TECOM Group Profit Soars 18% to $300M Amid $1.2B Dubai Expansion

Strong Financial Performance in Nine-Month Report

TECOM Group has reported revenues exceeding AED 2.1 billion ($572 million) for the first nine months of 2025, marking a 20 percent increase compared to the previous year. The company’s net profit also saw a substantial rise, surpassing AED 1.1 billion ($299 million), an 18 percent year-on-year improvement.

This impressive performance can be attributed to higher occupancy rates, an increase in rental prices, enhanced operational efficiencies, and strategic portfolio expansions across premium commercial and industrial assets.

Leadership Commentary on TECOM’s Performance

Abdulla Belhoul, CEO of TECOM Group, remarked that the company’s “robust financial and operational performance for the first nine months of 2025 reflects our agility in navigating market dynamics and a disciplined focus on delivering customer value.” He emphasized that the Group’s strategic expansion plan of AED 4.3 billion ($1.17 billion), initiated last year, has significantly bolstered TECOM’s contribution to Dubai’s vibrant business landscape.

“Our performance reinforces TECOM Group’s major contribution towards Dubai’s pro-business environment and attractiveness to global investors. Our roadmap for sustainable growth is designed to create long-term shareholder value,” he added.

TECOM Nine-Month Financial Highlights

Revenue Growth and Profitability

• Revenue: Increased by 20 percent year-on-year to exceed AED 2.1 billion ($572 million), fueled by acquisitions, rising occupancy, and increased rental rates.

• Occupancy Rates: The commercial and industrial portfolio’s occupancy climbed to 96 percent, up 2 percent year-on-year. Land occupancy improved by 8 percent, reaching 98 percent, indicating strong demand for Grade-A offices and industrial land.

• EBITDA: The company’s EBITDA rose by 20 percent year-on-year to AED 1.7 billion ($463 million), maintaining a margin of 79 percent, driven by quality revenue and operational efficiencies.

• Net Profit: Grew 18 percent year-on-year to more than AED 1.1 billion ($299 million).

• Funds from Operations (FFO): Reported an increase of 16 percent year-on-year to AED 1.5 billion ($409 million), largely due to stronger income-generating assets and effective collection practices.

Sustained Momentum in Q3 2025 Performance

Continued Growth Across Key Metrics

• Revenue: In Q3 2025, TECOM Group’s revenue reached AED 724 million ($198 million), representing a 19 percent year-on-year increase.

• EBITDA: EBITDA for the quarter rose 13 percent year-on-year to AED 563 million ($153 million), achieving a margin of 78 percent.

• Net Profit: The net profit for Q3 grew by 10 percent year-on-year to AED 373 million ($98 million), supported by robust leasing activities and sound financial management.

Strategic Expansion through Industrial Portfolio

In August 2025, TECOM Group completed the acquisition of 138 land plots valued at AED 1.6 billion ($436 million) in Dubai Industrial City to cater to the escalating demand within the manufacturing and logistics sectors. This transaction expands TECOM’s total land lease portfolio to over 209 million square feet and enhances Dubai Industrial City’s capacity to accommodate new and existing tenants amid the UAE’s rapidly growing industrial landscape.

This strategic investment is part of TECOM’s broader AED 4.3 billion ($1.17 billion) expansion plan initiated since last year, aimed at reinforcing its commitment to sustainable growth and long-term shareholder value.

Commitment to Dividends and Shareholder Returns

TECOM Group has fulfilled its dividend commitments by completing a payment of AED 400 million ($109 million) for the first half of 2025. This payment concludes a total of AED 2.4 billion ($654 million) in dividends distributed over the past three years, in line with its pledge of AED 800 million ($218 million) in annual distributions since its initial public offering in 2022.

These strong financial results illustrate Dubai’s ongoing leadership in attracting Greenfield FDI projects and solidify the emirate’s reputation as a global center for innovation, industry, and investment. The Group remains focused on optimizing asset performance, maintaining disciplined capital management, and contributing to Dubai’s ambition to become one of the world’s most business-friendly cities.

Published on 1761941420 • Category: Results,TECOM,TECOM business parks,Tecom Group