TECOM Group approves AED 400 million cash dividend

The shareholders of TECOM Group have approved a recommendation by the Board of Directors to distribute a cash dividend of AED 400 million (8 fils per ordinary share) for the second half of 2023.

This brings the total amount of dividend distributions for the fiscal year 2023 to AED 800 million.

TECOM Group, the creator of specialised business districts and vibrant communities, held its annual general assembly meeting at Dubai Internet City to approve key resolutions.

Malek Al Malek, Chairman of TECOM Group, said, "The outstanding financial and operational performance delivered in 2023 demonstrates the strength of our business model, the attractiveness of our 10 specialised business districts and also our unparalleled capabilities that enabled us to benefit from the promising opportunities presented in the UAE and Dubai."

The approved cash dividend payment is in line with the dividend policy set out in the IPO prospectus, in which the company committed to paying a total dividend amount of AED 800 million per annum through September 2025.

TECOM Group shareholders approved a recommendation by the board of directors to distribute a cash dividend of AED 400 million for H2 2023 at its annual general assembly meeting.

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— TECOM Group (@TECOMGroupDubai) March 5, 2024

The Group reported a strong financial and operational performance in the financial year ended December 31, 2023, with revenues growing by 10 per cent year-on-year (YoY) to a record-breaking AED 2.2 billion and a 49 per cent YoY surge in net profit to an all-time high AED 1.1 billion.

It also maintained a robust balance sheet as well as an increase in its funds from operations (FFO) and recurring free cash flow (RCFC).

As of December 31, 2023, the occupancy rate for the commercial and industrial portfolio stood at 89 per cent, while the occupancy rate of land leases rose to 94 per cent.

In addition to that, the Group’s international and regional marquee customer base rose by 15 per cent to reach 11,000 customers.

This strong performance was driven by the robust demand from new and existing customers operating across all six sectors the Group serves, underpinned by Dubai’s resilient economic performance, pro-growth and diversification government initiatives, and bullish consumer and business confidence.

Through a diverse leasing portfolio that caters to six vital sectors, the Group offers attractive ecosystems for businesses, entrepreneurs and talent from around the world, contributing to the UAE’s and Dubai’s knowledge-based economy.