TECOM Group (TECOM) investor relations material

Executive summary

• Achieved strong operational and financial performance in H1 2026, with revenue rising to AED 1,540.3 million and net profit to AED 804.7 million, reflecting double-digit growth year-over-year.

• Maintained high occupancy rates and stable rental performance across commercial, industrial, and land leasing segments, with overall blended WALT of 9.5 years.

• Continued portfolio expansion through significant investments in land acquisition, development projects, and acquisition of investment property for AED 475.5 million.

• Declared and paid interim dividends of AED 440 million (AED 0.09 per share), a 10% increase over previous payouts.

• Operations remained resilient despite regional geopolitical uncertainty.

Financial highlights

• Revenue reached AED 1,540.3 million, up 11% vs. H1 2025; EBITDA rose 10% to AED 1,223 million with a margin of 79%.

• Recurring net profit increased 9% to AED 805 million; FFO grew 12% to AED 1,101 million.

• Gross profit for the six months was AED 1,055.1 million, and operating profit reached AED 950.3 million.

• Earnings per share increased to AED 0.16 from AED 0.15 year-over-year.

• Net debt to LTM EBITDA ratio at 2.1x; loan-to-value ratio at 13.9%.

Outlook and guidance

• EBITDA expansion targeted at 8–11% YoY for 2026.

• Management expects continued resilience due to the predominantly leasing-based business model.

• The group has sufficient liquidity and undrawn credit facilities to meet obligations for at least twelve months.

• Focus on operational excellence, customer retention, and new product development.

• No material deterioration in receivables or investment property values anticipated.