Tecom Group, the operator of business districts in Dubai, recorded a 34 per cent annual increase in its first-quarter net profit on the back of a “booming” property market in the emirate.
Net profit in the three months to the end of March rose to more than Dh255 million ($69.4 million), from the same period a year earlier, Tecom said on Wednesday in a regulatory filing to the Dubai Financial Market, where its shares trade.
Revenue increased 6 per cent annually to Dh513.8 million, from the same period in 2022.
Earnings before interest, taxes, depreciation and amortisation rose 14 per cent to nearly Dh399 million from a year ago.
Shareholders of Tecom approved a dividend payment of Dh200 million, which was made in April and a follows up a similar payout in November, taking total dividend payments for the second half of 2022 to Dh400 million.
The company has committed to paying a total dividend of Dh800 million annually over its first three years as a listed company. The next dividend payment is scheduled in September, covering the first half of 2023.
Tecom's “solid” first-quarter performance was the result of a long-term growth strategy that is also reflection of the “underlying business confidence in Dubai and the thriving business ecosystem in the emirate”, Abdulla Belhoul, chief executive of Tecom Group, said in the statement.
“The sustained growth in our occupancy demonstrates the continued demand for our specialised assets and reaffirms Dubai’s position as a global hub for investment, innovation and entrepreneurship,” he said.
“We believe we are well positioned to continue to capitalise on the booming real estate market in Dubai.”
Dubai's economy has recovered strongly from the coronavirus pandemic-induced slowdown, reflected in the strength of the overall business sector that has underpinned growth in the emirate.
Dubai's non-oil private sector economy hit a five-month high in March as output expanded on stronger increases in both jobs and inventories, with growth rates reaching multiyear records, the S&P Global purchasing managers' index showed last month.
“Through its provision of business districts, Tecom Group continues to support many industries that drive Dubai’s diversification agenda and economic growth,” the company said.
Among the highlights of Tecom's first quarter include the announcement of UK pharmaceuticals major AstraZeneca's plan to move to Dubai Science Park with new sustainable offices ahead of the Cop28 summit in the UAE.
Tecom also welcomed the Thryve factory, the first 100 per cent plant-based meat factory in the Middle East, and Al Khayyat Investments' largest storage and dispatch centre to date at Dubai Industrial City.
Silver Line Gate Group, one of the Middle East’s biggest suppliers of milk powder, announced plans to build a Dh200 million manufacturing hub at Dubai Industrial City in line with Dubai's D33, the economic agenda that aims to double the size of Dubai’s economy with a target of reaching Dh32 trillion by 2033 and establishing the emirate among the top three global cities.
“Looking ahead, our outlook for the rest of the year is positive, particularly with the prospect of higher rental rates, continued growth in occupancy and the immense potential that the city offers to businesses of all sizes and from all sectors,” Mr Belhoul said.
Tecom's portfolio consists of Dubai Internet City, Dubai Outsource City, Dubai Media City, Dubai Studio City, Dubai Production City, Dubai International Academic City, Dubai Knowledge Park, Dubai Science Park, Consists of Dubai Design District and Dubai Industrial City.
The group has more than 9,500 customers in Dubai and provides property solutions across commercial, land and industrial segments.
