Slide 1: Investor Presentation Full Year 2024 Financial Results
Classification: Confidential INVESTOR PRESENTATION FULL YEAR 2024 FINANCIAL RESULTS FEBRUARY 2025
Slide 2: Disclaimer
Classification: Confidential FEBRUARY 2025 DISCLAIMER The information contained herein has been prepared by TECOM Group PJSC (“TECOM”) or (the “Company”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The company relies on informa
Slide 3: TECOM Group Management Presenting
Classification: Confidential FEBRUARY 2025 TECOM GROUP MANAGEMENT PRESENTING ABDULLA BELHOUL HAISSAM BAYDOUN CEO OF TECOM GROUP ACTING CFO OF TECOM GROUP 3 03
Slide 4: Content
Classification: Confidential FEBRUARY 2025 CONTENT MACROECONOMIC AND REAL ESTATE MARKET HIGHLIGHTS 5-7 TECOM GROUP’S VALUE PROPOSITION 8-12 FULL YEAR 2024 OPERATIONAL & FINANCIAL PERFORMANCE HIGHLIGHTS 13-23 DEVELOPMENT AND INVESTMENT UPDATE 24-32 BUSINESS SEGMENTS PERFORMANCE 33-37 SUSTAINABILITY A
Slide 5: Macroeconomic and Real Estate Market Highlights
Classification: Confidential MACROECONOMIC AND REAL ESTATE MARKET HIGHLIGHTS
Slide 6: Dubai Has Established a Unique Platform for Commercial Real Estate Growth
Classification: Confidential FEBRUARY 2025 DUBAI HAS ESTABLISHED A UNIQUE PLATFORM FOR COMMERCIAL REAL ESTATE GROWTH “Dubai’s dynamic and attractive business environment continues to draw significant interest and investment from around the world, thanks to a favourable investment environment and fle
Slide 7: This Strength Is Echoed Across the Industrial Sector
Classification: Confidential FEBRUARY 2025 THIS STRENGTH IS ECHOED ACROSS THE INDUSTRIAL SECTOR “As the supply of high-quality, Grade A warehousing and industrial spaces struggle to keep pace with surging demand, rental rates are on the rise. In Dubai, the warehousing and industrial sector has exper
Slide 8: TECOM Group's Value Proposition
Classification: Confidential TECOM GROUP’S VALUE PROPOSITION
Slide 9: Putting TECOM Group into Context
Classification: Confidential FEBRUARY 2025 PUTTING TECOM GROUP INTO CONTEXT 25 years 11,900+ Dividend payout 6 strategic sectors of experience as a leading player New and long-term, loyal and Supported by robust and primed for sustainable in Dubai’s business hub diversified customer base attractive
Slide 10: 10 Business Districts Strategically Located
Classification: Confidential FEBRUARY 2025 Our portfolio of differentiated business districts is an 10 BUSINESS DISTRICTS integral part of Dubai’s economic diversification and STRATEGICALLY LOCATED global competitiveness OUR PORTFOLIO IN NUMBERS 153 BUILDINGS (COMMERCIAL LEASING) 1,140 WAREHOUSES (I
Slide 11: Delivering Value Through Our Business Segments
Classification: Confidential FEBRUARY 2025 DELIVERING VALUE THROUGH OUR 4 BUSINESS SEGMENTS COMMERCIAL INDUSTRIAL LAND SERVICES LEASING LEASING LEASING & OTHERS • Government services • Registration and licensing 10.2 11.6 • Corporate services 178 Incubation services Million sqft Million sqft Million
Slide 12: Unlocking Sustainable Growth Through Clearly Defined Objectives
Classification: Confidential FEBRUARY 2025 UNLOCKING SUSTAINABLE GROWTH THROUGH CLEARLY DEFINED OBJECTIVES STRATEGIC PILLARS OPTIMISE CORE BUSINESS DEVELOP DIFFERENTIATED BUILD NEW SOURCES & PERFORMANCE VALUE PROPOSITION OF GROWTH - Retain and strengthen relationships with customers - Deliver a comp
Slide 13: Full Year 2024 Operational & Financial Performance Highlights
Classification: Confidential FULL YEAR 2024 OPERATIONAL & FINANCIAL PERFORMANCE HIGHLIGHTS
