TECOM Group’s Q1 2024 Net Profit Surges by 15% to Surpass AED 290 Million, Accompanied by Record-High Occupancy Levels

TECOM Group PJSC, a leading creator of specialized business districts and vibrant communities, has reported a significant 15% year-on-year increase in net profit for the first quarter of 2024. This impressive financial performance comes on the heels of a record-breaking year in 2023, showcasing the Group’s continued success and growth in the market.

Abdulla Belhoul, the Chief Executive Officer of TECOM Group, expressed his satisfaction with the strong start to the year, attributing the positive results to the rising demand for quality commercial spaces and solutions in Dubai. Belhoul highlighted the company’s ability to leverage its diverse portfolio to meet the needs of new and existing customers, driven by Dubai’s robust economic performance and government initiatives aimed at promoting growth and diversification.

One of the key highlights of TECOM Group’s performance in Q1 2024 is the achievement of a company all-time high occupancy rate of 91% across its business districts, with some areas nearing full capacity. This surge in demand is evident across all sectors served by the Group, particularly for Grade A offices and industrial properties. Additionally, customer retention rates within the industrial leasing portfolio reached a historic high of 98%, indicating strong loyalty and satisfaction among existing clients.

Looking ahead, TECOM Group is optimistic about sustaining the growth momentum throughout the year, supported by a positive macroeconomic outlook and government initiatives such as Dubai’s D33 and the UAE’s Operation 300 billion. The Group remains confident in its ability to deliver value to shareholders as it continues to execute its strategic growth agenda.

In terms of financial performance, TECOM Group reported a 10% year-on-year increase in revenue to AED 564 million, driven by the high occupancy rates and strong demand across all leasing and service segments. The Group also saw a 10% increase in EBITDA to AED 439 million, with EBITDA margins remaining healthy at 78%. Net profit rose by 15% to AED 293 million, reflecting the Group’s focus on quality revenue and operational efficiency.

Key operational activities in Q1 2024 included significant developments such as the unveiling of Alibaba Cloud’s MEA training center in Dubai Internet City, the inauguration of the UAE’s first integrated battery recycling plant in Dubai Industrial City by Dubatt, and the introduction of the MDX Innovation Hub at Middlesex University Dubai in Dubai Knowledge Park. These initiatives underscore TECOM Group’s commitment to supporting industries that drive Dubai’s economic diversification and growth agenda.

Overall, TECOM Group’s strong financial performance and strategic initiatives in Q1 2024 position the company for continued success and growth in the dynamic business landscape of Dubai. With a focus on meeting the evolving needs of its customers and leveraging its diverse portfolio, the Group is well-equipped to capitalize on opportunities and drive value for stakeholders in the months ahead.