Nicosia malls see higher profits, fueled by increased footfall and spending

The Mall of Engomi (ME) Plc and Mall of Cyprus (MC) Plc on Friday reported strong profitability for the year ended December 31, 2025, reflecting increased consumer activity, higher footfall and improved financial performance.

The Mall of Engomi (ME) Plc recorded profit after tax of €5.96 million, a sharp rise from €1.13 million in 2024, driven largely by fair value gains on investment property and higher revenues.

Revenue for the company increased to €4.51 million, compared with €4.04 million in the previous year, while operating profit rose significantly to €7.85 million, up from €2.60 million in 2024.

The operating result included a fair value gain on investment property of €4.82 million, compared with €0.23 million a year earlier.

At the end of 2025, total assets stood at €51.13 million, up from €45.34 million in 2024, while net assets increased to €27.96 million from €22.00 million.

The company stated that its financial position, development and performance are considered satisfactory.

The mall continued to expand its offering during 2025, introducing additional food operators and entertainment options, enhancing the overall tenant mix.

A 15 per cent increase in tenant turnover indicated strong market conditions and higher consumer spending in the surrounding area.

At the same time, foot traffic also rose by 15 per cent, reflecting growing interest driven by targeted marketing initiatives and new tenants.

The company acknowledged that limiting vacancies will remain critical to maximising the mall’s potential.

The principal activity of the company remained unchanged and consists of granting rights of use of retail and commercial space at The Mall of Engomi.

The company confirmed that it does not operate any branches and continues to be exposed to interest rate, credit, liquidity and capital risks, with risk management handled by management and approved by the board.

Interest rate risk arises mainly from long-term bank borrowings, short-term loans and receivables from related entities, all of which are subject to variable rates.

As of December 31, 2025, liabilities with variable interest rates amounted to €19.63 million, compared with €21.05 million in 2024, with management monitoring fluctuations continuously.

At the same time, the Mall of Cyprus (MC) Plc reported profit after tax of €19.09 million, up from €10.46 million in 2024, reflecting resilient performance despite inflationary pressures and geopolitical challenges.

Revenue increased to €19.84 million, compared with €19.57 million in the previous year, while operating profit rose to €30.79 million, up from €18.32 million in 2024.

At the end of 2025, total assets reached €250.69 million, compared with €240.62 million a year earlier, while net assets stood at €121.65 million, up from €116.06 million.

The company stated that its financial position, development and performance are considered satisfactory.

The mall demonstrated resilience and adaptability during 2025, navigating inflationary pressures linked to geopolitical tensions while maintaining growth momentum.

A 5 per cent increase in tenant turnover, combined with vacancy levels close to zero, highlighted the mall’s ability to recover from pandemic-related disruptions and rebuild consumer confidence.

The substantial increase in foot traffic throughout the year reflected renewed consumer interest and reinforced the mall’s appeal as a vibrant retail destination.

The company also reported that rising tenant turnover pointed to strong commercial activity and increased consumer spending power.

The introduction of new brands and store refurbishments further strengthened its position as a preferred fashion destination.

Overall, the company described its 2025 performance as a compelling example of growth and adaptability amid ongoing economic uncertainty.

The principal activity of the company remained unchanged and relates to leasing retail and commercial space at Shacolas Emporium Park, including the shopping mall, IKEA store and other developments.

The company confirmed that it does not operate any branches and remains exposed to interest rate, credit, liquidity and capital risks, with risk management overseen by management and approved by the board.

Both companies stated that no significant changes are expected in their operations, financial position or performance in the foreseeable future, although future developments will depend on broader market conditions.