Slide 14: Financial Highlights (Full Year 2024)
Classification: Confidential FEBRUARY 2025 FINANCIAL HIGHLIGHTS (FULL YEAR 2024) OPERATING PERFORMANCE 94.4% 92% Consolidated Occupancy Retention Rate (Excluding Land Leasing) REVENUE EBITDA FFO1 AED 2,402 MN AED 1,854 MN AED 1,643 MN 2.2 Years vs. 2023 11% vs. 2023 12% vs. 2023 11% Overall blended
Slide 15: Financial Highlights (Q4 2024)
Classification: Confidential FEBRUARY 2025 FINANCIAL HIGHLIGHTS (Q4 2024) REVENUE EBITDA AED 643 MN AED 458 MN vs. Q4 2023 11% vs. Q4 2023 9% EBITDA MARGIN NET PROFIT 71% AED 286 MN vs. Q4 2023 -1% vs. Q4 2023 -8% 15 Figures in AED 'Million'
Slide 16: Healthy Cash Flow Generation & Increase in Free Cash Flow
Classification: Confidential FEBRUARY 2025 HEALTHY CASH FLOW GENERATION & INCREASE IN FREE CASH FLOW 1,80 0 1,60 0 1,643 o Robust growth in FY2024, with 1,40 0 1,20 0 1,447 1,198 significant YoY increase by 14% to AED 1,00 0 800 600 1,009 1.6 billion, due to better collection. 400 200 - FUNDS FROM 2
Slide 17: Balance Sheet
Classification: Confidential FEBRUARY 2025 BALANCE SHEET 31 DEC 31 DEC. YoY DESCRIPTION 2024 2023 CHANGE % PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS 108 114 -6% INVESTMENT PROPERTY 13,820 11,865 16% DERIVATIVE FINANCIAL INSTRUMENTS 165 222 -25% TRADE, UNBILLED AND FINANCE LEASE RECEIVABLES 837 816 3
Slide 18: Income Statement
Classification: Confidential FEBRUARY 2025 INCOME STATEMENT 31 DEC 31 DEC YoY DESCRIPTION 2023 2023 CHANGE % REVENUE 2,402 2,173 11% DIRECT COSTS (850) (760) 12% GROSS PROFIT 1,552 1,413 10% OTHER OPERATING INCOME 138 56 145% 1,690 1,469 15% GENERAL AND ADMINISTRATIVE (205) (167) 23% MARKETING AND S
Slide 19: Growth Strategy Supported by Healthy Leverage Standing
Classification: Confidential FEBRUARY 2025 GROWTH STRATEGY SUPPORTED BY HEALTHY LEVERAGE STANDING o The Group closed FY2024 with a strengthened financial position, BALANCE SHEET AED MN CAPITAL STRUCTURE AMOUNT characterized by ample liquidity of DEBT 5,213 CORPORATE FACILITY 7,600 over AED 1 billion
Slide 20: Portfolio Valuation
Classification: Confidential FEBRUARY 2025 PORTFOLIO VALUATION Strong appreciation in portfolio value driven by robust economic growth, increase in Dubai’s commercial property prices and rental income, high occupancy rates across our assets OUR PORTFOLIO 177MN 1,140 WAREHOUSES SQ. FT. LAND AREA +13m
Slide 21: EPRA KPIs
Classification: Confidential FEBRUARY 2025 EPRA KPIs Q3 Q2 KPI 2024 Q1 2024 2023 2022 2021 2020 2024 2024 IFRS EARNINGS (AED Million) 1,228 943 603 293 1,078 726 569 579 EPRA EARNINGS (AED Million) 1,638 1,244 799 391 1,502 1,024 898 944 IFRS NET ASSETS (AED Million) 6,708 6,392 6535 6247 6,329 5,96
Slide 22: Analyst Coverage Report
Classification: Confidential FEBRUARY 2025 ANALYST COVERAGE REPORT RATING BUY EQUAL-WEIGHT BUY OVER-WEIGHT BUY BUY BUY BUY HOLD ANALYST HARSH MEHTA NIDA IQBAL CHARLES BOISSIER NIKHIL MIRSHA INDARPREET SINGH ADITYA PUGALIA MOHAMAD HAIDAR AHMED BANI HANI JOICE MATHEW Harsh.Mehta Nida.Iqbal.Siddiqi Cha
Slide 23: Dividend Policy
Classification: Confidential FEBRUARY 2025 DIVIDEND POLICY • In June 2022 we announced our dividend policy: • Semi-annual dividend pay-outs adding to AED 800 million per FY 2023 FY 2024 H1 2025 annum were committed. • Total AED 1.2 billion dividend paid for second half of 2022 (AED 400 million), and
Slide 24: Development and Investment Update
Classification: Confidential DEVELOPMENT AND INVESTMENT UPDATE
