TECOM net profit surges 14% to $330m after record revenue in FY2024
With occupation rate improving to 94 per cent, higher rental rates, and a retention rate at 92 per cent for the full year 2024, TECOM Group announced its revenue increased by 11 per cent YoY during the financial year to more than AED2.4bn ($650m).
EBITDA increased 12 per cent YoY to reach AED1.9bn ($520m), reflecting strong operational performance across all business segments. EBITDA margin increased to 77 per cent, a 1 per cent increase compared to FY 2023.
Net profit was up 14 per cent to AED1.2bn ($330m), while funds from operations (FFO) exceeded AED1.6bn ($440m) due to an increase in revenue and operational efficiencies.
TECOM profits
Malek Al Malek, Chairman of TECOM Group, said: 'TECOM Group's strong results in 2024 reaffirm our commitment to leveraging Dubai's robust economic fundamentals and contributing to its knowledge economy by attracting global companies and skilled talent across six key sectors.
'Supported by its consistent track record and its strategic roadmap, TECOM Group continues to attain strong performance, in addition to expanding its commercial and industrial portfolios through targeted acquisitions and the development of high-quality assets.
'The AED2.7bn ($740m) of investments announced through 2024 will further expand the Group's portfolio, enabling its continued sustainable growth.'
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: 'Led by dynamic non-oil GDP growth, Dubai and the UAE are delivering sustained growth across the commercial real estate and the industrial sectors. We are perfectly positioned to support this trajectory as the leading owner and operator of specialised business districts that are attracting global companies and talent to the emirate.
'Driven by robust asset performance, strong customer demand, prudent cost management, and increased customer satisfaction, TECOM Group delivered substantial growth across revenue, EBITDA, and property valuation in 2024. We are confident in our ability to contribute towards Dubai's thriving economy as well as its blueprint for future growth as envisioned by Dubai Economic Agenda 'D33'.'
Assessment of the group's Investment Properties (IP) portfolio, conducted by CBRE, ascertained a fair value of AED28bn ($7.62bn) as of 31 December 2024, representing a like-for-like increase of 11 per cent compared to 2023 level, and an increase of 22 per cent including new acquisitions.
For Q4 2024, r evenue increased 11 per cent YoY to AED643m ($175.1m) and EBITDA grew by 9 per cent, reaching AED458m ($124.7m). Net profit was AED286m ($77.9m), lower by 8 per cent compared to Q4 2023 due to the application of corporate tax that came into effect from 2024 and the increase in financing cost for new acquisitions.
The Board of Directors proposed a dividend payment of AED400m (8 fils per share) for the second half of 2024. The board has also reviewed the interim cash dividend for the second half of 2025 which is expected to increase by 10 per cent.
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