TECOM Group PJSC, the creator of specialized business districts and vibrant communities, has declared a record revenue of AED2.4 billion ($653.4 million), signifying an 11 percent year-on-year (YoY) growth. This achievement also translates into a 14 percent YoY increase in net profit, reaching AED1.2 billion ($326.7 million) for the financial year ending 31 December 2024 (FY 2024). These results underscore the effectiveness of the Group’s strategy to bolster its core business offering in Dubai through targeted portfolio expansion and enhanced operational efficiencies, alongside robust occupancy and retention rates throughout 2024, according to a statement.
Expanding commercial and industrial portfolios
Malek Al Malek, chairman of TECOM Group, stated: “TECOM Group’s strong results in 2024 reaffirm our commitment to leveraging Dubai’s robust economic fundamentals and contributing to its knowledge economy by attracting global companies and skilled talent across six key sectors. Supported by its consistent track record and its strategic roadmap, TECOM Group continues to attain strong performance, in addition to expanding its commercial and industrial portfolios through targeted acquisitions and the development of high-quality assets. The AED2.7 billion of investments announced through 2024 will further expand the Group’s portfolio, enabling its continued sustainable growth and reinforcing its role as a strategic driver in Dubai’s business sector. We are investing in TECOM Group’s future while delivering exceptional financial results, carefully managing costs, and maintaining high levels of customer satisfaction, and will continue along our strategic roadmap to achieve long-term growth and returns for our shareholders.”
Strong asset performance and customer demand
Abdulla Belhoul, chief executive officer of TECOM Group, remarked: “Led by dynamic non-oil GDP growth, Dubai and the UAE are delivering sustained growth across the commercial real estate and the industrial sectors. We are perfectly positioned to support this trajectory as the leading owner and operator of specialized business districts that are attracting global companies and talent participating in Dubai’s success story. Driven by robust asset performance, strong customer demand, prudent cost management, and increased customer satisfaction, TECOM Group delivered substantial growth across revenue, EBITDA, and property valuation in 2024. We are confident in our ability to contribute towards Dubai’s thriving economy as well as its blueprint for future growth as envisioned by Dubai Economic Agenda ‘D33’. Our success through 2024 is demonstrated in our strong share price performance, with a YoY increase of 15 percent representing positive shareholder returns as well as the sustainable, long-term value of TECOM Group’s proposition.”
Key revenue drivers
Revenue surged by 11 percent YoY to surpass AED2.4 billion, fueled by a 5 percent YoY rise in occupancy to 94 percent, an impressive retention rate of 92 percent, and elevated rental rates. The fair value of the Group’s Investment Properties (IP) portfolio, assessed by CBRE, confirmed a fair value of AED28 billion as of 31st December 2024. This represents a like-for-like increase of 11 percent compared to 2023 levels and a YoY increase of 22 percent, including new acquisitions during the year.
In Q4 2024, revenue also increased by 11 percent YoY to AED643 million, while EBITDA rose by 9 percent compared to FY 2023, reaching AED458 million, with an EBITDA margin of 71 percent.
