2024-01-31 22:07:19
Yesterday, TECOM Group announced record revenues last year, amounting to 2.2 billion dirhams, an increase of 10% year-on-year, in addition to a 49% growth in net profits to reach 1.1 billion dirhams for the financial year ending on December 31, 2023.
The “Group” stated, in a statement, that the strong financial performance is driven by the high level of demand from existing and new customers across the sectors that the “Group” focuses on, thanks to the positive performance of the Dubai economy, and government strategies and initiatives aimed at achieving economic development, in addition to the investment environment. The attractive and flexible nature that characterizes the emirate.
She indicated that revenues in 2023 are the highest ever for the group, thanks to the high occupancy rates resulting from high customer retention rates and the increase in the number of new customers across the group’s portfolio.
The occupancy rate of commercial and industrial assets reached 89% as of December 31, 2023, achieving the third successive growth, with a significant increase, compared to the occupancy rate at the end of 2022, which amounted to 86% at the time.
There was a great demand for leasing industrial lands in 2023, as the occupancy rate rose to 94%, compared to an occupancy rate of 81% during 2022.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 23% on an annual basis to reach 1.7 billion dirhams, while the EBITDA margin increased to 76% during the fiscal year 2023, compared to 68% during the fiscal year 2022, and this noticeable increase is due to an improvement in Quality of revenues as a result of remarkable economic growth.
Net profits achieved a remarkable jump of 49%, driven by strong growth across all business sectors, and a decrease in operational and financial costs as a result of the continuous efforts made by the Group to enhance the efficiency of operations and reduce costs, to meet its financing needs and support growth plans.
After completing an independent evaluation process, the market value of the group’s investment real estate portfolio increased by 7.7% on an annual basis, reaching 22.9 billion dirhams as of December 31, 2023, achieving a record growth of 18.2% since the date of the group’s initial offering, which reflects the distinguished performance. for its operational assets.
The Chairman of the Board of Directors of TECOM Group, Malek Al Malek, said: “2023 was a distinguished year for the economy of the UAE and the Emirate of Dubai, as many economic sectors recorded strong performance, including the commercial real estate sector in Dubai, which outperformed the real estate markets in major international cities.” ».
He added: “As part of our commitment to achieving strong returns for shareholders, and in line with the group’s dividend policy, the Board of Directors recommended distributing cash dividends worth 400 million dirhams to shareholders for the second half of 2023.”
For his part, TECOM Group CEO, Abdullah Belhoul, said: “Our strong financial performance reflects our ability to seize opportunities in the thriving commercial and industrial assets sector in Dubai, and meet various demand trends.”
He added: “The main driver of occupancy rates reaching 89% was the continued strong pace of demand for assets in all sectors, especially in the industrial sector. We have also witnessed an increase in demand rates from clients for high-quality office space in central locations, such as (Dubai Design District). )».
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