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TECOM GROUP reports strong growth in first 9 months of 2022 with net profit increasing 51% to aed 639 million driven by sustained increase in occupancy rates

25 October 2022
Press Release

TECOM Group PJSC (DFM: TECOM), (the “Company” or the “Group”), the creator of specialised business districts and vibrant communities, today announced its financial results for the third quarter (Q3) and first nine months ending 30 September 2022. 

Financial & Operating Highlights
AED ‘000s
(Unless otherwise stated)

Third Quarter

First Nine Months



% Change (YoY)



% Change (YoY)















Net Profit







Q3 2022:

  • Revenue came in at AED 490 million, increasing 12.48% year on year (YoY) driven by rising occupancy levels across the portfolio, especially office, warehouse, and worker accommodation
  • EBITDA for the three-month period was AED 364 million up 26.76% YoY, supporting margin expansion. Higher EBITDA levels was driven by top line growth and lower operational expenses thank to the implementation of groupwide efficiency enhancement initiatives
  • Net profit increased 70% year on year (YoY) to AED 212 million in strongest quarter, as growth across segments was sustained 

9 Months 2022:

  • Revenue 2022 increased 15% YoY to AED 1.48 billion, driven by strong growth across all business segments
  • As at 30 September 2022, occupancy levels for commercial and industrial assets was 83.5%, registering the third sequential growth and a significant increase from year end 2021 occupancy levels of 78.3%. The sustained growth momentum in occupancy is owed to the very strong customer retention rates, increase in new customers across the portfolio underpinned by Dubai’s continued economic growth and diversification. New customers include Motorola Solutions, Rakuten, Dubatt and M–Glory amongst others.
  • EBITDA increased 24% YoY to AED 1.09 billion, owing to revenue growth and improved revenue quality from all business segments and lower operational expenses
  • Net profit grew 51% YoY to AED 639 million, underpinned by strong growth in revenues, lower operational expenses, and prudent financial management
  • Funds from Operations (FFO) was AED 864 million (AED 1,228 LTM), a 34% YoY increase, demonstrating the Company’s continued focus on driving quality revenue and enhancing its operating efficiency
  • The Loan to Value (LTV) stands at 16%, and the net debt to LTM EBITDA ratio, a measure of financial leverage, stands at 2.2x on strong EBITDA growth and the Company’s continued hedging against rising interest rates
  • On 14 October 2022, the Board of Directors recommended an interim cash dividend payment of AED 200 million (4.0 fils per share), the first payment of the proposed AED 400 million payout for the second half of 2022 in line with the dividend policy, subject to shareholder approval at the next Annual General Meeting.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: “Our strong revenue and profit growth since the start of the year and our particularly remarkable performance in Q3 is a testament to the Group’s ability to effectively deliver on its growth strategy to drive net asset value growth and maximise shareholder returns.

The increase in occupancy rates across our portfolio reflects the sharp rise in demand in the commercial real estate market, underpinned by Dubai’s economic expansion and the government’s pro-growth initiatives to further improve the ease of doing business and attract top global talent and foreign direct investment. As Dubai’s largest commercial real estate owner, TECOM Group remains well-positioned to capitalise on the encouraging economic growth and positive business sentiment within the six knowledge-based economic sectors it caters to.

Improvement in commercial rental rates and strong occupancy levels will continue to drive revenue growth across our commercial leasing properties while structural medium-term tailwinds in the industrial, construction, and logistics sector will bolster our industrial, land leasing and value-add service segments. With a well-balanced portfolio and complementary comprehensive service offering, we remain optimistic in our ability to maintain a robust financial performance in light of global market uncertainty and will continue to contribute to strengthening Dubai’s position as an attractive global business and talent hub.”