Tecom Group

1. Company Overview & Earnings Context

TECOM Group is one of Dubai's leading owners and operators of business districts, providing commercial real estate, leasing, and value-added services across sectors including technology, media, education, science, design, and industrial development. The Group generates recurring income primarily through long-term leasing of commercial properties and related services.

For H1 2026, TECOM Group delivered another strong financial performance, driven by higher leasing revenue, improved occupancy across its business districts, and continued demand for commercial space. Despite regional geopolitical uncertainties and lower visa services revenue, the Group maintained stable rental performance and continued expanding its investment property portfolio.

2. Financial Performance Snapshot

• Revenue: AED 1.54 Billion

• Gross Profit: AED 1.06 Billion

• Operating Profit: AED 950.3 Million

• Profit Before Tax: AED 832.5 Million

• Income Tax Expense: AED 27.8 Million

• Net Profit: AED 804.7 Million

• Earnings Per Share (EPS): AED 0.16

Compared with H1 2025:

• Revenue increased 10.9% to AED 1.54 billion.

• Gross profit increased 12.4% to AED 1.06 billion.

• Operating profit increased 9.3% to AED 950.3 million.

• Profit before tax increased 9.6% to AED 832.5 million.

• Net profit increased 9.1% to AED 804.7 million.

• Earnings per share increased from AED 0.15 to AED 0.16.

3. Operational Highlights & Key Metrics

• Total Assets: AED 18.0 Billion

• Total Equity: AED 8.26 Billion

• Investment Property: AED 15.71 Billion

• Cash & Cash Equivalents: AED 457.4 Million

• Bank Deposits: AED 217.5 Million

• Operating Lease Income: AED 1.38 Billion

• Net Cash Generated from Operating Activities: AED 1.15 Billion

• Net Cash Used in Investing Activities: AED 970.8 Million

• Net Cash Generated from Financing Activities: AED 52.9 Million

• Total Dividend Declared: AED 440 Million

4. Key Performance Drivers

TECOM's performance was primarily supported by higher leasing revenue from its investment property portfolio, reflecting resilient occupancy levels and rental performance across its business districts. Operating lease income continued to grow, while disciplined cost management helped improve gross and operating profitability. The Group also continued investing in new developments, expanding its investment property portfolio by more than AED 800 million during the period. Although visa services revenue softened and finance income declined, the overall business remained resilient due to its predominantly recurring leasing-based model.

5. Outlook & Forward Guidance

While the interim financial statements do not provide formal earnings guidance, management highlighted the resilience of TECOM's leasing-focused business model despite regional geopolitical developments. The Group continues to invest in expanding its commercial real estate portfolio and maintains access to substantial undrawn credit facilities, supporting future growth and ongoing development projects.

6. Investor Takeaway

TECOM Group delivered another solid set of first-half results, with double-digit revenue growth, higher profitability, and robust operating cash flow. Supported by recurring leasing income, a strong balance sheet, and continued investment in its business districts, the Group remains well positioned to benefit from sustained demand for commercial real estate in Dubai.