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Tecom Group, creator of purpose-built business districts and vibrant communities, posted a 34% rise in first-quarter (Q1) net profit to AED 255 million (US$ 69 million), driven by higher occupancy rates at its properties. The company reported a 6% year-on-year increase in revenue to AED514 million.
EBITDA increased by 14% to AED 399 million, mainly driven by revenue growth and lower operating expenses.
The increase in net profit was driven by strong revenue growth, improved operational efficiency and continued growth across all business segments. Funds from operations (FFO) reached AED 359 million, an increase of 44% compared to Q1 2022, driven by strong collections and continued high levels of customer retention.
dividend
Shareholders of Tecom Group have approved the payment of a dividend of AED 200 million in April 2023. This follows a total dividend payment of AED 400 million for the second half (H2) of 2022, following a distribution of AED 200 million in November 2022.
Under the dividend policy set out in the IPO prospectus, Tecom Group has committed to paying a total dividend of AED 800 million per annum for the first three years of becoming a public company. The next dividend payment will be distributed in September 2023, subject to shareholder approval, and will cover the first half of 2023.
Abdulla Belhoul, CEO of Tecom Group, said: “Tecom Group’s solid first quarter results not only demonstrate the success of our long-term growth strategy, but also reflect the underlying business confidence in Dubai and the thriving business ecosystem in the emirate.
continuous demand
“Our continued growth in occupancy demonstrates continued demand for our specialist assets and reaffirms Dubai’s position as a global hub for investment, innovation and entrepreneurship. We believe in our ability to continue to capitalize on Dubai’s thriving real estate market.
“Looking ahead, our outlook for the remainder of the year is positive, especially given the outlook for higher rents, continued occupancy growth and the city’s enormous potential for businesses of all sizes and all industries. We will continue to Focused on maximizing value for our shareholders and all stakeholders.”
key operation
By providing business districts, Tecom Group continues to support the many industries that drive Dubai’s diversity agenda and economic growth. In Q1 2023, Tecom Group witnessed:
· AstraZeneca announced its intention to relocate to Dubai Science Park ahead of COP28 and establish a new sustainable office there.
· Successful launch of the first edition of Dubai Fashion Week (DFW) with a 55% increase in RSVP compared to the 21st edition of Arabian Fashion Week in March 2022. M Normandie French Business School opens first regional campus park in Dubai Knowledge
· THRYVE factory opened in Dubai Industrial City, the first 100% plant-based meat factory in the Middle East.
· Silver Line Gate Group (one of the leading milk powder suppliers in the Middle East) announced that it will build a AED 200 million manufacturing plant in Dubai Industrial City in line with Dubai Economic Agenda D33, UAE Food Safety Agenda and Make it in the Emirates.
· Al Khayyat Investments broke ground on its largest logistics center to date in Dubai Industrial City. — trade arab news agency
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