Revenue increases 10% to AED 564m, driven by record-high portfolio occupancy rate of 91%
Staff Report
Dubai: Tecom Group, creator of specialised business districts and communities in Dubai, announced a 15 per cent increase in net profit for the first quarter to AED293 million as compared to AED255 million a year ago.
Driven by robust demand across the business from new and existing customers, the group’s revenue rose 10 per cent to AED564 million compared to AED514 million a year ago.
“We are starting the year on a very strong footing. We achieved a robust financial and operational performance in the first quarter, building on our successes in 2023. This stands as a testament to our ability to leverage our diverse portfolio to satisfy the rising demand for quality commercial spaces and solutions spurred by Dubai’s broad-based economic growth,” Abdulla Belhoul, Chief Executive Officer of Tecom Group, said.
“With occupancy rates across our portfolio consistently climbing for three consecutive quarters, we have now reached a company all-time high of 91 per cent, with some business districts near full capacity. Demand from new customers across the six sectors we serve is palpable, notably for Grade A offices and industrial properties.”
Moreover, he said that customer retention rates within the industrial leasing portfolio reached a historic 98 per cent.
The company’s EBITDA for the first three months of the year increased 10 per cent year on year to AED439 million while EBITDA margins remained at a healthy 78 per cent. EBITDA rose on the back of robust top-line growth as the Group maintained prudent cost controls.
Funds from operations stood at AED413 million, representing a 15 per cent increase, on improved collections and increased performance of income-generating assets.
“We anticipate the demand-induced growth momentum to be sustained for the rest of the year. Our confidence is underpinned by a positive macroeconomic outlook enabled by pro-growth government initiatives, including Dubai’s D33 and the UAE’s Operation 300 billion. We are confident in our ability to unlock greater shareholder value as we progress on our strategic growth agenda,” Belhoul said.
