Latest news with #ArabianCentres
Zawya
6 days ago
- Business
- Zawya
Tassnief assigns ‘A-‘ national scale entity ratings to Cenomi Centers
Riyadh - SIMAH Rating Agency (Tassnief) has assigned a long-term national scale entity rating of (A-) and a short-term entity rating of 'T-3' to Arabian Centres Company (Cenomi Centers). The assigned ratings reflect low credit risk, reflecting Cenomi Centers' leading market position, satisfactory business diversity, and strong operating performance, according to a bourse disclosure. They also highlighted a favorable operating environment, which is expected to back operating performance over the rating horizon. Cenomi Centers has a leading market share of nearly 18% in gross leasable area (GLA), three times that of its nearest competitor, highlighting its advantage and operational depth in a fragmented market. In the first quarter (Q1) of 2025, Cenomi Centers generated 19.98% higher net profit at SAR 222.70 million, compared to SAR 185.60 million in Q1-24.
Zawya
6 days ago
- Business
- Zawya
Simah Rating Agency (Tassnief) assigns 'A-' solicited national scale entity ratings to Arabian Centres Company
Riyadh: Tassnief has assigned long-term national scale entity rating of '(A-)'' (Single A Minus) and short-term entity rating of 'T-3' to Arabian Centres Company ('Cenomi' or 'the Company'). The assigned ratings reflect high creditworthiness, thus low credit risk. Risk profile may exhibit variation due to changes in economic and sector conditions. Rating Rationale: The assigned ratings incorporate Cenomi's leading market position, satisfactory business diversity, strong operating performance supported by high occupancies and footfall growth as well as sound tenant mix comprising renowned local, regional and international brands. Ratings also reflect a favorable operating environment which is expected to support operating performance over the rating horizon. Ratings are constrained by aggressive financial and development policies and weak credit metrics, although improvement in the same is expected when Jawharat Riyadh and Jawharat Jeddah are at full stabilization, generating incremental EBITDA of over SAR 650m. Cenomi has a leading market share of approximately 18% in Gross Leasable Area (GLA), three times that of its nearest competitor, underscoring its scale advantage and operational depth in a fragmented market. Cenomi's market leadership offers strong pricing power, high tenant retention, and resilience to competitive pressures. The Company's competitive advantage and strong operational performance emanates from its high-quality malls' portfolio, having strategic composition and broad geographical footprint, although some revenue concentration is present in tier-A malls. The key business risk factors include i) half of the malls built on leasehold land which expose the Company to lease non-renewal risk, and ii) sizeable lease expiries due in 2025. Tassnief expects revenue loss due to lease expiry risk to remain manageable over the rating horizon, while ongoing expansion will further strengthen its market position and enhance revenue diversity. Moreover, comfort is drawn from strong track-record of client lease renewals and historically high tenant retention. Assessment of financial risk profile reflects aggressive financial and development policies which have resulted in weakening in credit metrics and deterioration in working capital cycle, as evident from cashflow from operations (CFO) having remained consistently lower than Funds Flow from Operations (FFO) over the last 3 years. Full recovery in credit metrics is expected to materialize by 2028 where we expect the full EBITDA impact of Jawahrat Jeddah and Jawahrat Riyadh to be reflected in financials. Tassnief is incorporating improved credit metrics while assigning the current ratings. Both malls are expected to contribute SAR 650m in new cash flows at stabilization. Rating Triggers Negative rating triggers include Any further weakening in FFO-based interest coverages from around current level. Further increase in Net Debt to EBITDAR from the current level of 7.51x. Non-materialization of improvement in FFO-based interest coverages and Net Debt to EBITDAR post-stabilization of Jawahrat Jeddah and Jawahrat Riyadh. Continued deterioration in working capital, resulting in lower CFO generation as compared to FFO. Significant weakening in operating performance through decline in occupancies levels below 90%. Deterioration in operating environment, which Tassnief does not anticipate in its base case scenario. Positive rating triggers include A sustained shift towards a balanced financial policy, resulting in notable improvement in debt and interest coverages. Improvement in occupancies levels above 95% following the stabilization of Jawahrat Jeddah and Jawahrat Riyadh. Improvement in FFO based interest coverages to around 2.75x and Net Debt to EBITDAR to below 5x on a sustainable basis. About the Company: Arabian Centres Company, referred to as "Cenomi" or "the Company", is a Saudi Joint Stock Company registered in the Kingdom of Saudi Arabia under the commercial registration number 1010209177. Cenomi is the largest owner, operator and developer of contemporary lifestyle malls in Saudi Arabia. For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext. 6627) at +966-112506627 or email at RS@ Rating Methodology for Corporate (v.2. 2019) can be found on the website:
Arab News
12-05-2025
- Business
- Arab News
Closing Bell: Saudi main index closes in green at 11,488
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Monday, gaining 142.01 points, or 1.25 percent, to close at 11,488.60. The total trading turnover of the benchmark index was SR6.13 billion ($1.63 billion), as 216 stocks advanced, while only 28 retreated. The MSCI Tadawul Index increased by 16.67 points, or 1.15 percent, to close at 1,468.46. The Kingdom's parallel market, Nomu, dipped, losing 80.32 points, or 0.29 percent, to close at 27,343.13. This comes as 45 stocks advanced, while 31 retreated. The best-performing stock on the main index was Saudi Ceramic Co. with its share price surging by 9.95 percent to SR30.40. Other top performers included Batic Investments and Logistics Co., which saw its share price rise by 7.76 percent to SR2.36, and Naseej International Trading Co., which saw a 7.39 percent increase to SR87.20. The worst performer of the day was SHL Finance Co., whose share price fell by 3.92 percent to SR19.12. Maharah Human Resources Co. and Almunajem Foods Co. also saw declines, with their shares dropping by 3.68 percent and 1.51 percent to SR5.50 and SR71.90, respectively. On the announcements front, Arabian Centres Co. declared its interim financial results for the first three months of the year with net profit amounting to SR222.7 million, a 37.5 percent dip compared to the previous quarter. The company attributed the decrease to a dip in net fair value gain of investment properties and a rise in the cost of revenues. Higher finance costs, driven by increased debt from development projects, also contributed to the decline. Cenomi Centers' shares on the main market traded 0.20 percent lower to reach SR20.08. Retal Urban Development Co. also announced its financial results for the same period with its net profit dropping by 26.05 percent to SR68.13 million compared to the previous quarter. The company credited the decrease mainly due to exit from real estate fund during the previous quarter. Retal's share price remained stable at SR17.04. Saudi Awwal Bank announced its intention to issue US dollar-denominated additional tier 1 Capital Sustainable Sukuk through a private placement in Saudi Arabia and internationally. The issuance, part of the bank's $5 billion sukuk program, aims to strengthen its capital base and support long-term strategic goals. Joint lead managers, including HSBC, Merrill Lynch, and Citigroup, will oversee the offering, an official statement on Tadawul said. The final terms and value of the sukuk will be determined based on market conditions, the statement added. SAB's shares on the main market traded 2.19 percent higher in today's trading session to reach SR34.95.
