DUBAI, UAE – TECOM Group, the creator of specialized business districts and vibrant communities, held its Annual General Assembly meeting here to approve key resolutions.
The shareholders approved the financial statements for the year ended December 31 2023 and a recommendation by the Board of Directors to distribute a cash dividend of US$108 million AED400 million (8 fils per ordinary share) for the second half of 2023, bringing the total amount of dividend distributions for the fiscal year 2023 to US$217 million (AED800 million).
The approved cash dividend payment is in line with the dividend policy set out in the IPO prospectus, in which TECOM Group committed to paying a total dividend amount of US$217 million (AED800 million) per annum through September 2025.
All matters related to future dividend distributions will be subject to the Board of Directors’ recommendation and shareholders’ approval.
Malek Al Malek, Chairman of TECOM Group, said, “The outstanding financial and operational performance delivered by TECOM Group in 2023 demonstrates the strength of our business model, the attractiveness of our 10 specialized business districts and our unparalleled capabilities that enabled us to benefit from the opportunities in the UAE and Dubai.”
He said, “The group remains at the forefront of innovation, delivering on its role as a strategic business enabler of Dubai, while ensuring we continue to deliver superior value to our shareholders.”
TECOM Group reported a strong financial and operational performance in the financial year ended December 31 2023, with revenues growing by 10 percent YoY to a record-breaking US$599 million (AED2.2 billion) and a 49 percent YoY surge in net profit to an all-time high US$299 million (AED1.1 billion).
The group 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 percent, while the occupancy rate of land leases rose to 94 percent.
In addition to that, the group’s international and regional marquee customer base rose by 15 percent 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.