Dubai: The Tecom Group intends to pay Dh200 million – at 4 fils a share – as interim dividend for the first-half of 2022, a period during which the Dubai developer of business hubs recorded a solid set of results.
“The proposed Dh200 million payout is in line with previously announced dividend policy of distributing Dh800 million annually through to October 2025, with the first payment of Dh200 million scheduled in October 2022,” Tecom said in a statement.
The payout awaits shareholder approval at the annual general meeting. Tecom was the second of three Dubai government enterprises that have listed on DFM to date. It is also one of the city's biggest developer/landlord, with multiple clusters such as the Dubai Internet and Media cities, Dubai Design District (d3), and the Industrial City.
In the first six months, Tecom’s net profit was higher by 43.4 per cent year-on-year to Dh428 million, driven by ‘encouraging’ revenue gains, ‘enhanced operational efficiencies and prudent financial measures’. The Group also reported a ‘robust balance-sheet and leverage position’ and increase in the funds from operations (FFO) and recurring free cash flow (RCFC).
Tecom's stock closed last week at Dh2.36, still below the Dh2.67 offer price.