TECOM Group’s profit rose by 70% year-on-year (YoY) to AED 221.5 million ($60.3 million) in Q3 after a sharp rise in demand in the commercial real estate market, its CEO said.

The rising demand was underpinned by Dubai’s economic expansion and the government's pro-growth strategy, Abdulla Belhoul said in a filing to the Dubai Financial Market.

The freezone and real estate management company, which has Dubai Holding LLC as its parent company, reported a revenue of AED 490.2 million in Q3 2022, up from AED 435.9 YoY.

Profit for the first nine months of 2022 was AED 639 million, up YoY from AED 422.5 million, while revenue was up to AED 1.48 billion from AED 1.29 billion YoY.  

The company’s share price was at trading at AED 2.26 today, which is below the current median of AED 2.92, according to Refinitiv data. 

Belhoul said: “As Dubai’s largest commercial real estate owner, TECOM Group remains well-positioned to capitalise on the encouraging economic growth and positive business sentiment within the six knowledge-based economic sectors it caters to.

“Improvement in commercial rental rates and strong occupancy levels will continue to drive revenue growth across our commercial leasing properties while structural medium-term tailwinds in the industrial, construction, and logistics sector will bolster our industrial, land leasing and value-add service segments.”

The group’s total assets were valued at AED 14.7 billion at September 30, compared with 16.4 billion at 31 December 2021, according to its Q3 financial statement.

Profits were down quarter-on-quarter as in the second quarter, Tecom posted a profit of AED 237.3 million, previously posted financial results show.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com