TECOM Group reports 24% surge in H1 net profit

August 11, 2024 493

The group approved an interim dividend payment of Dhs400m for the first half of the year, scheduled for distribution by September

Dubai’s TECOM Group reported a robust 24 per cent year-on-year increase in net profit for H1 2024, reaching Dhs603m.

This growth was underpinned by strong occupancy rates and a successful business strategy, which also led to a 9 per cent rise in revenue to DHs1.1bn.

The group, which develops specialised business districts across Dubai, benefited from occupancy rates exceeding 92 per cent across its commercial and industrial assets.

This success was mirrored in an 11 per cent increase in land lease occupancy, now at 96 per cent.

The group’s funds from operations (FFO) also saw significant growth, climbing 24 per cent year-on-year to Dhs840m.

TECOM Group’s EBITDA for H1 2024 rose by 9 per cent year-on-year to Dhs896m, driven by revenue growth and operational optimisation.

The group maintained a strong EBITDA margin of 78 per cent, despite a slight dip from the previous year.

Interim dividend payout and other highlights for TECOM

Following these positive results, TECOM Group’s Board of Directors approved an interim dividend payment of Dhs400m for the first half of the year, scheduled for distribution by September.

This aligns with the group’s dividend policy, committing to an annual dividend payout of Dhs800m through September 2025.

TECOM Group welcomed over 1,000 new customers across its portfolio during H1 2024, reflecting the growing demand for its specialised districts. Key developments included the expansion of Dubai Industrial City and the inauguration of the first permanent Middle East campus of L’ÉCOLE, School of Jewelry Arts, at Dubai Design District.

Abdulla Belhoul, CEO of TECOM Group, emphasised the company’s role in supporting Dubai’s knowledge-based economy. “Our commitment to delivering high-quality offerings is reflected in our performance, with high occupancy levels and continued demand in Dubai’s commercial real estate market,” he said.

TECOM Group also advanced its environmental sustainability efforts, increasing its portfolio of LEED-certified structures to 41 and generating 9.7 per cent of its electricity from solar plants.

Additionally, the group enhanced its electric vehicle (EV) infrastructure and received recognition for its energy efficiency efforts.