Tecom Group reports 10% profit rise as Dubai business districts maintain 97% occupancy

Tecom Group, the owner and operator of 10 specialised business districts in Dubai, posted an 11 per cent year-on-year increase in revenue to Dh2.35 billion for the first nine months of 2026, driven by high occupancy and portfolio expansion across all leasing segments.

Recurring net profit rose 10 per cent to Dh1.22 billion for the nine-month period ended 30 September, the company said on Thursday. Portfolio occupancy stood at 97 per cent, while customer retention improved to 95 per cent from 93 per cent in the same period of 2025.

Revenue and profit growth

Revenue growth accelerated in the third quarter, rising 12 per cent to Dh809 million from Dh724 million a year earlier. The company attributed this primarily to a 35 per cent increase in land lease revenue, which reached Dh202 million.

Recurring net profit for the quarter climbed 12 per cent to Dh417 million, compared with Dh373 million in the same period of 2025. Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11 per cent to Dh627 million, with a margin of 78 per cent.

CEO comments on performance

Abdulla Belhoul, chief executive of Tecom Group, said the results reflected the strength of the group’s business model and its diversified Grade-A commercial and industrial portfolio.

“Our financial and operational results for the first nine months of 2026 underscore the strong demand for our diversified portfolio and our ability to achieve balanced growth across all our asset classes,” Belhoul said.

“The expansion of our industrial land lease portfolio also contributed to accelerated Q3 revenue growth, driven by high occupancy and customer retention rates. We will continue to strengthen our asset portfolio and implement our expansion and growth strategy across key sectors and future-focused industries,” he added.

Profitability and cash flow

For the nine-month period, EBITDA increased 11 per cent to Dh1.85 billion, with the margin holding at 79 per cent. Funds from operations (FFO) rose 11 per cent to Dh1.6 billion, which Tecom said reflected strong cash conversion and efficient collections.

Among the key segments, commercial assets’ revenue grew 10 per cent to Dh1.2 billion, supported by demand for Grade-A offices and additional leasable area.

Revenues from industrial assets rose 13 per cent to Dh365 million, with occupancy at 98 per cent and customer retention at 97 per cent.

Land lease revenue surged 26 per cent to Dh563 million, driven by continued demand and contributions from expansion.