Earnings Report

DIP Holding PLC

9M 26

1. Company Overview & Earnings Context

DIP Holding PLC (formerly DIP Holding Limited) is a UAE-based real estate investment and development company. Its activities include the development, leasing and management of commercial properties, serviced land, commercial complexes and related infrastructure and facilities management services.

The Group’s principal operating asset is Dubai Investments Park (DIP), held through its wholly owned subsidiary, Dubai Investments Park Development Company LLC (DIPDC).

A major structural development during the reporting period was the acquisition of 100% of DIPDC from its parent company, Dubai Investments PJSC, effective 1 January 2026. The acquisition was undertaken for AED 4.5 billion and settled through the issuance of shares to the parent company. As both entities were under common control, the transaction was accounted for as a business combination under common control, with comparative figures re-presented.

The company subsequently completed its IPO process, with 20% of its existing share capital offered by Dubai Investments PJSC. Its shares were admitted to trading on the Dubai Financial Market on 11 November 2026. The IPO was a sale of existing shares and did not raise new capital for the company.

2. Financial Performance Snapshot

Key financial metric	9M 2026	9M 2025	Change
Revenue	753.99	711.62	+6.0%
Cost of providing services	205.33	206.52	-0.6%
Gross profit	548.66	505.10	+8.6%
Administrative expenses	32.50	26.13	+24.4%
Gain on fair valuation of investment properties	275.86	277.40	-0.6%
Operating profit	804.13	794.36	+1.2%
Net finance costs	71.46	101.67	-29.7%
Profit before tax	732.67	692.69	+5.8%
Profit after tax	666.26	628.22	+6.1%
Earnings per share (AED)	0.08	0.07	+14.3%*

EPS growth is approximate, based on the rounded figures disclosed in the financial statements.

Underlying performance: DIP Holding delivered higher revenue and gross profit, supported by growth in rental and subleasing income. Operating profit increased only modestly, partly because administrative expenses rose. The AED 275.9 million fair-value gain on investment properties remained a significant contributor to reported earnings. Lower net finance costs also supported the improvement in profit before tax.

The distinction between recurring property-related earnings and valuation gains is important when assessing the sustainability of reported profitability.

3. Operating Performance & Major Programs

Revenue composition

Revenue stream	9M 2026	9M 2025	Change
Rental income	456.37	448.97	+1.6%
Subleasing income	147.95	108.72	+36.1%
Transfer of lease income	25.71	36.25	-29.1%
Sewerage and irrigation revenue	74.70	70.28	+6.3%
Service charges	49.26	47.41	+3.9%
Total revenue	753.99	711.62	+6.0%

Rental income: The largest revenue contributor, increasing moderately to AED 456.4 million.
Subleasing income: Recorded strong growth of approximately 36%, making it an important contributor to overall revenue expansion.
Transfer of lease income: Declined compared with the previous year.
Infrastructure and ancillary facilities: The Group reports one operating segment, covering the development and leasing of serviced land and related properties within Dubai Investments Park, together with property and facilities management services.

Investment property portfolio

Investment properties increased to AED 6.86 billion at 30 September 2026 from AED 6.58 billion at 31 December 2025.

Key movements included:

Fair-value gain of AED 275.9 million.
Additions of AED 2.5 million.
No material disposals reported during the current period.

The fair-value gain was primarily attributed to changes in contractual and expected cash inflows. Independent registered valuers performed the valuations in accordance with RICS valuation standards and IFRS 13.

4. Key Performance Drivers

1. Growth in rental and subleasing income

Total revenue increased by 6.0%. The strongest growth came from subleasing income, which increased by approximately AED 39.2 million year-on-year. Rental income also remained positive, supporting the stability of the Group’s property income base.

2. Investment property revaluation

The Group recognised a fair-value gain of AED 275.9 million, broadly in line with the AED 277.4 million recorded in 9M 2025. This remained a major contributor to operating profit.

3. Higher administrative expenses

Administrative expenses increased by 24.4% to AED 32.5 million. Staff costs, legal and professional expenses, and other administrative costs contributed to the increase.

