TECOM Group PJSC Achieves Robust Financial Growth Amid Rising Demand in Specialized Business Districts
TECOM Group PJSC, a leading developer based in Dubai, has reported an impressive financial performance for the fiscal year ending December 31, 2025. The organization registered a strong 19 percent increase in revenue, amounting to an impressive AED 2.8 billion. This surge can largely be attributed to a combination of strategic portfolio expansion and the sustained demand for its specialized business districts, which are vital to the emirate’s economic fabric.
The fiscal strength of TECOM Group is echoed in the notable rise in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which escalated by 20 percent to AED 2.2 billion. This growth reflects the company’s operational efficiency, highlighted by a significant EBITDA margin of 78 percent. Moreover, the recurring net profits ascended to AED 1.5 billion, also representing a commendable 20 percent year-on-year progression. This financial resilience underscores effective cost management practices and optimised financing strategies undertaken by the Group.
A pivotal aspect of TECOM’s success can be traced to the high occupancy levels within its commercial and industrial assets. The company reported an exceptional occupancy rate of 97 percent, a three percentage point increase from the previous year. Within this figure, commercial properties achieved a 95 percent occupancy rate, while their industrial counterparts reached an impressive 98 percent. These occupancy metrics are critical indicators of investor confidence and business vitality within the region, and they underline TECOM’s successful adaptation to market demands.
In alignment with its robust operational framework, the Fund from Operations (FFO) also saw a healthy uptick of 19 percent, landing at AED 2 billion. This increase is a result of improved collections and the heightened performance of income-generating assets, further strengthening the Group’s fiscal position. Significantly, the fair value of TECOM Group’s investment property portfolio experienced a remarkable 23 percent year-over-year growth, now valued at AED 34.5 billion. Such an enhancement in asset value not only signifies the Group’s sound investment decisions but also reflects the burgeoning real estate sector in Dubai.
In 2025 alone, TECOM Group notably invested over AED 2.5 billion in various acquisitions and project developments, a move that illustrates its commitment to both growth and sustainability. Among these investments was a substantial AED 1.6 billion allocation in August to acquire 138 industrial land plots covering 33 million square feet in Dubai Industrial City. This strategic acquisition is emblematic of TECOM’s vision to bolster its footprint in the industrial sector, ensuring that it remains at the forefront of meeting the region’s infrastructural demands.
In response to its strong financial performance, the Board of Directors proposed a 10 percent increase in the second-half dividend, amounting to AED 440 million. The Group is also laying the groundwork for an updated dividend framework for 2026, which anticipates an aggregate payout of AED 880 million, contingent upon shareholder approval. This commitment to returning value to shareholders is indicative of the Group’s confidence in its ongoing growth trajectory and sustainable business model.
Moreover, TECOM Group has not only been focused on financial metrics but has also made significant strides in its Environmental, Social, and Governance (ESG) agenda. The Group successfully generated 15.25 GWh of electricity from on-site solar plants, which corresponds to seven percent of its total electricity consumption. This initiative not only reinforces TECOM’s dedication to sustainable practices but also showcases its proactive approach to mitigating environmental impact, aligning its operations with global sustainability trends.
In summary, TECOM Group PJSC’s stellar fiscal report for 2025 is a testament to its effective strategy and robust market positioning in a rapidly evolving economic landscape. The combination of high occupancy rates, significant investments, and a forward-thinking approach toward sustainability positions the Group not only as a leader in Dubai’s real estate market but also as a beacon for future growth in the region.
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