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Earnings Report

Tecom Group

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

TECOM Group PJSC reported its Q1 2026 earnings, showing continued growth in revenue and profitability, supported by strong occupancy levels and a resilient leasing-driven business model.

2. Financial Performance Snapshot

  • Revenue: AED 755M (+11% YoY)

  • EBITDA: AED 610M (+13% YoY)

  • EBITDA margin: 81% (vs 79% YoY)

  • Net profit (after tax): AED 403M (+12% YoY)

  • EPS: AED 0.08 (vs 0.07 YoY)

3. Operational Highlights & Key Metrics

  • Occupancy rate: 98% across commercial & industrial assets

  • Funds from Operations (FFO): AED 549M (+14% YoY)

  • Customer retention: ~94% (commercial) and ~99% (industrial)

  • Weighted average lease term (WALT): ~8.8 years

As highlighted on page 1 of the earnings release, the Group maintained high occupancy and strong retention, reflecting sustained demand for Grade-A assets across its portfolio.

4. Key Performance Drivers

Based on the earnings release and financial statements, performance was supported by:

  • Higher occupancy and improved rental rates across assets

  • Portfolio expansion from acquisitions and developments completed in 2025

  • Disciplined cost management, driving EBITDA margin expansion

  • Strong demand across commercial and industrial segments

Overall, growth was broad-based across leasing income and supported by operational efficiency.

5. Outlook & Forward Considerations

TECOM Group operates a portfolio of specialised business districts across Dubai, focusing on leasing, development, and related services.

Key forward considerations include:

  • Sustaining high occupancy and rental growth

  • Execution of expansion and development pipeline

  • Maintaining cost discipline to protect margins

  • Monitoring demand across commercial and industrial real estate segments

The Group’s model remains largely leasing-driven, providing visibility and stability in revenue streams.

6. 🧾 Investor Takeaway

TECOM Group’s Q1 2026 results reflect steady growth in revenue and profit, supported by high occupancy, strong leasing demand, and efficient operations, with margins remaining robust.