Press Release Regarding Financial Results for the 3rd QTR of 2023
PRESS RELEASE : BY TECOM ON OCT 31, 2023
TECOM Group PJSC Reports Strong Financial and Operational Performance in Q3 2023
Dubai, UAE, October 31, 2023 – TECOM Group PJSC (DFM: TECOM), a leading creator of specialized business districts and vibrant communities, has announced its financial results for the third quarter (Q3) and the 9-month period ending September 30, 2023. The Group has demonstrated robust growth in revenue and profitability, reflecting its strategic focus and market resilience.
Financial Highlights for 9M 2023:
- Revenue: Increased by 7% year-on-year (YoY) to AED 1.6 billion, driven by high occupancy levels and strong demand from existing and new customers.
- EBITDA: Rose by 14% YoY to AED 1.2 billion, with an expanded EBITDA margin of 78%.
- Net Profit: Increased by 20% YoY to AED 768 million in the first nine months of 2023.
- Q3 2023 Net Profit: Rose by 34% YoY to AED 283 million, demonstrating the Group’s ability to capitalize on favorable market conditions.
Operational Highlights:
- Occupancy level for commercial and industrial assets reached 88.5%, driven by growing demand for quality office space and storage & logistics facilities.
- The Group added more than 1,600 new customers, representing a 17% increase.
- Customer retention rate stood at 89%, reaffirming the Group’s unique offering and high customer satisfaction.
- Funds from operations (FFO) increased by 22% YoY to AED 1.1 billion, driven by improved operational efficiencies.
Project Development Highlights:
- The Group will begin the development of new storage & logistics facilities with a total GLA of 200,000 sq.ft. in Dubai Science Park, in response to the surge in demand for Grade A storage & logistics spaces across Dubai.
Abdulla Belhoul, Chief Executive Officer of TECOM Group, commented: “Our outstanding financial and operational performance over the nine-month period reflects our ability to capitalize on Dubai’s favorable market conditions. We remain committed to optimizing our diverse portfolio and sustaining high occupancy rates across our 10 business districts. The growing demand for our quality assets underscores our strategic positioning and commitment to delivering value to our customers.”
Belhoul added: “We are proud of the strong growth we have achieved, supported by our balanced business model and focus on operational excellence. Looking ahead, we are well-positioned to continue driving growth and delivering value to our stakeholders.”
About TECOM Group PJSC:
TECOM Group PJSC provides state-of-the-art built-to-lease (BTL) and built-to-suit (BTS) properties across various sectors, including technology, media, education, science, design, and manufacturing. The Group also offers industrial leasing and land leasing solutions, along with value-added government and business services. Additionally, TECOM Group provides a range of services promoting individual talent, startups, and entrepreneurship, as well as advertising, property, and venue management services.
