Reflecting the positive indicators of Dubai's economy

TECOM Group: AED 200 million cash dividends for the second half of 2022

TECOM Group, listed on the Dubai Financial Market (DFM), which owns and operates specialized business parks focused on vital sectors, held its first Annual General Meeting (AGM) at Dubai Internet City on the evening of 14 March 2023.

Dividend Distribution

During the meeting, the Group's shareholders approved its financial statements for the year ended 31 December 2022 and the recommendation of the Board of Directors to distribute a cash dividend of AED 200 million in April 2023, bringing the total cash dividend for the second half of 2022 to AED 400 million.

The planned dividend is in line with the Group's previously announced policy of paying dividends to shareholders of AED 800 million per annum to be paid semi-annually until September 2025. All future decisions regarding dividends are subject to the recommendations of the Group's Board of Directors and the approval of its shareholders.

Distribution Policy

TECOM Group explained that the scheduled dividend is in line with the policy previously announced by the group to pay dividends to shareholders worth AED 800 million annually to be paid semi-annually until September 2025, pointing out that all future decisions related to dividends are subject to the recommendations of the Group's Board of Directors and the approval of its shareholders.

Financial Position

Malek Al Malik, Chairman of TECOM Group, said: "Today's dividend announcement reflects our firm confidence in the Group's growth prospects and confirms its success in maintaining its strong financial position by the end of 2022, as growing consumer confidence and increased demand for Dubai's commercial and industrial assets have played a significant positive role in increasing the Group's cash flows."

He added: "These positive indicators of Dubai's economy, supported by government strategies aimed at enhancing the ease of doing business and attracting foreign investments, are a key pillar to drive TECOM Group's journey full of achievements and successes, and achieve strong results and rewarding and sustainable returns for shareholders."

Powerful results

TECOM Group achieved strong financial results for the year ended 31 December 2022, with revenues of AED 1.97 billion, the highest in 22 years, while net profit increased by 28% year-on-year.

The fair value of the investment property portfolio increased by 9.7% since March 2022 to reach AED 21.29 billion by the end of the year. Recurring free cash flow increased to AED 964 million, up 21% year-on-year, thanks to good receivables and efficient cash transfer.

Integrated Portfolio

TECOM Group has a balanced asset portfolio with short and long-term leases, which supports the predictability of cash flows.

With an integrated portfolio of commercial and industrial assets, including offices, co-working spaces, warehouses and land, TECOM Group serves more than 9500,105 customers from leading international and regional companies in its sectors, employing more than <>,<> dedicated employees.

The Group also provides value-added solutions and services to provide a competitive business environment that supports the growth of companies and entrepreneurs, and stimulates communication and innovation among employees within the Group's business parks.