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Tecom Group ’s Q1 2023 net profit grows 34% to Dh255 million

Occupancy rates increase for fifth consecutive quarter

Tecom Group, the creator of specialised business districts and vibrant communities, on Wednesday announced a 6 per cent year-on-year (YoY) increase in revenues to Dh514 million and a 34 per cent YoY increase in net income to Dh255 million for its fiscal 2023 first quarter ended March 31, 2023.

Ebitda increased 14 per cent to Dh399 million, primarily driven by top line growth and lower operational expenses.

Net profit grew 34 per cent YoY to Dh255 million, underpinned by strong growth in revenues, enhanced operational efficiencies and sustained growth across all business segments.

Occupancy rate for commercial and industrial assets reached 87 per cent, the fifth quarter of sequential growth and a 7 per cent increase from Q1 2022.

Funds from operations (FFO) reached Dh359 million, a 44 per cent increase on Q1 2022, due to strong collections and continued high levels of customer retention.

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. 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.”

Tecom Group shareholders approved a dividend payment of Dh200 million, that was paid in April 2023. This follows a Dh200 million pay-out which was distributed in November 2022, taking the total dividend payment for the second half of 2022 (H2) to Dh400 million.

As per the dividend policy set out in the IPO prospectus, Tecom Group is committed to paying a total dividend amount of Dh800 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.

“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,” Belhoul said.