Logo ofArabian Centres Co. (Cenomi Centers)
Arabian Centres Co. (Cenomi Centers) said the new regulations governing landlord-tenant relationships in Riyadh are expected to have only a limited financial impact on the company. 
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On Sept. 25, authorities issued a new decision regulating contractual relationships between landlords and tenants in Riyadh. The decision freezes rent increases for five years on new contracts and renewals.
In a statement to Tadawul, Cenomi Centers said existing contracts will continue under their current commercial terms until they expire, which will limit the financial impact of the new regulations.
The company added that the direct impact on its revenues is expected to belimited, asit will likely not exceed 1% of annual revenue during the application period. It also outlined the expected impact over the next five years in the following table:
Expected Impact Over Next 5 Years
Year
Impact (SAR mln)
Percentage from Total
2025
4
Less than 1%
2026
11
Less than 1%
2027
18
Less than 1%
2028
16
Less than 1%
2029
17
Less than 1%
However, the company is actively implementing several measures to mitigate the impact onprofit marginsby enhancing and diversifying revenues from other sources and securing better commercial terms when leasing vacant units, the statement added.
Logo ofArabian Centres Co. (Cenomi Centers)
Arabian Centres Co. (Cenomi Centers) said the new regulations governing landlord-tenant relationships in Riyadh are expected to have only a limited financial impact on the company.
For more news on listed companies
On Sept. 25, authorities issued a new decision regulating contractual relationships between landlords and tenants in Riyadh. The decision freezes rent increases for five years on new contracts and renewals.
In a statement to Tadawul, Cenomi Centers said existing contracts will continue under their current commercial terms until they expire, which will limit the financial impact of the new regulations.
The company added that the direct impact on its revenues is expected to belimited, asit will likely not exceed 1% of annual revenue during the application period. It also outlined the expected impact over the next five years in the following table:
Expected Impact Over Next 5 Years
Year
Impact (SAR mln)
Percentage from Total
2025
4
Less than 1%
2026
11
Less than 1%
2027
18
Less than 1%
2028
16
Less than 1%
2029
17
Less than 1%
However, the company is actively implementing several measures to mitigate the impact onprofit marginsby enhancing and diversifying revenues from other sources and securing better commercial terms when leasing vacant units, the statement added.
