Tecom Group results: H1 2026 recurring net profit rises 9% as revenues top AED 1.5bn
Tecom Group results: H1 2026 recurring net profit up 9% to AED 805m; revenues rose 11% to over AED 1.5bn and board approved AED 440m interim dividend.
Tecom Group reported strong first-half 2026 results, with recurring net profit rising 9% year-on-year to AED 805 million and total revenues increasing 11% to exceed AED 1.5 billion for the six months ended June 30, 2026. The group attributed the gains to higher occupancy across its business districts, growth in average rentals and robust performance from both commercial and industrial assets. The board has approved an interim cash dividend of AED 440 million for the period, underscoring the company’s cash-generative profile and shareholder return focus.
Financial highlights for period ended June 30, 2026
Tecom Group posted recurring net profit of AED 805 million for H1 2026, a 9% improvement compared with the same period a year earlier. Consolidated revenues climbed by 11% year-on-year, driven by stronger asset performance and rising rental rates across the portfolio. The results reflect operations for the quarter and first half ending on June 30, 2026, and mark a continuation of the group’s recent recovery trajectory.
Board approves AED 440 million interim dividend
Following the robust half-year performance, Tecom Group’s board authorised an interim cash distribution totalling AED 440 million for H1 2026. The decision reflects the board’s assessment of the company’s balance sheet strength and free cash flow underpinned by high occupancy levels. Company leadership said the payout aligns with a strategy to balance growth investment with shareholder returns.
Commercial assets drive revenue growth
Revenue from commercial assets rose 11% year-on-year to reach AED 783 million in the first half of 2026, reflecting stronger leasing activity and higher average rents. Commercial asset occupancy stood at 96% while tenant retention reached 94%, signalling sustained demand for Tecom’s business communities. Management highlighted that higher utilisation and quality leasing contributed materially to the uplift in top-line performance.
Industrial portfolio posts double‑digit gains
Tecom’s industrial asset revenues increased 15% year-on-year to AED 239 million, supported by exceptionally high occupancy and retention rates. The industrial leasing portfolio showed occupancy of 98% and tenant retention of 99%, underlining the sector’s resilience and appeal to logistics and light-industrial occupiers. Separately, the group’s leased industrial land portfolio recorded a 22% revenue gain to AED 361 million, reflecting both pricing dynamics and increased take-up.
Occupancy and retention underpin performance
Overall group occupancy rose to 97% across Tecom’s clusters, a key factor behind the revenue and profit gains reported for H1 2026. Strong retention metrics reduced churn and lowered leasing costs, helping to stabilise cash flow and support margin expansion. Management noted that consistently high utilisation across its ten business districts has been central to sustaining the group’s revenue momentum.
Management outlook and strategic priorities
Tecom’s chairman and chief executive reiterated that the results validate the group’s strategy of combining disciplined financial management with targeted investment in its business districts. Leadership said they will continue investing in the development and enhancement of the group’s ten clusters to attract multinational and regional companies. Executives emphasised that balancing growth with prudent capital allocation remains a priority as the group seeks to consolidate its role as a strategic driver of Dubai’s business infrastructure.
The H1 2026 results for Tecom Group underscore continued recovery in leasing markets and the effectiveness of its asset management approach, with recurring profit growth, expanding revenues and an interim dividend signalling confidence in near‑term cash flows. Results cover the six-month period ended June 30, 2026, and the approved AED 440 million interim payment reflects the board’s focus on delivering sustainable value to shareholders.