Earnings Report

Tecom Group

Q1 26

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.