TECOM Group Posts Revenue of $650 Million in FY24

TECOM Group, the creator of specialised business districts and vibrant communities in the UAE, on Thursday today announced a record $650 million in revenue, driven by a 5% y-o-y rise in occupancy to 94%, an impressive retention rate of 92%, and higher rental rates.

EBITDA grew by 12% ($54.45 million) y-o-y to $520 million from enhanced revenue quality and strong operational performance across all business segments. EBITDA margin increased to 77%, a 1% increase compared with 2023.

The company’s net profit increased by 14% y-o-y to reach $330 million, driven by strong revenues and continued prudent cost management, the company said in a disclosure with Dubai Financial Market (DFM) this morning.

The occupancy and retention levels continued to grow across the portfolio as the Group’s focus on creating high-quality business ecosystems encourages customer loyalty. Commercial portfolio occupancy reached 90%, with a strong retention rate of 91% and industrial portfolio occupancy reached 98% (+9% y-o-y), with retention levels of 94% (+6% y-o-y).

TECOM also that funds from operations (FFO) stood at $440 million, representing a 14% y-o-y increase, led by improved collections and increased performance of income-generating assets.

Fair value of the Group’s Investment Properties (IP) portfolio, conducted by CBRE, ascertained a fair value of $7.62 billion as of 31 December 2024, representing a like-for-like increase of 11% compared to 2023 levels, and a y-o-y increase of 22% including new acquisitions during the year.

“The increase was driven by the enhanced fundamentals of Dubai’s real estate market and increased occupancy and retention across TECOM Group’s portfolio of Commercial and Industrial assets,” TECOM said.

Strong Performance

TECOM Group’s Chairman Malek Al Malek said that the strong results in 2024 reaffirmed their commitment to leveraging Dubai’s robust economic fundamentals and contributing to its knowledge economy by attracting global companies and skilled talent across six key sectors.

Supported by its consistent track record and its strategic roadmap, TECOM Group continued to attain strong performance, in addition to expanding its commercial and industrial portfolios through targeted acquisitions and the development of high-quality assets, he noted.

He also said that the $740 million of investments announced through 2024 will further expand the Group’s portfolio, enabling its continued sustainable growth and reinforcing its role as a strategic driver in Dubai’s business sector.

The projects include development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3). The new development spans a gross floor area of 629,000 sq. ft. and represents a significant investment of $224.61 million.

The company also launched Grade-A offices at Dubai Internet City with Innovation Hub Phase 3, an $92.57 million development and acquired two operational Grade-A office buildings at Dubai Internet City through an $114.35 million transaction to add 334,000 sq. ft. of premium GLA.

Furthermore, the company acquired a land bank spanning 13.9 million sq. ft. for industrial leasing at Dubai Industrial City through an $111.63 million transaction and also Office Park in Dubai Internet City for $196.03 million.

TECOM Group’s CEO Abdulla Belhoul said that Dubai and the UAE are delivering sustained growth across the commercial real estate and the industrial sectors led by dynamic non-oil GDP growth.

He said that the company was perfectly positioned to support this trajectory as the leading owner and operator of specialised business districts that are attracting global companies and talent participating in Dubai’s success story.