Slide 25: Growth Strategy
Classification: Confidential NOVEMBER 2024 GROWTH STRATEGY SUPPORTED BY NEW DEVELOPMENT & ACQUISITION OF STRATEGICALLY LOCATED ASSETS AED 2.7+ BILLION FUTURE GROWTH INVESTMENTS 25
Slide 26: New Asset Acquisitions
Classification: Confidential FEBRUARY 2025 NEW ASSET ACQUISITIONS P RO J ECT RATIO NALE OFFICE PARK - OPERATING ASSETS, DUBAI INTERNET CITY • TECOM Investment FZ LLC, a TECOM Group PROJECT LOCATION subsidiary, acquired a Grade A multi-tenant PROJECT KEY HIGHLIGHTS office building (GLA approx. 371k)
Slide 27: New Development Update
Classification: Confidential FEBRUARY 2025 NEW DEVELOPMENT UPDATE PROJECT RATIONALE DEVELOPMENT – INNOVATION HUB PHASE 3 – DUBAI INTERNET CITY • Robust demand for commercial properties PROJECT KEY HIGHLIGHTS PROJECT LOCATION within TECOM’s CBD, Innovation Hub with occupancy levels Phase 3 rising clo
Slide 28: Development Update
Classification: Confidential FEBRUARY 2025 DEVELOPMENT UPDATE DEVELOPMENT – DUBAI SCIENCE PARK (DSP) PROJECT RATIONALE • Existing warehouses in DSP are operating at PROJECT KEY HIGHLIGHTS PROJECT LOCATION full occupancy over the last few years • DSP’s location is PLOT AREA GFA BUA Al Khail Road attr
Slide 29: Asset Acquisitions Update
Classification: Confidential FEBRUARY 2025 ASSET ACQUISITIONS UPDATE P RO J ECT RATIO NALE OPERATING ASSETS – DUBAI INTERNET CITY • TECOM Investment FZ LLC, a TECOM Group ASSET 1: subsidiary, acquired two DPG- HQ BUILDING Grade A office buildings (GLA approx. 334k) with a combined value of AED GLA 4
Slide 30: Asset Acquisitions Update
Classification: Confidential FEBRUARY 2025 ASSET ACQUISITIONS UPDATE INDUSTRIAL LAND PLOTS FOR LEASING – DUBAI INDUSTRIAL CITY (DI) P RO J ECT RATIO NALE • Dubai Industrial City LLC, acquired NUMBER OF PLOTS TOTAL AREA strategically located plots, allocated for industrial leasing, for a 73 13.9 comb
Slide 31: Asset Acquisitions and Development Update
Classification: Confidential FEBRUARY 2025 ASSET ACQUISITIONS AND DEVELOPMENT UPDATE D3 PHASE 2 COMMERCIAL – DUBAI DESIGN DISTRICT “DESIGN QUARTER” (1/2) P RO J ECT RATIO NALE • Phase 2 of Dubai Design District “d3” (Design DEVELOPMENT Quarter) was announced and it will consist of DETAILS residentia
Slide 32: Asset Acquisitions and Development Update
Classification: Confidential FEBRUARY 2025 ASSET ACQUISITIONS AND DEVELOPMENT UPDATE D3 PHASE 2 COMMERCIAL – DUBAI DESIGN DISTRICT “DESIGN QUARTER” (2/2) Commercial Residential TECOM Group Dubai Holding Real Estate 32
Slide 33: Business Segments Performance
Classification: Confidential BUSINESS SEGMENTS PERFORMANCE
Slide 34: Commercial Leasing Segment
Classification: Confidential FEBRUARY 2025 COMMERCIAL LEASING SEGMENT PERFORMANCE WAS FUELED BY INCREASED OCCUPANCY, RISING RENTAL RATES, AND ENHANCED COST EFFICIENCY FULL YEAR % CHANGE DESCRIPTION YOY Revenue higher by AED 90 mn (8%) driven by: 2024 2023 REVENUE 1,218 1,128 8% • New leases, with a
Slide 35: Industrial Leasing Segment
Classification: Confidential FEBRUARY 2025 INDUSTRIAL LEASING SEGMENT HIGH OCCUPANCY RATES AND STRATEGIC EXPANSION WITHIN KEY INDUSTRIAL HUBS. PERFORMANCE UNDERSCORES THE SEGMENT'S OPERATIONAL EFFICIENCY AND ITS ABILITY TO CAPITALIZE ON FAVORABLE MARKET DYNAMICS. FULL YEAR % CHANGE DESCRIPTION 2024
Slide 36: Land Leasing Segment
Classification: Confidential FEBRUARY 2025 LAND LEASING SEGMENT PERFORMANCE REFLECTS THE SUCCESSFUL EXECUTION OF SEGMENT STRATEGY TO CAPITALIZE ON THE INCREASING DEMAND FOR WELL-LOCATED LAND IN DUBAI'S THRIVING INDUSTRIAL AND COMMERCIAL SECTORS. FULL YEAR % CHANGE DESCRIPTION 2024 2023 YOY • Revenue
