TECOM Group Reports Robust Q1 2025 Financial Performance Amid Strategic Expansion
The company's EBITDA grew by 23% year-on-year to AED 540 million, with the EBITDA margin improving to 79%. These figures underscore the group's commitment to enhancing Dubai's knowledge economy by attracting global companies and talent across six strategic sectors.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, attributed the strong start to 2025 to the exceptional performance of the group's diverse asset portfolio. He emphasized the pivotal role TECOM plays in championing Dubai's and the UAE's knowledge economy.
The group's strategic investments in 2024, totaling AED 2.7 billion, have expanded its portfolio significantly. Notable developments include the acquisition of Office Park in Dubai Internet City for AED 720 million and the launch of Innovation Hub Phase 3 within Dubai Internet City, a AED 340 million development. These investments align with TECOM's roadmap for sustainable growth through targeted acquisitions and the development of high-quality commercial real estate.
Operationally, TECOM Group has maintained high occupancy and retention rates across its portfolio. As of the end of 2024, commercial and industrial occupancy stood at 94%, with a retention rate of 92%. The number of customers increased by 8% year-on-year, reaching over 11,900.
The fair value of the group's investment property portfolio increased by 11% on a like-for-like basis and by 22% inclusive of new acquisitions, reaching AED 28 billion in 2024. This growth reflects the enhanced fundamentals of Dubai's real estate market and increased occupancy and retention across TECOM's portfolio.
TECOM Group's commitment to sustainability is evident in its environmental, social, and governance initiatives. In 2024, 49% of the group's commercial portfolio was LEED-certified, with solar generation increasing by 15.5% to 14.2 GWh. Additionally, 36.3% of all waste was sent to waste-to-energy plants. The group's in5 incubator supported 410 start-ups, with 30% owned by women.
The Board of Directors has proposed a dividend payment of AED 400 million for the second half of 2024, subject to shareholder approval at the upcoming Annual General Meeting scheduled for 10 March 2025. The interim cash dividend for the second half of 2025 is expected to increase by 10%.
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