Saudi mall operator Arabian Centres’ Q1 consolidated net profit almost tripled to $60.53 million, largely driven by higher occupancy, the company has announced.
The firm – which went public in May – reported that revenues went up 2.5 percent to SAR 572.5m ($152.65m), according to Arab News.
In a statement, the group said its improved performance was largely driven by discounts offered to tenants, which in turn helped drive rental revenues.
Across all its malls, occupancy reached 93.2 percent, up from 92.4 percent the previous year, while finance costs dropped 65 percent to SAR 73.9m ($19.7m).
Retailers in the region have faced increasing competition from online shopping and lower purchasing power among visiting tourists.
“Faced with the rising challenge of online shopping, the brick-and-mortar retail segment has sought to diversify its offering to secure its customer base, providing an increased range of leisure and entertainment facilities,” Oxford Business Group said in a report on the Saudi retail sector.
“The reintroduction of cinemas to the kingdom in April last year…is expected to increase retail football,” the report added.
Arabian Centres plans to expand to 27 malls over the course of the next four years.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.