Latest news with #AlisonRehillErguven
Argaam
5 days ago
- Business
- Argaam
Cenomi Centers continues to review asset portfolio: CEO
Arabian Centres Co. (Cenomi Centers) continues to review its asset portfolio under its non-core asset disposal program, without disclosing any new transactions at present, CEO Alison Rehill-Erguven told Argaam. The total fair value gains from investment properties reached SAR 325.1 million in H1 2025, including SAR 280.6 million in Q2 2025, supported by construction progress at the Jawharat Riyadh and Jawharat Jeddah projects, Rehill-Erguven noted, adding that these gains reflect the quality of the company's business portfolio. Commenting on Q2 2025 performance, she attributed the profit growth to the substantial fair value gains, in addition to the operating income contribution from selling a non-core land plot in Al-Kharj for SAR 9.9 million. She also cited the continued cost-control measures, and the decline in operating and insurance expenses, which led to a 7.7% decline in cost of revenue. Other operating income increased due to Al-Kharj land sale. Despite a slight decline in revenue following the handover of Dhahran Mall, net profit capitalized on stronger margins and the projects' disciplined execution. Financing costs fell to SAR 150.6 million in Q2 2025 despite higher borrowing, due to writing back the time-value provisions of approximately SAR 19 million during the quarter and SAR 26.1 million in H1 2025, as part of the company's efforts to prudently manage financing costs while investing in long-term growth. The company commenced implementing the exclusive partnership agreement signed in May with Unibail-Rodamco-Westfield (URW) for a 10-year term, renewable, under which the 'Westfield' brand will be carried by three flagship centers in Saudi Arabia: Jawharat Riyadh, Jawharat Jeddah, and Al-Nakheel Dammam. This partnership will enhance customer experience and broaden the tenant base in line with Saudi Vision 2030 objectives. Regarding Q3 2025 performance, Rehill-Erguven stated that the company remains confident in the strength of its portfolio and strategy. While the company does not provide quarterly guidance, its focus remains on delivering continued operational excellence and advancing its key projects towards launch.
Zawya
13-05-2025
- Business
- Zawya
Saudi: Cenomi Centers posts 20% higher profits in Q1-25
Arabian Centres Company (Cenomi Centers) logged net profit valued at SAR 222.70 million in the first quarter (Q1) of 2025, an annual surge of 19.98% from SAR 185.60 million. The revenues edged up by 0.81% year-on-year (YoY) to SAR 590.60 million in Q1-25 from SAR 585.60 million, according to the financial results. Earnings per share (EPS) stood at SAR 0.46 as of 31 March 2025, compared to SAR 0.38 a year earlier. Quarterly, the Q1-25 net profits dropped by 37.54% from SAR 356.60 million in Q4-24, while the revenues increased by 1% from SAR 584.70 million. Alison Rehill-Erguven, CEO, Cenomi Centers, said: ' In the first quarter, we achieved a steady 1% increase in revenue despite the termination of revenue from Mall of Dhahran earlier that quarter and an 11% increase in EBITDA YoY, reflecting the strength of our core operations and the success of our proactive asset enhancement strategy.' The CEO added: 'As we look ahead, our focus remains on disciplined execution, innovation in retail experiences, and unlocking long-term value across the Kingdom's rapidly evolving retail landscape.' In 2024, Cenomi Centers recorded 18.44% YoY lower net profits at SAR 1.22 billion, versus SAR 1.50 billion. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
Arabian Business
09-05-2025
- Business
- Arabian Business
Cenomi Centers partners with Unibail-Rodamco-Westfield to transform Saudi retail landscape
