Riyadh, Saudi Arabia: Cenomi Centers, Saudi Arabia’s largest owner, operator and developer of shopping malls, published its financial results for the three months and half-year ended 30 June 2025.
Cenomi Centers reported a solid performance in the second quarter of 2025, with net profit rising by 34.2% y-o-y to SAR 474.7 million, stable revenue to SAR 582.6 million reflects the absence of contributions from Dhahran Mall, the first phase of which was handed over in early February 2025, resulting in lower net rental and media revenues. Excluding Dhahran Mall, revenue grew by 7.2% y-o-y. The robust profit growth was fueled by improved operational efficiency, a substantial net fair value gain on investment properties of SAR 280.6 million, and lower finance costs. These gains more than offset the revenue impact from the handover of Dhahran Mall and softer performance in media sales. Gross profit increased marginally by 0.8% to SAR 489.4 million, while operational profit surged 23.0% to SAR 637.9 million. Adjusting for one-off items, net profit increased by 31.3% in Q2-25 to SAR 464.7 million compared to SAR 353.8 million in Q2-24.
Quarterly EBITDA remained resilient at SAR 360.3 million, supported by cost discipline and margin improvement. Footfall reached a record 66.5 million visitors in H1-25, up 0.6% y-o-y, marking the highest ever for a first-half period and underscoring Cenomi Centers’ status as the premier retail destination in the Kingdom.
For the six-month period, revenue held steady at SAR 1,173.3 million, a 0.1% increase from H1-24. Net profit rose by 29.3% y-o-y to SAR 697.3 million, bolstered by SAR 325.1 million in net fair value gains, higher other operating income, and a 13.8% reduction in cost of revenue. Excluding non-recurring items – such as the SAR 9.9 million gain from the sale of Al Kharj land in H1-25 and SAR 50.6 million of financing cost write-offs in H1-24 – adjusted net profit grew 16.5% y-o-y to SAR 687.4 million. EBITDA stood at SAR 717.7 million, reflecting continued strength in the underlying business. Excluding the impact of Mall of Dhahran, EBITDA increased by 4.9% y-o-y, reflecting improved operational performance across the existing malls.
Cenomi’s flagship developments – Jawharat Riyadh and Jawharat Jeddah – continue to make impressive construction progress and are expected to redefine the retail landscape in their respective cities. As of June 2025, structural works were 99% complete at Jawharat Jeddah and 98% at Jawharat Riyadh. Pre-leasing activity remains strong, nearing 92% at Jawharat Jeddah and over 85% at Jawharat Riyadh. Once stabilized, these two assets are expected to contribute over SAR 650 million in annual EBITDA, representing an incremental 40% of Cenomi’s current EBITDA. They will also become Cenomi’s leading malls in terms of footfall, retail spend, and revenue – attracting over 15 million and 20 million visitors annually, respectively.
Portfolio optimization efforts continued to deliver results, with like-for-like occupancy reaching 92.2% in Q2-25, supported by proactive leasing and tenant rotation strategies. The company renewed 1,111 leases in H1 and introduced 174 new brands, including premium names such as Harry Winston, Blancpain, Breguet, Dua Almoallim Jewelry, ElFaleh, Hollister, Abercrombie & Fitch and All Saints.
Cenomi Centers remains focused on expanding its pipeline of high-quality assets. By 2027, its gross leasable area (GLA) is set to grow 46% to 1.8 million sqm, driven by the completion 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).
Reflecting its commitment to shareholder value, the company paid a quarterly dividend of SAR 0.375 per share in Q2-25. This translates to an annualized yield of 7.7% based on the 30 June 2025 closing share price of SAR 19.41.
Cenomi Centers remains well-positioned to capture the long-term growth of the Saudi retail sector through its premier portfolio, disciplined execution, and clear strategic vision.
Alison Rehill-Erguven, CEO, Cenomi Centers, commented: “Our strong first-half performance underscores the continued resilience and momentum of Cenomi Centers. With revenue growth, excluding Dhahran Mall, by a solid 6.9% y-o-y, net profit rising nearly 16.5% y-o-y post-adjustments and record footfall of 66.5 million visitors, we are clearly delivering on both our operational and strategic objectives. Despite the absence of Dhahran Mall revenues, we maintained stable topline performance while enhancing profitability through disciplined cost management, improved leasing mix, and higher fair value gains across the portfolio.
We are especially pleased with the progress at our flagship developments, Jawharat Riyadh and Jawharat Jeddah, which are nearing completion and expected to set new benchmarks in retail experience and visitor engagement. Once operational, these two centers will significantly expand our platform and contribute meaningfully to long-term earnings.
As we look ahead, we remain focused on driving sustainable growth through innovation, disciplined execution, and continued investment in high-quality assets across the Kingdom’s evolving retail landscape.”
Business and Operating highlights
In Q2-25, Cenomi Centers welcomed 31.7 million visitors across its malls. Excluding Mall of Dhahran, footfall grew by 0.5% y-o-y, underscoring the strength of Cenomi’s portfolio and the continued appeal of its modern, trend-driven offerings.
Demand for prime retail space in the Kingdom remains strong. Like-for-like occupancy held firm at 92.2%, reflecting a marginal y-o-y decline of 0.3 percentage points. 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 1,111 lease contracts and welcomed 174 brands onboard, (of which 55 are new brands). Among these additions are distinguished names such as Harry Winston, Blancpain, Breguet, Dua Almoallim Jewelry, ElFaleh, Hollister, Abercrombie & Fitch and All Saints. 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 June 2025, flagship developments Jawharat Jeddah and Jawharat Riyadh projects are 99.0% and 98.0% structurally complete respectively and are set to open in Q4-2025 and Q2-2026, respectively.
