12-05-2025
Cenomi Centers accelerates momentum with 20% y-o-y net profit growth and record footfall for any first quarter
EBITDA and Net Profit up 10.6% and 20.0% respectively in Q1-25 compared to same period last year
Record footfall of 34.7 million customer visits in Q1-2 5, up 9.7%, highest on record for any first quarter
Like-for-like occupancy reached 93.1% in Q1-25, up 0.6 pp compared to same period last year
Jawharat Jeddah on track for delivery in Q4-25 and Jawharat Riyadh in Q2-26
Sale of Sahara Plaza concluded in Q1-25, as part of the non-core asset sale program
Riyadh, Saudi Arabia: Cenomi Centers, Saudi Arabia's largest owner, operator and developer of shopping malls, published its financial results for the three months ended 31 March 2025.
During the first quarter, the company delivered SAR 590.6 million in revenue, up 0.8% y-o-y (year-on-year) and EBITDA of SAR 357.4 million, up 10.6% y-o-y. The improvement in revenue and EBITDA from the previous quarter is driven by growth in media sales (+8.8%) and operating profit (+7.4%).
Incremental growth in revenue during Q1-25 despite the absence of contributions from Mall of Dhahran, the first phase of which was handed over in early February 2025, due to steady performance across all revenue streams. Media sales in particular were strong, seeing an increase of 8.8% y-o-y driven by a focused management initiative to expand non-GLA revenue.
Net profit increased by 20.0% to SAR 222.7 million in Q1-25 compared to SAR 185.6 million in Q1-24 where Q1-24 profits were impacted by the one-time write-off of non-amortized financing cost associated with a historical Islamic facility and 2024 Sukuk, totaling SAR 50.6 million.
In Q1-25, Cenomi Centers also recorded its strongest footfall performance for any first quarter. With 34.7 million customer visits, footfall surged by a notable +9.7% y-o-y. Excluding the footfall impact of Mall of Dhahran which was handed over in early February 2025, footfall surged +15.8% y-o-y. This reaffirms Cenomi Centers' assets are the premier shopping destinations and the primary gateway for both local and international retailers seeking to engage with Saudi consumers.
Driven by Cenomi Centers' ongoing focus on enhancing retail quality, like-for-like occupancy remained steady at 93.1% this quarter, an increase of 0.6 pp y-o-y, reflecting the company's commitment to curating a vibrant and relevant shopping experience for Saudi consumers and expected to be supported with a healthy pipeline of leasing activity set to materialize in the coming quarters.
The progress of the portfolio continues with flagships Jawharat Riyadh and Jawharat Jeddah, which will be the first gold-LEED certified malls in the Kingdom, making remarkable strides. As of March 2025, overall structural completion levels stand at 99.0% for Jawharat Jeddah and 98.0% for Jawharat Riyadh. These two assets are emerging as Cenomi Centers' top performers in footfall, revenue and EBITDA. They are expected to generate yearly EBITDA in excess of SAR 650 million upon stabilization representing an incremental 40% of Cenomi Centers current EBITDA.
Jawharat Jeddah is set to attract more than 15 million visitors annually while Jawharat Riyadh will draw more than 20 million customers every year. Both assets will become the leading malls in terms of footfall and retail spend in their respective cities. These malls will redefine the future of retail in the Kingdom. In total, the current pipeline of three flagship centers (Jawharat Riyadh, Jawharat Jeddah and Jawharat Al Khobar) and three lifestyle centers (Jubail Marina Mall, U Walk Qassim and Murcia Mall) will grow Cenomi Centers' GLA by 46%, taking total GLA to 1.8 million sqm.
Demonstrating its continued commitment to shareholder value, the Board of Directors announced in March 2024 a dividends distribution policy which was subsequently approved at the Annual General Meeting in June 2024. Starting from Q2-24, the Company has paid SAR 0.375 per share per quarter for one year. That implies an annualized dividend yield of 7.3% based on the share price of SAR 20.58 as of 31 March 2025.
Alison Rehill-Erguven, CEO, Cenomi Centers, commented: 'Cenomi Centers continues to build on its strong momentum, delivering sustained growth and advancing our strategic vision. 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 y-o-y, reflecting the strength of our core operations and the success of our proactive asset enhancement strategy.
The ongoing transformation of our portfolio highlighted by progress on flagship developments like Jawharat Jeddah and Jawharat Riyadh underscores our commitment to delivering world-class, premium retail destinations which is on track for Q4-25 and Q2-2026, respectively.
We also continued to attract robust tenant demand, supported by record footfall for any first quarter and sustained net rental revenue growth.
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.'
Business and Operating highlights
In Q1-25, Cenomi Centers welcomed 34.7 million visitors across its malls, the highest first-quarter footfall on record and a 9.7% increase year-on-year. Excluding Mall of Dhahran, footfall rose by an impressive 15.8% compared to the same period last year. This continued growth highlights the strength of Cenomi Centers' portfolio and the strong consumer appeal of its modern, trend-led offerings.
