Tecom Group Profit Climbs 10% As Dubai's Business Districts Stay 97% Full

(MENAFN- Khaleej Times) Tecom Group on Thursday reported an 11 per cent year-on-year rise in revenue to Dh2.35 billion for the first nine months of 2026, as high occupancy and expansion of its asset portfolio drove growth across all leasing segments.

The owner and operator of 10 specialised business districts in Dubai said recurring net profit rose 10 per cent to Dh1.22 billion for the nine months ended 30 September. Portfolio occupancy stood at 97 per cent.

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Revenue growth picked up in the third quarter, rising 12 per cent to Dh809 million from Dh724 million a year earlier. The company said this was driven mainly by a 35 per cent increase in land lease revenue to Dh202 million.

Recurring net profit for the quarter climbed 12 per cent to Dh417 million, compared with Dh373 million in the same period of 2025. Quarterly EBITDA rose 11 per cent to Dh627 million, with a margin of 78 per cent.

Abdulla Belhoul, CEO of Tecom Group, attributed the performance to the strength of the group's business model and its diversified Grade-A commercial and industrial portfolio.

“Our financial and operational results for the first nine months of 2026 underscore the strong demand for our diversified portfolio and our ability to achieve balanced growth across all our asset classes,” he said.

“The expansion of our industrial land lease portfolio also contributed to accelerated Q3 revenue growth, driven by high occupancy and customer retention rates. We will continue to strengthen our asset portfolio and implement our expansion and growth strategy across key sectors and future-focused industries,” he added.

Profitability and cash flow

For the nine months, EBITDA increased 11 per cent to Dh1.85 billion, with the margin holding at 79 per cent. Funds from operations (FFO) rose 11 per cent to Dh1.6 billion, which Tecom said reflected strong cash conversion and efficient collections.

Among the key segments, commercial assets' revenue grew 10 per cent to Dh1.2 billion, supported by demand for Grade-A offices and more leasable area.

Revenues from the industrial assets rose 13 per cent to Dh365 million, with occupancy at 98 per cent and customer retention at 97 per cent.

Land lease revenue surged 26 per cent to Dh563 million, driven by continued demand and contributions from expansion.

Customer retention across the group improved to 95 per cent from 93 per cent in the same period of 2025.

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