Tecom revenue rises as occupancy climbs to 92%

Tecom Group

Dubai-listed Tecom Group reported strong revenues in the first half of 2024 as occupancy levels in its commercial and industrial assets reached 92 percent.

Revenue for the first six months rose 9 percent to around AED1 billion ($300 million), supporting the net profit growth of 24 percent to AED603 million.

Occupancy levels across the land portfolio reached 96 percent, an 11 percentage point year-on-year rise thanks to government strategies and initiatives such as Operation 300bn, Make it in the Emirates and Dubai Economic Agenda D33.

The retention rate stood at 91 percent due to overall occupancy growth and the addition of more than 1,000 new customers.

Funds from operations increased by 24 percent year on year to AED840 million, supported by healthy collections and improved revenue quality across income-generating assets.

Net profit for the second quarter rose 35 percent to AED311 million, driven by revenue growth, operational optimisation and efficient capital management.

Revenue grew 9 percent year on year to AED584 million.

The company board approved an interim dividend payment of AED400 million for H1 2024 this month. The operator of business parks and free zones, expects to pay an annual dividend of AED800 million through 2025.