The capital’s premier shopping destinations, The Mall of Cyprus (MC) and The Mall of Engomi (ME), reported a banner financial year in 2025. According to newly released fiscal data, both centers achieved a massive boost in net profitability, fueled by a combination of resilient consumer spending and a sharp upward adjustment in the fair value of their real estate assets.
While both malls operate under a similar investment umbrella, their strategies for rewarding shareholders have diverged, with the Mall of Cyprus distributing millions in dividends while the Mall of Engomi opts for capital retention.
The Mall of Cyprus: Profits double amid high demand
The Mall of Cyprus saw its net profit nearly double in 2025, climbing to €19.09 million from €10.46 million the previous year. While revenue remained steady at €19.84 million, the real driver was a €16 million gain from property revaluations, nearly four times the valuation increase recorded in 2024.
Key Performance Indicators:
-
Operational Success: Foot traffic and tenant turnover grew by 5%, maintaining a near-zero vacancy rate.
-
Asset Strength: Total assets rose to €250.7 million, with the property itself valued at nearly €240 million.
-
Shareholder Returns: The company rewarded investors with an interim dividend of €13.5 million in July 2025, continuing a trend of high-volume payouts.
The Mall of Engomi: Strategic growth and deleveraging
The Mall of Engomi recorded a smaller but equally impressive recovery. Revenues jumped by 11.5% to reach €4.51 million, while net profits skyrocketed from roughly €1.1 million in 2024 to nearly €6 million in 2025.
Strategic Highlights:
-
Visitor Surge: A successful marketing push and new dining options led to a 15% increase in foot traffic.
-
Debt Reduction: The mall significantly improved its financial health, lowering its leverage ratio from 47.1% to 39.5%.
-
Dividend Pause: Despite the profit spike, the Board has chosen not to issue a dividend for the 2025 fiscal year, focusing instead on strengthening the balance sheet.
Market Sentiment: Real Estate as a Profit Engine
The 2025 results underscore a broader trend in the Cypriot economy where commercial real estate acts as a powerful multiplier for business profits. The fair value adjustments, totalling over €20 million across both sites, reflect the increasing market value of prime commercial space in Nicosia and high investor confidence in the retail sector’s long-term prospects.
Management for both centers noted that the introduction of international brands and modern entertainment venues has successfully counteracted the global trend toward e-commerce, keeping physical malls at the center of the Cypriot consumer experience.
Source: Stockwatch.com.cy