• Strong year to date performance underpinned by continued buoyancy in Dubai’s economy and improving business sentiment
• H1 2022 revenue increased 15.8% YoY driven by higher occupancy rates across Commercial and Industrial leading segments, further boosted by remarkable performance of Services & Others segment
• Consistent increase in cash from operations and enhanced revenue visibility driven by high customer retention rate, reflects quality of customer base
Dubai, UAE – TECOM Group (DFM: TECOM), (the “Company” or the “Group”), the creator of specialised business districts and vibrant communities, today announced its financial results for the second quarter (Q2) and first half (H1) ending 30 June 2022.
- Revenue for the first six months of 2022 increased 15.8% year on year (YoY) to AED 989 million on increase in occupancy rates across Commercial and Industrial properties and strong revenue growth from the business and value-added service segment.
- EBITDA for the first six months of 2022 grew 22.4% YoY to AED 723 million on top line growth and enhanced operational efficiencies across all business segments, which helped the margin improvement.
- H1 2022 net profit jumped 43.4% YoY to AED 428 million due to aforementioned double-digit growth in revenue, enhanced operational efficiencies and also due to lower total financing costs. The Company is sustaining a strong net profit growth momentum, with Q2 net profit increasing 54.1% YoY and 24.7% quarter on quarter (QoQ) to AED 237 million.
- Funds from operations1 was AED 1.11 billion over the last twelve months (Q3 2021 – Q2 2022) on continued improvement in business conditions and continued high levels of customer retention.
- The net debt to EBITDA ratio has improved to 2.7x, owing to the Company’s hedging strategy against rising interest rates.
1 Funds from Operations = Cash flow from operations (including net financing costs and income) before changes in working capital
Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: “Our strong performance in the first half of the year builds on our solid performance in 2021 and underscores the strength of our well-balanced business model and the resilience of our diversified portfolio of quality, strategically located assets and value-added services. At the end of the period, the consolidated occupancy level at our operating assets was 82%, an encouraging increase from the 78% at the end of December 2021, reflecting positive business sentiment of our over 7,800 customers and reinforces our leadership position in Dubai. Our performance also reflects the constructive demand-supply dynamics of the commercial and industrial real estate market.
We are optimistic in our ability to sustain a steady increase in our occupancy levels and high customer retention levels for the upcoming period. This will add further stability to our revenue and cash flow for the midterm. Furthermore, our well-defined strategy for growth will enable us to take advantage of a broad spectrum of growth drivers from secular trends pertaining to each of the six vital sectors we cater to. Our scale, resilient financial performance through various market cycles, strategic land bank, experienced team, and current strong leverage position will enable us to swiftly capture those opportunities, further supporting long-term sustainable growth and helping to unlock additional value for our shareholders.”