4. Lower net finance costs

Net finance costs declined to AED 71.5 million from AED 101.7 million. Finance costs decreased, while finance income increased significantly compared with the previous period.

5. Taxation

The effective tax rate for the nine-month period was 9.06%, compared with 9.31% in 9M 2025. The Group also disclosed that its parent’s multinational group qualified for the UAE Pillar Two initial phase of international activity relief, resulting in no top-up tax liability for the period.

5. Balance Sheet, Backlog & Cash Flow

Balance sheet position

Key balance-sheet metric	30 Sep 2026	31 Dec 2025
Total assets	8,134.14	8,175.32
Investment properties	6,859.78	6,581.46
Property, plant and equipment	203.13	214.18
Total equity	4,918.09	4,551.83
Total liabilities	3,216.05	3,623.49
Bank borrowings – non-current	1,901.64	2,060.70
Bank borrowings – current	399.40	384.20
Cash and cash equivalents	120.11	130.28
Trade and other receivables – current	459.43	570.00

Key observations

Investment properties represented the majority of the Group’s asset base, at approximately AED 6.86 billion.
Total equity increased by around AED 366.3 million, supported by retained earnings after accounting for dividends.
Total liabilities declined by approximately AED 407.4 million compared with December 2025.
Total bank borrowings stood at approximately AED 2.30 billion, comprising current and non-current facilities.
Cash and cash equivalents decreased slightly to AED 120.1 million.
The Group also reported AED 179.8 million in non-current lease liabilities and AED 25.3 million in current lease liabilities.

Cash flow performance

Cash flow item	9M 2026	9M 2025
Net cash generated from operating activities	617.17	644.87
Net cash generated from investing activities	263.40	82.99
Net cash used in financing activities	(885.28)	(806.35)
Net decrease in cash	(10.17)	(78.49)
Closing cash and cash equivalents	120.11	33.14

Cash flow observations

Operating cash generation remained strong at AED 617.2 million, although it was lower than the previous year's AED 644.9 million.
Investing cash inflow benefited from AED 100.1 million of proceeds from investment property sales and AED 175.0 million received from a related party in connection with property disposals.
Financing cash outflow increased to AED 885.3 million, mainly reflecting dividends, borrowing repayments and interest payments.
The Group declared and paid AED 300 million in dividends during the period, compared with AED 1.065 billion in 9M 2025.

Commitments and other matters

Capital commitments stood at AED 13.5 million.
Operating commitments were AED 80.0 million.
The Group had an outstanding AED 79.9 million commitment relating to infrastructure and development works with Dubai’s Roads and Transport Authority, expected to be invoiced and paid until 2029.
Investment property valuations are classified under Level 3 of the fair-value hierarchy, meaning they rely on significant unobservable valuation inputs.

6. Investor Takeaway

DIP Holding delivered a positive operating performance in 9M 2026, with revenue increasing by 6.0%, gross profit by 8.6% and net profit by 6.1%. Growth in subleasing income, stable rental income and lower finance costs supported the improvement.

However, reported profitability continues to receive significant support from investment property revaluation gains. The AED 275.9 million valuation gain represented a substantial part of operating profit, making it important for investors to distinguish property income and operating cash generation from non-cash valuation movements.

The balance sheet remains property-heavy, with investment properties of AED 6.86 billion and total equity of AED 4.92 billion. Operating cash flow was positive, although financing outflows were high due to dividends, borrowing repayments and interest payments.

The IPO and DFM listing on 11 November 2026 represent an important development in the company’s public-market profile. Since the offering involved the sale of existing shares by Dubai Investments PJSC, it did not provide fresh capital to DIP Holding.

Overall assessment: DIP Holding has a substantial income-generating property portfolio, positive rental and subleasing growth, and solid operating cash generation. The main factors investors should monitor are the sustainability of rental growth, administrative cost increases, debt servicing requirements and the extent to which future reported earnings depend on property revaluation gains.