Arabian Centers Co. (Cenomi Centers) is confident of building upon our current growth trajectory, bolstered by a robust renewal rate, favorable pricing terms, and our unwavering commitment to exceptional customer experiences, CEO Alison Rehill Erguven told Argaam in an exclusive.
While full-year EBITDA was a function of higher revenues, other operating income of SAR 291 million, is mostly from the ongoing non-core asset sale program and lower other operating expenses.
“Our performance in FY-23 reflects our position as the leading mall developer in Saudi Arabia. We achieved record-breaking footfall, and we increased our revenue, EBITDA and net profit,” the CEO added.
The company’s robust performance, YoY growth across all key financial metrics, record-high footfall and the sequential improvement in occupancy rates are testament to the significant progress made towards our five core pillars; portfolio growth; product and operational excellence; organizational enhancement and sustainability leadership.
The increase in revenue was driven by strong pricing dynamics and a favorable operating environment which supported a 3.8% increase in net rental revenue and 8.8% YoY growth for media sales.
During the year we renewed 2,133 lease contracts and onboarded 160 brands (63 of which were new brands).
The CEO added that Saudi Arabia’s sustained economic growth and attractive demographic profile continue to attract international brands, further supporting our positive outlook for occupancy.
Along with enhancing Cenomi Center’s tenant mix, it delivers new centers which will boost our footfall numbers. “In December 2023 we soft opened our new lifestyle center, U Walk Jeddah and held the grand opening in February this year.
We have six new developments in the pipeline including three flagship and three lifestyle centers. Our first flagships, Jawharat Riyadh and Jawharat Jeddah are set to open in H2 2025,” Erguven added.
Moreover, Cenomi Centers made significant headway on its SAR 2 billion non-core asset sales program. In 2023, plots in the Al Raed district and Al Ahsa were sold for SAR 644.5 million and SAR 62.5 million respectively. In February 2024, Sahara Plaza in Riyadh was sold for SAR 200 million, with the remaining SAR 800 million still to be realized from the program.
Cenomi Centers and Cenomi Retail’s respective Board of Directors have mutually agreed to terminate discussions regarding a potential business combination. Both companies acknowledge the strategic merits of a merger but believe current conditions and timing at this stage are not favorable.
Cenomi Center’s net profit before minority interest reached SAR 1.50 billion in 2023, compared to SAR 1 billion in 2022, Argaam earlier reported.
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