Cenomi Centers has signed a 10-year exclusive strategic and franchising partnership with global retail giant Unibail-Rodamco-Westfield (URW), bringing the prestigious Westfield brand to Saudi Arabia's retail sector for the first time. The agreement, which includes an option to extend for another decade, gives Cenomi Centers exclusive licensing rights to the Westfield brand in the Kingdom. The partnership was formalised during a signing ceremony at Jawharat Riyadh, one of three malls initially selected for Westfield branding alongside Jawharat Jeddah and Nakheel Dammam. The collaboration is expected to impact up to eight top-performing centers in Cenomi's portfolio, with more details to be announced in coming months, according to company officials. 'We are thrilled to embark on this groundbreaking and exclusive partnership with URW, a global leader in the retail industry,' said Alison Rehill-Erguven, CEO of Cenomi Centers. 'This collaboration not only solidifies our position as the leading owner, operator and developer of contemporary lifestyle centers in Saudi Arabia, but also aligns with the Kingdom's broader goals for economic growth and development in both the sector and region.' Under the agreement, Cenomi Centers will gain access to URW's expertise in leasing, operations, marketing, and retail media. The Saudi company aims to leverage this knowledge to transform its Westfield-branded malls into premier destinations for consumers, tourists and global brands. Jean-Marie Tritant, CEO of Unibail-Rodamco-Westfield, expressed optimism about the partnership's potential: 'Cenomi Centers is an incredible partner that shares our vision for the future of retail. Its portfolio of flagship destinations matches the ambition of the Westfield brand, providing the perfect platform to deliver Westfield's unmatched experience to customers and visitors in the Kingdom while also supporting the brand's international expansion.' The partnership comes as Saudi Arabia continues to implement its Vision 2030 programme, which aims to diversify the economy and enhance quality of life for residents. According to company officials, the exclusive partnership affirms Cenomi Centers' premier position in its home market and represents a significant vote of confidence in the company's growth trajectory. The agreement is expected to deliver multiple strategic advantages to Cenomi Centers. First, with Westfield attracting over 900 million annual visits across its US and European locations and being widely recognised by Saudi consumers and visitors alike, Cenomi Centers can significantly expand its customer base among citizens, residents, and tourists. The partnership also enables enhanced tenant offerings through access to URW's global relationships, helping Cenomi increase its share of key global anchor brands and first-to-KSA stores. This is expected to create a more differentiated retail environment that drives higher footfall and tenant sales. 'The collaboration will allow us to significantly enhance customer experience to international best-in-class standards,' a Cenomi spokesperson noted. The company plans to introduce the latest digital technologies, including in-mall apps and services, to Saudi consumers. Financial analysts point to additional growth opportunities as the partnership is projected to boost Cenomi Centers' performance across both existing and new developments. This includes not only core gross leasable area (GLA) business but also digital media sales through URW's Westfield Rise retail media agency. The companies will also collaborate on third-party business opportunities serving the Kingdom's major retail and lifestyle developments. Sustainability initiatives will also benefit, as Cenomi Centers gains access to URW's best-in-class tools, systems, and operational manuals to boost sustainability and operational efficiencies across its portfolio. The financial structure of the partnership includes fixed and variable licensing and service fees for URW, with opportunities for further business and licensing collaborations within Saudi Arabia. The agreement represents a significant vote of confidence in Cenomi Centers' growth trajectory and established market position in the Kingdom, marking what both companies describe as a pivotal moment in the evolution of retail and lifestyle experiences in Saudi Arabia.
