TECOM Group Reports Revenue of $153.56 Million in Q1-2024

TECOM Group, the creator of specialised business districts and vibrant communities in Dubai, on Friday said that it has achieved a 15% year-on year (y-o-y) increase in net profit in the first quarter of 2024.

Following record financial performance in 2023, TECOM Group continued to deliver strong financial performance in Q1 2024 driven by robust demand across the business from new and existing customers, underpinned by Dubai’s robust economic performance, pro-growth and diversification government initiatives.

The Group’s revenue increased 10% y-o-y to $153.56 million as the portfolio occupancy rate across commercial and industrial leasing portfolio reached an all-time high of 91%, driven by strong demand across all leasing and service segments as business activity across various sectors continued to strengthen, underpinned by a robust macroeconomic backdrop and supportive government initiatives and measures.

EBITDA for the first three months of 2024 increased 10% y-o-y to $119.52 million while its margins remained at a healthy 78%. EBITDA rose on the back of robust top-line growth as the Group maintained prudent cost controls.

The net profit rose 15% y-oy to $79.77 million, as the business continues to focus on quality revenue, optimising operations across the business districts. Even funds from operations (FFO) stood at $112.45 million, representing a 15% y-o-y increase, on improved collections and increased performance of income-generating assets.

Strong Beginning

TECOM Group CEO Abdulla Khalifa Al Belhoul said that the company started 2024 on a very strong footing as it achieved a robust financial and operational performance in the first quarter, building on its successes in 2023.

This stands as a testament to our ability to leverage our diverse portfolio to satisfy the rising demand for quality commercial spaces and solutions spurred by Dubai’s broad-based economic growth, he said.

With occupancy rates across TECOM Group’s portfolio consistently climbing for three consecutive quarters, the company has now reached an all-time high of 91%, with some business districts near full capacity.

Demand from new customers across the six sectors the company served is palpable, notably for Grade A offices and industrial properties. There has been a strong appetite from existing customers, with customer retention rates within our industrial leasing portfolio reaching a historic 98%, he explained.

“We anticipate the demand-induced growth momentum to be sustained for the rest of the year. Our confidence is underpinned by a positive macroeconomic outlook enabled by pro-growth government initiatives, including Dubai’s D33 and the UAE’s Operation 300 billion. We are confident in our ability to unlock greater shareholder value as we progress on our strategic growth agenda,” he added.

Key Operational Activities

Through its provision of business districts, TECOM Group continues to support many industries that drive Dubai’s diversification agenda and economic growth. In Q1 2024, TECOM Group witnessed Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, unveiled its MEA training centre in Dubai Internet City.

Dubatt inaugurated the UAE’s first integrated battery recycling plant in Dubai Industrial City and signed a musataha agreement (a real property right which allows its holder to develop upon and make use of land belonging to the other party) to expand the facility, increasing its total investment in Dubai Industrial City to $58.81 million.

The UK’s Middlesex University Dubai introduced the MDX Innovation Hub at Dubai Knowledge Park and Harrisburg University of Science and Technology Dubai (HU Dubai), a branch of the renowned independent science and technology-focused university from the US, was inaugurated at Dubai Knowledge Park.

TECOM Group also launched The Good Store, in partnership with the Emirates Red Crescent, a philanthropic initiative to offer a seamless donation platform during Ramadan and Eid al-Fitr, for the second consecutive year.

Dubai Design District (d3) hosted the successful launch of the Autumn/Winter 24/25 edition of Dubai Fashion Week, enhancing Dubai’s global stature as a fashion destination and a strategic partnership was signed with VFS Global to provide visa processing and document attestation services exclusively for customers and professionals to TECOM’s customers.