MENA Newswire News Desk: TECOM Group has reported a net profit of AED293 million for the first quarter of 2024, marking a 15% increase compared to the same period last year. This performance reflects solid financial and operational growth across TECOM’s diversified portfolio as it capitalizes on Dubai’s favorable economic conditions and heightened demand for quality commercial spaces.
The Group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached AED439 million, up 10% year-on-year, while maintaining a robust EBITDA margin of 78%. TECOM attributed this growth to effective cost controls and strong revenue growth, supporting the Group’s commitment to financial stability and strategic expansion. Revenue for Q1 rose 10% year-on-year to AED564 million, driven largely by an increase in occupancy across its commercial and industrial leasing portfolio, which hit a historic high of 91%.
Abdulla Belhoul, CEO of TECOM Group, highlighted the significance of these results, stating, “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.” He emphasized that the Group’s diverse portfolio and strategic market positioning have enabled TECOM to meet the rising demand for high-quality commercial spaces, underscoring Dubai’s continued economic growth and supportive government initiatives.
The Group’s Funds From Operations (FFO) increased 15% year-on-year to AED413 million, supported by stronger collections and the enhanced performance of income-generating assets. This consistent growth aligns with TECOM’s broader strategic objectives to optimize asset performance while maintaining strong client relationships.
TECOM’s commercial success in Q1 was further bolstered by record-breaking occupancy rates across its six business districts, with some nearing full capacity. The company reported a remarkable 98% customer retention rate within its industrial leasing portfolio, pointing to sustained demand for TECOM’s commercial and industrial properties.
Strong leasing activity for Grade A office spaces and industrial properties, coupled with high demand across TECOM’s six business sectors, continues to drive portfolio growth. TECOM’s focus on expanding high-quality spaces within Dubai’s dynamic business landscape aligns with its commitment to fostering a resilient commercial real estate sector in the UAE.