TECOM Group Reports 24% Surge in H1 2024 Net Profit to AED 603 Million, Driven by High Occupancy Rates and Strong Business Performance
TECOM Group PJSC (DFM: TECOM), the creator of specialized business districts and vibrant communities, has announced its financial results for the second quarter (Q2) and the first half (H1) of the year ending 30 June 2024. The Group’s H1 net profit grew by 24% year-on-year (YoY) to AED 603 million, with revenues rising 9% YoY to AED 1.1 billion. This growth was driven by occupancy rates exceeding 92% and a successful business strategy.
Financial Highlights:
- Revenue: H1 2024 revenue increased by 9% YoY to AED 1.1 billion.
- EBITDA: EBITDA for the first six months rose by 9% YoY to AED 896 million.
- Net Profit: Net profit surged 24% YoY to AED 603 million.
- Funds from Operations (FFO): FFO saw robust growth of 24% YoY, reaching AED 840 million.
- Interim Dividend: In line with the dividend policy, TECOM Group’s Board of Directors approved an interim cash dividend of AED 400 million for H1 2024, to be distributed by September 2024.
Operational Highlights:
- Occupancy Rates: Commercial and industrial occupancy rates grew to over 92% in H1 2024, a 5% increase YoY. Land lease occupancy reached 96%, an 11% rise YoY.
- Customer Base: The Group welcomed over 1,000 new customers, including multinational and regional leaders, expanding the customer base to over 11,000.
- Notable Initiatives: TECOM Group inaugurated the first permanent Middle East campus of L’ÉCOLE, School of Jewelry Arts at Dubai Design District (d3) and expanded Dubai Industrial City’s customer base with significant new customers.
ESG Highlights:
- Sustainability Commitment: TECOM Group increased the total number of LEED-certified structures in its portfolio to 41 during H1 2024.
- Renewable Energy: Generated 9.7% of electricity from solar plants across its portfolio and enhanced EV charging capacity with 13 new stations.
- Female Workforce Participation: Women comprise 34% of TECOM Group’s workforce, reaffirming support for increased female participation in the private sector.
Leadership Comments:
- Malek Al Malek, Chairman of the Board: "TECOM Group's first-half financial results demonstrated the success of our prudent capital management and future-focused business strategy. We are committed to strengthening our portfolio and continuing to deliver sustainable shareholder value."
- Abdulla Belhoul, CEO: "Our commitment to delivering high-quality offerings for investors and talent from around the world is reflected in the Group’s first-half performance, with high occupancy levels across our Grade-A portfolio serving six priority sectors."
H1 2024 Financial Summary:
- Revenue grew 9% YoY to AED 1.1 billion.
- EBITDA increased by 9% YoY to AED 896 million.
- Net profit rose 24% YoY to AED 603 million.
- Occupancy rates exceeded 92% for commercial and industrial assets, and 96% for the land portfolio.
