TECOM Group Shareholders Approve AED 400 Million Cash Dividend for H2 2023

TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), creator of specialized business districts and vibrant communities, held its Annual General Meeting in Dubai Internet City to pass key resolutions.

Shareholders approved the financial statements for the year ended December 31, 2023 and a recommendation from the Board of Directors to distribute a cash dividend of AED 400 million (8 fils per ordinary share) for the second half of 2023, thereby bringing the total amount of dividend distributions for fiscal year 2023 to AED 800 million.

The approved cash dividend payment is in line with the dividend policy set out in the IPO prospectus, in which TECOM Group committed to pay a total dividend amount of AED 800 million per year until September 2025. All matters relating to future dividend distributions will be subject to the recommendation of the Board of Directors and approval of shareholders.

Malek Al Malek, president of the TECOM groupsaying:

“The excellent financial and operational performance achieved by TECOM Group in 2023 demonstrates the strength of our business model, the attractiveness of our 10 specialized business districts and also our unparalleled capabilities that allowed us to benefit from the promising opportunities presented in the UAE and Dubai. “The Group remains at the forefront of innovation, fulfilling its role as Dubai’s strategic business enabler, while ensuring we continue to deliver superior value to our shareholders.”

TECOM Group reported strong financial and operational performance in the financial year ending December 31, 2023, with revenue growing 10% year-on-year to a record AED 2.2 billion and a 49% year-on-year increase in net profit to a high historic AED 1.1 billion.

The Group also maintained a strong balance sheet, as well as an increase in its funds from operations (FFO) and recurring free cash flow (RCFC). As of December 31, 2023, the occupancy rate of the commercial and industrial portfolio stood at 89%, while the occupancy rate of leased land rose to 94%. In addition to that, the Group’s base of prominent international and regional clients increased by 15% to reach 11,000 clients.

This strong performance was driven by strong demand from new and existing clients operating in the six sectors served by the Group, supported by Dubai’s resilient economic performance, pro-growth and diversification government initiatives, and bullish sentiment. of consumers and businesses.

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

News source: Dubai Press Office