Latest news with #ArabianCentres
Argaam
11-08-2025
- 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.
Argaam
12-07-2025
- Business
- Argaam
Cenomi Centers hires financial advisor to refinance $875M sukuk
Arabian Centres Co. (Cenomi Centers) appointed Rothschild & Co as financial advisor for the refinancing of $875 million (SAR 3.28 billion) in sukuk maturing on Oct. 7, 2026, with White & Case continuing as legal advisor. In an emailed statement to Argaam, Cenomi Centers said it will continue to move forward with the refinancing of the $875 million worth of sukuk in the global debt markets in US dollars over the coming months with the support of Rothschild & Co, aiming to complete the process in the second half of 2025. According to Argaam data, shareholders authorized last March the company to issue and offer Sharia-compliant sukuk worth up to SAR 3.75 billion (or its equivalent in any other currency to be determined by the board of directors at its sole discretion from time to time).
Bloomberg
10-07-2025
- Business
- Bloomberg
Saudi Mall Operator Taps Rothschild Ahead of Sukuk Repayment
Saudi Arabia's largest mall operator has hired Rothschild & Co. to advise on potential funding options ahead of a sukuk repayment next year. Cenomi Centers, formerly known as Arabian Centres Company, is working with the investment bank to evaluate financing strategies, including potential debt and equity options, according to people familiar with the matter, who asked not to be identified because the discussions are private.
Zawya
05-06-2025
- 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
04-06-2025
- 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:
