TECOM posts 34% profit increase in Q1

TECOM Group PJSC, the creator of specialised business districts and communities, has announced a year-on-year (YOY) increase of 34 per cent in net income to AED 255 million for the first three months of 2023.

The Group also reported a six per cent YoY increase in revenues to AED 514 million, off the back of sustained occupancy levels and high retention rates.

The occupancy rate for commercial and industrial assets reached 87 per cent, which is the fifth quarter in a row of growth and a seven per cent increase from Q1 2022.

TECOM also posted substantial growth in Funds from Operations (FFO) to AED 359 million, a 44 per cent increase from January to March, 2022.

The company announced a AED 200 million dividend was distributed in April 2023, which means AED 400 million was paid out to shareholders for its performance in the second half of 2022.

Abdulla Belhoul, Chief Executive Officer, TECOM Group, said the 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.

"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.”

The TECOM Group in #Dubai has announced its Q1 2023 financial results, reporting a strong financial and operational performance. @TECOMGroupDubai has seen a 6% year-on-year increase in revenues to AED514 million and a 34% year-on-year increase in net income to AED255 million.… pic.twitter.com/5yDR29wR0X

— Dubai Media Office (@DXBMediaOffice) May 3, 2023