Shareholders of Tecom Group, leader of Dubai’s professional business districts, have approved a board recommendation to pay a cash dividend of AED 200 million (US$ 54.4 million) in April 2023.
This brings the total dividend distribution for the second half of 2022 to AED 400 million.
Tecom Group held its annual general meeting on 14 March in Dubai Internet City, one of its main business parks.
The approved dividend distribution is in line with the Group’s previously announced dividend policy of AED 800 million per annum, which will be distributed to shareholders in semi-annual installments until September 2025.
Malek Al Malek, Chairman of Tecom Group, said: “Today’s dividend announcement reflects our continued confidence in Tecom Group’s growth prospects and endorses the group’s strong financial position at the end of 2022. Strong consumer confidence and increased demand for commercial and industrial real estate Properties in Dubai contributed positively to our strong cash flow generation.
“Combined with favorable government strategies and initiatives to continue to improve the ease of doing business and attract more foreign direct investment, we can continue to achieve unparalleled success and reward our shareholders with attractive and sustainable returns.”
Solid financial performance for FY2022
Tecom Group posted strong financial results for the year ending December 31, 2022, with revenue reaching AED 1.97 billion, the highest level in 22 years, and net profit up 28% year-on-year. The total value of Tecom Group’s investment property portfolio has increased by 9.7% since March 2022, reaching AED 21.29 billion by the end of 2022.
The company’s recurring free cash flow increased to AED 964 million, up 21% year-on-year, supported by healthy receivables and efficient cash conversion. Tecom Group has a balanced portfolio of assets, including short-term and long-term contracts, supporting cash flow predictability.
Tecom Group has a diverse and tailor-made leasing portfolio including offices, co-working spaces, warehouses and land, serving over 9,500 clients and over 105,000 professionals.
The group also provides additional value-added services that provide businesses and entrepreneurs with a competitive and attractive environment in which to thrive and facilitate interaction among regional community members. – trade arab news agency