Tecom to expand logistics facilities as profit rises 34%

WAM

Tecom Group plans to develop new Grade A storage and logistics facilities as demand for high-quality commercial space surges across Dubai.

The Dubai-based business park operator will add 200,000 sq ft of total gross leasing area for logistics and storage in Dubai Science Park. 

The expansion comes as the company posted a 34 percent year on year increase in net profit for the third quarter of 2023 as a result of increased revenue from high occupancy levels across its business parks.

Net profit stood at AED283 million ($77.05 million) in the third quarter compared to AED212 million, driven by “favourable” commercial real estate market conditions in the emirate.

Revenue jumped 10 percent year on year to AED541 million, while Ebitda rose by 13 percent year on year to AED410 million. 

The company reported a decline in operational expenses and lower financing costs supported by the recent refinancing of a loan facility at lower margins and favorable terms.

Net profit increased by 20 percent annually to AED768 million due to strong growth across all business segments.

Revenue was up seven percent year on year to AED1.6 billion on continued improvement in occupancy levels and sustained strong customer retention rates.

“Our 10 business districts are almost near full capacity, with our existing customers continuing to renew their leases with us and new customers coming on board,” said Abdulla Belhoul, chief executive officer, Tecom Group.