Slide 37: Services & Others Segment
Classification: Confidential FEBRUARY 2025 SERVICES & OTHERS SEGMENT STRONG PERFORMANCE WAS DRIVEN BY INCREASED DEMAND ACROSS VARIOUS SERVICE OFFERINGS, INCLUDING VISA PROCESSING, CO- WORKING SPACES, AND BUSINESS INCUBATION SERVICES DESCRIPTION FULL YEAR % CHANGE • Axs saw a significant increase in
Slide 38: Sustainability and ESG
Classification: Confidential SUSTAINABILITY AND ESG
Slide 39: Environment & Sustainability Goals
Classification: Confidential FEBRUARY 2025 ENVIRONMENT & SUSTAINABILITY GOALS National/International OUR CORE PILLARS Mandates • Ethical business policies & practices Governance and • Robust governance UAE Centennial 2071 Optimise core Risk • Prudent risk management business • Responsible sourcing a
Slide 40: Key ESG Highlights: Economy
Classification: Confidential FEBRUARY 2025 KEY ESG HIGHLIGHTS AND ACHIEVEMENTS OF FY2024 ECONOMY 87.1% Customer Experience (CX) Index, adopted in 2023. Previously we measured Customer Satisfaction only. In CX, we incorporated additional “Likelihood to Recommend” metric in our transactional surveys a
Slide 41: Key ESG Highlights: Community
Classification: Confidential FEBRUARY 2025 KEY ESG HIGHLIGHTS AND ACHIEVEMENTS OF FY2024 COMMUNITY AED 1.4M In CSR activities in 2024 including WeWalk charity walk, The Good Store, Pink Caravan and donating meals during Ramadan. Supporting Talent Joined Dubai Media Council's Emirati Media Talent Ple
Slide 42: Key ESG Highlights: People
Classification: Confidential FEBRUARY 2025 KEY ESG HIGHLIGHTS AND ACHIEVEMENTS OF FY2024 PEOPLE 26% Emiratisation Rate 35% of our employees are female 20.3 average hours of training achieved by employees compared to 15.2 in 2023 0 Work-related injuries or fatalities since 2019 42
Slide 43: Key ESG Highlights: Environment
Classification: Confidential FEBRUARY 2025 KEY ESG HIGHLIGHTS AND ACHIEVEMENTS OF FY2024 ENVIRONMENT 6 43 LEED PLATINUM certified (+4 in 2024) LEED certified buildings 30 LEED GOLD certified 12 (+8 in 2024) 7 Buildings in 2024 LEED SILVER certified 8% 321 17 Electricity Consumption Tonnes of waste E
Slide 44: Achievements and Outlook
Classification: Confidential ACHIEVEMENTS AND OUTLOOK
Slide 45: Achievements FY2024
Classification: Confidential ACHIEVEMENTS FY2024 REVENUE EBITDA EBITDA % NET PROFIT FFO OCCUPANCY End of Period COMMERCIAL LEASING TARGETS AED 2,132 MN AED 1,454 MN 68% AED 689 MN AED 1,149 MN ~88% (IPO FINANCIAL GUIDANCE) INDUSTRIAL LEASING ~86% COMMERCIAL LEASING AED 2,402 MN AED 1,854 MN 77% AED
Slide 46: Priorities for 2024 & Beyond
Classification: Confidential FEBRUARY 2025 PRIORITIES FOR 2024 & BEYOND OPTIMISE CORE BUSINESS DEVELOP DIFFERENTIATED BUILD NEW SOURCES & PERFORMANCE VALUE PROPOSITION OF GROWTH Identify customer priorities and Enhance and integrate customer Identify novel, differentiated retention initiatives journ
Slide 47: Growth Drivers
Classification: Confidential FEBRUARY 2025 GROWTH DRIVERS 01. 02. 03. 04. 05. Occupancy Rental Completed Growth Complementary Rates Rates Projects Projects Services Occupancy rates Rental rates growth Delivery of high- Future organic Growth driven by growth driven by as Dubai office rental quality b
Slide 48: Contact Us
Classification: Confidential FEBRUARY 2025 CONTACT US
Slide 49: Thank You
Classification: Confidential THANK YOU