The owner of Dubai business parks, TECOM Group, posted a Q4 2022 net profit of AED 87M ($24M), because of strong demand for its commercial and industrial assets. TECOM Group received $463M in an IPO last year. The business reported in a regulatory filing on Dubai’s DFM market on Friday that full-year profits totalled AED 725.6M, up 28% year over year (y-o-y).
However, according to data source Refinitiv’s analysis, the earnings fell short of analysts’ median profit expectations for Q4 of AED 185.6M. According to the firm, an increase in both new clients and occupancy rates caused the latest quarter’s revenue to rise by 4% YoY to AED 493.66M. FY 2022 revenue increased by 12% YoY to AED 1.97B, according to Zawya.
The dividend distribution amount for April 2023 has been set at AED 200M (4.0 fils per share) by the board of directors of TECOM, increasing the total for the second quarter to AED 400M. Since March 2022, the portfolio of investment properties owned by TECOM has increased in fair value by 9.7%, going from AED 19.41B to AED 21.29B.
Abdulla Belhoul, CEO of TECOM Group, said he expects sustained growth in rental rates and occupancy levels for the foreseeable future. “We will also continue to look at developing existing and new assets to improve our offering,” he added.
