TECOM Group (TECOM) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw double-digit growth in revenue, EBITDA, and recurring net profit year-over-year, driven by strong leasing activity and high occupancy across segments.

• Portfolio value reached AED 34.5bn, up 23.1% YoY, with significant new investments and acquisitions in industrial land and operational assets.

• Dividend policy updated for FY 2026, targeting AED 880mn in payouts, a 10% increase over prior years, supported by robust cash flows and profitability.

• Dividends of AED 440 million were declared and paid during the quarter.

• Gross profit margin improved, and total comprehensive income reached AED 411.1 million, reflecting gains in hedge reserves.

Financial highlights

• Revenue: AED 755mn (+11% YoY); EBITDA: AED 610mn (+13% YoY); Recurring net profit: AED 403mn (+12% YoY).

• Net profit: AED 403.4 million (Q1 2026) vs AED 360.9 million (Q1 2025).

• EBITDA margin at 81% (+1pp YoY); consolidated occupancy (excl. land leasing) at 97.7%.

• Funds from operations (FFO): AED 549mn (+14% YoY); recurring free cash flow: AED 485mn YTD.

• Basic and diluted EPS: AED 0.08 (Q1 2026) vs AED 0.07 (Q1 2025).

Outlook and guidance

• EBITDA expansion guidance for 2026 is 8–11% YoY.

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

• No material impact from seasonality or cyclicality anticipated for the remainder of 2026.

• Positive outlook for commercial and industrial real estate markets, supported by strong macroeconomic fundamentals and high occupancy.