TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the creator of specialised business districts and vibrant communities, today announced shareholder approval of the proposed interim dividend payment of AED 200 million (4.0 fils per share) following its first General Assembly Meeting since listing on the Dubai Financial Market (DFM) on 5 July 2022.
The approved AED 200 million cash distribution is in line with the Group’s previously announced dividend policy of distributing AED 800 million annually, to be distributed in semi-annual payments, to shareholders through to October 2025. All matters related to future dividend distribution will be subject to Board of Director’s recommendation and shareholders’ approval.
Malek Al Malek, Chairman of TECOM Group, said: “TECOM Group has sustained its strong performance since the start of the year in line with the sharp rise in demand in the commercial and industrial real estate market in Dubai. This buoyancy is underpinned by the economic expansion and the government’s initiatives to promote further growth and excellence, enhance the ease of doing business and attract top global talent and foreign direct investment.”
"Per the Board of Directors’ recommendation and the subsequent approval of our shareholders, we are delighted to announce the distribution of interim cash dividends in line with the dividend policy previously outlined in the IPO prospectus," he added.
TECOM Group intends to distribute cash dividends as follows:
TECOM Group reported strong financial performance for the first nine months of 2022, with net profit increasing 51% year-on-year (YoY) to AED 639 million. These robust results were underpinned by the double-digit growth in revenue driven by high occupancy levels, lower operational expenses due to operational efficiency measures and lower financial costs thanks to prudent financial management.
The Company’s Funds from Operations (FFO), a measure of its cash from operations, was AED 864 million for the nine-month period (AED 1,228 million over the last twelve months), a 34% YoY increase, demonstrating the Company’s successful continued focus on driving quality revenues amid an improving economic backdrop.
With a varied and tailor-made leasing portfolio, which includes offices, co-working spaces, warehouses, and land, TECOM Group caters to over 7,800 customers and more than 100,000 professionals. The Group also offers additional value-added services to deliver a competitive and attractive environment for businesses and entrepreneurs to thrive in and to facilitate engagement between the districts’ community members.
TECOM Group acts as a key contributor to Dubai’s economic diversification and development, attracting leading international corporations, entrepreneurs and specialised talent to the Emirate’s global business hub.