TECOM Group reports 9% net profit growth in first half of 2026 to AED805 million

Dubai: TECOM Group PJSC reported a 9 percent year-on-year increase in recurring net profit for the first half of 2026, reaching AED805 million, supported by strong demand across its specialised business districts. Revenue for the six-month period rose 11 percent year-on-year to more than AED1.5 billion, driven by higher occupancy rates, improved rental yields and contributions from portfolio expansion. Occupancy across the group's portfolio increased to 97 percent. The company's Board of Directors approved an interim cash dividend of AED440 million for the first half of 2026, reflecting its commitment to delivering sustainable shareholder returns. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 10 percent year-on-year to more than AED1.2 billion, generating a margin of 79 percent. Funds from operations (FFO) rose 12 percent to AED1.1 billion, supported by diversified revenue streams and operational efficiency. Malek Al Malek, Chairman of TECOM Group, said the results demonstrate the strength of the group's business model and its ability to capitalise on opportunities across the sectors it serves. Abdulla Belhoul, Chief Executive Officer of TECOM Group, said strong demand for the group's assets and high customer retention rates reinforce the attractiveness of its business ecosystems for regional and international companies. The Commercial portfolio recorded an 11 percent increase in revenue to AED783 million, supported by continued demand for Grade-A office space and occupancy and retention rates of 96 percent and 94 percent, respectively. Revenue from industrial assets grew 15 percent year-on-year to AED239 million, while occupancy reached 98 percent and customer retention stood at 99 percent, highlighting strong demand from manufacturing and logistics businesses. The Land Lease portfolio delivered a 22 percent increase in revenue to AED361 million, driven by sustained demand and the leasing of land acquired in 2025. During the first half, Hisense opened its Middle East and Africa regional headquarters in Dubai Internet City, while MedLab Training Institute launched a new facility at Dubai Science Park. AJ Al Asmawi Group also signed a Musataha agreement with Dubai Industrial City to develop a 330,000-square-foot project, including one of the UAE's first oil rig manufacturing and refurbishment facilities. Dubai Design District (d3) hosted the Autumn/Winter 2026/27 edition of Dubai Fashion Week during the period. For the second quarter alone, revenue increased 11 percent year-on-year to AED786 million, while EBITDA rose 8 percent to AED613 million, resulting in a margin of 78 percent. Recurring net profit for the quarter grew 7 percent year-on-year to AED401 million, supported by EBITDA growth and disciplined cost management.