DUBAI, 15th March, 2023 (WAM) — TECOM Group has approved the Group’s financial statements for the year ended 31st December 2022. The Board of Directors approved to distribute a cash dividend of AED200 million in April 2023, bringing the total amount of dividend distributions for the second half of 2022 to AED400 million.
The announcement came during the Annual General Assembly Meeting at Dubai Internet City on Tuesday.
The approved dividend distribution is in line with the Group’s previously announced dividend policy of issuing AED800 million annually, to be distributed in semi-annual instalments, to shareholders through to September 2025. All matters related to future dividend distribution will be subject to the Board of Directors’ recommendation and shareholders’ approval.
Malek Al Malek, Chairman of TECOM Group, said, “Today’s dividend announcement reflects our ongoing confidence in TECOM Group’s growth prospects and recognises the Group’s strong financial position at the end of 2022. Buoyant consumer confidence and an increase in demand for commercial and industrial real estate in Dubai have positively contributed to our strong cash-flow generation.”
TECOM Group reported strong financial results for the year ended 31st December 2022, with revenues reaching AED1.97 billion – the highest in 22 years – and net profit increasing 28% year-on-year (YoY).
The total value of TECOM Group’s investment property portfolio increased by 9.7% since March 2022 to AED21.29 billion by the end of 2022. The Company’s recurring free cash flow increased to AED964 million, up 21% YoY, on the back of healthy accounts receivables and effective cash conversion.
TECOM Group has a well-balanced portfolio of assets with both short and long-term contracts, which supports cash flow predictability.
With a varied and tailor-made leasing portfolio, which includes offices, co-working spaces, warehouses, and land, TECOM Group caters to over 9,500 customers and more than 105,000 professionals.
The Group also offers additional value-added services to deliver a competitive and attractive environment for businesses and entrepreneurs to thrive in and to facilitate engagement among the districts’ community members.