TECOM Group Reports Stellar Financial Performance for FY 2025
TECOM Group PJSC (DFM: TECOM), a leader in developing specialized business districts and vibrant communities, has unveiled impressive financial results for the fiscal year ending December 31, 2025. With a remarkable revenue of AED 2.9 billion, the Group saw a significant year-on-year increase of 19%. Additionally, its recurring net profit surged to AED 1.5 billion, marking a 20% rise from the previous year.
Strong Growth Across Portfolios
This outstanding performance is largely attributed to robust growth in TECOM Group’s commercial, industrial, and land portfolios. The sustained demand for the Group’s assets, coupled with improved occupancy rates, was crucial in enhancing operational efficiency.
Chairman Malek Al Malek emphasized TECOM Group’s consistent growth as a reflection of the enduring economic momentum in both Dubai and the broader UAE. He noted that the Group achieved record financial results and near-full occupancy across most business districts, further solidifying its market position.
Commitment to Shareholders
In light of this success, the Board has proposed a 10% increase in the dividend for the second half of 2025 to AED 440 million. An updated dividend framework for 2026 suggests an expected total payout of AED 880 million, pending shareholder approval. This proposed increase is a strategic move to demonstrate TECOM Group’s commitment to providing sustainable returns while reinforcing Dubai’s status as a global business hub.
Highlights of the 2025 Financial Results
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Revenue Growth: Revenue for FY 2025 soared by 19% YoY to AED 2.9 billion. This result showcases the success of the Group’s strategic portfolio expansion and improved occupancy rates.
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EBITDA Performance: The EBITDA rose 20% YoY to AED 2.2 billion, buoyed by strong revenue growth across all business segments, resulting in an EBITDA margin of 78%.
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Recurring Profit: The recurring net profit reached AED 1.5 billion, reflecting effective cost management. Additionally, a non-cash impairment reversal of AED 608 million raised the total net profit for the year to AED 2.1 billion.
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Occupancy Rate: Occupancy levels remain strong, with commercial and industrial occupancy hitting 97% in 2025, an increase of 3% YoY. The Group’s industrial land lease portfolio also saw an uptick to 97%.
Q4 2025 Financial Highlights
In the fourth quarter of 2025, TECOM Group showcased continued strength:
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Revenue for Q4 increased by 16% YoY to AED 745 million.
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The EBITDA for the quarter grew 22% YoY, reaching AED 559 million with an EBITDA margin of 75%.
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The recurring net profit for Q4 reached AED 367 million, a remarkable 29% increase from the previous year.
Strategic Investments Fueling Growth
TECOM Group dedicated over AED 2.5 billion in strategic acquisitions and project development throughout 2025. Noteworthy investments include AED 1.6 billion for acquiring 138 industrial land plots in Dubai Industrial City. This strategic acquisition aims to address the escalating demand in the industrial sector.
The launch of Phase 4 of the Innovation Hub project in Dubai Internet City also reflects the Group’s proactive approach to meet the growing need for premium office space. With an expected gross leasable area of 263,000 sq. ft. and a total funding of AED 615 million, this development enhances Dubai Internet City’s reputation as a destination for technology firms.
Commitment to Environmental, Social, and Governance Initiatives
TECOM Group continues to champion its commitments to environmental, social, and governance (ESG) initiatives:
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The firm achieved EPRA Silver and Most Improved awards for excellence in ESG reporting, underscoring its commitment to sustainable practices.
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The UAE Majra – National CSR Fund honored TECOM Group with the Gold Impact Seal in recognition of its CSR efforts.
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Notably, 57% of the Group’s commercial portfolio has achieved LEED certification, with 16 new certifications obtained in 2025.
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TECOM has also generated 15.25 GWh of energy through on-site solar plants.
Future Outlook
Looking ahead, strong demand for premium commercial and industrial assets in Dubai is anticipated to persist into 2026. Analysts expect a 15% increase in both return on capital and rental rates, which will position TECOM Group to capitalize on these favorable market conditions as it continues to evolve its diverse asset portfolio.
Proposed Dividend for 2026
In conjunction with the positive financial results, the Board is proposing a cash dividend of AED 440 million for the second half of 2025, set for approval at the upcoming Annual General Meeting. Plans for an aggregate cash dividend of AED 880 million for FY 2026 are also in place, contingent on shareholder approval, with distributions aimed for two equal installments in 2026.
Through these initiatives and financial strategies, TECOM Group is not only enhancing its shareholder value but also contributing to Dubai’s robust economic framework, fortifying its influence as a key player in the region’s business landscape.
