Dubai: Dubai's Tecom Group approved an interim dividend distribution of Dh400 million to shareholders for the first half of this year, to be distributed in September 2023, it was announced on Wednesday.
The landlord behind some of the city’s leading free zones, recorded revenue gains of 6 per cent to Dh1.05 billion in H1-2023, the company said in a stock market filing. The Group's net profit grew 13 per cent to Dh485 million in the first half amid a strong performance driven by sustained high occupancy levels across its high-quality portfolio.
“Commercial real estate in Dubai is growing at a steady pace owing to Dubai’s appeal as a global city to businesses, talent and investors alike and to its macroeconomic resilience,” Abdulla Belhoul, CEO, Tecom Group. “Our robust business model and our business districts’ market reputation have enabled Tecom Group to capitalise on the strong demand, supporting our solid performance during the period.”
Across its’ commercial real estate, Tecom entities had a combined occupancy of 87 per cent as of June 30, 2023, registering a 5 per cent increase compared to same period last year. The overall customer retention rate stood at 92 per cent in H1-2023.
The vast majority of our leased assets, especially Grade A centrally located offices, have recorded high occupancy rates
The Group's strong financial performances comes on the back of strong top-line performance, continued growth across all business segments, enhanced operational efficiencies, improved leverage position and lower total financing cost.
“Tecom Group continued to deliver strong financial and operational performance owed to our dynamic strategy which aims to further increase our occupancy levels across the portfolio while also maintaining prudent capital management,” said Malek Al Malek, Chairman of the Board, Tecom Group.
Our performance was underpinned by Dubai’s robust economy and its visionary leadership
Some of the new customers that the Group welcomed during the period include Salesforce, which established its first Middle East office, as well as pharmaceutical giant AstraZeneca, biotechnology company Virax Biolabs Group, business school EM Normandie, F&B supplier and manufacturer IFFCO Group.