AED200 million cash dividend for H2 2022 approved by TECOM Group shareholders
The TECOM Group, a Dubai-based developer and operator of business communities, announced the approval of their financial statements for the year ending on December 31st, 2022. During the Annual General Assembly Meeting at Dubai Internet City, the Board of Directors approved a cash dividend of AED200 million for April 2023, bringing the total amount of dividend distributions for the second half of 2022 to AED400 million.
TECOM Group’s approved dividend distribution of AED200 million is in accordance with the company’s previously announced dividend policy of issuing AED800 million annually, which will be distributed in semi-annual installments to shareholders through September 2025. All future dividend distributions will be subject to the Board of Directors’ recommendation and shareholders’ approval.
Malek Al Malek, Chairman of TECOM Group, expressed his confidence in the Group’s growth prospects and the strong financial position of the company at the end of 2022. He said, “Today’s dividend announcement reflects our ongoing confidence in TECOM Group’s growth prospects and recognizes 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 robust financial results for the year ending December 31st, 2022. Revenues reached AED1.97 billion, the highest in 22 years, and net profit increased by 28% YoY. The total value of TECOM Group’s investment property portfolio increased by 9.7% since March 2022, reaching AED21.29 billion by the end of 2022. The Company’s recurring free cash flow increased by 21% YoY to AED964 million due to healthy accounts receivables and effective cash conversion.
TECOM Group has a well-balanced portfolio of assets with short- and long-term contracts that support cash flow predictability. The Group offers a diverse and customized leasing portfolio, including offices, co-working spaces, warehouses, and land, which cater to over 9,500 customers and more than 105,000 professionals.
Additionally, TECOM Group offers 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.
TECOM Group’s robust financial performance and strong cash flow generation reflect the resilience and adaptability of their business model in a challenging economic environment. The approved dividend distribution of AED200 million further demonstrates the Group’s commitment to delivering long-term value to shareholders while supporting their growth strategy.
