Cenomi Centers, the largest owner, operator and developer of contemporary retail and lifestyle centers in Saudi Arabia, has welcomed its addition to the Morgan Stanley Capital International Saudi Arabia Small Cap Index, which it said demonstrates the company’s solid track record of financial and operational performance and future growth.
The MSCI Saudi Arabia Small Cap Index tracks regional small-cap stocks and is widely used by investors, portfolio managers and financial advisers to follow equity and fixed-income markets across different regions. MSCI will add Cenomi Centers by Aug. 30.
Cenomi Centers expects this listing to continue to grow investor attention in the company, supported by its strong performing portfolio of 22 assets and development pipeline of six new assets, increasing its GLA by 44 percent by 2027.
As a leader with 18 percent market share, larger than its four competitors combined, the company also benefits from being the first mover in Saudi Arabia which is undergoing transformational change and growth with the economy pivoting to non-oil economic opportunities.
The company’s two flagship developments are testament to the Kingdom’s opportunities. Both projects are over 90 percent structurally complete and are set to complete at the end of 2025. Over 650 million EBITDA (40 percent of current EBITDA) will be contributed by Jawharat Riyadh and Jawharat Jeddah upon stabilization. Both assets will be the No. 1 centers for footfall and spend in their respective cities.
Alison Rehill-Erguven, CEO of Cenomi Centers, said: “Cenomi Centers’ inclusion in the MSCI Saudi Arabia Small Cap Index is a key milestone, reflecting our strong performance, financial health, and market confidence in our growth. This achievement highlights our effective strategy, market position and commitment to delivering long-term value. It also elevates our global visibility and expands our reach to a broader investor base. Cenomi Centers has a solid capital structure in place with diversified funding sources to deliver sustainable growth. We are optimistic about the opportunities this brings and are fortunate to be operating in the Kingdom during this incredibly transformational time. We look forward to continuing our growth with the support of our shareholders.
The inclusion on the MSCI Saudi Arabia Small Cap Index comes off the back of a solid half year 2024 performance. Cenomi Centers delivered growth across all financial and operational metrics with an increase in revenue of 2.6 percent in H1-24 year-on-year. The net profit and EBITDA following one-off adjustments rose 25.6 percent and 10.9 percent respectively. The occupancy rate remained robust at 92.5 percent whilst the business continued to focus on a proactive tenant rotation to offer a superior retail mix. Its target occupancy by the end of the year across the portfolio is 94 percent. Cenomi Centers also continued its record level footfall momentum, which has increased by 4.6 percent y-o-y, with 66 million customer visits.
“Cenomi Centers’ position in the Kingdom and its commitment to developing flagships and lifestyle centers that support Vision 2030, creating jobs in local regions, boosting local economies and tourism, is driving the Saudi retail sector forward,” the company said.
