#Dubai's TECOM posts 13% H1 profit rise on commercial property boom | Reuters

Dubai's TECOM posts 13% H1 profit rise on commercial property boom | Reuters

Dubai business park operator TECOM Group (TECOM.DU) reported a 13% increase in first half profit on Wednesday as its CEO said demand for commercial property was outstripping supply in one of the world's fastest growing cities.

Net profit rose to 485 million dirhams in the first half, TECOM said in a regulatory filing, driven by high occupancy rates and new customers.

Commercial property in many developed cities has struggled to recover from the impact of the pandemic, but Dubai, home to the world's tallest skyscraper, has benefited. It largely stayed open during lockdowns and drew in new business that could no longer operate elsewhere.

The occupancy level for commercial and industrial assets was 87% as of June 30, a 5% increase from a year ago.

"Dubai's commercial real estate market is performing exceptionally, especially when compared to other major cities," Abdulla Belhoul, chief executive at TECOM Group told an earnings call with reporters.

"Demand is still surpassing the supply," Belhoul said.

Net profit for the second quarter eased to 229.4 million dirhams from 237.3 million a year earlier. Tecom said profit for the period rose 19% to 283 million dirhams, when the impact of a one-off expense related to settling an old loan facility was excluded.

The company said in June that it refinanced an existing loan on more favourable terms. The five-year, 7.6 billion dirham unsecured loan facility replaced an existing partially utilised term loan.