, respectively.

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Capital spending is set to reach its peak in 2024 and 2025, with the project expansions financed through various funding sources.

Erguven noted that no debt maturities are expected until 2026, with plans to refinance in 2025.

When the performance of the two projects stabilizes, they are expected to contribute more than SAR 650 million to EBITDA, representing 40% of current EBITDA, the CEO added.

She said Cenomi Centers renewed 1,306 lease contracts and attracted 235 new brands during the first half of 2024, which reflects the strong demand for main retail space.

The number of visitors increased by 4.6% and 1.8% year-on-year (YoY) to 66 million and 34.4 million in H1 2024 and Q2 2024, respectively.

The mall operator kept occupancy rates steady at 92.5% on a like-for-like basis and focused on its tenant rotation program to optimize the retail mix. This approach was well-received by customers, further boosting its strong performance.

The CEO further said the company aims to build on its strong foundations by achieving growth and effectively implementing its strategies as it works to enhance its existing assets and diversify the tenant mix.

Cenomi Centers will likely post strong results in the third quarter, Erguven said.

she added that the company continues implementing its active tenant rotation program and providing a robust retail mix with improved leasing terms, targeting an occupancy rate of 94% by year-end.

According to data available with Argaam, Cenomi Centers posted earnings after minority interest at SAR 532 million in H1 2024, compared with SAR 722 million a year earlier. The second-quarter earnings amounted to SAR 353.7 million.