Senomi Centre’s profits decreased to 1.2 billion riyals in 2024

The net profit of the Arab Centers Company (Sinomi Center) decreased in 2024 by 18.4% to 1.224 billion riyals, compared to 1.5 billion riyals in 2023.
According to the company’s statement on Saudi Arabia’s trading, the profits of the fiscal year 2024 were affected by removing the cost of unintended financing, which is one time increase, related to former Islamic financing and the instruments due to 2024 with a total amount of 50.6 million riyals, in addition to one increase in the losses of the decrease in the value of the city’s receivables and financing costs by 87.5 million riyals and 36.5 million riyals, respectively, due to the evaluation The time value of future payments related to the arrangements of the agreed payment plans with some tenants to accelerate the collection of rents.
On the other hand, the net profit increased during the fiscal year 2023 due to the gains of the sale of land by 238.7 million riyals.
After modifying these items, the net profit in the fiscal year 2024 increased by 12.3% to 1,398.8 billion riyals, compared to 1,245.6 billion riyals in the fiscal year 2023.
The net profit in the fiscal year 2024 was also affected by the following:
• The net financing costs increased to 690.1 million riyals during the fiscal year 2024 compared to 357.1 million riyals during the fiscal year 2023.
This is due to the removal of the cost of unintended financing, which is an increase for one time, in addition to assessing the time value of future payments related to the payment plans arrangements, as mentioned above.
In addition to the increase in the average cost of debt and the rise in the total debt, taking into account that the company is in an exceptional expansion phase is to develop the Jeddah Jewel and Jawhara projects, which are expected to be completed in December 2025 and April 2026, respectively.
• The increase in the losses of the decline in the value of the city’s receivables to 321.8 million riyals during the fiscal year 2024, compared to 189.7 million riyals during the fiscal year 2023.
This height is due to the adoption of a more conservative method in estimates of the losses of the decrease in the value of the city’s receivables than the tenants, and this evaluation has resulted in one time increase in low value losses.
The decrease in net profit was compensated in part during the fiscal year 2024 compared to the fiscal year 2023 through the following factors:
• Revenue: increased by 4.0% to 2,344.0 billion riyals during the fiscal year 2024 compared to 2,253.7 billion riyals during the fiscal year 2023.
• The cost of revenue: It decreased by 6.5% to reach 358.4 million riyals during the fiscal year 2024 compared to 383.5 million riyals during the fiscal year 2023, mainly due to the decrease in the expenses of facilities, security and insurance.
• The net profit of the fair value of investment real estate: This non -cash item increased to 565.3 million riyals during the fiscal year 2024 compared to 369.9 million riyals during the fiscal year 2023.
This is mainly due to the apparent progress in construction in the leading shopping centers; The jewel of Riyadh and the Jeddah jewel, in addition to the fair evaluation of a plot of land from the company’s stocks, and adjacent to the Salam Mall Center (Riyadh), where the company expects to sell it as part of the non -basic asset sale program.
• Advertising and promotion expenses: It decreased by 65.0% to 22.9 million riyals during the fiscal year 2024 compared to 65.5 million riyals in the fiscal year 2023, and this is mainly due to the rise in spending in the fiscal year 2023 on some unexpected activities such as the company’s brand.
• Public and administrative expenses: decreased by 26.5% to reach 256.1 million riyals during the fiscal year 2024 compared to 348.5 million riyals during the fiscal year 2023.
This is mainly due to the decrease in professional fees by 56.0% and an increase in expenses registered during the fiscal year 2023 on some uneven activities and the decrease in employee salaries and rewards by 19.5% after the completion of the regulatory restructuring during the 2024 fiscal year.
• Other operational expenses witnessed a decrease from 18.4 million riyals during the fiscal year 2023 to 0.1 million riyals during the fiscal year 2024.
The Board of Directors of the Arab Centers Company “Sinomi Centre” decided, yesterday, (by passing), distributing cash dividends to shareholders for the third quarter of the fiscal year 2024.
The total amount is 178,125,000 riyals, while the number of shares due to profits is 475,000,000 shares.
The share share of the distribution is 0.375 riyals, while the distribution rate to the nominal share value is 3.75%.
The right date will be 1446-09-12 corresponding to 2025-03-12, while the distribution date will be 1446-10-08 corresponding to 2025-06-06.