Saudi Arabia’s biggest mall developer and operator, Arabian Centres Co, reported an increase in net profits for last year compared to 2020.
By the third quarter of last year, Arabian Centres Co’s net profit was SAR110.1 million, a 15 per cent increase year on year, and a 21.3 per cent increase from the previous quarter.
The retail giant operates 21 malls in 10 cities around the kingdom that house more than 4,300 stores.
The influx in the developer’s net profits coincided with increased footfall at malls as the kingdom emerged from the pandemic.
Prior to Covid-19 restrictions, malls welcomed approximately 109 million visitors a year.
In the third quarter of 2021, Arabian Centres Co reported 21.5 million in visitor footfall, a 24.9 increase from 17.2 million recorded in the same period in 2020, and 76 per cent of the ootfall recorded in Q3 2019.
Last year’s net profits were also supplemented by the renewal of occupants’ leases.
By the third quarter of 2021, 689 leases were renewed. This amounted to 92.8 per cent occupancy, rivalling the 93.4 per cent occupancy in 2019.
Earlier in the year, Arabian Centres Co reported a 9 per cent decrease in net profit for the full year ending March 31, 2021, from SAR359.7 million dropping to SAR327.2 million.
The retail giant attributed this decline in net profits to reduced rates in tenancy leases amid the pandemic and the uncertain economy. In addition, occupants that had experienced disruption to business were offered further discounts.
