Dubai: The Dubai zones operator Tecom Group PJSC has booked a 24 per cent increase in net profit to Dh603 million from Dh485 million a year ago. This came off revenues of Dh1.1 billion, up 9 per cent year-on-year. The DFM-listed company announced Friday that occupancy rates at Tecom currently exceed 92 per cent.
It said EBITDA for the first six months of the year increased by 9 per cent year-on-year to Dh 896 million, led by overall revenue growth and operation optimisation.
Moreover, the group’s board of directors have approved an interim cash dividend payment of Dh400 million for H1 2024, to be distributed by September 2024. As per the approved dividend policy, the group is committed to paying a total amount of Dh 800 million annually through September 2025.
“The performance follows solid results reported in the first quarter of the year and reaffirms Tecom Group’s role in enabling Dubai’s knowledge-based economy by attracting global and regional companies across six vital sectors to its ten specialised business districts,” the company said.
The group also experienced robust year-on-year growth of 24 per cent in funds from operations (FFO), reaching Dh 840 million.
Commenting on the results, Malek Al Malek, Chairman of the Board of Tecom Group, said, “The Group’s first-half financial results demonstrated the success of our prudent capital management and future-focused business strategy.”
Al Malek said, “In recognition of this achievement, Tecom Group’s Board approved an interim dividend distribution of Dh400 million to shareholders for the first half of this year.” Al Malek also said the operator is committed to strengthening its portfolio and will continue to deliver sustainable shareholder value.
Occupancy levels
Occupancy levels across Tecom Group’s commercial and Industrial assets grew to over 92 per cent in H1 2024, representing a 5 per cent year-on-year growth.
Moreover, the occupancy levels across the land portfolio have hit 96 per cent, representing a year-on-year growth of 11 per cent in H1 2024, it said. The group’s retention rate of 91 per cent complemented overall occupancy growth. Over 1,000 new customers, including multinational and regional leaders, joined Tecom’s portfolio across commercial, industrial, and land during this period.
Abdulla Belhoul, CEO of Tecom Group, said, “Our commitment to delivering high-quality offerings for investors and talent from around the world is reflected in the Group’s first-half performance, with high occupancy levels across our Grade-A portfolio serving six priority sectors.”
He added, “Dubai remains a global magnet for the world’s leading innovators and investors, and we are harnessing the city’s appeal to continue generating long-term value for our shareholders.”
Expansion milestones
Earlier this year, the group inaugurated the first permanent Middle East campus of L’ÉCole, School of Jewelry Arts at Dubai Design District (d3).
It also expanded Dubai Industrial City’s customer base with key new customers, including Neelkanth Cables, Dubatt Battery, and MD Pharma Factory’s manufacturing facility, and a parts distribution centre serving as a hub for industry innovation by Arabian Automobiles Company, the flagship company of the AW Rostamani Group.
The group also partnered with VFS Global to enhance the ease of doing business across its sector-focused districts with access to more than 200 services offered through Tecom Group’s digital platform, ‘axs’. It also unveiled the MEA training centre of Alibaba Cloud at Dubai Internet City.
It welcomed Middlesex University Dubai’s MDX Innovation Hub and John von Neumann University at Dubai Knowledge Park.
