TECOM Group FY 2024 net profit grows 14% to AED 1.2 billion driven by record revenue and strong performance across all business segments

Emirates 24/7

06-02-2025

FY 2024 revenue climbs 11% YoY to a record AED 2.4 billion , supported by high occupancy rates of 94% and retention rates of 92%.
FY 2024 EBITDA grows 12% YoY to AED 1.9 billion , reflecting robust operational performance across all business segments.
FY 2024 net profit surges 14% YoY to AED 1.2 billion , fueled by record revenue, enhanced operational efficiencies, and prudent financial management.
Funds from operations (FFO) exceed AED 1.6 billion , driven by increased revenue and operational efficiencies.
Group's asset portfolio expands significantly , with strategic acquisitions and development projects totalling AED 2.7 billion in 2024.
Fair value of the Group's Investment Property (IP) Portfolio rises 11% on a like-for-like basis and 22% inclusive of new acquisitions , reaching AED 28 billion in 2024.
Board of Directors proposes a dividend payment of AED 400 million (8 fils per share) for the second half of 2024, subject to shareholder approval at the Annual General Meeting on 10 March 2025. Dividend Proposal
The Board of Directors has proposed a dividend payment of AED 400 million (8 fils per share) for the second half of 2024, subject to shareholder approval at the Annual General Meeting on 10 March 2025. The interim cash dividend for the second half of 2025 is expected to increase by 10%. ESG Achievements in 2024
Sustainability: 49% of the Group's Commercial Portfolio (GLA) is LEED-certified, with 43 LEED-certified buildings.
Solar Energy: Solar generation increased by 15.5% to 14.2 GWh, contributing to 7.7% of total electricity consumption.
Waste Management: 36.3% of waste was sent to waste-to-energy plants.
Start-Up Support: The Group's in5 incubator supported 410 start-ups, with 30% owned by women.
CSR Initiatives: AED 1.4 million invested in initiatives like The Good Store and WeWalk. Corporate Highlights for FY 2024
Strategic Investments: TECOM Group invested AED 2.7 billion in acquisitions and developments, including: Phase 2 of Dubai Design District (d3): AED 825 million for six Grade-A office buildings.
Innovation Hub Phase 3 at Dubai Internet City: AED 340 million.
Acquisition of two Grade-A office buildings at Dubai Internet City: AED 420 million.
Land bank acquisition at Dubai Industrial City: AED 410 million.
Office Park acquisition at Dubai Internet City: AED 720 million.
New Customers: Dubai Internet City welcomed tech giants like Alibaba Cloud and Salesforce, while Dubai Industrial City attracted leaders such as Neelkanth Cables and OZON Pharma.
Community Initiatives: Dubai Design District (d3) launched Design Next, a circular economy-focused exhibition, and welcomed L'ÉCOLE, School of Jewelry Arts. Q4 2024 Financial Highlights
Revenue: Increased 11% YoY to AED 643 million.
EBITDA: Grew 9% YoY to AED 458 million, with an EBITDA margin of 71%.
Net Profit: Declined 8% YoY to AED 286 million, primarily due to the introduction of corporate tax and higher financing costs for new acquisitions.
Dubai, UAE, 6 February 2025: TECOM Group PJSC (DFM: TECOM), a leading creator of specialised business districts and vibrant communities, today announced its financial results for the year ended 31 December 2024 (FY 2024). The Group reported a record revenue of AED 2.4 billion, marking an 11% year-on-year (YoY) increase, and a 14% YoY rise in net profit to AED 1.2 billion. These results underscore the success of TECOM Group's strategy to strengthen its core business proposition in Dubai through targeted portfolio expansion, operational efficiencies, and robust occupancy and retention rates.
Malek Al Malek, Chairman of TECOM Group, said:
'TECOM Group's outstanding performance in 2024 reflects our unwavering commitment to leveraging Dubai's strong economic fundamentals and contributing to its knowledge economy. By attracting global companies and skilled talent across six key sectors, we continue to play a pivotal role in Dubai's growth story.
'Our strategic investments, totalling AED 2.7 billion in 2024, have expanded our portfolio and reinforced our position as a key driver of Dubai's business sector. We remain focused on delivering exceptional financial results, managing costs effectively, and maintaining high levels of customer satisfaction. Our strategic roadmap ensures sustainable growth and long-term value for our shareholders.'
Abdulla Belhoul, Chief Executive Officer of TECOM Group, added:
'Dubai's dynamic non-oil GDP growth has created a thriving environment for the commercial real estate and industrial sectors. As the leading owner and operator of specialised business districts, TECOM Group is uniquely positioned to support this growth trajectory.
'In 2024, we achieved significant growth in revenue, EBITDA, and property valuations, driven by strong asset performance, customer demand, and prudent cost management. Our success aligns with Dubai Economic Agenda 'D33', and we are confident in our ability to contribute to Dubai's future growth. Our share price performance, with a 15% YoY increase, underscores the sustainable value of TECOM Group's proposition.' FY 2024 Financial and Operational Insights
Revenue Growth: Revenue rose 11% YoY to AED 2.4 billion, driven by a 5% increase in occupancy to 94%, a retention rate of 92%, and higher rental rates.
EBITDA Growth: EBITDA increased 12% YoY to AED 1.9 billion, with an EBITDA margin of 77%, up 1% from FY 2023.
Net Profit Growth: Net profit grew 14% YoY to AED 1.2 billion, supported by strong revenue and cost management.
Occupancy and Retention: Commercial Portfolio occupancy reached 90% (retention: 91%), while Industrial Portfolio occupancy hit 98% (retention: 94%).
Funds from Operations (FFO): FFO rose 14% YoY to AED 1.6 billion, driven by improved collections and asset performance.
Investment Property Portfolio: The fair value of the Group's IP portfolio reached AED 28 billion, reflecting an 11% like-for-like increase and a 22% increase including new acquisitions.
Follow Emirates 24|7 on Google News.