TECOM Group Shareholders Greenlight AED400 Million Dividend For Second Half Of 2023

TECOM Group PJSC, a leading developer of specialized business districts in Dubai, recently convened its Annual General Assembly Meeting at Dubai Internet City, marking a significant milestone in its operational calendar. The meeting was primarily focused on the approval of financial statements for the year ending 31st December 2023 and the ratification of a cash dividend distribution proposal.

The shareholders gave their nod to a cash dividend of AED400 million (8 fils per ordinary share) for the second half of 2023. This decision brings the total dividend payout for the fiscal year 2023 to AED800 million. This move aligns with TECOM Group's dividend policy outlined in its IPO prospectus, committing to an annual dividend payout of AED800 million through September 2025. Future dividend distributions remain contingent upon the Board of Directors’ recommendations and shareholder approval.

Malek Al Malek, Chairman of TECOM Group, highlighted the company's exceptional financial and operational performance in 2023. He attributed this success to the strength of TECOM Group’s business model and the appeal of its ten specialized business districts. Al Malek emphasized the Group’s role as a strategic business enabler in Dubai and its commitment to delivering value to shareholders.

The Group reported a 10 percent year-on-year revenue increase, reaching a record AED2.2 billion, and a 49 percent surge in net profit to AED1.1 billion for the fiscal year ended 31st December 2023. These figures underscore TECOM Group's robust financial health and operational efficiency. The company also boasted a strong balance sheet, with significant growth in funds from operations (FFO) and recurring free cash flow (RCFC).

As of 31st December 2023, TECOM Group maintained high occupancy rates across its commercial and industrial portfolio at 89 percent, with land lease occupancy rates climbing to 94 percent. The Group's customer base expanded by 15 percent, reaching 11,000 international and regional marquee customers. This growth is attributed to robust demand from both new and existing clients across six key sectors, supported by Dubai’s resilient economy, government initiatives for growth and diversification, and positive consumer and business confidence.

TECOM Group’s diverse leasing portfolio caters to six vital sectors, offering dynamic ecosystems for businesses, entrepreneurs, and talent globally. This strategy not only contributes to the UAE's knowledge-based economy but also reinforces Dubai's position as a hub for innovation and business excellence.

With inputs from WAM