Tecom Group said that it has observed its first quarter (Q1) net profit jump 34% to US $69mn, boosted by a growth in occupancy rates at its properties. The company reported a 6% year-on-year (YoY) increase in revenues to $140mn.
Meanwhile, its EBITDA increased 14% to $109mn, primarily driven by top line growth and lower operational expenses, a statement explained.
The net profit increase was underpinned by strong growth in revenues, enhanced operational efficiencies and sustained growth across all business segments. Funds from operations (FFO) reached $98mn, a 44% increase on Q1 2022, due to strong collections and continued high levels of customer retention.
Tecom Group shareholders have approved a dividend payment of $54.5mn, which was paid in April 2023. This follows a $54.4mn pay-out distributed in November 2022, taking the total dividend payment for the second half of 2022 (H2) to $109mn.
In late December 2022, Tecom broke ground on the $120mn Innovation Hub Phase 2 in Dubai Internet City, following which, the firm’s CEO said it is a pillar for Dubai’s businesses.
As per the dividend policy set out in the IPO prospectus, Tecom Group is committed to paying a total dividend amount of $218mn per annum over the first three years of being a listed company. The next dividend payment will be distributed in September 2023, subject to shareholder approval, and will cover the first half of 2023.
Abdulla Belhoul, Chief Executive Officer, Tecom Group, said: “Tecom Group’s solid first quarter results, are not just a testament to the success of our long-term growth strategy, but also a reflection of the underlying business confidence in Dubai and the thriving business ecosystem in the emirate. 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. We believe we are well positioned to continue to capitalise on the booming real estate market in Dubai.
“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. We will maintain our focus on maximising value to our shareholders and all our stakeholders,” he concluded.
In early March 2023, SLG Group said it would build a $55mn facility in Dubai Industrial City.