Cenomi Centers to hand over Dhahran Mall’s phase 1 on Feb. 9, expects SAR 49M in net profit

Logo of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co. (Cenomi Centers) will hand over the first phase of Dhahran Mall in Eastern Province on Feb. 9.

In a statement to Tadawul today, Feb. 6, the company said the move is in accordance with the agreed-upon contract terms, which stipulate that the land and building will be handed over to the landlord upon the lease expiry date (Feb. 9, 2025).

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Meanwhile, the lease contract of the second phase of the mall is set to expire in April 2026.

The company opened the first phase of Dhahran Mall in 2005, under a lease agreement for 20 Hijri years, with a leasable area of about 82,000 square meters (sqm).

The second phase, leased under a separate agreement, was opened in 2006 with a leasable area of approximately 80,000 sqm, according to the statement.

Based on initial estimates, the company expects the financial impact of the lease expiry for the first phase of Dhahran Mall to be a revenue decline of nearly SAR 139 million, compared to 2024.

However, net income is seen to improve by approximately SAR 49 million, driven by a reduction in fair value revaluation losses for Dhahran Mall, compared to 2024. The related financial impact is likely to materialize as of Q1 2025.

Cenomi Centers pointed out that, based on its 2025 plan, the financial impact of the lease expiry of Dhahran Mall’s first phase is projected to be offset through several initiatives, including increased business activities at its "U Walk Jeddah" project, which was inaugurated in February 2024 and is expected to reach operational stability by 2025.

This is besides boosting the operational performance of its centers by stepping up average occupancy rates and generating additional revenues from non-leasable spaces, including advertising sales, kiosks, and other sources of income, the statement added.

As part of its expansion strategy, which aims to strengthen presence across various regions Kingdom-wide in line with the latest standards and the evolving needs of consumers and retail businesses, Cenomi Centers previously announced signing a 30-year lease and investment agreement for a 300,000-sqm land plot in North Al Khobar’s Corniche District.

This project aims to develop "Jawharat Al Khobar", alongside some mixed-use commercial spaces. The development is planned to add more than 100,000 sqm of leasable area.