Tecom Group, the creator of specialised business districts and vibrant communities, has seen its first quarter (Q1) net profit jump 34% to AED255 million ($69 million) boosted by a growth in occupancy rates at its properties. The company reported a 6% year-on-year (YoY) increase in revenues to AED514 million.
EBITDA increased 14% to AED399 million, primarily driven by top line growth and lower operational expenses.
Net profit increase was underpinned by strong growth in revenues, enhanced operational efficiencies and sustained growth across all business segments. Funds from operations (FFO) reached AED359 million, a 44% increase on Q1 2022, due to strong collections and continued high levels of customer retention.
Dividend payment
Tecom Group shareholders have approved a dividend payment of AED200 million, that was paid in April 2023. This follows a AED200 million pay-out which was distributed in November 2022, taking the total dividend payment for the second half of 2022 (H2) to AED400 million.
As per the dividend policy set out in the IPO prospectus, Tecom Group is committed to paying a total dividend amount of AED800 million per annum over the first three years of being a listed company. The next dividend payment will be distributed in September 2023, subject to shareholder approval, and will cover the first half of 2023.
Abdulla Belhoul, Chief Executive Officer, Tecom Group, said: “Tecom Group’s solid first quarter results, are not just a testament to the success of our long-term growth strategy, but also a reflection of the underlying business confidence in Dubai and the thriving business ecosystem in the emirate.
Continued demand
“The sustained growth in our occupancy demonstrates the continued demand for our specialised assets and reaffirms Dubai’s position as a global hub for investment, innovation, and entrepreneurship. We believe we are well positioned to continue to capitalise on the booming real estate market in Dubai.
“Looking ahead, our outlook for the rest of the year is positive, particularly with the prospect of higher rental rates, continued growth in occupancy and the immense potential that the city offers to businesses of all sizes and from all sectors. We will maintain our focus on maximising value to our shareholders and all our stakeholders.”
Key operations
Through its provision of business districts, Tecom Group continues to support many industries that drive Dubai’s diversification agenda and economic growth. In Q1 2023, Tecom Group witnessed:
·The announcement by AstraZeneca on its intention to move to Dubai Science Park with new sustainable offices ahead of COP28.
·The successful launch and first edition of Dubai Fashion Week (DFW), which recorded a 55% increase in RSVP’s compared to the 21st edition of Arab Fashion Week in March 2022. M Normandie French Business School inauguration of its first regional campus at Dubai Knowledge Park
·The opening of THRYVE factory, the first 100% plant-based meat factory in the Middle East, in Dubai Industrial City.
·Silver Line Gate Group (one of the Middle East’s leading suppliers of milk powder) announcement to build an AED200 million manufacturing facility at Dubai Industrial City in line with Dubai Economic Agenda D33, the UAE food security agenda and Make it in the Emirates.
·Al Khayyat Investments breaking ground on its largest fulfilment centre to date in Dubai Industrial City.-- TradeArabia News Service
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