Dubai business park operator sees H1 profits up 13%

WAM

Dubai business park operator Tecom Group’s net profit rose 13 percent year on year in the first half of 2023 to AED485 million ($132.05 million) due to higher occupancy levels.

Revenue jumped six percent annually to AED1.05 billion during the first six months.

The occupancy level for commercial and industrial assets stood at 87 percent as of June 30, a five percent increase year on year.

Net profit for the second quarter increased three percent to AED229.4 million from AED237.3 million a year earlier.

However, the profit for the period would have increased by 19 percent to AED283 million if the impact of the one-off expense related to the settlement of an old loan facility was excluded.

“Commercial real estate in Dubai is growing at a steady pace owing to Dubai’s appeal as a global city to businesses, talent and investors alike and its macroeconomic resilience,” said Abdulla Belhoul, CEO, Tecom Group. 

“The vast majority of our leased assets, especially Grade A centrally located offices, have recorded high occupancy rates,” he added.

The board of directors approved the first interim dividend payment of AED400 million, with the payout planned in September 2023. 

As per the dividend policy set out in the IPO prospectus, Tecom will pay a total dividend amount of AED800 million per annum through September 2025.