TECOM Group (TECOM) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with 21% YoY revenue growth and 23% YoY EBITDA increase, supported by high occupancy and robust market demand.

• Revenue for Q1 2025 was AED 679.7 million, up from AED 564.0 million year-over-year, driven by growth across all leasing segments.

• Net profit for the period reached AED 360.9 million, a 23% increase from AED 292.5 million in Q1 2024.

• Maintained a 95% consolidated occupancy rate (excluding land leasing) and a 96% retention rate.

• Continued portfolio expansion with AED 2.7bn invested in 2024 for acquisitions and development.

Financial highlights

• Q1 2025 revenue: AED 680mn, up 21% YoY; EBITDA: AED 540mn, up 23% YoY; Net profit: AED 361mn, up 21% YoY.

• Gross profit rose to AED 464.7 million from AED 378.7 million year-over-year.

• Operating profit increased to AED 423.4 million from AED 334.6 million.

• Funds from operations (FFO) reached AED 480mn, up 13% YoY.

• Cash generated from operations was AED 538.4 million, up from AED 425.4 million.

Outlook and guidance

• 2025 revenue and EBITDA expected to grow by 10-12% YoY.

• The Group expects to recognize AED 44.3 million in revenue from unsatisfied performance obligations over the next two years.

• Sufficient working capital and undrawn financing facilities are available to support ongoing investments.

• Positive outlook for Dubai’s commercial and industrial real estate markets, with continued high demand and rental growth.

• Board proposes a 10% increase in H2 2025 dividend, subject to shareholder approval.