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TECOM Group today announced its financial results for the second quarter (Q2) and first half (H1) of the year ending 30th June 2024. The Group's H1 net profit grew by 24% to AED603 million, with revenues rising 9% year-on-year (YoY) to reach AED1.1 billion.
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.
For H1 2024, outstanding topline growth contributed to a 9% YoY surge in EBITDA, which reached AED896 million.
The Group's occupancy levels across its Commercial and Industrial assets grew to over 92% in H1 2024, representing YoY growth of 5%. Occupancy levels across the Land portfolio reached 96%, representing YoY growth of 11% in H1 2024.
The Group's healthy retention rate of 91% complemented overall occupancy growth.
For the Q2 2024, the Group's revenues grew by 9% to AED584 million YoY, supported by high occupancy rates. Higher occupancy demand across the Commercial, Industrial, and Land segments, supported by growing demand in Dubai's commercial real estate market, has contributed to a YoY rise of 35% in net profit to AED311 million.
New customers, improved rental rates, and healthy retention revenues contributed to a 7% YoY hike in EBITDA, which reached AED457 million.
Malek Al Malek, Chairman of the Board of TECOM Group, said, "The UAE's and Dubai's pro-business framework has strengthened the local knowledge and innovation-based economy, and TECOM Group is leveraging our city's robust fundamentals to support the growth of global businesses in the Emirate.
He added that TECOM Group's Board approved an interim dividend distribution of AED400 million to shareholders for the first half of this year to be distributed by September 2024.
As per the approved dividend policy, TECOM Group is committed to paying a total dividend amount of AED800 million per annum through September 2025.
Abdulla Belhoul, CEO of TECOM Group, stated, "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. 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."
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