UAE News Today : Business

TECOM Group reports 20% rise in net profit as revenue rises to AED 1.6 billion


TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), a creator of specialty business districts and vibrant communities, today announced its financial results for the third quarter (Q3) and 9-month period of the year ending. September 30, 2023.

The Group achieved strong financial and operational performance, reporting a 7% year-on-year increase in revenue to AED 1.6 billion and a 20% year-on-year increase in net profit to AED 768 million in the first nine months of 2023. .

Financial highlights

Million AED

(Unless otherwise stated)

9 months

% change (yoy)


% change (yoy)



















EBITDA margin







Net profit






3. 4%

Operational Highlights

Commercial and Industrial

September 30, 2023

September 30, 2022

% YoY

Occupancy level




Number of clients




Abdulla Belhoul, CEO of TECOM Group, saying:

“Our excellent financial and operational performance over the nine-month period reflects our ability to take advantage of Dubai’s favorable market conditions as we continue to successfully advance our strategy of optimizing our diverse portfolio and maintaining high occupancy rates.”

“Our 10 business districts are almost at full capacity, our existing customers continue to renew their leases with us and new customers come on board. This is a testament to the strong demand for our quality assets and unique, fully serviced strategic locations supported by buoyant trading conditions. We are very proud of the growing, diverse and quality customer base we have built and will continue to focus our efforts on being the go-to destination for international and regional companies. Additionally, our business model, which includes a balance between long and short-term leases, allows us to take advantage of rising prices while providing us with greater stability and revenue visibility.”

Financial highlights

Nine months 2023:

-Revenue increased 7% year-on-year to AED 1.6 billion, supported by continued improvement in occupancy levels and sustained strong customer retention rates across the Group’s portfolio.

-The occupancy level of commercial and industrial assets reached 88.5% as of September 30, 2023, a notable increase compared to the 83.5% occupancy rate recorded in the same period of the previous year. This was mainly due to the growing demand for quality office space and industrial warehouse and logistics facilities.

-The Group experienced a 17% increase in the number of new clients, adding more than 1,600 new clients.

-Customer retention rate stood at 89% at the end of the 9-month period of 2023, reaffirming the Group’s unique offering and high customer satisfaction rates.

-EBITDA increased 14% year-on-year to AED 1.2 billion and EBITDA margin expanded 4% to 78% in the nine months of 2023, mainly driven by improved revenue quality and cost efficiency, in line with the Group’s strategy of optimizing its core business.

-Net profit grew by 20% year-on-year to AED 768 million in line with positive revenue performance and strong growth across all business segments, supported by the continued boom the real estate market in Dubai is witnessing.

-Funds from operations (FFO) stood at AED 1.1 billion, representing an increase of 22% year-on-year, driven by improvements in operational efficiency across all assets.
The Group maintained a healthy debt profile with a loan-to-value (LTV) ratio of 14.2% and an EBITDA-interest ratio of 7.1x, driven by prudent financial management and continued hedging against rising interest rates. interest.

Third quarter of 2023:

-Revenue increased 10% year-on-year to AED 541 million and experienced strong sequential growth since the beginning of the year as the Group continues to take advantage of the favorable commercial real estate market conditions in Dubai.

-EBITDA increased 13% year-on-year to AED 410 million and EBITDA margin increased to 76% in Q3 2023, impacted by positive revenue performance and improved operational efficiencies.

-Net profit for the three-month period increased a notable 34% year-on-year to AED 283 million, supported by strong revenue growth, lower operating expenses and lower financing costs which were supported by the recent refinancing of the credit facility with lower margins. and more favorable conditions.

Project Development Highlights

Given the increasing demand for Grade A warehousing and logistics spaces in Dubai, the Group will develop new warehousing and logistics facilities with a total GLA of 200,000 sq ft. at Dubai Science Park.

News source: Dubai Press Office


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