TECOM Group Announces A Robust 24% Net Profit Increase In H1 2024
TECOM Group has released its financial results for the second quarter (Q2) and first half (H1) of the year ending 30th June 2024. The Group's net profit for H1 increased by 24% to AED603 million, while revenues saw a 9% year-on-year (YoY) rise, reaching AED1.1 billion.
Occupancy levels across TECOM Group's Commercial and Industrial assets grew to over 92% in H1 2024, marking a YoY growth of 5%. The Land portfolio also saw an increase in occupancy levels, reaching 96%, which represents an 11% YoY growth. This healthy retention rate of 91% further supported overall occupancy growth.
For Q2 2024, TECOM Group's revenues rose by 9% YoY to AED584 million, driven by high occupancy rates. The demand for commercial real estate in Dubai contributed to a significant YoY increase of 35% in net profit, amounting to AED311 million.
The Group's EBITDA for H1 2024 surged by 9% YoY to AED896 million due to outstanding topline growth. In Q2 alone, EBITDA increased by 7% YoY, reaching AED457 million. This performance was bolstered by new customers, improved rental rates, and healthy retention revenues.
Malek Al Malek, Chairman of the Board of TECOM Group, highlighted the UAE's and Dubai's pro-business framework as a key factor in strengthening the local knowledge and innovation-based economy. He stated that TECOM Group is leveraging Dubai's robust fundamentals to support global business growth in the Emirate.
Commitment to Shareholders
The Board of TECOM Group approved an interim dividend distribution of AED400 million for the first half of this year, set to be distributed by September 2024. According to the approved dividend policy, TECOM Group is committed to paying a total annual dividend amount of AED800 million through September 2025.
Abdulla Belhoul, CEO of TECOM Group, remarked on the company's dedication to delivering high-quality offerings for investors and talent worldwide. He noted that high occupancy levels across their Grade-A portfolio serving six priority sectors reflect this commitment.
"Dubai remains a global magnet for the world's leading innovators and investors," said Belhoul. "We are harnessing the city's appeal to continue generating long-term value for our shareholders."
This financial performance reaffirms TECOM Group's role in enabling Dubai's knowledge-based economy by attracting global and regional companies across six vital sectors within its ten specialised business districts.
With inputs from WAM
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