TECOM Group has reported a substantial rise in net profit for the first nine months of 2024, marking a 23% increase year-on-year. The group’s net profit reached AED 943 million ($256 million), driven by robust revenue figures that hit AED 1.7 billion, an impressive 10% increase compared to the same period in the previous year. This performance reflects the ongoing demand for premium commercial and industrial real estate in Dubai, showcasing the city’s growing appeal to global businesses.
The significant profit growth can be attributed to high occupancy rates across the group’s diversified portfolio, which spans commercial, industrial, and land lease assets. Occupancy rates improved from 88% to 94%, while land occupancy reached 90%. This surge is indicative of Dubai’s position as a major hub for businesses, with top global companies such as Hisense and OZON Pharmaceuticals joining the ranks of over 11,800 customers. Furthermore, the retention rates within the commercial and industrial sectors remained robust, at 90% and 95% respectively, demonstrating the effectiveness of TECOM’s strategies in maintaining client satisfaction and loyalty.
TECOM’s operational performance is underscored by an increase in EBITDA, which rose 13% year-on-year to AED 1.4 billion, with an EBITDA margin expanding to 79%. The group has also reported a 20% rise in funds from operations, amounting to AED 1.2 billion, attributed to enhanced operational effectiveness and improved performance of income-generating assets. This solid financial foundation allows TECOM Group to undertake significant strategic investments, totaling AED 2 billion in asset acquisitions and development initiatives.
During this period, the group completed several key investments, including a land bank acquisition at Dubai Industrial City and new Grade-A office buildings. These initiatives align with TECOM’s strategic roadmap aimed at sustainable growth through targeted acquisitions and the development of high-quality commercial real estate. Looking ahead, TECOM plans to deliver several projects, including Phase 2 of the Innovation Hub at Dubai Internet City, which is fully leased and set for completion in the first quarter of 2025. Additionally, the second phase of storage and logistics spaces at Dubai Science Park is on track for delivery within the same timeframe.