Demand for prime retail space in the Kingdom remains robust. In Q1-25, like-for-like occupancy held steady at 93.1%, reflecting a slight y-o-y increase of 0.6 pp. This stability underscores sustained interest from both regional and international brands, with a healthy pipeline of leasing activity set to materialize in the coming quarters. Throughout the quarter, the company successfully renewed 751 lease contracts and welcomed 67 brands onboard, (of which 33 are new brands). Among these additions are distinguished names such as Harry Winston, Blancpain, Breguet, Dua Almoallim Jewelry and ElFaleh. The overall portfolio GLA mix stands at 62% retail and 38% non-retail (encompassing entertainment and F&B), with ongoing negotiations for additional brand partnerships.
As of March 2025, flagship developments Jawharat Jeddah and Jawharat Riyadh projects are 99.0% and 98.0% structurally complete respectively and will begin trading in Q4-2025 and Q2-2026, respectively.
Jawharat Jeddah's pre-leasing is close to 90% complete (based on agreed Head of Terms, signed Letter of Intent and signed Contracts), offering over 300 stores including 50+ flagships and more than 10 new brands to Jeddah. The asset will include Jeddah's first international luxury wing, a pioneering events hub, three unique F&B zones as well as a state-of-the-art immersive digital experience surrounded by dining. Alongside Jawharat Riyadh, Jawharat Jeddah will feature one of the largest skylights in KSA, standing at 27 meters high, illuminating the space with natural light and providing a seamless indoor and outdoor experience.
Jawharat Riyadh's structure is 98% complete with 80% pre-leasing completed (based on agreed Head of Terms, signed Letters of Intent and signed Contracts). The mall will feature over 300 world-renowned brands in 75+ flagship stores, including over 10 new brands to Riyadh. Spanning an area equivalent to 70 football fields, Jawharat Riyadh stands as Saudi Arabia's largest footprinted mall. The asset will include a luxury wing, four unique F&B zones, world-class entertainment offerings, a state-of-the-art immersive digital experience surrounded by dining and 65,000 sq m of premium office space. It will be the number one mall in Riyadh for footfall and spend and will attract over 20 million customers annually.
Financial highlights
During the quarter, revenue totaled SAR 590.6 million compared to SAR 585.8 million in Q1-24. The steady growth was supported by strong performance across all revenue streams, despite the absence of contributions from Mall of Dhahran, the first phase of which was handed over in early February 2025. Net rental revenue benefited from an improved like-for-like occupancy rate, which rose to 93.1% from 92.5% in Q1-24. This growth was further driven by an 8.8% increase in media sales and a 0.9% increase in utilities and other revenue due to the increase in occupancy, penalties, and charges related to engineering work services.
Cenomi Centers reported a 20.0% y-o-y increase in net profit for Q1-25, reaching SAR 222.7 million compared to SAR 185.6 million in Q1-24. The prior year's results were impacted by a one-time write-off of SAR 50.6 million related to financing cost associated with a historical Islamic facility and 2024 Sukuk. The improved performance this quarter was driven by a combination of factors, including 0.8% increase in total revenues, a 20.1% reduction in cost of revenue reflecting management's concerted efforts of cost reduction initiatives and significant increase in other operating income (notably a SAR 22.0 million gain) on the sale of Sahara Plaza which was offset by the increase in other operating costs due to lease termination costs.
Impairment on accounts receivable decreased by 18% y-o-y to SAR 79.6 million in Q1-25, compared to SAR 97.1 million in Q1-24. The higher impairment in Q1-24 reflected a more cautious approach taken at that time in credit loss estimates associated with the receivable balances.
Net finance costs totaled to SAR 165.3 million in Q1-25 compared to SAR 173.4 million in Q1-24. The decrease in finance costs during Q1-25 was primarily driven by the reversal of time value of SAR 7.1 million booked initially in 2024.
Partially offsetting these gains were a 34.3% y-o-y increase in general and administrative expenses, increased other operating expenses due to lease termination costs, and a slight y-o-y decline of SAR 6.1 million in the fair value gain on investment properties.
EBITDA in Q1-25 amounted to SAR 357.4 million, an increase of 10.6% compared to SAR 323.0 million in Q1-24. The increase is mainly driven by 0.8% y-o-y increase in total revenue with media sales seeing a y-o-y increase of 8.8% and operating profit increasing y-o-y by 7.4%, driven by the reduction in impairment loss on accounts receivables by 18.0%. These positive impacts were partially offset by higher general and administrative expenses, largely due to a 34.3% rise in staff costs where Q1-24 expenses were impacted by a reversal of employee-related provisions.
As of Q1-25, total amounts due from related parties increased by 7.5% to SAR 691.7 million. Cenomi Centers has put a stringent program in place to ensure recovery, including expediting payment.
Cenomi Centers is currently in the midst of its peak investment phase, with net debt at SAR 12.0 billion as Q1-25, up from SAR 11.5 billion in Q4-24. This increase is mainly driven by the active construction phase of the Jawharat flagship developments.
