• Revenue, which increased 7.9% y-o-y to book SAR 550.8 million for Q3-22. The increase in total revenues was driven mainly by a 6.3% y-o-y expansion in net rental revenues, which rose from SAR 459.2 million in Q3-21 to SAR 488.3 million in Q3-22, and secondarily by a 47.6% y-o-y increase in utilities and other revenues which reached SAR 44.6 million during Q3-22.

• Operational profit, which grew by 19.9% y-o-y to record SAR 542.7 million during Q3-22. Cenomi Centers recorded an operational profit margin (OPM) of 98.5% in Q3-22 against a OPM of 88.6% for Q3-21. The absolute increase in operational profit was driven primarily by a 70.1% y-o-y increase in net valuation gain on investment properties to SAR 220.5 million from SAR 129.7 million.

• Interest expense on lease liabilities, which decreased by 27.2% y-o-y to record SAR 27.0 million in Q3-22.

• An increase in gross profit, which grew by 30.5% q-o-q to book SAR 462.5 million for Q3-22. Gross profit growth was driven primarily by a decrease in depreciation of investment properties and depreciation of write of use assets after the adoption of fair value model to measure the investment properties.

• An increase in revenues, which grew by 11.1% y-o-y to book SAR 1,687.5 million for 9M-22 compared to SAR 1,518.3 million in 9M-21. Top-line growth for the period was driven primarily by an increase in net rental revenue, a result of a continuing decrease in the Company’s weighted average rental discount rate, an increase in occupancy, and secondarily by an expansion in utilities and other revenues and media sales, which expanded by 35.9% and 13.1% y-o-y, respectively.

• An increase in gross profit, which grew by 13.9% y-o-y to book SAR 1,417.1 million during 9M-22. The Company recorded a GPM of 84.0% in 9M-22 against a GPM of 82.0% during 9M-21. The increase in gross profit was driven by the simultaneous growth in revenues and decrease in cost of revenue, which decreased by 1.2% y-o-y to record SAR 270.4 million in 9M-22.

• A decrease in interest expense on lease liabilities, which declined by 16.1% y-o-y to book SAR 102.3 million in 9M-22 compared to SAR 121.8 million in 9M-21.

• An increase in other income, which grew to SAR 12.8 million in 9M-22 compared to SAR 7.4 million in 9M-21, a 73.2% y-o-y increase.

With the CMA allowing Saudi listed companies to adopt the Fair Value Model effective January 2022, and after careful consideration and benchmarking against best practices and global peers, Cenomi Centers’ board of directors resolved on 29 June 2022 to adopt the Fair Value Model to measure its properties and investment properties in accordance with the IAS 40 accounting standard, which came into effect for the current 3Q-22 reporting period (ended 31-Dec-2022), and in turn, has improved the Company’s financial position significantly. Book Value increases to SAR 33.75 per share a 175% increase from the SAR 12.22 reported on September 30th 2022.

Other financial and operational KPIs:

• Cenomi Centers booked an EBITDA of SAR 323.6 million in Q3-22, a 0.3% y-o-y increase against the SAR 322.6 million recorded in Q3-21. EBITDA in 9M-22 grew by 9.3% y-o-y to book SAR 1,092.5 million.

• Like-for-like period-end occupancy reached 94.2% at the end of 9M-22, a significant increase from the 92.8% booked during 9M-21. Continued expansion in occupancy rates marks a solid recovery in commercial activity during the period and surpasses pre-Covid levels. Like-for-like period-end occupancy for the period also achieves management’s strategic objective of attaining an occupancy rate of 94-95% by the end of 2022.

• Visitor footfall reached 27.1 million for Q3-22, a 32.3% y-o-y increase from the 20.5 million recorded during Q3-21. On a nine-month basis, visitor footfall came in at 84.2 million for 9M-22, a 38.5% y-o-y increase.

Recent Corporate Developments:

• On 5 December 2022, the Board of Directors approved the change of the Company’s trading name from “ALMRAKEZ” to “Cenomi Centers”.

• On 25 December 2022, the Company announced its completion of the second transaction as part of its non-core asset land bank program. The 115,094.89 sqm plot, located in Al-Raed District of Riyadh, sold for around SAR 644.5 million (after excluding brokerage fees and taxes) and is the second to be sold as part of the company’s program to sell an identified portfolio of non-core assets worth around SAR 2 billion. This sale will be reflected in Cenomi Centers’ accounts upon completion of the registration process.

• On 29 December 2022, the Board of Directors approved a change in Cenomi Centers’ financial year end to December 31 instead of March 31. The Company also outlined a transition plan, including the issuance of “reviewed” financial statements for the period of the third financial quarter (three Months), starting 1st October 2022 and ending 31st December 2022. Additionally, Cenomi Centers will issue “audited” financial statements for the short annual year (Nine Months), starting 1st April 2022 and ending 31st December 2022. Finally, starting 31st March 2023, the Company will issue all financial statements for the financial periods from 2023 and beyond in a normally, in correspondence with the Gregorian Calendar years.

• On 01-Jan-2023, the Board of Directors approved the distribution of a cash dividend of SAR 0.75 per share (SAR 356.3 million) for the first half ended 30-Sep-2022. The dividend is scheduled for distribution to shareholders on 12-Feb2023.

For more information regarding Cenomi Centers financial and operational results for Q3-22, please see the Earnings Press Release accompanying this disclosure. The release also includes comments from the CEO.