TECOM Group to Distribute $108.91 Million as Dividend for H2-2023

TECOM Group, the creator of specialised business districts and vibrant communities, on Tuesday said that shareholders at its Annual General Assembly Meeting has approved to distribute a cash dividend of $108.91 million for the second half of 2023.

The meeting also approved the financial statements for the year ended 31 December 2023 and the total amount of dividend distributions for the fiscal year 2023 to over $216 million, TECOM Group said in a filing with Dubai Financial Market (DFM) this morning.

The approved cash dividend payment is in line with the dividend policy set out in the IPO prospectus, in which TECOM Group committed to paying a total dividend amount of over $216 million per annum through September 2025. All matters related to future dividend distributions will be subject to the Board of Directors’ recommendation and shareholders’ approval.

Malek Al Malek, Chairman of TECOM Group, said that the outstanding financial and operational performance delivered by TECOM Group in 2023 showed the strength of TECOM’s business model, the attractiveness of its 10 specialised business districts.

“It also demonstrated our unparalleled capabilities that enabled us to benefit from the promising opportunities presented in the UAE and Dubai. The Group remains at the forefront of innovation, delivering on its role as a strategic business enabler of Dubai, while ensuring we continue to deliver superior value to our shareholders,” he added.

Net Profit Surges

TECOM Group reported a strong financial and operational performance in the financial year ended 31 December 2023, with revenues growing by 10% YoY to a record-breaking $600 million and a 49% y-o-y surge in net profit to an all-time high $300 million.

The Group also maintained a robust balance sheet as well as an increase in its funds from operations (FFO) and recurring free cash flow (RCFC).

As of 31 December 2023, the occupancy rate for the commercial and industrial portfolio stood at 89%, while the occupancy rate of land lease rose to 94%. In addition to that, the Group’s international and regional marquee customer base rose by 15% to reach 11,000 customers.

This strong performance was driven by the robust demand from new and existing customers operating across all six sectors the Group serves, underpinned by Dubai’s resilient economic performance, pro-growth and diversification government initiatives, and bullish consumer and business confidence.

Through a diverse leasing portfolio that caters to six vital sectors, the Group offers attractive ecosystems for businesses, entrepreneurs and talent from around the world, contributing to the UAE’s and Dubai’s knowledge-based economy.