Cenomi Centers: Light at the end of the tunnel, but elevated leverage and Westfield delays key to watch... Reiterate Neutral

Research evidence excerpt

Cenomi Centers: Light at the end of the tunnel, but elevated leverage and Westfield delays key to watch... Reiterate Neutral

J P M O R G A N CEEMEA Equity Research

28 July 2026

Cenomi Centers Neutral

4321.SE, CENOMICE AB

Light at the end of the tunnel, but elevated leverage and Price (27 Jul 26):SRls15.95

Westfield delays key to watch… Reiterate Neutral ▼Price Target (Dec-27):SRls14.10 Prior (Dec-27):SRls19.80

We reiterate our Neutral rating on Cenomi Centers and reduce our Dec-27 Price

Target (PT) to SAR 14.1/share (down 29% from SAR 19.8) with 12% implied MENA Consumer and Real Estate

downside potential from last closing. This is driven by lower explicit forecasts on Taher Safieddine, CFA AC

occupancy rates, rental rates and a delay in contribution from new flagship assets, (971) 4428-1654

coupled with higher debt balances (increasing drawdown on new facilities to fulfil taher.safieddine@jpmorgan.com

J.P. Morgan Securities plc

capex requirements on the Westfield Riyadh and Jeddah malls). We highlight a soft

Vardhman ChhajedP&L delivery over FY 26E (revenues +4% YoY, clean EBITDA -1% YoY, clean

(91 22) 6157 5017

EPS -16% and recurring FFO down 24%) driven by MSD revenue growth (LFL vardhman.v.chhajed@jpmchase.com

growth at +5% YoY), delays in the opening of new flagship assets (now planned J.P. Morgan India Private Limited

for official opening towards 2026 year-end vs. H1 26 previously; total GLA of 325k

sqm at 26% of existing GLA base), margin dilution from ramp-up of new assets and

associated pre-opening expenses. We expect the company’s growing leverage Key Changes (FYE Dec)

position to pressure EPS and FFO generation amid a higher cost of funding (75bps Prev Cur Δ

Adj. EPS - 26E (SRls) 2.45 2.12 -13.3%

higher post refinancing exercise completed in FY 25).