TECOM Group announced a nearly 15 percent rise in net profit to AED290 million ($79 million) for the first quarter of 2024 as occupancy level grew to record high across its business districts.
Creator of specialised business districts and communities, TECOM’s customer base surpassed 11,000 – a historic high for the company. The company managed strong customer retention across the business and attracted new customers.
The portfolio occupancy rate of 91% saw increased revenue of 10 percent year-on-year to AED564 million ($153.6 million), while EBITDA also increased 10 percent YoY to AED 439 million ($119.5 million) with an EBITDA margin of 78 percent.
TECOM funds from operations (FFO) stood at AED413 million
Abdulla Belhoul, Chief Executive Officer of TECOM Group, commented: “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.
“With occupancy rates across our portfolio consistently climbing for three consecutive quarters, we have now reached a company all-time high of 91 percent, with some business districts near full capacity. Demand from new customers across the six sectors has been significant, notably for Grade A offices and industrial properties.
“We are also pleased with the very strong appetite from existing customers, with customer retention rates within our industrial leasing portfolio reaching a historic 98 percent.”
And Belhoul expected the current trends to continue, giving an upbeat outlook for the rest of the year.
“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,” he added.
“We are confident in our ability to unlock greater shareholder value as we progress on our strategic growth agenda.”
Funds from operations (FFO) stood at AED413 million ($112.5 million), representing a 15 percent increase on improved collections and increased performance of income-generating assets.
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