Jawharat Jeddah’s pre-leasing is 92% 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 structure is 98% complete with 85% pre-leasing (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.
H1-25 financial review
In H1-25, revenue remained stable at SAR 1,173.3 million, reflecting a slight increase of 0.1% compared to SAR 1,172.3 million in H1-24. The year-on-year comparison was impacted by the handover of phase one of Mall of Dhahran, in early 2025. Excluding Mall of Dhahran, revenue grew by a solid 6.9% y-o-y. The increase was supported by the continued rise in footfall across the shopping malls, up by approximately 0.5 million to 66.5 million visitors in H1-25 compared to 66.0 million in H1-24. The growth was further driven by a significant rise in utilities and other revenues which increased by 31.3% to SAR 100.8 million in H1-25 compared to SAR 76.8 million in H1-24.
EBITDA totaled SAR 717.7 million compared to the prior year of SAR 718.1 million. Excluding the impact of Mall of Dhahran, EBITDA increased by 4.9% year-on-year, reflecting improved operational performance across the existing malls. Net profit reached SAR 697.3 million compared to SAR 539.5 million in H1-24, where H1-24 profits were impacted by the write-off of non-amortized financing cost associated with historical Islamic facility and 2024 Sukuk, totaling SAR 50.6 million. In contrast, H1-25 net profit was increased by a SAR 9.9 million gain on the sale of Al Kharj land. Adjusting for these items, net profits in H1-25 increased to SAR 687.4 million, up 16.5% from SAR 590.1 million in H1-24.
H1-25 net profit was supported by improved operational efficiency and higher investment property valuations. Cost of revenue declined by 13.8% to SAR 172.1 million in H1-25, compared to SAR 199.8 million in H1-24, primarily due to lower operating costs and insurance expenses, reflecting the company’s continued focus on cost control initiatives. Other operating income also increased significantly to SAR 41.9 million in H1-25, compared to SAR 6.0 million in H1-24, mainly driven by the gain from the sale of Al Kharj land and Sahara Plaza. The net fair value gain on investment properties rose to SAR 325.1 million in H1-25 versus SAR 176.0 million in H1-24, primarily as a result of growth across the existing portfolio and significant construction progress at the flagship developments, Jawharat Riyadh and Jawharat Jeddah.
Net profit also benefited from a reduction in net finance costs, which decreased to SAR 316.0 million in H1-25, compared to SAR 324.5 million in H1-24, the decrease in finance costs during H1-25 was primarily driven by the reversal of time value of SAR 26.1 million booked initially in 2024.
Q2-25 financial review
In the second quarter of 2025 compared to Q2-24, revenues reached to SAR 582.6 million. The minor decrease reflects the absence of contributions from Dhahran Mall revenues, the first phase of which was handed over in early February 2025, resulting in lower net rental and media revenues. Excluding Dhahran Mall, revenue grew by 7.2% year-on-year, supported by a strong 64.9% increase in utilities and other revenue, mainly due to higher engineering service charges and penalties.
EBITDA reached to SAR 360.3 million, impacted by higher advertising and promotional expenses, an increase in impairment loss on receivables to SAR 73.9 million compared to SAR 29.0 million in Q2-24, and a higher net fair value gain on investment properties. Despite the EBITDA decline, net profit rose by 34.2% to SAR 474.7 million, driven by lower cost of revenue, higher other operating income, and an increase in net fair value gain on investment properties to SAR 280.6 million in Q2-25 compared to SAR 125.3 million in Q2-24.
Amounts due from related parties have increased by 24.5% however Cenomi Centers has put together a stringent program in place to ensure recovery including payment plans. Following Cenomi Retail’s strategy to sell down a number of non-core brands, the Cenomi Retail GLA footprint has significantly decreased since January-24 where it represented 18.4% of total GLA to 15.2% in June-25.
Since the Company is in an investment stage, net debt increased from SAR 11.5 billion as at the end of Q4-24 to SAR 12.2 billion as at quarter-end Q2-25. The increase is primarily due to the intense construction phase of the Jawharat flagship developments.
Cenomi Centers reported a 34.2% y-o-y increase in net profit for Q2-25, reaching SAR 474.7 million compared to SAR 353.8 million in Q2-24. This performance was supported by a SAR 9.9 million gain on the sale of Al Kharj land during the period, alongside a 7.7% y-o-y decline in cost of revenue to SAR 93.2 million, reflecting reduced operating costs and insurance in line with the company’s ongoing cost control initiatives.
Other operating income rose to SAR 14.2 million in Q2-25, compared to SAR 4.5 million in Q2-24, mainly driven by gain on the sale of Al Kharj land.
Net fair value gains on investment properties increased to SAR 280.6 million in Q2-25, up from SAR 125.3 million in Q2-24, reflecting portfolio growth and continued progress at Jawharat Riyadh and Jawharat Jeddah.
Net finance costs decreased slightly to SAR 150.6 million in Q2-25, compared to SAR 151.1 million in Q2-24, was primarily driven by the reversal of time value of SAR 19.0 million booked initially in 2024.
Partially offsetting these gains were a 2.8% y-o-y increase in general and administrative expenses to SAR 69.4 million, higher promotional spend of SAR 3.0 million (Q2-24: SAR 0.3 million), and a rise in impairment loss on receivables to SAR 73.9 million compared to SAR 29.0 million in the prior-year period.