Cenomi Centers CEO: Investments to peak in 2026; targets SAR 3.6B revenue by 2028

Cenomi Centers CEO Alison Rehill-Erguven says the company is well positioned to meet its targets through disciplined execution

Arabian Centres Co.’s (Cenomi Centers) CEO Alison Rehill-Erguven said 2026 marks the peak of the company’s investment phase, expecting gradual improvements in financing costs and operating profit as major projects start generating operating cash flows.

She told Argaam that the company's financial position remains strong and is well positioned to meet its targets through disciplined execution, the transition of key projects into the operating phase, and increased financing allocated to the Westfield Riyadh project.

Rehill-Erguven said Cenomi Centers continues to target revenue of SAR 3.4–3.6 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of SAR 2.5–2.6 billion by 2028, representing growth of approximately 60% compared to 2025.

She added that the company’s development pipeline is expected to drive a significant step-up in revenue, earnings, and cash flows over the next three years.

The CEO revealed Westfield Jeddah and Westfield Riyadh as the key pillars of the company's next phase of growth. Westfield Jeddah has begun operations following the receipt of the occupancy certificate, with pre-leasing reaching approximately 96% based on agreed contractual terms, signed letters of intent, and executed leases.

The company is currently working with tenants to complete fit-out works ahead of the commercial opening.

Structural works at Westfield Riyadh are 100% completed, with pre-leasing reaching approximately 94%. The project remains on track to enter the operating phase in Q4 2026.

As with any major retail destination, both projects are expected to undergo a ramp-up period following their openings, the CEO said.

While the mall operator does not provide separate financial guidance for Westfield Riyadh and Jeddah projects, it expects both to become major contributors to revenue, earnings, and cash flow as occupancy increases and operating performance stabilizes.

Commenting on Q2 2026 results, Rehill-Erguven said it is important to differentiate between underlying operating performance and accounting factors that impacted reported net profit.

She added that underlying operating performance remained resilient, with EBITDA growth, higher visitor numbers, and occupancy at 91.2%.

Regarding higher financing costs, she said the increase reflects the scale of investments being undertaken as part of the company's long-term strategy, particularly Westfield Jeddah and Westfield Riyadh.

Net financing costs increased due to the funding required to complete key projects and support the company's long-term growth strategy, the CEO said.

She stated that growth in visitor numbers strengthens tenants' confidence in the company's portfolio. Cenomi Centers signed 1,308 leases in H1 2026, including 693 leases in Q2, and attracted 59 new brands during the quarter, including global names such as Bottega Veneta, Bulgari, Jaeger-LeCoultre, and Piaget.

The company aims to maintain occupancy rates above 90%, while continuing to improve leasing quality, rebalance its tenant mix, and achieve rental growth.

Rehill-Erguven noted that visitor numbers are an important indicator of demand strength, although their impact on revenue depends on factors such as lease structures, rental review mechanisms, tenant mix, and the timing of lease commencements.

Regarding the decline in reported Q2 2026 revenue, she said the difference between reported performance and like-for-like performance was attributable to changes in the asset portfolio compared with the same period last year, rather than weaker performance by operating assets.

Performance benefited from stable net rental income, continued growth in media sales, and strong leasing activity, though offset by utilities and other income.

Media sales increased 4% during the second quarter of 2026, with like-for-like performance providing a more accurate measure of the underlying operating portfolio.

The CEO said Cenomi Centers’ focus in H2 2026 will remain on disciplined execution, the successful launch of key projects, maintaining strong leasing activity, and continuing to improve portfolio quality.

According to data available with Argaam, Cenomi Centers posted a net profit of SAR 588.2 million in H1 2026, compared to SAR 689.8 million a year ago. Q2 2026 profit reached SAR 385.7 million.