Argaam
17-03-2025
- Business
- Argaam
Cenomi Centers sees strong footfall, occupancy rate: CEO
Alison Rehill Erguven, CEO of Arabian Centres Co. (Cenomi Centers), said the company continues to maintain a positive momentum, having experienced an outstanding period overall with record-level footfall, increased occupancy and revenue growth, and improved profitability. Erguven told Argaam that the decline in Q4 2024 net earnings was due to one-time transactions, such as land sale gains realized last year, as well as an increase in impairment loss this year from a more cautious credit loss approach. She added that the increase in the occupancy rate to a record 94.4% positively impacted the company's operational returns. This reflects solid demand for retail spaces, enhances footfall, and supports an improved retail mix with high-quality tenants. Revenue growth is expected to accelerate in the communing period, and the high occupancy rate would boost the company's asset quality and evaluation, supporting stronger long-term performance. Both Jawharat Jeddah and Jawharat Riyadh are making great progress, with the structural completion rates stand at 94% and 92%, respectively. Here are details of the interview: Q: Cenomi Centers' profits declined to SAR 350 million (after minority interest) by the end of Q4 2024, compared to SAR 506.5 million in the same period of 2023. What is your comment on these results? A: We continue to maintain a positive momentum, having experienced an outstanding period overall with record-level footfall, increased occupancy and revenue growth, and improved profitability. It is important to note that full year 2024 net profit are not directly comparable to the same period in the previous year due to certain one-off transactions. Specifically, the SAR 238.7 million land sale gain in 2023 and the one-time SAR 87.5 million increase in impairment loss this year from a more cautious credit loss approach. When we adjust for these, our net profit actually grew by 12.3% year-on-year, providing a more accurate view of our underlying performance. Regarding Q4 2024, our operating expenses dropped 25% compared to Q4 2023. The decline in net profit after minority interest is due to higher finance expense and lower fair-value gains on our investment properties. The increase in finance expense reflects our near-peak investment phase, with significant capital allocated to our two flagship development projects. Overall, I am very pleased by our operating and financial performance. We delivered on revenue growth and footfall performance, which highlight the resilience of our business. Q: Revenue increased by 7.5% year-on-year in Q4. What were the key factors driving this growth? A: There are three elements to this solid performance. The main drivers of growth were the increase in Media sales , Other revenues, and the increase in occupancy. However, I'd like to emphasize the 2.5% growth in net rental revenue. That is the result of our strategic focus on optimising the tenant mix and improving the overall customer experience which led to stronger performance in leasing and footfall We remain confident that there is significant potential to further enhance revenue per square meter across our portfolio. Q: How did the increase in occupancy rate to 94.4% impact operational returns? A: The increase in our occupancy rate to a record 94.4% positively impacted our operational returns.. It reflects solid demand for our retail spaces, enhances footfall, and supports an improved retail mix with high-quality tenants. This not only drives more consistent cash flows but also positions us to benefit from future rental escalations, reduced reliance on incentives, and greater upside from turnover-based rents, ultimately strengthening overall operational performance. Q: What was the effect of higher occupancy rates on rental revenue compared to the previous year? A: Despite the higher occupancy rates in 2024, our rental revenue grew 0.7% to SAR 2.1 billion. This slight growth is attributed to the resilient approach that we adopted in setting rental rates during 2024 to improve our occupancy rates, primarily in B and C malls. This approach will positively impact rental revenues in 2025 through the annualization effect of the deals signed during 2024. With a stronger occupancy base, improved tenant mix, and potential uplift from turnover-based rents, revenue growth should accelerate in upcoming periods. Additionally, higher occupancy enhances asset quality and valuation, supporting stronger long-term performance. Q: What is the current development status of the Jawharat Jeddah and Jawharat Riyadh projects as of the end of 2024? A: As of the end of 2024, both Jawharat Jeddah and Jawharat Riyadh are making great progress. The structural completion levels for both projects stand at 94.0% for Jawharat Jeddah and 92.0% for Jawharat Riyadh. These developments are on track, with Jawharat Jeddah expected to be completed by December 2025 and Jawharat Riyadh by April 2026. These projects are set to become iconic retail destinations in their respective cities and are expected to drive significant footfall and revenue once they are operational. Q: Net debt rose to SAR 11.5 billion in 2024. How does the company plan to manage this amid ongoing expansions? A: The increase in net debt is primarily due to our ongoing flagship developments, Jawharat Riyadh and Jawharat Jeddah, which are currently in their peak investment phase. However, we view this increase as a necessary step in our long-term growth strategy, as these projects are expected to generate significant EBITDA of SAR 650mn once stabilized, contributing an additional 40% to Cenomi Centers' current EBITDA. We are confident that the returns from these developments will more than justify the increased debt levels. In the meantime, we continue to manage our debt carefully, balancing short-term financing needs with our long-term profitability goals.
