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DUBAI / WAM
TECOM Group today announced a 15% year-on-year (YoY) increase in net profit to AED293 million for the three-month period ended 31st March 2024 (Q1).
EBITDA for the first three months of the year increased 10% YoY to AED439 million, while EBITDA margins remained at a healthy 78%.
TECOM stated that EBITDA rose on the back of robust top-line growth as the Group maintained prudent cost controls.
Revenue increased 10% YoY to AED564 million as the portfolio occupancy rate across the commercial and industrial leasing portfolio reached an all-time high of 91%, driven by strong demand across all leasing and service segments as business activity across various sectors continued to strengthen. The robust macroeconomic backdrop and supportive government initiatives and measures underpinned this growth.
Funds From Operations (FFO) stood at AED413 million, representing a 15% YoY increase on improved collections and increased performance of income-generating assets.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, “We are starting the year on a very strong footing. We achieved a robust financial and operational performance in the first quarter, building on our successes in 2023. This stands as a testament to our ability to leverage our diverse portfolio to satisfy the rising demand for quality commercial spaces and solutions spurred by Dubai’s broad-based economic growth.”
He added that the company is experiencing a surge in demand, with occupancy rates hitting a record high of 91% across its portfolio. This follows three consecutive quarters of steady growth. Some business districts are nearing full capacity, highlighting the strong market.
New customers across all six sectors are driving this growth, with a particular focus on Grade A office spaces and industrial properties. The customer retention rates within the company’s industrial leasing portfolio reached a historic 98%.