TECOM Group Achieves 23% YoY Net Profit Growth with Record Revenues of AED 1.7 Billion in Nine Months
TECOM Group PJSC (DFM: TECOM), renowned for developing specialized business districts, has announced exceptional financial results for the nine months and the third quarter of the year ending September 30, 2024.
The Group achieved a record revenue exceeding AED 1.7 billion, marking a 10% increase year-on-year (YoY). Net profit surged by 23% YoY to AED 943 million.
In Q3 2024, TECOM's performance continued to impress, with revenues climbing 12% YoY to AED 611 million and net profit rising 20% to AED 340 million. This growth is attributed to strong demand from both existing and new customers, along with high occupancy rates across the Group's diverse portfolio.
"Our record performance underscores our commitment to sustainable growth and reflects the robust demand for premium commercial and industrial real estate in Dubai,"
stated Abdulla Belhoul, CEO of TECOM Group. He noted that occupancy rates reached 94% for commercial and industrial assets and 90% for land leases, driven by an influx of global businesses and talent.
TECOM's financial highlights also included a 13% YoY increase in EBITDA to AED 1.4 billion, with a margin expansion to 79%. The Group reported funds from operations (FFO) of over AED 1.2 billion, showcasing operational effectiveness and solid performance across its portfolio.
In line with its strategic roadmap, TECOM Group invested AED 2 billion in strategic asset acquisitions during the first nine months, further enhancing its position in Dubai’s thriving real estate market. The Group remains focused on delivering high-quality projects, with significant developments set for completion in 2025.
Financial Highlights
AED Millions (Unless otherwise stated) | 9M | %Change (YoY) | Q3 | %Change (YoY) | ||
2024 | 2023 | 2024 | 2023 | |||
Revenue | 1,759 | 1,593 | 10% | 611 | 544 | 12% |
EBITDA | 1,395 | 1,234 | 13% | 500 | 410 | 22% |
EBITDA Margin | 79% | 77% | 2% | 82% | 75% | 6% |
Net Profit | 943 | 768 | 23% | 340 | 283 | 20% |
Operational Highlights
As of | 30 September 2024 | 30 September 2023 | YoY% |
Commercial and Industrial Occupancy | 94% | 88% | 6% |
Land Lease Occupancy* | 90% | 87% | 3% |
Number of Customers | +11,800 | +10,800 | 9% |
*Includes the new land (13.9 million sq.ft) acquired in August 2024
News Source: Dubai Media Office