TECOM Group nine-month net profit rises 23% YoY driven by record revenues of AED 1.7 billion

TECOM Group PJSC (DFM: TECOM), (the “Company” oregon the “Group”), the creator of specialised concern districts and vibrant communities, announced its fiscal results for the 9 months and the 3rd 4th (Q3) of the twelvemonth ending 30 September 2024.

The Group reported a grounds nine-month result, with a 10% year-on-year (YoY) summation successful gross to much than AED 1.7 cardinal and a 23% YoY summation successful nett net to AED 943 million.

Underpinned by beardown request from existing and caller customers, TECOM Group besides reported its grounds third-quarter performance, with quarterly revenues expanding 12% YoY to AED 611 cardinal and quarterly nett net rising 20% YoY to AED 340 million.

FINANCIAL HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

*Includes the caller onshore (13.9 cardinal sq.ft) acquired successful August 2024

Our grounds nine-month and third-quarter show demonstrates TECOM Group’s committedness to delivering sustainable, semipermanent maturation by harnessing Dubai’s pro-business framework,” said Abdulla Belhoul, Chief Executive Officer of TECOM Group PJSC. “We person achieved important maturation successful gross and profitability, driven by precocious occupancy rates crossed our diversified portfolio of premium commercial, industrial, and onshore lease assets. This show further underscores our quality to pull and clasp apical companies crossed six captious sectors. Our prudent fiscal strategies and proactive outgo absorption initiatives person besides contributed importantly to our awesome bottom-line show and enhanced our shareholder value.”

Financial Highlights
Nine Months 2024:

• Revenue accrued by 10% YoY to much than AED 1.7 cardinal – representing a grounds nine-month gross – driven by caller customers, sustained maturation successful rental rates, and steadfast occupancy levels crossed each concern segments.

o Occupancy crossed the Group’s commercialized and concern assets grew YoY from 88% to 94%, portion onshore occupancy reached 90% astatine the extremity of September 2024, driven by steadfast request for premium Grade-A bureau spaces, successful summation to retention and logistics facilities, arsenic Dubai continues to pull planetary businesses and talent.

o Customer numbers grew by 9% to scope much than 11,800, with planetary manufacture leaders specified arsenic Hisense and OZON Pharmaceuticals among the Group’s caller customers.

o Retention rates successful the commercialized and concern sectors stood astatine 90% and 95% respectively arsenic of 30 September 2024, highlighting the Group's exceptional worth proposition and its way grounds of exceeding lawsuit expectations.

• EBITDA accrued by 13% YoY to AED 1.4 cardinal with the EBITDA borderline expanding by 2% to scope 79% successful the archetypal 9 months of 2024, driven chiefly by improved gross prime and outgo savings successful enactment with Group’s strategy to optimise its halfway business.

• Net nett grew by 23% YoY to AED 943 million, reflecting affirmative fiscal show crossed each areas of the concern arsenic Dubai’s increasing attractiveness to investors.

• Funds from operations (FFO) grew by 20% YoY to much than AED 1.2 billion, attributable to the improved show of income-generating assets and enhanced operational effectiveness crossed the portfolio yielding affirmative results.

Q3 2024:

• Revenue grew by 12% YoY to AED 611 cardinal successful Q3 2024 – the Group’s highest third-quarter results – arsenic the Group responded to Dubai’s robust economical fundamentals and addressed increasing request for premium commercialized and concern existent property assets successful the city.

• EBITDA noted YoY maturation of 22% to AED 500 cardinal and EBITDA borderline accrued to 82% successful Q3 2024, reflecting beardown gross maturation and enhanced operational efficiencies.

• Net nett accrued by 20% YoY to AED 340 cardinal successful Q3 2024, underpinned by steadfast gross maturation and the optimisation of operating costs, alongside lowered costs owed to prudent currency absorption measures.

Strategic Asset Investments Highlights

TECOM Group completed AED 2 cardinal worthy of strategical plus investments successful the archetypal 9 months of 2024, including the acquisition of a onshore slope spanning 13.9 cardinal sq.ft. for concern leasing astatine Dubai Industrial City and 2 operational Grade-A bureau buildings, arsenic good arsenic the motorboat of Innovation Hub Phase 3 wrong Dubai Internet City, and the motorboat of Phase 2 of Dubai Design District (d3).

The investments are aligned with the Group’s strategical roadmap for sustainable maturation done targeted acquisitions and the improvement of high-quality commercialized existent estate. The investments were further uplifted by the acquisition of Office Park, which upon initiation during Q3 2024 raised TECOM Group’s full plus investments during 2024 to AED 2.7 billion.

The Group volition proceed to absorption connected task transportation crossed its concern districts, with Phase 2 of Innovation Hub, which is afloat leased out, connected way to beryllium handed implicit by the archetypal 4th of 2025. The 2nd signifier of retention and logistics spaces nether improvement astatine Dubai Science Park are acceptable for transportation successful Q1 2025. Pre-construction enactment is besides underway connected Phase 3 of Innovation Hub astatine Dubai Internet City and Phase 2 of Dubai Design District (d3).

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